Legal background Extension of powers
The Energy Act 2008 and Electricity and Gas Acts provide the Secretary of State with a package of powers related to smart metering to enable the delivery of the Programme (see paragraph 2). Sections 88(1) and 88(2) of the Energy Act 2008 allow the Secretary of State to modify the conditions of licences for electricity transmission, distribution and supply, and gas transporter, shipping and supply, and the DCC Licence, as well as documents made under licence conditions (e.g. industry codes). Section 91 of, and Schedule 4 to, the Energy Act 2008 inserted new provisions into the Electricity and Gas Acts to create new licensable activities relating to smart metering (Section 41HA-HC Gas Act 1986 and 56FA-FC Electricity Act 1989). The Electricity and Gas Acts give the Secretary of State the power to veto the transfer of the DCC Licence or any part of it (section 7A(10A) - (10D) of the Electricity Act 1989 and section 8AA(10A) - (10D) of the Gas Act 1986).
	The activity of providing the smart meter communication service is controlled by a system of prohibitions and licences. The Electricity and Gas (Smart Meters Licensable Activity) Order 2012 (SI 2012/2400) amends the scope of prohibited activities defined in the Electricity and Gas Acts to include providing a communication service to and from smart meters that are installed at domestic premises. This is the smart meter communication service. Provision of the service is permitted by the DCC Licence which was granted by the Secretary of State under sections 6(1A) and (1C) of the Electricity Act 1989 and sections 7AB(2) and (4) of the Gas Act 1986 and which took effect from 23 September 2013. The term of the licence is 12 years until 22 September 2025, unless it is extended or revoked. A number of conditions have also been added to energy supply licences, notably the requirement on energy suppliers to take all reasonable steps to complete the rollout of smart meters to all domestic and small non-domestic sites by the end of 2020.