Capita says Smart DCC to strengthen procurement processes after probe
Capita PLC subsidiary Smart DCC Ltd has agreed to pay £200,000 in redress, after regulator Ofgem concluded its investigation into five contracts awarded between 2021 and 2024.
The UK energy regulator noted that out of the five contracts, Smart DCC awarded one through a non-competitive process and one to Capita.
Ofgem recognised that these actions did not lead to any identifiable consumer detriment, but said Smart DCC should implement processes "to ensure that future Fundamental Service Capability contracts are not awarded to companies where DCC is a related undertaking," Capita noted.
As a result, the London-based outsourcing and business services provider said, Smart DCC has agreed to pay £200,000 into the Ofgem Voluntary Redress Fund. Smart DCC, which operates the UK's smart meter communications infrastructure, has also pledged to improve its procurement processes.
"Since the licence inception, Capita has put in place and built a significant national network enabling smart meter monitoring via Smart DCC," Capita added. "As previously announced, this contract will be transitioned to a not-for-profit service provider in the coming year."
Capita shares were down 0.6% at 279.44 pence in London late on Wednesday morning.
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