DECC has confirmed the arrangements for the smart meter rollout after signing contracts and licenses to run the programme, following the announcement of preferred bidders last month.

The license for the Data and Communication Company (DCC) – in charge of linking the 53 million smart meters with energy suppliers, network operators and energy service companies – went to Capita.

The 12-year licence is estimated to be worth £175 million for the company.

CGI, Telefonica UK and Arqiva have all signed contracts with Capita to run different parts of the programme.

The system to control the transfer of data to and from the smart meters will be developed and operated by CGI, which signed an eight-year contract with Capita valued at roughly £75 million.

Telefonica UK was awarded a £1.5 billion contract to provide the communications infrastructure for the central and southern regions over the next 15 years. Arqiva will provide the infrastructure for Britain’s northern region after signing a deal worth £625 million.

Matthew Key, Chief Executive of Telefónica Digital said: “[Smart meters] will become the foundation of a revolution in energy consumption and management, helping consumers and businesses to more efficiently manage their energy usage with significant economic and environmental benefits.”

John Cresswell, CEO of Arqiva said: “Arqiva is immensely proud to have won the tender to provide the smart metering communications service in Scotland and northern England.

“Smart meters are vital in empowering consumers to save energy and this is the first step in delivering an energy secure Britain.”

A four-year contract worth approximately £10 million was also signed between Gemserv Limited and the Smart Energy Code Company to develop and maintain the Smart Energy Code.

Earlier this month British Gas announced it had signed a £600 million deal to buy the smart meters themselves.