British Gas awards £600m smart meter deal to Landis+Gyr

British Gas has awarded a £600 million deal to Landis+Gyr for the supply of smart meters that the energy company will install in its customers’ homes.

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British Gas has awarded a £600 million deal to Landis+Gyr for the supply of smart meters that the energy company will install in its customers’ homes.

According to the announcement, smart meter manufacturer Landis+Gyr will supply “the majority” of the 16 million smart meters British Gas is installing.

Under the government’s plans, smart meters, which will send accurate meter readings directly to suppliers, will be in homes and businesses across the UK by 2020. According to the two companies, the £600 million deal is “in line with the pricing originally estimated in the government’s impact assessment for the smart meter rollout”.

British Gas has already started installing smart meters, and have put in more than a million into customers’ homes and businesses so far.

Andreas Umbach, Landis+Gyr’s CEO, said that the energy management products company has been working with British Gas for the last three years to develop smart meters for its customers.

Landis+Gyr expects to double its 600-strong UK workforce and extend its manufacturing facilities as a result of this deal. Meanwhile, British Gas plans to recruit 500 more Smart Energy Experts - who will install the smart meters and provide energy efficiency advice to households - in 2014.

“This is the largest deal of its kind worldwide and sets a new industry standard for working in partnership,” said Umbach.

“It allows us to achieve significant economies of scale in meter production, to expand our UK operations and to further establish the UK as a global centre of smart energy excellence.”

Chris Weston, managing director of British Gas, said: “[Smart meters bring] a transformation in the way [energy customers] can manage energy use in their homes and businesses.

“Our £600 million investment in Landis+Gyr’s smart metering solutions means we can provide smart meters cost-effectively to our customers, and bring them the benefits of this innovative technology as soon as possible.”

British Gas and Landis+Gyr have also been working with partners including technology providers Trilliant and GEO to develop the existing smart metering infrastructure for British Gas’s customers.

The government recently announced its preferred bidders, which include Capita and CGI, to build the UK's smart metering shared infrastructure for utility services, with a mass rollout of smart meters starting in late 2015.