9 February 2026 — Ofgem has announced a major milestone in the future governance and operation of Britain’s smart metering infrastructure, confirming the selection of a new Smart Meter Communication Licensee (SMCL) following a year‑long competitive tender process.
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.