The Department of Energy & Climate Change has named the suppliers that will form the newly established Data and Communications Company (DCC), which will play a major role in the rollout of smart meters across the UK.
DCC will be responsible for linking 53 million smart electricity and gas meters in homes and businesses with the business systems of energy suppliers, network operators and energy service companies.
The contracts awarded this week are worth more than £2.3 billion, but it is expected that the smart meter programme will deliver a net benefit to the UK of £6.7 billion.
Smart DCC, a part of Capita, has been granted the DCC licence, worth an estimated £175 million over 12 years, and will manage the smart metering service on behalf of its users and contract with the data and communications service providers.
CGI, previously Logica, has in turn signed a contracted with Smart DCC as the Data Service Provider and will be responsible for developing and operating the system controlling the movement of messages to and from smart meters. This contract is worth £75 million over eight years.
Arqiva has signed a contract with Smart DCC as the Communications Service Provider for the north of England and Scotland and will provide wide area communications to and from the smart meters.
John Cresswell, CEO of Arqiva, said: "Smart meters are vital in empowering consumers to save energy and this is the first step in delivering an energy secure Britain."
Arqiva's contract is worth £625 million over 15 years.
Elsewhere, Smart DCC signed with Telefnica to be the communications service provider for the centre and south of England, in two deals worth approximately £1.5 billion over 15 years.
David Plumb, Digital Director at Telefnica UK, said: "This contract win is a significant endorsement of the steps we have taken to focus on new digital services such as machine-to-machine communications and the leadership we are establishing in these areas."
Finally, Gemserv has signed a contract with the Smart Energy Code Company to develop and maintain the Smart Energy Code. The estimated value of this contract over four years is £10 million.