Policy background Special administration regime
Through the DCC, energy companies (alongside networks and other third parties) can collect energy usage data remotely to deliver the benefits of smart metering, including bringing an end to estimated consumer bills and facilitating faster switching between energy suppliers.
	The DCC's continued operation is fundamental to providing uninterrupted services, protecting consumers and securing benefits for both consumers and industry. Whilst the DCC is subject to the provisions of the Insolvency Act 1986, there are currently no special statutory provisions to deal with the threatened or actual insolvency of the DCC. This is in contrast with the position for water, railways, the transportation or supply of gas and the transmission, distribution and supply of electricity.
	The Government considers that the risk of the DCC’s insolvency is very low. However, the Government is concerned that the impact for consumers would be high, potentially resulting in a loss of energy billing services, including prepayment services which would particularly affect vulnerable consumers. This Act introduces a special administration regime (‘SAR’) for the smart meter communication licensee, which is currently the DCC. The objective of the SAR is to ensure the continuity of the smart meter communication service.