15 Jan 2016 08:41
15 January 2016
Smart Metering Systems plc
New domestic smart meter contract wins
Smart Metering Systems plc (AIM: SMS.L) ("SMS"), the integrated metering services company that connects, owns, operates and maintains current generation and new advanced metering assets and databases, is pleased to announce that it has signed five framework agreements with independent energy suppliers including RHE, Green Energy, Flow Energy, Spark Energy and Our Power.
Under the terms of the agreements, which are non-exclusive, SMS will provide domestic smart meters as part of the UK Government programme, overseen by the Department of Energy and Climate Change, requiring domestic energy supply companies to provide all of their customers with a smart meter in homes and small businesses across the UK by 2020. Energy suppliers will be required by regulation to appoint a MAM (Meter Asset Manager) in respect of these assets, and SMS is one of only four market participants currently performing that role.
The suppliers with whom SMS has contracted thus far for the domestic smart rollout currently provide services to 386,000 homes in the UK market.
The funding of the domestic smart meters will be within SMS' existing club banking facility and on the same terms.
Larger businesses in the industrial and commercial ("I&C") market are subject to separate regulations and are already using advanced metering solutions. As at 30 June 2015, SMS's gas meter portfolio was 661,000 meters, including 89,000 I&C meters and its electricity portfolio was 19,700 I&C meters with a further 116,643 meters under management.
The Company expects to issue a trading update for the 12 months to 31 December 2015 on 30 January 2016.
Alan Foy, Chief Executive Officer, commented:
"We are delighted to be working with these new independent suppliers who are part of the fastest-growing segment of the retail energy supply and currently supply 386,000 homes across the UK. We continue to pursue other opportunities for the rollout of domestic smarter meters between now and 2020. SMS is well positioned for this new market segment with a strong track record to date building out our order book in the I&C and domestic markets."
For further information:
Smart Metering Systems plc | 0141 249 3850 |
Alan Foy, Chief Executive Officer | |
Glen Murray, Finance Director | |
Cenkos Securities plc | 0131 220 6939 / 0207 397 8900 |
Neil McDonald | |
Nick Tulloch | |
Kreab | 020 7074 1800 |
Matthew Jervois | |
Natalie Biasin | |
Chris Philipsborn |
Notes to Editors
UK Domestic Smart Meter Market
The domestic smart meters project is overseen by the Department of Energy and Climate Change and aims to install smart meters in homes and small businesses across the UK by 2020.
While DECC are responsible for the overall project management and monitoring, Ofgem are responsible for ensuring customers are protected during the installation phase. Capita has been appointed as the project manager for the data communications standards and Smart Energy GB (a Government funded body) are responsible for the communications campaign.
Market size and outlook
This initiative requires every home and small business in the UK to have smart or advanced meter functionality by 2020. This will require significant investment for rolling out and replacing approximately 22 million domestic gas meters and 27 million electricity meters.
Consumer benefits
Smart meters will help consumers to control their energy costs by seeing how much they are using minute by minute and allow them to identify savings to be made by turning off appliances which are not being used. This also means an end to estimated bills as with smart meters the bill will always be accurate and exactly what customers are expecting. They will also provide more accurate feedback to the energy companies of the level of demand which makes balancing the electricity system easier and cheaper to balance.
About Smart Metering Systems
Established in 1995, Smart Metering Systems plc, based in Glasgow, connects, owns, operates and maintains metering systems and databases on behalf of major energy companies. The Company provides a fully integrated service from beginning to end to cover the installation of a gas/electricity supply/connection to the procurement, installation and management of a gas or electricity meter asset to the collection and management of customer data and ongoing energy management services.
The Company has further applications for gas with its ADM™ device which allows "smart" functions such as remote reading and half-hourly consumption data to be offered to customers in addition to the normal metering services. The Company was admitted to the AIM market in July 2011 and is now part of the FTSE AIM 50 index. For more information on SMS please visit the Company's website: www.sms-plc.com.