Business Energy Glossary
What is the DCC (Data Communications Company)?
The DCC, short for Data Communications Company, is the regulated entity that operates the central smart meter communications network in Great Britain. Every SMETS2 smart meter installed in the UK connects to the DCC network. The DCC routes data between meters, energy suppliers, network operators, and other authorised industry parties. The arrangement allows smart meters to work consistently across all suppliers, surviving any change of supplier without losing functionality.
The DCC is invisible to most customers but underpins the entire UK smart meter rollout. Understanding what the DCC does helps when investigating smart meter issues or planning for the upcoming Market-wide Half-Hourly Settlement transition that depends on DCC capacity.
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What the DCC does
The DCC provides five primary functions:
- Smart meter communications. Routes data between every SMETS2 meter in the country and the relevant industry party.
- Identity management. Maintains the secure register of meters, suppliers, and other authorised users.
- Security infrastructure. Provides the encryption, authentication, and security controls protecting meter data.
- Operational support. Resolves connectivity issues, supports new meter commissioning, and manages meter changes.
- Industry coordination. Connects with Ofgem, BEIS (now DESNZ), and other regulatory bodies.
How the DCC was created
The DCC was established under the Smart Meter Implementation Programme launched in 2008. The Government identified that without a central communications mechanism, smart meters would lose functionality when customers switched suppliers (the SMETS1 problem). The DCC was created as a regulated monopoly to operate the central network.
The DCC licence was awarded to Capita in 2013 following competitive procurement. Capita operates the DCC under regulatory oversight from Ofgem.
DCC communications technologies
The DCC uses different communications technologies in different parts of the country:
- Cellular communications (used in most of the country). Operated by Telefonica (O2) in southern and central Britain. Standard mobile signal connectivity from meters to the DCC.
- Long Range Radio (LRR). Operated by Arqiva in northern Scotland and other remote areas with weak cellular coverage. Provides dedicated radio infrastructure for smart meter communication.
The customer does not need to know which technology is used. The meter connects to whichever service is available in the local area.
Who uses the DCC
Five main user types:
- Energy suppliers. Receive consumption data, issue tariff updates, send disconnect or reconnect signals.
- Network operators (DNOs and GDNs). Access meter data for network management and planning.
- Meter operators. Commission new meters and resolve technical issues.
- Customer-facing apps. In-home displays connect to the meter via the DCC.
- Other authorised users. Capacity Market providers, Future Energy Scenarios analysts, and other industry parties with permitted access.
How the DCC is funded
The DCC is funded through industry charges recovered ultimately from consumers. Suppliers pay the DCC for use of the network, and the cost is recovered through electricity and gas bills.
The DCC charges appear bundled into supplier standing charges and unit rates. On a typical UK electricity bill, the DCC element is small (around 0.1 to 0.3 p/kWh) but visible in detailed contracts.
DCC and future industry developments
The DCC supports two major upcoming industry changes:
- Market-wide Half-Hourly Settlement (MHHS). Due to be implemented by 2026, requiring all UK electricity meters to support half-hourly settlement. The DCC capacity is being scaled up to handle the increased data volumes.
- Future flexibility services. The DCC will enable broader use of smart meter data for grid management, demand-side response, and time-of-use tariffs.
The DCC role expands as more services depend on smart meter data and as the UK energy system becomes more reliant on demand-side flexibility.
the DCC (Data Communications Company) FAQs
What does the DCC do?
Operates the central smart meter communications network in Great Britain. Routes data between SMETS2 meters and energy suppliers, network operators, and other authorised industry parties.
Who runs the DCC?
Capita, under licence awarded by the UK Government in 2013. The DCC operates as a regulated monopoly under oversight from Ofgem.
How is the DCC funded?
Through industry charges levied on energy suppliers and recovered ultimately from consumers through electricity and gas bills. The DCC element appears bundled into standing charges and unit rates.
How does the DCC connect to my smart meter?
Through cellular communications (most of the UK, operated by Telefonica O2) or Long Range Radio (in northern Scotland and other remote areas, operated by Arqiva). The customer does not need to know which is used.
Why was the DCC created?
Earlier SMETS1 smart meters lost functionality when customers switched suppliers because each meter was tied to a specific supplier. The DCC provides a central network that allows smart meters to work consistently across all suppliers.
What is the difference between the DCC and the supplier?
The supplier sells energy and handles billing. The DCC operates the communications network that allows smart meters to function. They are entirely separate entities.
Can the DCC see my consumption data?
The DCC routes the data but does not store or use it for commercial purposes. Only authorised users (your supplier, network operators) see consumption data, under defined privacy rules.
Will the DCC support Market-wide Half-Hourly Settlement?
Yes. The DCC is being scaled up to handle the increased data volumes required for half-hourly settlement of all UK electricity supplies by 2026.