Ofgem Formally Awards Next Smart Metering Communication Licence

Ofgem has formally awarded the next Smart Metering Communication Licence to DCC2 Ltd, a wholly owned subsidiary of SECCo Ltd, now that the regulator’s competitive tender process has been drawn to a close Draft new Smart Meter Communication Licence | Ofgem 

The licence award marks a significant milestone in the transition to the next phase of governance for Britain’s smart metering programme. As previously confirmed, Ofgem’s decision relates to the oversight of the Data Communications Company (DCC) and does not change DCC’s role in operating the digital communications infrastructure that underpins the national smart meter network.

Following Ofgem’s earlier selection announcement, DCC and the new licence holders, DCC2 Ltd, have already begun working closely together, developing joint transition plans and establishing ways of working to support a smooth and well‑managed move to the new arrangements.

With the licence now formally awarded, this collaboration will continue and intensify as both organisations work towards the planned transfer of the business from Capita in November 2026.

The new licence framework will introduce a not‑for‑profit model and independent governance, with objectives focused on delivering maximum value for consumers across Great Britain. Throughout the transition period, DCC will continue to deliver secure, reliable and high‑quality services for customers and billpayers, ensuring continuity and stability for the smart metering system.

Chris Lovatt, CEO of DCC, said:

“The formal award of the licence is an important milestone and builds on the collaborative work already underway between DCC and DCC2 Ltd.

“We are working closely together to prepare for the transition, while remaining firmly focused on delivering secure, high‑quality and value‑for‑money services for our customers and billpayers.”