An aisle of server racks in a data centre, lit blue, with a panel labelled Network-2
The digital energy layer runs on data centres and networks like this. Smart-meter readings, planning data, settlement data and consented consumer data all travel through shared infrastructure governed by industry codes. Photo: Pexels

The Digital Infrastructure Behind Energy Data

Once a meter or sensor records a value, the data has to travel safely to the right system. The digital layer carries smart-meter readings, planning data, settlement data and consented consumer data through shared infrastructure, industry codes and security rules.

Scope: how energy data is carried, shared, consented to and kept secure once it has been measured. Where the readings come from is on the physical-data page; what settlement does with them is on the lifecycle page; both are linked below.

Sources and standards

Dated milestones, quantitative claims and regulatory points resolve to a primary instrument (the Smart Meter Communications Licence, the Smart Energy Code, the Retail Energy Code, Balancing and Settlement Code Modification P478, the Data (Use and Access) Act 2025), an Ofgem decision or direction (the Data Sharing Infrastructure governance decision, the Consumer Consent decision, the Market Facilitator and Flexibility Market Asset Registration decisions, the LTDS direction and its derogations), or a named technical standard (IEC 61968-13, IEC 61970-301, CGMES 3, the BSI CIM Engagement Hub).

Current Digital Infrastructure Position

The digital energy layer rests on five working parts. The Data Communications Company, the DCC, is the single licensed pipe between about 41 million smart meters and every authorised user of their data. The Data Sharing Infrastructure is a newer, shared network that lets grid companies, the system operator, suppliers and approved third parties exchange operational and planning data under common rules. The half-hourly settlement programme is moving every electricity meter point onto half-hourly settlement, with the changeover due in July 2027. The Smart Energy Code and the Retail Energy Code are the two multi-party rulebooks that hold the metering and switching machinery together. And a privacy and security framework sits over all of it to decide who may see what.

Two recent legal changes matter for the whole layer. The Data (Use and Access) Act 2025 received Royal Assent on 19 June 2025, and most of its data-protection provisions came into force in early February 2026 through two commencement orders, so the legal basis for letting an approved third party read a consumer's energy data is now live across the United Kingdom.101819 And the network's own asset records moved onto a shared, machine-readable model with the Long Term Development Statement Stage 2 publication of 29 May 2026, the first large GB instance of a regulator-set, validated data model and the pattern the rest of the layer is expected to follow.2 The half-hourly settlement migration, meanwhile, began on 22 October 2025 and is working through its milestones toward the July 2027 changeover.11

Each part has its own licence, code or statute, its own delivery timetable, and a dependency on the others. The sequence starts with the DCC pipe, then moves through shared infrastructure, consent, settlement, codes, security and the data model that lets one organisation's records mean the same thing to another.

How a smart meter request travels down the DCC pipe and the signed reply comes back

Based on the DCC User Interface Specification and the Smart Energy Code. A supplier sends a request, the DCC authenticates and routes it, a regional carrier moves it over the wide-area network, the communications hub at the home passes it to the meter, and the meter runs it and signs a reply that returns by the same path. Two signing layers seal every hop.

A smart meter service request travelling from the supplier through the DCC and the regional carrier to the meter, with the signed reply returning by the same path Five boxes left to right. One, the supplier head-end sends the service request. Two, the DCC provider authenticates, signs and routes to the region. Three, the network carrier (Arqiva in the north, Virgin Media O2 in the central and south regions) carries it over the wide-area network. Four, the communications hub at the home bridges the network to the home. Five, the smart meter runs the request, signs the reply and sends it back. An arrow underneath shows the signed reply returning along the same path, with each hop verifying the signature. Two notes below name the signing layers: SMKI seals the meter-to-supplier reading end to end, and DCCKI seals the DCC-to-supplier transport. A request travels left to right; the signed reply returns along the same path 1. Supplier Head-end sends the service request read, command, top-up 2. DCC provider Authenticates, signs, routes to the region the central broker 3. Network carrier Arqiva north; VMO2 central and south wide-area network 4. Comms hub Bridges the network to the home at the premises 5. Smart meter Runs it, signs the reply, sends it back ESME and GSME sends routes moves hands the signed reply returns along the same path; each hop verifies the signature SMKI seals the meter-to-supplier reading end to end; the DCC carries it without reading it. DCCKI seals the DCC-to-supplier transport with TLS and organisation certificates.

The pipe is deliberately a pipe. A supplier never reaches a meter directly; every request crosses the DCC, the regional carrier and the communications hub before it reaches the meter, and the signed reply returns the same way. Because the reading is sealed end to end, the DCC carries it without being able to read it.

The DCC: the single smart-data pipe

The Data Communications Company is one licensed company, Smart DCC Ltd, holding one licence, the Smart Meter Communications Licence. It is the single pipe between the smart meter fleet and every authorised user of the data. The statutory basis for the smart-meter communications regime now sits in Schedule 16 of the Data (Use and Access) Act 2025.15 The licence runs to September 2027, and the tender for the successor operator has already run, so the next holder has to take over without a break in service.

A row of modern digital smart electricity meters with LCD displays mounted on a wall
A digital smart meter records consumption and sends readings down the DCC pipe to the supplier and other authorised users. Each reading is signed by the meter so it can be trusted at the far end. Photo: Pexels

The pipe has four working parts. A central broker, the DCC Data Service Provider, authenticates each supplier, applies the routing rules in the Smart Energy Code, signs the message and hands it to a regional carrier. Two carriers split Great Britain: one covers the north on long-range mesh radio, the other covers the central and southern regions on cellular networks, between them reaching at least 99.25 percent of premises. At the home, the communications hub bridges the wide-area network to the short-range home network that the meters sit on; a dual-band hub reaches gas meters and thick-walled homes that a single band could not, lifting in-home coverage from about 70 percent to about 96.5 percent. The meter runs the request and signs the reply.

Two signing layers keep the data trustworthy. The Smart Metering Key Infrastructure seals the reading between the meter and the authorised party, so the DCC in the middle carries it sealed and cannot read it. The DCC Key Infrastructure seals the transport between the DCC and the supplier. Certificate lifetimes were extended to fourteen years under a cryptographic refresh programme, and a residual one percent of premises with no carrier signal are reached through a virtual wide-area network that uses the home broadband router with the household's consent. Smart-meter rules strengthened on 30 January 2026 added guaranteed standards of performance, so a household receives automatic compensation if a supplier misses an installation appointment, a fix duty, or a fault assessment.

The Data Sharing Infrastructure: sharing without bilateral contracts

The smart-data pipe carries meter readings. A great deal of other energy data, the network's operational telemetry, its planning models, its outage plans, has to move between organisations too, and historically each pair of organisations signed its own data-sharing contract. With dozens of parties that becomes hundreds of contracts and a barrier to sharing. The Data Sharing Infrastructure replaces that with one shared arrangement. It has three working ideas. Each participant runs a Data Preparation Node at its own boundary, so its data stays with it. A central Data Sharing Mechanism holds a catalogue of what data exists and brokers who may see it, but stores no data itself. And a Trust Framework provides one common set of legal and technical terms, so a single accreditation replaces the bilateral contracts.

Close-up of blue and yellow fibre optic patch cables plugged into a network distribution panel
Fibre optic links carry energy data between organisations at speed. The shared infrastructure lets a participant find and access data across the network without negotiating a separate contract with every other party. Photo: Pexels

Ofgem set the governance for the infrastructure and appointed NESO to coordinate its build during an interim period that sunsets in 2028; the system operator runs it, Ofgem regulates it, and an advisory group gives industry a voice.3 Participants fall into four domains, each with its own regulator or code body and its own legal base. The first live use cases are deliberately practical: outage planning ran as the early demonstrator, and connections reform is the flagship first product, with wider release planned across 2028 to 2030.8

DomainWho runs a nodeGoverned by
Regulated networksDistribution and transmission operators, NESOOfgem, under the licence and Data Best Practice
Markets and settlementElexon, the Market Facilitator, the registration serviceThe Balancing and Settlement Code
Consumer and retailSuppliers, the Retail Energy Code body, the Consumer Consent SolutionThe Retail and Smart Energy Codes
Third-party accessFlexibility aggregators, approved researchers and servicesThe Smart Data scheme under the DUA Act 2025

The shared infrastructure: nodes at the edge, one broker in the middle, one trust framework around the whole

Based on the Ofgem governance decision for the Data Sharing Infrastructure and the NESO coordinator role. Each participant keeps its data behind its own node; the broker in the middle finds data and checks permissions but stores none; the trust framework supplies the common terms.

The Data Sharing Infrastructure: a node at each participant, a central broker that stores no data, and a trust framework wrapping the whole Four participant boxes on the left, one for each domain (regulated networks; markets and settlement; consumer and retail; third-party access), each running a Data Preparation Node. Each connects by an arrow to a tall central box, the Data Sharing Mechanism, which finds data and checks permissions across all four domains but stores no data itself. A note box on the right states what the arrangement enables: discover data in a catalogue, get audited time-bound access, with no one-to-one contracts. A dashed rectangle labelled Trust Framework wraps everything, representing the one shared set of legal and technical terms. Trust Framework: one shared set of legal and technical terms, so no one-to-one data contracts are needed Regulated networks DNOs, NESO and TOs run a node Markets and settlement Elexon, Market Facilitator, FMAR Consumer and retail Suppliers, RECCo, Consent Solution Third-party access Aggregators and researchers Data Sharing Mechanism Finds data and checks permissions across the four domains. Stores no data. shares via What it enables Find data in a shared catalogue. Get audited, time-bound access. No one-to-one contracts to sign.

Data moves from one node to another; the broker only finds it and checks permissions. Because the trust framework supplies one common set of terms, a participant accredits once instead of negotiating a separate contract with every other party.

The data-sharing rulebook: presumed open, with reasons to close

The default for energy data in Great Britain is open. Ofgem's Data Best Practice guidance, written into the network licences, has eleven principles, the defining one being that every data asset is presumed open: the holder must give an objective reason to keep something closed, rather than a reason to open it. A companion triage process names the five reasons that can justify closing data, privacy, security, harm to consumers, commercial sensitivity, and law or regulation, and requires the holder to try the least restrictive option, such as aggregating or blurring the data, before defaulting to closed.9

The worked example of presumed-open at scale is the Embedded Capacity Register that each network operator publishes monthly: a public list of the generation and storage connected and contracted on its network, to a common format. It is the foundation a developer uses to choose where to seek a connection, and it is described on the connections page. The Open Networks programme that standardised these formats across the network operators concluded in 2025, and the Market Facilitator has absorbed its legacy of aligned flexibility products and common processes. The strategic plans, the Future Energy Scenarios, the Strategic Spatial Energy Plan and the Centralised Strategic Network Plan, all publish into this same rulebook.1213

Half-hourly settlement: the July 2027 cutover

Market-wide Half Hourly Settlement moves every electricity meter point onto half-hourly settlement. Today most homes are settled on an estimated monthly profile; after the change, every meter point is settled on its actual half-hourly readings. The legal mechanism is Balancing and Settlement Code Modification P478, and Elexon runs the programme against a numbered milestone framework.14 Migration began on 22 October 2025, passed ten million meter-point initiations in early 2026, and works toward a readiness gate in late 2026, full implementation in May 2027, and the changeover in July 2027.11

Why the change is large

About 33 million electricity meter points, each producing 48 readings a day, settled individually rather than on a monthly estimate:

33,000,000 × 48 × 365 ≈ 578 billion readings a year

The settlement system will process on the order of half a trillion readings a year after the change. The point is not the volume but what it unlocks: pricing every half-hour means a supplier can offer a time-of-use tariff to every household, which rewards shifting demand to cheaper, cleaner hours. The seven-stage journey from a reading to a settled bill is on the data lifecycle and settlement page.

The settlement data flow runs from the meter through the communications hub and the DCC to the supplier or to a settlement-era data service, which feeds the readings to Elexon. The half-hourly run after the changeover will be one of the largest single data flows that any infrastructure-mediated use case has to consume, which is why the settlement programme and the data-sharing infrastructure, though delivered separately, are watched together.8

The Smart Energy Code and the Retail Energy Code

Two multi-party codes hold the metering and switching machinery together. The Smart Energy Code is the agreement among suppliers, network operators, manufacturers and the DCC that governs anyone who reads or writes data through the pipe: the device specifications, the interface protocol, the security regime, the performance rules and the dispute machinery. The Retail Energy Code governs switching: it replaced an older stack of separate agreements and registries, and the Central Switching Service it runs holds the master registry of electricity and gas supply points, with a next-working-day switching target. The Energy Act 2023 changed how both codes are managed, with Ofgem now selecting and licensing code managers.17

The two codes meet at the supplier and at the consent layer, and that meeting point is where operational care is needed. A switch handled under the Retail Energy Code triggers a re-pairing of the meter with the new supplier under the Smart Energy Code: the old supplier's access is revoked and the routing is updated so the next request reaches the right meter. The guaranteed standards of performance introduced in early 2026 are designed to make that handover smooth for the household. The codes refer to the same meter fleet but touch different things: a Smart Energy Code change touches the device or the security regime, a Retail Energy Code change touches registration, switching or consent.

Privacy and cyber security

Privacy rests on a sector framework that sits over UK data-protection law. The Data Access and Privacy Framework sets purpose limits and grades how granular a consumer's data a supplier may take by default: monthly for a domestic consumer, with an opt-in for daily or half-hourly, and microbusinesses able to opt out of anything finer than monthly.16 The Data (Use and Access) Act 2025 widens the legal base so an approved third party can read a consumer's data for a defined purpose, with the consent flowing through the Consumer Consent Solution; the smart-data scheme it creates is modelled on Open Banking but runs under its own regime.10 The policy for the framework is owned by the energy department, with the Information Commissioner as the data-protection regulator.7

Operators at workstations in a network operations centre, facing a large wall of monitoring dashboards
Operations centres watch the data flows and the devices that carry them. Security is built into the metering devices and the codes, and consent decides who may see a household's data. Photo: Pexels

Security is built into the metering devices and the codes rather than added on. Every meter, gas meter and communications hub is assured under a national security scheme run with the National Cyber Security Centre before it can join the network, and the two signing layers in the pipe diagram above mean a reading is sealed end to end and the transport is authenticated. The smart system tightens some risks, such as energy theft, which a dedicated service detects from consumption patterns under the Smart Energy Code, while adding new ones, such as meter tampering and hub spoofing, which the device-assurance scheme is designed to contain. The move to half-hourly data and to third-party access raises the stakes on both privacy and security, which is why consent is being put on a single auditable footing and device assurance is mandatory.

The shared data model that ties it together

All of this only works if a record made by one organisation means the same thing to another. That is the job of a shared data model, the Common Information Model, maintained internationally and adopted in Great Britain for network data. The base model and the distribution profile come from the international standards bodies, and the transmission interchange uses a related European specification; the British governance of the profiles runs through the BSI CIM Engagement Hub.564

The Long Term Development Statement is the first large GB instance of this model in practice: a regulator-directed move from spreadsheets to a validated, machine-readable network model, published on a set cadence, with Stage 2 out on 29 May 2026.12 It is treated in full on the LTDS explained page. The reason it matters here is that it sets the pattern the rest of the digital layer is expected to follow: regulator-set, validated, machine-readable publication that the data-sharing infrastructure can then federate across the four domains. The pipe carries the readings, the infrastructure shares the wider data, the codes govern the machinery, consent and security decide who sees what, and the shared model makes the records mean the same thing everywhere.

Primary sources

The most load-bearing sources for how energy data is carried, shared and secured are listed below.

  1. LTDS Direction under SLC 25.2 of the Electricity Distribution Licence, Ofgem, 30 April 2024. The direction that moved the Long Term Development Statement to a validated data model. https://www.ofgem.gov.uk/decision/long-term-development-statement-direction
  2. LTDS CIM Stage 2 and 3 Extension (Derogation) Letter, Ofgem, 13 May 2026. Sets the Stage 2 publication of 29 May 2026. https://www.ofgem.gov.uk/sites/default/files/2026-05/LTDS-CIM-Stage-2-and-3-Extension-Derogation-Letter.pdf
  3. Governance of the Data Sharing Infrastructure, Ofgem decision, 2025. Three-tier governance with NESO as interim coordinator to 2028. https://www.ofgem.gov.uk/decision/governance-data-sharing-infrastructure
  4. BSI CIM Engagement Hub. The UK governance portal for Common Information Model profile work. https://cim.bsigroup.com/
  5. IEC 61968-13 Edition 2.0 (BS EN IEC 61968-13:2021). The distribution profile of the Common Information Model. https://webstore.iec.ch
  6. IEC 61970-301 Edition 7.0 with Amendment 1:2022. The Common Information Model base. https://webstore.ansi.org/standards/din/dineniec619703012025
  7. Department for Energy Security and Net Zero. Policy owner for the smart-meter framework and the smart-data scheme. https://www.gov.uk/government/organisations/department-for-energy-security-and-net-zero
  8. NESO Data Portal. Operational and planning data feeds, including the Insights Solution that succeeds the legacy reporting service. https://www.neso.energy/data-portal
  9. ENA Open Networks programme. The eight-year programme that aligned connection data and flexibility formats; legacy absorbed by the Market Facilitator. https://www.energynetworks.org/industry-info/open-networks
  10. Data (Use and Access) Act 2025. Royal Assent 19 June 2025; widens the legal base for third-party access to data. https://www.legislation.gov.uk/ukpga/2025/18
  11. Market-wide Half Hourly Settlement: key programme milestones, MHHS Programme. Migration milestones to the July 2027 changeover. https://www.mhhsprogramme.co.uk/programme-information/key-programme-milestones
  12. Strategic Spatial Energy Plan, NESO with DESNZ. Publishes into the data-sharing rulebook. https://www.neso.energy/what-we-do/strategic-planning/strategic-spatial-energy-planning-ssep
  13. Centralised Strategic Network Plan, NESO with Ofgem. Methodology approved April 2026. https://www.neso.energy/what-we-do/strategic-planning/centralised-strategic-network-plan-csnp
  14. BSC Modification P478, Elexon. The Balancing and Settlement Code modification carrying the half-hourly settlement changes. https://www.elexon.co.uk/bsc/mod-proposal/p478/
  15. Data (Use and Access) Act 2025, Schedule 16. The statutory base for smart-meter communications. https://www.legislation.gov.uk/ukpga/2025/18/schedule/16
  16. Smart Metering Implementation Programme: review of the Data Access and Privacy Framework, DESNZ. Purpose limits and graded consumer consent for meter data. https://www.gov.uk/government/publications/smart-metering-implementation-programme-review-of-the-data-access-and-privacy-framework
  17. Ofgem code-manager decisions under the Energy Act 2023. Cover the Smart Energy Code and Retail Energy Code manager licensing. https://www.ofgem.gov.uk/decisions
  18. Data (Use and Access) Act 2025 (Commencement No. 5) Regulations 2026, SI 2026/31. https://www.legislation.gov.uk/uksi/2026/31/made
  19. Data (Use and Access) Act 2025 (Commencement No. 6) Regulations 2026, SI 2026/82. Majority of Part 5 in force 5 February 2026. https://www.legislation.gov.uk/uksi/2026/82/contents/made
  20. Consumer Consent decision, Ofgem, 29 April 2025. Appoints RECCo to run an enduring Consumer Consent Solution. https://www.ofgem.gov.uk/decision/consumer-consent-decision
  21. Decision: market facilitator policy framework, Ofgem, 2025. Elexon to deliver the Market Facilitator role for flexibility. https://www.ofgem.gov.uk/decision/decision-market-facilitator-policy-framework
  22. Decision: flexibility market asset registration, Ofgem, 2025. A single registration to reach more than 20 flexibility markets; launch brought forward to 2027. https://www.ofgem.gov.uk/decision/decision-flexibility-market-asset-registration

The Smart Meter Communications Licence, the Smart Energy Code, the Retail Energy Code and the DCC User Interface Specification are cited inline as the named central instruments of the metering and switching machinery.