Control of Great Britain’s smart meter network has passed from Smart DCC, a Capita subsidiary, to a not-for-profit operator. The new organisation will run the data infrastructure connecting more than 39 million meters across the country from this week.
The handover ends Smart DCC’s 13-year licence to establish and operate Britain’s first smart meter data network. The rollout has been affected by costly delays and billing problems for households, while industry sources said Smart DCC was prevented from bidding for a new licence.
The replacement operator will be a wholly owned subsidiary of the Smart Energy Code Company, or SECCo. It will operate under a public-interest model overseen by an independent board, with a stated emphasis on costs, transparency and the needs of consumers and customers.
The board is expected to include experienced executives from the energy and telecommunications sectors, alongside Dame Gillian Guy, the former chief executive of Citizens Advice. In 2024, Citizens Advice said that almost one-third of smart meters were not working properly.
Ministers had originally aimed to provide every household with a smart meter before 2020, partly to modernise the energy system and support the use of renewable energy and data-based tariffs. However, the rollout has encountered what the government’s spending watchdog called serious reputational obstacles. Three in 10 households still do not have a smart meter, and a further £1.7 billion could be needed to complete the programme.
The tender for the new network operator took place last summer, while Ofgem opened an investigation into Smart DCC’s procurement contracts. The investigation included contracts awarded without competition and a deal granted to Capita. In July, Smart DCC agreed to contribute £200,000 to a consumer redress fund.
Capita said it was proud of its 13-year stewardship of Smart DCC and described the network as secure and resilient. The company said the system connects more than 39.2 million meters across 23 million homes and small businesses, with network availability of 99.6%, and that it had worked with stakeholders to support an orderly transition.
Ofgem said Smart DCC had played an important role in creating an efficient and secure digital communications structure. It added that the new licence holder would be expected to build on that foundation.
Sources: The Guardian Business.