Britain smart meter network shifts to non-profit operator

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Britain smart meter non-profit shift

Highlights

Britain transferred its smart meter network to a not-for-profit operator under SECCo, ending Capita's Smart DCC role as part of a shift to greater cost control and transparency.
More than 39.2 million smart meters now connect 23 million homes and small businesses, yet three in ten households still lack a smart meter, requiring a further 1.7 billion pounds to reach targets.
Capita's market value has plunged 97% over ten years amid sector challenges, regulatory scrutiny, and a 200,000 pound consumer redress payment tied to Smart DCC procurement issues.

Transition to a public-interest model

As first reported by The Guardian, the handover follows a government-backed shift away from the commercial structure created in 2013 toward a not-for-profit framework overseen by an independent board. Industry sources say Capita’s Smart DCC was effectively prevented from bidding for a new licence as officials opted for a model intended to place greater emphasis on cost control, transparency and consumer needs.

The network underpinning Great Britain’s smart meters is now becoming a wholly owned subsidiary of the Smart Energy Code Company, or SECCo. The new operator says the transition is seamless and that its board includes senior energy and telecoms executives, alongside former Citizens Advice chief executive Dame Gillian Guy.

Capita says it is handing over a secure and resilient network after 13 years of stewardship. The company says the system now connects more than 39.2 million smart meters across 23 million homes and small businesses, with network availability of 99.6%.

Costs, delays and sector impact

Ministers originally hoped all households would have smart meters before 2020, as part of efforts to modernise the energy system and support wider use of renewable power and data-driven tariffs. But the rollout continues to face operational and reputational problems, with the government’s spending watchdog saying three in ten households still do not have a smart meter and a further 1.7 billion pounds may be needed to complete the programme.

Performance concerns have also drawn regulatory scrutiny. The tender process for the next network operator ran last summer, around the same time Ofgem opened an investigation into Smart DCC procurement contracts, including awards made without competition and one granted to parent company Capita.

Smart DCC agreed in July to pay 200,000 pounds into a consumer redress fund. The broader backdrop remains difficult for Capita, whose market value has fallen 97% over the past decade as the outsourcing group struggles with strained finances, debt and operational failures in other government-linked contracts.

In our earlier coverage of the UK economy’s energy price shock, a senior Bank of England official said the hit to activity proved less severe than initially feared. The piece highlighted how fiscal measures and central-bank actions helped steady markets, while warning that inflation and market volatility remain key risks as elevated energy costs continue to influence policy decisions.

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