London, U.K. — (METERING.COM) — August 15, 2013 – Britain’s government has announced the names of the preferred bidders to establish the Data and Communications Company (DCC), which will link the 53 million smart electricity and gas meters nationwide with the business systems of the energy suppliers, network operators and energy service companies.
The license for the DCC has been awarded to Capita PLC, a provider of business process management and integrated professional support service solutions. In this role Capita will manage the smart metering service of its users and will contract with, and manage, the data and communications service providers. The estimated value of the license over 12 years is approximately £175 million (with an option for extension for a further 6 years).
The preferred bidder for the data service provider contract for the DCC is CGI IT UK Limited, an IT and business process outsourcing firm (which includes the former Logica). This contract will develop and operate the system controlling the movement of messages to and from smart meters. The estimated value of this contract over 8 years is approximately £75 million.
The preferred bidders for the communications service provider contracts are Arqiva Limited for the North region (north of England and Scotland) and Telefónica UK Limited for the Center (Midlands, East Anglia and Wales) and South (south of England) regions. These contracts will provide wide area communications to and from the smart meters. The estimated value of these contracts over 15 years are approximately £625 million and £1.5 billion respectively.
Finally the preferred bidder for the Smart Energy Code Administrator and Secretariat is Gemserv Limited, an energy industry established company to provide master registration agreement services. This contract will maintain and update the industry code governing the use of smart meters across the energy industry. The estimated value of this contract over 4 years is approximately £10 million.
“In preparing for the rollout of smart meters, we have informed bidders of the outcome of the competitions to put in place the Data and Communications Company which will link smart and electricity meters with energy suppliers and network operators,” said a Department of Energy and Climate Change spokesperson.
The bids are subject to the conclusion of the contracts – those of CGI IT UK, Arqiva and Telefónica UK with the DCC licensee, and that of Gemserv with the Smart Energy Code Company. These are expected by early September, when DECC will make a statement to parliament.