# Britain Transfers 39 Million Smart Meters to Non-Profit Operator The transition ends Capita’s 13-year management following significant delays and spiralling project costs. - **Source:** [Business | The Guardian](https://www.theguardian.com/uk/business) - **Published:** 2026-11-02 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/d7e75045-b96a-4042-a42d-7c6c7f917062 ## Network Control Shift Control over Britain’s 39 million smart meters has officially transitioned to a non-profit startup. This move concludes a 13-year licensing period held by Smart DCC, a subsidiary of the outsourcing firm Capita. The new operator, under the Smart Energy Code Company, aims to prioritize transparency and consumer needs over commercial profit motives. ## End of Capita Era Capita’s tenure was marked by spiralling costs and significant project delays, leading to a decision by Whitehall officials to block the firm from tendering for a new licence. The company’s market value has plummeted by 97% over the last decade, coinciding with broader financial strains and controversies regarding their government contract management. ## Regulatory Investigation Context The transition follows an investigation by the industry regulator into Smart DCC’s procurement practices. Specifically, officials scrutinized contracts awarded without competitive bidding, including deals granted directly to Capita. In July, the subsidiary agreed to pay £200,000 into a consumer redress fund, highlighting the operational failures that plagued the network’s initial rollout phase. ## Rollout Performance Gaps Despite the original goal to equip all households with smart meters by 2020, three in 10 homes remain without one. Government spending watchdogs cited serious reputational obstacles as a primary cause for these delays. Completing the remaining installation phase is estimated to require an additional £1.7 billion in funding to modernize the system. ## New Governance Structure The new non-profit operator is governed by an independent board featuring veteran energy and telecoms executives. Notably, Dame Gillian Guy, former chief executive of Citizens Advice, joins the leadership team. This board structure is designed to address previous criticisms that households were let down by malfunctioning meters and poor service delivery standards. ## Operational Legacy Claims Capita maintains that its stewardship established critical national infrastructure, connecting 39.2 million devices across 23 million homes and small businesses. The company reports a network availability rate of 99.6% at the time of handover. They describe the transition as an orderly process intended to secure the network’s future resilience for all consumers. ## Strategic Modernization Goals The government’s primary objective remains the modernization of Britain’s outdated energy system to better integrate renewable sources. Smart meters are essential for enabling innovative, data-led energy tariffs that respond to real-time demand. The shift to a public-interest model is intended to accelerate these technological improvements while ensuring better reliability for end users. ## Future Outlook Expectations Ofgem expects the new licence holder to build upon the existing digital communication structure while correcting past inefficiencies. The focus will shift toward cost-effectiveness and consumer-centric operations. Success will be measured by the ability to resolve remaining billing issues and finally achieving the full national coverage target that eluded the previous commercial framework. ## Sources covering this story - https://www.theguardian.com/environment/2026/nov/02/control-of-britains-39m-smart-meters-passes-to-non-profit-startup — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._