Ofgem has proposed new reporting rules for the company running Britain’s smart meter communications network as the energy system prepares for greater use of flexible tariffs and half-hourly settlement.
Yesterday the regulator opened a consultation on updated Regulatory Instructions and Guidance for the Data Communications Company.
DCC provides the secure digital network connecting smart meters with energy suppliers, network operators and other authorised users across England, Scotland and Wales.
Its systems allow meter readings and other information to be transmitted remotely, removing the need for manual readings and supporting faster, more accurate energy settlement.
Ofgem’s proposals would update the templates and guidance DCC must use when reporting its costs, performance and delivery plans to the regulator. The changes are being prepared for DCC’s second forward-looking price control period, which begins on 1 April 2028.
DCC operates as a regulated monopoly, with its costs ultimately recovered through charges to energy companies and passed on to customers.
Ofgem therefore uses reporting requirements to examine whether spending is justified, services are being delivered efficiently and consumers are receiving value for money.
The consultation is technical but the network plays a central role in Britain’s wider electricity reforms.
Smart meter data will underpin market-wide half-hourly settlement, which is intended to match supplier costs more closely with when customers actually use electricity.
Reliable communications will also be essential for time-of-use tariffs, electric vehicle charging, household batteries and demand-side response.
Failures or delays in transferring meter data could restrict suppliers’ ability to offer flexible products and reduce the value consumers receive from changing when they use power.
The proposals could affect DCC, energy suppliers, electricity networks, innovators and other companies using smart meter services.
The consultation closes on 31 August.
