Smart Metering Systems PLC (LON:SMS) has signed deals with two energy providers to be their preferred domestic smart meter service provider.
The deals are with Economy Energy Ltd and The Renewable Energy Company Ltd (which trades as Ecotricity).
Under the terms of the Economy Energy agreement, integrated metering services company SMS will install, own and manage around 100,000 domestic smart meters as part of the UK Government programme, overseen by the Department of Energy and Climate Change, requiring every domestic energy supply company to provide all of their customers with a smart meter in homes and small businesses across the UK by 2020.
Energy suppliers such as Economy Energy Ltd and Ecotricity will be required by regulation to appoint a meter asset manager in respect of the smart meters, and Smart Metering Systems is one of only four market participants currently performing that role.
The Ecotricity agreement will see SMS install around 50,000 dual fuel systems over the next 12 months.
The roll-outs will require expenditure on the part of Smart Metering Systems (SMS) and will be financed by recourse to the company's revolving credit facility.
Economy Energy said the deal marked the kick-off of the biggest metering project in its history.
“We've already started to roll out our smart meter programme as part of a trial with a social housing provider, and SMS has been a key partner in this project. Smart meters will help change the way people use their energy forever, so we're pleased to be working with a provider that is able to support the installation of this developing technology and help us continue to achieve our aim of delivering a great customer service," said Angela Beardsmore, chief operating officer of Economy Energy.
Alan Foy, chief executive officer (CEO) of SMS, said the company was delighted to be working with Economy Energy, which is part of the fastest-growing segment of the retail energy supply market.
“SMS is well-positioned for this new market with a strong track record building out just under one million meters and data assets to date from our order book in the industrial and commercial (I&C) and domestic markets," Foy said.
Dale Vince, founder and CEO of Ecotricity, said: "This is the kick-off for our smart meter programme. It's exciting and ambitious. Within two years, we hope to have installed smart meters for all of our customers, putting us right at the forefront of the industry.
“Smart meters are key to moving the energy industry into the 21st century. We see them at the heart of a Smart Home and a Smart Grid - and an energy system that's customer and environment centric.”
The shares rose 1.7% to 400p on the news.