Open consultation: New Smart Energy Code content (stage 2)

United Kingdom

Following the recent appointment of the Data and Communications Company (DCC) for the mass roll out of Smart Metering in Great Britain, The Department of Energy and Climate Change (DECC) has released its latest Smart Energy Code (SEC) consultation on 17 October 2013. The purpose of the consultation is to help inform the second stage of the SEC which will govern the end-to-end management of Smart Metering in Great Britain.

The contents of the consultation

The SEC, designated with immediate effect on 23 September 2013, will be introduced and updated in stages in preparation for the final roll-out of Smart Metering in late 2015. This second stage (of what is intended to be five distinct stages) addresses the important areas relating to system design, build and testing in the lead up to Systems Integration Testing, the stress tests applied by DECC prior to rolling out Smart Metering. The proposed legal text relates primarily to the technical aspects of the development of the Smart Metering Data and Communications System and how the newly licensed DCC will fit into the Smart Metering framework.

DECC, on 8 October 2013 announced the appointment of Capita as the DCC and its accordant award of a licence under the Electricity and Gas (Competitive Tenders for Smart Meter Communications Licences) Regulations 2012 on 20 September 2013, which commenced on 23 September 2013. DECC also announced the identity of the DCC's main sub-contracting partners: CGI IT UK Ltd will act as the Data Service Provider under the new regime with Arqiva Ltd (North & Scotland) and Telefonica UK Ltd (Centre and South) acting as Communications Services Providers. After a procurement process managed by DECC the sub-contracting parties are entering into contracts directly with the DCC. The proposals for the DCC's relationship with its supply-chain generally is dealt with in the consultation as are the duties of the recently announced parties to the Smart Metering framework. Responses are sought from stakeholders on the planned amendments to the SEC to take account of these second stage developments and specifically on the legal wording of the new provisions.

Additional provisions within the consultation relate to the charging structure to be implemented by the DCC, financing arrangements for the Communications Hub and the commercial

Implementation and electricity supply

The level of technical detail within this most recent consultation begins to touch on the way in which the Smart Metering provisions will relate to existing electricity supply arrangements. The way in which the DCC, its immediate supply chain and electricity suppliers will interact is widely seen as a major point for consideration within Smart Metering and submissions on this point are likely to make an important contribution to this consultation process. The further implications for electricity suppliers and their supply chain interaction such as meter asset providers, installers and maintainers is a potential area for focus.

Reponses

Responses are to be sent to DECC before 29 November 2013 in either electronic or hard copy form. The consultation process is limited to Great Britain.

For access to the consultation document, follow the link here.

Co Authors:
Mick McArdle, Trainee Solicitor
T: 44 (0) 20 7367 3956
E: [email protected]