The Smart Meter Communication Licence
Smart DCC Ltd (DCC) operates under the Smart Meter Communication Licence which was granted by Government and is regulated by Ofgem. The licence allows us to establish and manage the smart metering data and communications infrastructure.
The licence came into effect on 23 September 2013 and is 12 years long. The licence imposes an ex-post Price Control regime to scrutinise DCC costs. It can be modified by the Department for Energy Security and Net Zero (DESNZ) or Ofgem.
Complying with industry codes
Under our licence, we are required to be a Party to and comply with the Smart Energy Code (SEC) and the Retail Energy Code (REC).
Smart Energy Code (SEC)
The Smart Energy Code (SEC) is a multi-party agreement, which requires energy suppliers, network operators and other relevant stakeholders to become a party in the SEC and to comply with its provisions in order to use DCC services.
The SEC sets out the rights and obligations of each SEC Party.
It is overseen by a Panel of industry experts (the SEC Panel) which includes a DCC representative, and is administered by the Smart Energy Code Administrator and Secretariat (SECAS). DCC supports the development and maintenance of the SEC through assessing and implementing changes (known as modifications), and consulting on changes to technical appendices known as subsidiary documents when directed by DESNZ.
For the current version of the SEC and for more information, including how it is governed, visit the SECAS website.
Retail Energy Code (REC)
The Retail Energy Code (REC) came into force in early 2019 and is a new multi-party agreement that sets out the framework for the retail energy market including how the new Centralised Switching Service will work. As well as continuing to comply with the existing Smart Energy Code (SEC), DCC is also required to follow the rules in the REC.
The REC also sets out the rights and obligations of each REC Party. DCC will be responsible for the obligations relating to the design, implementation and early live operation of the Centralised Switching Service.
The development of the REC is being led by Ofgem and will transition to being overseen by RECCo.
For the current designated REC version and for more information on REC governance, visit the Ofgem website.