Expression of Interest in the new Smart Meter Communication Licence

Call for input
  • Open
  • Closed
Publication date
Closed date
Industry sector
Supply and Retail Market
Licence type
Smart Meter Communication Licence

Ofgem is reviewing the regulatory arrangements for the Data Communications Company (DCC) ahead of the expiry of its Licence due in September 2027 (“DCC review”).  As part of this process, Ofgem must also identify and select a successor licensee to hold the new Smart Meter Communication Licence. 

Current request in relation to the licence application process

Before Ofgem launches the formal tender process, we are seeking information about prospective licence applicants. 

The purposes of this Expression of Interest and Questionnaire are:

  • for prospective licence applicants to express interest in the new licence
  • for prospective applicants to provide Ofgem with information about their intended application so Ofgem can assess their suitability to apply for and hold the new licence 
  • to inform Ofgem’s route and design of the process for identifying, selecting and granting the next licence
  • to obtain information about prospective applicants that will assist Smart DCC Ltd and industry’s preparedness for the business handover process

This Expression of Interest and Questionnaire is the final chance for applicants to express interest in the licence before Ofgem decides on the route for selecting the successor licensee.  

The information provided as part of this Expression of Interest and Questionnaire will not render an organisation ineligible to participate in the formal selection process. If an organisation does not complete the Expression of Interest and Questionnaire, it can still apply for the licence. However, the information will be used by Ofgem to determine appropriate next steps regarding the selection route which may include the decision to pursue a direct award.

Ofgem notes that as this process is for the grant of a government licence, it is not subject to procurement legislation or regulations.1

[1] The process for selecting the Successor Licensee is currently governed by the Electricity and Gas (Competitive Tenders for Smart Meter Communication Licences) Regulations 2012.

Next steps 

Below is an indicative timeline of the next steps for the licensee selection process. This is subject to change at Ofgem's discretion.

Date Milestone
14 March 2025 Expression of Interest and Questionnaire opens
11 April 2025 Expression of Interest closes 
May 2025 Expression of Interest and Questionnaire used to inform design of selection process 
July 2025 Evaluation criteria for selection process published 
July/August 2025 Licence application competition opens (*assumes current regulations are used)
August-October 2025 Qualification stage (*assumes current regulations are used)
October 2025-January 2026 Proposal stage (*assumes current regulations are used)
February 2026 If required; Best and Final Offer stage (*assumes current regulations are used)
February/March 2026 Licence grant determination 

Attachments

  • SMCL EOI – scope and background: outlines the purposes of this EOI, provides an overview of the licence application expectations, includes instructions for completing the forms, and answers expected questions.
  • Expression of Interest - Questionnaire forms: please download and complete these forms returning them to dccregulation@ofgem.gov.uk