Control over Great Britain’s 39 million smart meters has transitioned to a non-profit startup following more than a decade of escalating costs and delays under its previous operator. The network, previously managed by Smart DCC—a subsidiary of the outsourcing firm Capita—now operates under a not-for-profit public-interest model aimed at improving transparency and customer needs.
Transition and Leadership
The change marks the conclusion of a 13-year licence granted to Smart DCC to establish the nation’s first smart meter data network. Whitehall officials opted to replace the commercial framework established in 2013, effectively blocking Capita’s subsidiary from tendering for a new licence after years of costly setbacks and billing issues for millions of households.
The network is now a wholly owned subsidiary of the Smart Energy Code Company (SECCo), overseen by an independent board. Leadership includes veteran energy and telecoms executives, alongside Dame Gillian Guy, former chief executive of Citizens Advice. Citizens Advice reported in 2024 that consumers were let down by the rollout because nearly a third of smart meters malfunctioned.
Rollout Challenges and Regulatory Scrutiny
Government ministers initially aimed to equip all households with a smart meter prior to 2020 to modernize the energy system and optimize renewable energy use. However, government spending watchdogs noted that the rollout encountered severe obstacles. Currently, three in 10 households lack a meter, and completing the installation process could require an additional £1.7 billion.
The tender process for the new operator occurred last summer, coinciding with an energy regulator investigation into Smart DCC’s procurement practices. The inquiry reviewed non-competitive contracts, including a deal awarded directly to its parent company. In July, Smart DCC agreed to contribute £200,000 to a consumer redress fund.
Meanwhile, Capita’s market value dropped by 97% over the past decade amid strained finances, mounting debt, and an emergency business restructuring. A Capita spokesperson stated that the firm is proud of its 13-year stewardship in building critical national infrastructure that now connects more than 39.2 million smart meters across 23 million homes and small businesses with 99.6% network availability.
An Ofgem spokesperson acknowledged that Smart DCC played a critical role in establishing a secure digital communication framework, adding that the new licence holder is expected to build upon that foundation.
