On 3 December 2025, Ofgem announced its decision to approve a critical modification to the Smart Energy Code (SEC), known as SECMP308. This change comes at a pivotal moment for the energy sector, as it addresses the growing issue of “Out of Region” Communications Hubs (CHs) installed in areas where service providers are not contractually obliged to maintain connectivity. The modification was proposed by the Data Communications Company (DCC) and granted urgent status by Ofgem, reflecting the pressing need to safeguard smart meter functionality for tens of thousands of consumers across Great Britain.
Smart meters rely on the Smart Meter Wide Area Network, which is divided into regions based on the technology used. The North region, for example, utilises Long Range Radio, while the Central and South regions depend on cellular infrastructure. The SEC requires that the correct variant of Communications Hub is installed according to the region, but in recent months, a significant number of CHs have been installed outside their permitted regions. This has led to a situation where, without intervention, connectivity for these devices would be removed from 1 January 2026.
The consequences of such a disconnection would be severe. Ofgem’s decision document highlights that around 46,000 consumers would be affected, including over 16,000 on prepayment and more than 21,000 on the Priority Services Register (PSR). Many of these individuals rely on remote top-ups and support provided by smart meters, and losing connectivity could result in disconnection, particularly during the winter months when energy needs are greatest.
To address this, SECMP308 establishes a formal mechanism for maintaining connectivity for existing Out of Region CHs. DCC will enter into contractual agreements with service providers to ensure continued service for these devices in the North region. This arrangement will remain in place until 1 June 2026, giving suppliers time to replace the affected hubs with compliant alternatives. The modification also introduces a new charging mechanism, with suppliers required to pay up to £500 per Out of Region CH in their portfolio. If the pace of replacements increases and costs exceed this cap, additional expenses will be socialised across all suppliers and network providers.
The decision to approve SECMP308 was not taken lightly. The SEC Change Board, after considering the proposal and responses to a short consultation, recommended its approval, noting that it would better facilitate the objectives of the Smart Energy Code. Ofgem agreed, concluding that the modification would ensure the efficient provision and operation of smart metering systems, enable DCC to meet its licence obligations, and support consumers in managing their energy use.
Industry stakeholders raised concerns about the fairness of the charging arrangements, particularly for suppliers who had not installed Out of Region CHs and for Distribution Network Operators who benefit from network health data provided by these hubs. Ofgem acknowledged these concerns but emphasised that the situation had arisen due to continued installations in contravention of SEC requirements. The regulator stressed the importance of suppliers acting quickly to replace Out of Region CHs and avoid unnecessary charges.
Ultimately, Ofgem’s decision prioritises the needs of vulnerable consumers and the continuity of smart meter services. By approving SECMP308, the regulator has ensured that thousands of households will retain access to essential energy services through the winter and into the new year, while giving the industry time to implement a permanent solution.