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Yes, the update can be triggered remotely, yes they can communicate with your power line adapters (even if you have an 'ordinary' non-Talk Talk router), no they cannot see or communicate with other devices on your local network any more than is usual.
It's all legit, using the TR-069 protocol. The powerline adapters on connection to the WAN side initiate a listening session with Talk Talks server using XMPP or UPnP which traverses NAT. A connection request can be sent by Talk Talk, the powerline establishes this, and the server allows updating of the device, monitoring, even rebooting - a mass programmed automatic update is a common use.
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