DCC statement on Ofgem investigation into historic procurement practices

The investigation related to five contracts awarded between 2021 and 2024. Ofgem has confirmed that there was no detriment to consumers arising from these arrangements.

We acknowledge, however, that aspects of our procurement record-keeping during this period did not meet the standards expected of a regulated monopoly operating on behalf of energy consumers.

Since this period, we have already taken significant steps to strengthen our procurement governance, documentation and controls, including:

• Delivered a revised Procurement Strategy in January 2025, providing a structured, transparent approach that enables us to secure the necessary capabilities while ensuring we deliver compliant, value for money services
• Enhanced internal governance, including revised internal assurance oversight and additional staff training on procurement compliance
• Upgrades to our procurement systems to ensure consolidated workflows and clear documentation

As part of the resolution, we have agreed a package of further record keeping improvements and will contribute £200,000 to Ofgem’s Voluntary Redress Fund.

We are committed to fully implementing all required actions. We will continue to strengthen our approach to procurement ahead of the transition to our new licence arrangements in November.

DCC plays a critical role in supporting Britain’s smart energy infrastructure, and we take that responsibility seriously. The improvements we have made—and will continue to make—will ensure we deliver that role with the highest standards of governance and accountability.

Chris Lovatt, Chief Executive Officer of DCC, said:

“We have taken decisive action to strengthen our procurement record keeping and ensure we meet – and exceed – regulatory expectations. The improvements we have already implemented, alongside the further commitments we have made, will ensure greater transparency, consistency and assurance in how we operate.

As the organisation responsible for Britain’s smart metering network, we recognise the importance of maintaining the trust of consumers, our customers and our regulator, and we remain fully committed to doing so.”