Scottish and Southern Electric (SSE), Britain’s second largest energy supplier, has awarded Logica a contract to provide communication, data and pre-payment services for residential smart meter system trials.
The companies will partner to deliver smart metering systems ahead of the mandated roll-out across the country, expected to start in 2014 when the new Data Communications Company (DCC) is in place. The DCC role is central to the use of smart meters, responsible for gathering meter readings and passing the data back to the suppliers.
Logica will support SSE through its Smart Data Services and Instant Energy product. The Instant Energy service enables real time communication with customers’ meters using SMS messaging and pre-payment customers can top up their credit using the same technology as pay-as-you-go mobile phones.
This is another good smart meter win for Logica, which seems to be carving out an important slice of the market for itself. I reported on a similar win, worth £2.4m, with OnStream to provide services for a minimum of 26,000 residential smart meters over the next five years. Logica says that through Smart Data Services and Instant Energy it now supports over 85% of smart meters installed in people’s homes across Britain.
And that’s not all. In July Logica and SAP announced they would jointly bid to become the provider of the central data management capability, one part of the role of the DCC, which needs to be in place before the mass roll-out. The contract is expected to be worth more than £100m and it’s an area where Logica has history. The company set up and ran (for ten years) the UK's New Electricity Trading Agreements (NETA), which replaced the previous wholesale electricity market mechanism.
Logica is certainly well positioned in the market. The company must have a good chance in the race to become DCC while also in the running for large-scale meter service deals, where the big money will be. It’s a reminder of the scale of the opportunities in this area of Green ICT.