UK Awards Smart Meter Contracts to Capita, CGI, Arqiva, and Telefónica
💻 It looks like Capita, CGI, Arqiva, and Telefónica are the preferred bidders for crucial contracts in the UK's smart meter roll-out!
📞 Outsourcing powerhouse Capita is aiming to become the Data and Communications Company (DCC) licensee, serving as the two-way communications bridge between smart meters and the central hub where energy suppliers, network companies, and other authorized parties access data. This DCC contract is expected to be worth around £175 million over 12 years.
📈 Canadian IT services giant CGI, fresh off the Logica acquisition in 2011, is eying the Data Service Provider contract, worth approximately £75 million over 8 years, which involves supporting the exchange of data between meters and the DCC.
🌐 Three telecommunications contracts are up for grabs: one for the Northern England and Scotland region, another for the Midlands, East Anglia, and Wales, and a third for the South of England. Arqiva, the company behind the UK's TV broadcast infrastructure, bagged the Northern contract, worth an estimated £625 million over 15 years. Mobile operator Telefónica is set to grab the other two contracts, fetching an estimated £1.5 billion over 15 years.
🔷 Companies such as G4S, Vodafone, BT, and SAP, who had hoped to secure a contract, unfortunately came away empty-handed in this round.
📅 The government initially aimed to complete the smart meter roll-out by 2019, but has pushed back the target to 2020. Installations will kick off in 2015, instead of this summer as previously planned. The entire scheme is predicted to cost £11.5 billion.
👤 By offering citizens transparency into their energy usage, smart meters are projected to encourage energy conservation. However, consumer advocacy group Which? has expressed concerns that while the roll-out benefits energy providers, it's unclear whether consumers will ultimately reap the rewards.
💸 Consumers may end up footing the bill, as the cost of installing smart meters nationwide—estimated at around £11 billion—could be passed on to them in the form of higher gas and electricity bills. Smart meters are expected to save energy providers more than £300 million annually by reducing the need for manual meter readings and handling bill disputes.
In the ongoing smart meter roll-out in the UK, Capita is pursuing the Data and Communications Company (DCC) license, a contract valued around £175 million over 12 years. Canadian IT services giant CGI is vying for the Data Service Provider contract, valued approximately £75 million over 8 years, focusing on the exchange of data between meters and the DCC. The conventional finance industry and technology sectors are pivotal in this venture, with Capita and CGI contributing their expertise in data management and IT services respectively.
