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Decc confirms smart meter communications contracts

The Department of Energy and Climate Change confirmed the arrangements on Monday for companies to manage the UK smart meter rollout data and communications. Contracts for the infrastructure and services are worth a total of £2.4 billion over 15 years.

Following last month’s announcement of the preferred bidders, licences and contracts have now been signed. Work can begin on the foundations for the rollout to start in 2015.

Capita was officially granted the Data and Communications Company (DCC) licence, worth an estimated £175 million over 12 years. It has signed contracts with CGI (formerly Logica), Telefonica, and Arqiva to deliver different elements of the programme.

CGI will be the data service provider, developing and operating the system to send messages to and from smart meters. Its contract is worth £75 million over 8 years.

Telefónica signed contracts worth £1.5 billion over 15 years to provide communications infrastructure to connect smart meters in the southern and central Britain. Arqiva will play the equivalent role in northern England and Scotland for around £625 million.

David Plumb, digital director at Telefónica UK, said he was “proud to be playing such a central role in the delivery of a key national infrastructure programme which will transform our energy industry”.

John Cresswell, CEO of Arqiva, also expressed pride, adding: “Smart meters are vital in empowering consumers to save energy and this is the first step in delivering an energy secure Britain.”

Gemserv has a £10 million, 4-year contract to develop and maintain a smart energy code.