NEWS

Energy suppliers remain under pressure to install more SMETS2 meters. However, the government is still working out how some of those meters should communicate with the Data Communications Company (DCC).

On 10 July 2026, DESNZ published its response to a consultation on the Smart Energy Code changes needed to support Virtual Wide Area Network technology. It confirmed that most proposals will go ahead, while launching another consultation on an outstanding issue around changing suppliers.

The changes are important. They also expose a familiar problem: suppliers are still being pushed to deploy more meters while parts of the communications framework remain unresolved. In this article, we’ll tell you more about it.

The DESNZ decision

VWAN gives certain smart meter communications hubs another way to connect to the DCC. Instead of relying on the standard smart metering wide-area network, the hub can communicate via the customer’s internet connection using a Virtual WAN Device.

DESNZ now plans to introduce several new arrangements through the Smart Energy Code:

• A recovery procedure for serious security incidents or suspended communications
• Independent testing of Virtual WAN Devices against recognised security principles
• Monthly DCC reporting on how VWAN is being used
• Formal DESNZ approval for changes to the WAN Selection Arrangements

DESNZ will also remove a restriction preventing VWD manufacturers from charging for post-installation support, including maintenance or firmware development. The department considers the current rule too much of a burden on these companies.

These measures create a stronger framework around VWAN, but they also show how much work remains. Security assurance needs strengthening, incident procedures need formalising, and DESNZ wants better information on how hubs use the customer’s internet connection. We’re talking about infrastructure that will support meters long after installation. Really, these issues should already be settled by now.

The problem of supplier switching

Removing the restriction on post-installation charges creates another challenge. The incoming supplier may not have an agreement with the company supporting the existing Virtual WAN Device.

The original proposal made the outgoing supplier responsible for ensuring the device continued to operate for at least 28 days after the switch. This would give the new supplier time to arrange support or provide a replacement. Respondents questioned how this would work. Once the customer moves, the outgoing supplier loses the customer relationship and may lose visibility of the device through DCC systems. One respondent also raised data protection concerns.

DESNZ has now narrowed the proposed obligation. The outgoing supplier’s agreement with the manufacturer would need to prevent VWAN functionality from being disabled or reduced solely because the customer switched supplier. That protection would last for at least 28 days. However, the wording has not yet been formally adopted. A further consultation closes on 21 August 2026, with DESNZ planning to introduce the provision through the Virtual WAN Transition Document in October.

Customers should be able to switch supplier without putting their smart communications at risk. The fact that DESNZ still needs to determine who bears responsibility shows that the model is not finished.

More installations mean more maintenance

This follows another recent VWAN intervention. DESNZ previously allowed 4G communications to be temporarily disabled for some soft-launch hubs. Those devices would use the customer’s internet connection instead. The workaround addressed hubs selecting 4G where coverage existed on paper, but the signal was too weak or unstable for reliable communication with DCC. Suppliers raised concerns about broadband availability, resilience and fault handling. Different versions of the WAN Selection Arrangements will also apply to soft-launch hubs and later 4G Release 2 devices during the transition. 

The July response adds further work around device security, technical support and continuity after a supplier switch. This work is necessary, but the sequence makes little sense. Suppliers could install more devices under arrangements that later require support or replacement. Unresolved issues risk creating further engineer visits and fault handling. Smart meters need dependable communications from the day they are installed. Deployment should not run ahead of the infrastructure that supports it.

Replace meters when they need replacing

DESNZ is taking steps to make VWAN more secure and manageable. That is welcome. Its response also confirms that an important part of the operating model remains open while suppliers continue working towards the government’s rollout goals. 

A smart meter that cannot communicate reliably with the DCC offers far less value. Installing another SMETS2 meter does not count as progress if its communication route relies on temporary arrangements or incomplete rules. The government should stop the mandated rollout. Traditional meters can be replaced with smart meters when they fail or reach the end of their working lives. That would let suppliers focus on the meters already installed and give DESNZ time to properly settle the communications framework. Reliability should always come before another push for volume.