Statement - Smart DCC Procurement Practice Investigation Outcome

Smart DCC Procurement Practice Investigation Outcome

Capita notes today’s announcement that Ofgem has concluded its investigation into Smart DCC’s1 procurement practices. As a result of this conclusion, Smart DCC has agreed to pay £200k into the Ofgem Voluntary Redress Fund and to improve its procurement processes.

The regulator has reviewed DCC’s procurement of five contracts between 2021 and 2024. Of these, one contract was awarded through non-competitive process and one to DCC’s parent company, Capita. The regulator recognises that such procurement did not lead to any identifiable consumer detriment, but notes that DCC should have processes in place to ensure that future Fundamental Service Capability contracts are not awarded to companies where DCC is a related undertaking (as defined in the licence conditions).

Since the licence inception, Capita has put in place and built a significant national network enabling smart meter monitoring via Smart DCC. As previously announced, this contract will be transitioned to a not-for-profit service provider in the coming year.

Notes:

1Smart DCC is a wholly-owned subsidiary of the Group which is not consolidated into the Group’s financial statements. For further details see note 4.7 of the Group’s 2025 Annual Report and Accounts.