Overview
Ofgem has launched a consultation on the proposed methodology for calculating a centralised reimbursement amount for energy suppliers undertaking 4G Communications Hub-only exchange site visits.
Why This Matters
- Network Changes: 2G and 3G networks will be retired by 2033, requiring upgrades to maintain smart meter connectivity.
- Impact:
- SMETS1 meters: Full meter and hub replacement needed.
- SMETS2 meters (Central & South): Only the hub needs replacing.
- Funding Gap: Hub-only replacements incur costs not covered under existing arrangements.
Proposed Solution
- Centralised Funding: The Data Communications Company (DCC) will reimburse suppliers for successful hub-only exchange visits in Central and South regions.
- Calculation Methodology: A single Reimbursement Amount per successful visit will be applied, based on a standardised approach developed by DESNZ and Ofgem.
Consultation Details
- Publication Date: 9 September 2025
- Closing Date: 4 November 2025
- Who Should Respond: Energy suppliers, industry stakeholders, and interested parties.
- Objective: Ensure fair and consistent cost recovery across the sector.
Next Steps
- The consultation document is available for review on Ofgem’s website.
- Submit responses by 4 November 2025.
If you have any comments ore questions, please let the AMO team know.