Electricity and Gas (Smart Meters Licensable Activity) Order 2012
Page type: primary-anchored (mirrors The Electricity and Gas (Smart Meters Licensable Activity) Order 2012, SI 2012/2400)
Last updated: 2026-04-05
Source file: ~/knowledge/sources/legislation/uk/si-2012-2400-smart-meters-licensable.md
What this instrument does
The Electricity and Gas (Smart Meters Licensable Activity) Order 2012 (SI 2012/2400) created "smart meter communication service" as a new licensable activity under both the Electricity Act 1989 and the Gas Act 1986. It makes it a criminal offence to provide such services without a licence. The activity involves arranging with domestic suppliers to communicate information to and from smart meters.
Made under the Electricity Act 1989 (ss.56FA, 60) and Gas Act 1986 (ss.41HA, 47). In force from 19 September 2012.
This is an amending Order: it modifies primary legislation rather than creating self-contained rules. The obligations flow from the amended Acts.
The smart meter communication regime
The Order creates a licensed monopoly for smart meter communications:
- Criminal prohibition: providing smart meter communication services without a licence is an offence (amending EA 1989 s.4)
- Licensing: the Secretary of State grants the first licence; Ofgem grants subsequent ones (amending EA 1989 s.6)
- Dual-fuel requirement: the licence holder must hold equivalent licences under both the Electricity Act and the Gas Act, reflecting the integrated nature of dual-fuel domestic supply
- Licence conditions: incumbents may be required to assist prospective applicants and support handovers between licence holders (amending EA 1989 s.7)
- Licensing sunset: no new licences could be granted after 1 November 2018
- Transitional exemption: existing providers had a 36-month window to operate without a licence (Art 38)
DCC Ltd (a subsidiary of Capita) was the sole licensee, creating a regulated monopoly for smart meter communications across Great Britain.
Consequential amendments
The Order amends seven pieces of primary legislation (including the Insolvency Act 1986, Utilities Act 2000, Enterprise Act 2002, and Energy Act 2008) and two pieces of secondary legislation (including the ESQCR 2002) to integrate the new licensable activity into the existing regulatory framework.
Cross-references
| Instrument | Relationship |
|---|---|
| Electricity Act 1989 (as amended) | Primary Act amended |
| Gas Act 1986 (as amended) | Primary Act amended |
| Smart Meters Act 2018 | Extended the smart meter programme |
| ESQCR 2002 | Consequentially amended |
Character positions
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