A host of firms including the owner of mobile network operator O2 were unveiled today as preferred applicants to run the communications system behind the Government’s smart electricity meter rollout.

The nation has been divided into three regions for the installation of 53million smart meters across the country by 2020: the North, South and Central.

Spanish telecoms giant Telefonica is set to bag a £1.5billion contract to work with suppliers to set up and run the systems for smart meters in two regions, the central swathe – Midlands, East Anglia and Wales – and the south of England.

Wifi and telecoms firm Arqiva will run the same service for the north of England and Scotland for a 15-year-long contract worth roughly £625 million.

An eight year, £75 million contract will go to CGI IT UK to develop and operate the system controlling the movement of messages to and from smart meters as Data Service Provider.

UK outsourcing and management business Capita has been picked as the successful DCC Licensee applicant, to effectively project manage the whole communications service.

The Department of Energy and Climate Change expects to make a statement to Parliament in early September once contracts have successfully been concluded.