Policy background
Smart meters, rolled out as part of the Smart Metering Implementation Programme (the 'Programme'), are the next generation of gas and electricity meters. They provide consumers with near-real time information on their energy consumption to help them control and manage their energy use and in turn save money and reduce emissions.
	The Government is facilitating the smart metering rollout by developing a regulatory framework comprising licence conditions (in supply licences, network operator licences, and smart meter communication licences) and a new industry code called the Smart Energy Code (the SEC). Together, these establish the rights and obligations for all aspects of smart metering design, development, installation and operation, as well as monitoring and reporting.
	Central to the operation of smart metering is the activity of communicating to and from smart metering systems. The GB-wide smart meter communication service is provided by a national smart meter communication and data service provider called the 'Data and Communications Company', or 'DCC'. The DCC is a licensed entity (Smart DCC Ltd) regulated by the Gas and Electricity Markets Authority ('the Authority') and holds smart meter communication licences (the 'DCC Licence') awarded under the Electricity Act 1989 and the Gas Act 1986 (the 'Electricity and Gas Acts').
	Smart meters can record the amount of electricity consumed within every half-hour period and provide this data to energy suppliers remotely, which presents an opportunity to improve the accuracy and timeliness of the electricity settlement process (see paragraph 12). In particular, smart meters will enable half-hourly settlement by improving the process by which the volume of electricity purchased by a supplier for a particular half-hour period is compared to the volume of electricity consumed by the supplier’s customers for the same period using information about customers’ actual consumption of electricity on a half-hourly basis.