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Changes to the Smart Energy Code to support 4G communications hubs and networks financing arrangements

DCC in consulting on behalf of BEIS on changes to the Smart Energy Code to support DCC’s proposed arrangements for Financing CHs and programme Design, Build and Test activity under the CH&N Programme.

As part of DCC’s CH&N programme, DCC will be contracting directly with delivery partners who are providing individual components that make-up the overall solution. This is different to the approach we have followed for Communication Service Provision in the past, where DCC has contracted with a single, prime service provider, who has then arranged sub-contracts for individual components within the solution as a whole.

This change in approach to a disaggregated procurement model requires DCC to take on two roles which would have been undertaken by a prime service provider under an aggregated model. These are:

  • Managing the direct financing arrangements for Communications Hubs; and
  • Managing any necessary financing to allow DCC to smooth the costs to customers, of payments to service providers during the Design, Build and Testing (DBT) Phases of the programme.

DCC is consulting on behalf of BEIS on proposed changes to the SEC which extend the third-party rights for lenders who arrange finance for CHs currently set out in the SEC, so that they also apply to direct financial arrangements between DCC and lenders for CH Financing and DBT financing for the CH&N Programme.

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