Total Gas & Power Ltd contract adds 250,000 domestic and 15,000 industrial and commercial meters
Smart Metering Systems (SMS) has secured a “major new contract” with Total Gas & Power Ltd (TGP).
TGP, a subsidiary of Total SA, has agreed a three-year deal with SMS, who will provide its ADM 'smart' meter, which was trialled by three major energy suppliers last year, for its industrial and commercial (I&C) customers.
Glasgow-based SMS said the meters in the new contract range from small domestic sized to large industrial meters, and will add around 15,000 ADM meters to its I&C managed portfolio.
SMS said the equivalent number of domestic meters would be around 250,000 in value terms, based on initial run rates.
Up to 2014, small I&C metered premises, estimated by SMS at more than 1.2 million, will have the opportunity to opt for an advanced metering solution such as the ADM smart meter.
Alternatively, these businesses can also opt to be included in the government's proposed domestic roll out of smart meters.
The large I&C market, which has to move to an advanced metering solution by 2014, is further estimated at 378,000 meters.
The SMS board believes its solution will be “attractive to both market segments” based on competitive pricing and ease of installation.
Alan Foy, chief executive of SMS, said: “We are absolutely delighted that TGP, the second largest gas supplier in the UK's I&C market, has decided to adopt the ADM solution.
“This is our second I&C contract to be announced in recent months and marks a step change in the adoption of the ADM solution as an industry standard.
"The ADM continues to trial very successfully with other I&C gas suppliers and energy brokers and we anticipate announcing further progress in due course.”
In full year results posted in February, SMS put its current portfolio at 254,000 meters, adding another 180,000 in May on the back of a contract win with SSE.
Another “significant” contract was also secured in May with Contract Natural Gas (CNG), though the number of meters involved was not disclosed.
SMS launched onto the Alternative Investment Market (AIM) last July with a £50 million capitalisation.
The company provides gas infrastructure connection services, gas meter asset management services and smart metering technology.
SMS reported a 286 per cent rise in pre-tax profits for 2011 to £3.31 million on a 51 per cent rise in revenues to £6.6 million.
Shares in SMS rose more than nine per cent in early trading today.