DCC begins a new chapter

November 2026 marked a new chapter for the Data Communications Company (DCC), as Smart Meter Communication Licence 2 (SMCL2) officially took effect. DCC is now a wholly owned subsidiary of the Smart Energy Code Company (SECCo) and operates under a not-for-profit, public-interest model with upfront price controls set by Ofgem.

DCC runs the communications infrastructure connecting millions of smart meters across Great Britain. For an organisation with such an important role in the energy industry, securing its future development is welcome news. In this article, we’ll explain what’s changed and what it means for the sector.

What’s changed at DCC?

The introduction of SMCL2 brings a new ownership structure and regulatory framework. DCC2 Ltd, a wholly owned subsidiary of SECCo, has taken over responsibility for the licensed business. The transition follows extensive preparation, with arrangements in place to ensure DCC’s essential services continue without disruption.

The new framework introduces several striking changes:

Not-for-profit model: DCC now operates as a public-interest company, with its objectives aligned more closely with the needs of consumers and the wider energy industry.
Upfront price controls: Ofgem has introduced an ex-ante framework, meaning it assesses and sets limits on DCC’s costs in advance, rather than reviewing them retrospectively.
Independent oversight: A new majority-independent Board will oversee the licensed business, strengthening governance and accountability.

These changes aim to deliver greater long-term value from Britain’s smart metering infrastructure. They also increase scrutiny of how DCC spends money and responds to industry needs. Angela Love, Chair of the SEC Panel and SECCo Board, welcomed the transition, highlighting the increased focus on costs and transparency, alongside the needs of customers and consumers.

These priorities matter for an organisation responsible for infrastructure used across Britain’s energy sector. The new arrangements should provide a stronger basis for managing that responsibility in the years ahead.

DCC is essential to Britain’s energy infrastructure

DCC plays a central role in Britain’s energy system. Its communications network connects more than 39 million smart meters across Great Britain, enabling the secure exchange of billions of messages every month. DCC also operates the Central Switching Service, which has completed more than 54 million energy supplier switches since its launch in 2022.

The network supports a wide range of services that consumers and energy companies use every day. Smart meter data enables more accurate billing and removes the need for customers to manually submit their meter readings. It also gives customers access to new smart meter-only energy tariffs. Electricity network operators can use smart meter data to manage their networks more effectively and respond faster to outages. It also helps them plan for future demand, particularly as electricity consumption patterns change.

DCC’s infrastructure will become increasingly important as Britain moves towards a more flexible, lower-carbon energy system. Greater use of energy data will help the industry respond to changing demand and use available capacity more effectively. Maintaining these services throughout the licence transition is therefore essential. The new arrangements provide continuity while allowing DCC to develop its role in Britain’s changing energy landscape.

Getting more value from the smart meter network

SMCL2 places greater emphasis on delivering public value from DCC’s national infrastructure. The new not-for-profit model aims to make better use of the network’s capabilities, creating opportunities for innovation and greater benefits for consumers. With the infrastructure now firmly established as a national asset, the focus is on how the industry can get more from its investment.

Chris Lovatt, DCC’s Chief Executive Officer, believes the new arrangements will create opportunities to work more closely with customers and the wider industry However, making greater use of the network must go hand in hand with maintaining the high standards consumers depend on. Security and reliability will remain essential, particularly as more energy services rely on smart meter data.

The combination of DCC’s operational experience and its new public-interest model should also support the next generation of smart energy services. This will become increasingly valuable as Britain develops a more flexible energy system that makes greater use of data.

Looking ahead

DCC’s new ownership and governance arrangements provide a foundation for the next stage of its development, with greater accountability and closer scrutiny of costs.

For Meter Corp, this is a positive step for the industry. We welcome the work to secure DCC’s future and ensure this vital infrastructure continues to operate effectively. Maintaining high service standards will be central to making the new arrangements a success.