News & Events

The Government has announced a package of measures to reduce the influence of volatile gas prices on electricity prices in Great Britain, with the stated aim of protecting households and businesses from future energy price shocks. While the measures are primarily focused on electricity generation and wholesale pricing, they have important downstream implications for energy consumers, suppliers, and the wider system in which meter operators play a critical role.

At present, gas continues to set the wholesale electricity price around 60% of the time, despite renewables and nuclear providing a growing share of generation. As a result, fluctuations in international gas markets directly impact electricity bills, even where the underlying cost of generation has not changed. This results in bill volatility that consumers often struggle to understand, and which feeds through supplier pricing, billing complexity, and consumer trust—issues that directly affect AMO members operating at the customer interface.

To address this, the Government is strengthening the Electricity Generator Levy (EGL), increasing the marginal tax rate on excess revenues from 45% to 55% from July 2026 for non‑CfD renewable and nuclear generators. This is intended to ensure that windfall profits arising during periods of high gas prices are more effectively recycled to support households and businesses facing higher energy costs, rather than remaining within the generation sector.

In parallel, the Government plans to introduce a new voluntary Wholesale Contract for Difference (CfD) for legacy renewable generators, with the first auction expected in 2027. This mechanism aims to move a greater proportion of electricity generation onto long‑term, fixed‑price contracts, reducing exposure to gas‑driven wholesale price volatility. Around 30% of Britain’s electricity supply is currently estimated to remain exposed to gas‑set prices, and these reforms are intended to materially reduce that exposure over time.

For AMO members, these measures are significant in several respects. Greater price stability at the wholesale level should support more predictable retail pricing and billing structures, potentially easing consumer confusion and complaint volumes during energy price shocks. Over time, reduced price volatility may also lower pressure on emergency policy interventions and short‑term customer support mechanisms, supporting a more stable operating environment for suppliers and metering providers.

More broadly, the reforms align with the Government’s clean energy mission to accelerate the transition to low‑carbon power, strengthen energy security, and ensure consumers see the benefits of cheaper renewable generation reflected in their energy bills. AMO will continue to monitor the detailed design and implementation of these measures to assess their practical impact on metering operations, consumer outcomes, and the wider energy market framework.

The updated specification applies to new entrants, those extending their scope of work, and individuals seeking optional re‑certification. It introduces a structured pathway beginning with generic core competence, followed by progression into sector‑specific specialisms, including metering, heating, catering, laundry, and process or plant installations.

Training requirements cover both off‑site learning—including technical knowledge, legal duties, and performance criteria—and supervised on‑site work experience, with minimum guided learning hours defined for each pathway. Learners are required to gather on‑site evidence before progressing to ACS assessment and Gas Safe registration, ensuring practical competence is achieved prior to independent working.

This edition strengthens generic core competence requirements and introduces several key updates of relevance to AMO members. Tightness testing and purging to IGEM/UP/1A is now mandatory for all learners, with an optional route to include IGE/UP/1. A limited‑scope pipework installer pathway has also been introduced, supporting proportionate training for specific work activities while maintaining safety standards.

The specification has been facilitated by IGEM and Energy & Utility Skills and approved through IGEM’s technical governance framework, with extensive industry involvement across employers, certification bodies, and training providers. It is intended to support safe, compliant delivery of non‑domestic gas work across all relevant sectors, including gas metering.

AMO members involved in non‑domestic metering, training, or workforce development may wish to review the specification to understand its potential implications for competence frameworks, training provision, and future skills requirements.

The document is available as a free download from the IGEM website.

These positions are central to the effective governance of the Association and provide members with the opportunity to help shape AMO priorities, influence industry discussions, and contribute to the continued development of metering across Great Britain.

AMO Committee Nominations

The AMO invites nominations from Large, Medium, and Small MEM member organisations for the following Committee roles:

• AMO Chair
• AMO Vice Chair
• Budgetary Officer
• Committee Members

The AMO Committee plays a vital role in providing strategic direction, oversight, and leadership for the Association, ensuring that it continues to represent the interests of its members and the wider industry effectively.

Forum Chair and Vice Chair Opportunities

In addition to Committee roles, the AMO is seeking members to take on leadership positions across its key industry forums:

• Electricity Metering Forum (EMF)
• Gas Metering Forum (GMF)
• Half Hourly Electricity Metering Forum (HHEMF)
• Net Zero Forum
• Health and Safety Forum

Forum Chairs, supported by Vice Chairs, are instrumental in guiding discussions, shaping work programmes, and delivering the objectives of each forum across key industry topics. These roles provide an excellent opportunity for members to contribute their expertise, collaborate with peers, and help influence industry outcomes.

How to Nominate

Members may nominate themselves or a colleague (with their prior agreement). All nominations should be submitted to the amo@gemserv.com by 20 March 2026.

Further details on the roles and responsibilities are available on request, and the AMO team would be pleased to discuss any of the positions with interested members.

The regulator has appointed DCC2 Ltd, a wholly owned subsidiary of the Smart Energy Code Company (SECCo), as the Successor Licensee that will hold the new Smart Meter Communication Licence when it comes into effect in March 2026.

A New Governance Era for Smart Metering

The appointment of DCC2 marks a significant step in the transition to a reformed governance and regulatory framework for the national smart metering system. According to Ofgem, DCC2 will operate on a not‑for‑profit, purpose‑driven basis and will be responsible for implementing key reforms arising from the DCC review programme. These include:

• Transition to majority independent governance,
• Introduction of an ex‑ante cost control model, and
• Production of a long‑term business strategy and technology roadmap.

These changes aim to ensure that the smart metering communications network continues to deliver value for consumers, strengthens regulatory oversight, and enhances long‑term system resilience.

A Competitive Selection Process

The decision follows a structured tender process launched after Ofgem’s Expression of Interest in March 2025. Key stages included:

• March 2025 – Expression of interest and initial questionnaire
• July 2025 – Publication of evaluation criteria
• 8 September – 6 October 2025 – Open qualification stage
• 5 November 2025 – 12 January 2026 – Closed proposal phase for qualified bidders
• 9 February 2026 – Final selection of the successor licensee 

Ofgem confirmed the process was conducted in line with the Smart Meter Communication Licence Tender Regulations (SI 2012/2414). 

Industry Reaction

In response to the announcement, Smart DCC—the current operator of the national smart meter communications infrastructure—welcomed Ofgem’s decision. The organisation highlighted that the selection of SECCo’s subsidiary does not alter DCC’s operational responsibility for running the national smart meter network during the transition. Instead, both organisations will begin joint preparations for a handover expected to complete in November 2026.

DCC CEO Chris Lovatt described the announcement as “an important step in the process towards our new regulatory framework,” noting that the transition is designed to ensure continuity of service, independent governance, and maximum consumer value.

Looking Ahead

Ofgem plans to publish the final version of the new SMCL and bring it into legal effect in March 2026, marking the official start of the transition to DCC2 as licensee. 

This decision represents a major evolution in the UK’s smart metering landscape—one that aims to strengthen accountability, reduce costs, and ensure that energy data communications continue to support a modern, flexible, and consumer‑focused energy system.

Elexon has officially confirmed that over one million electricity meters have now transitioned into Market-wide Half-Hourly Settlement (MHHS)—a major milestone in the ongoing reform of the GB electricity market.

Key Points

• 80% of all GB meters (approx. 25.9 million) are expected to be settled half-hourly by October 2026, making 2026 a pivotal year in the rollout.
• The shift enables suppliers to use actual half-hourly consumption data, helping them create more flexible, time‑of‑use tariffs.
• These tariffs can support:
  • Smart EV charging that automatically charges at optimal times.
  • Consumer participation in demand balancing by exporting power at remunerated rates.
• Settlement Accuracy Improvements: More actual data (vs estimates) is already being used, improving billing precision and system efficiency.
• Smart Data Repository:
  Launching in autumn 2026, it will publish aggregated half-hourly data, enabling innovators to develop new products and flexibility services accessible to all market participants.
• Next Steps for Industry:
  More than 100 companies still need to complete qualification to operate in the new MHHS arrangements, and Elexon’s focus is on supporting a smooth transition.

More than one million meters transferred to half-hourly settlement – Elexon