Control over Great Britain’s network of 39 million smart meters has officially been transferred to a non-profit startup this week, concluding more than a decade of management marred by escalating expenses and persistent delays.
The outgoing operator, Smart DCC—a subsidiary of the troubled outsourcing firm Capita—has pledged to facilitate a “seamless transition” as the not-for-profit successor assumes responsibility for the underlying data infrastructure.
This shift ends Smart DCC’s 13-year licence to build and operate the country’s initial smart meter communications system. Throughout its tenure, the initiative was frequently criticized for expensive delays and widespread billing problems affecting millions of households. A subsidiary of Capita, after years of spiralling costs and delays, the handover marks the end of a 13-year licence for Smart DCC.
According to industry sources, Whitehall officials effectively barred Capita’s subsidiary from bidding for a new contract. Decision-makers opted to abandon the commercial framework introduced in 2013 in favor of a public-interest model managed by an independent board.
under the new structure, the infrastructure supporting Britain’s smart meters will function as a wholly owned entity under the Smart Energy Code Company (SECCo). The incoming operator stated the system will operate with “a greater focus on cost, transparency and customer and consumer needs.”
The board of the new entity features experienced telecoms and energy executives alongside Dame Gillian Guy, former head of Citizens Advice. In 2024, the consumer advocacy group pointed out that households had been “let down” by the rollout, noting that nearly a third of all installed smart meters were not functioning correctly.
Government ministers originally set a target for every home to receive a smart meter before 2020 to modernize the national grid and support data-driven energy tariffs. However, the government’s spending watchdog noted the project hit severe reputational hurdles, leaving 30% of households without a meter and requiring an estimated £1.7bn in additional funding to complete. Ministers had initially hoped that all households would have a smart meter before 2020 to help modernise Britain’s outdated energy system and make better use of renewable energy and innovative data-led energy tariffs. According to the government’s spending watchdog, which meant that three in 10 households still do not have a meter and another £1.7bn may be required to complete the rollout, but the rollout has faced “serious reputational obstacles”.
During the tender process for a new operator last summer, energy regulator Ofgem launched an investigation into Smart DCC’s contracting practices, including non-competitive deal awards and a contract given to its parent company, Capita. Smart DCC subsequently agreed in July to contribute £200,000 to a consumer redress fund, arriving the same week Capita issued an apology over mismanagement of the Civil Service Pension Scheme that delayed payments to thousands of retirees.
Capita’s market capitalization has collapsed by 97% over the past decade amid severe financial strain and heavy debt, prompting an emergency corporate restructuring. Despite these setbacks, a Capita spokesperson defended its record: “Capita is proud of its 13-year stewardship of DCC. What began as an ambitious programme is now critical national infrastructure, connecting more than 39.2m smart meters across 23m homes and small businesses, with network availability of 99.6%.” Capita’s market value has plunged by 97% in the last decade after the outsourcing company once in charge of administering a string of government schemes revealed severely strained finances and mounting debts before under.
The spokesperson added that the company is handing over a resilient, secure network and has collaborated with stakeholders to ensure an orderly transfer. Meanwhile, an Ofgem representative acknowledged that Smart DCC “played a critical role” in establishing “an efficient and secure digital communication structure,” expressing expectations that the new license holder will build upon that foundation.
