The Department for Energy Security & Net Zero (DESNZ) has launched a consultation on its minded-to position regarding Project Activity 4 of the Data Communications Company (DCC) 4G Communications Hubs & Networks (CH&N) Baseline Margin Project Performance Adjustment (BMPPA) Scheme. The consultation assesses whether DCC’s 4G communications services were delivered successfully following Initial Pallet Validation (IPV) and whether DCC should retain the performance-related margin placed at risk under the scheme.
DESNZ, the SEC Panel and DCC have all independently awarded a score of 3 out of 3, representing the highest possible performance rating and indicating there were no material areas of concern with the delivery of 4G communications services during the assessment period. As a result, DESNZ’s minded-to position is that DCC should retain 100% of the £866,000 baseline margin placed at risk under Project Activity 4.
For AMO members, the assessment provides positive assurance regarding the operational performance of 4G Communications Hubs. The SEC Panel reported that 4G hubs have generally performed well, particularly when replacing previously non-communicating devices, and have delivered benefits during meter exchanges by avoiding full power-down requirements at customer premises. Suppliers also reported encouraging installation outcomes during the early stages of deployment.
The review did, however, identify several areas of ongoing industry focus. These included two Category 2 service incidents linked to external Vodafone mobile network issues rather than faults with the communications hubs themselves. While both incidents were resolved within hours and had limited customer impact, they highlighted the importance of effective change management and notification arrangements between telecommunications providers and DCC. Enhanced notification processes have since been introduced.
Coverage performance remains another important consideration. Suppliers continue to report challenges when planning installations in areas where 4G WAN coverage is uncertain. DESNZ acknowledged that coverage levels were initially below expectations, but recognised that DCC has implemented roaming capabilities and ongoing coverage improvement initiatives which are expected to further enhance service availability across Great Britain.
The consultation also highlights a communications hub behaviour issue that can occur when a hub becomes unseated from the electricity meter, causing flashing lights that may be misinterpreted by field engineers as a device fault. Industry feedback suggests this may have contributed to some unnecessary communications hub returns. DCC has investigated the issue and is addressing it through firmware enhancements.
Overall, the consultation provides confidence that the 4G CH&N programme is delivering improved communications performance, supporting the transition away from legacy communications technologies and helping to increase successful smart meter connectivity. While coverage enhancement, service governance and installation experience remain areas for continued improvement, DESNZ’s assessment concludes that DCC’s performance during the monitoring period warrants the maximum score under the BMPPA framework. Responses to the consultation are requested by 2 October 2026.