Statement - Smart DCC Procurement Practice Investigation Outcome

Summary by AI BETAClose X

Capita plc has announced that Ofgem has concluded its investigation into Smart DCC's procurement practices, with Smart DCC agreeing to pay £200,000 to the Ofgem Voluntary Redress Fund and improve its processes. Ofgem reviewed five contracts awarded between 2021 and 2024, noting one non-competitive award and one to Capita, the parent company. While no consumer detriment was identified, Ofgem stated that future Fundamental Service Capability contracts should not be awarded to related undertakings. Capita is transitioning the Smart DCC contract to a not-for-profit provider within the next year.

Disclaimer*

08 July 2026

Capita plc

Smart DCC Procurement Practice Investigation Outcome

Capita notes today’s announcement that Ofgem has concluded its investigation into Smart DCC’s1 procurement practices. As a result of this conclusion, Smart DCC has agreed to pay £200k into the Ofgem Voluntary Redress Fund and to improve its procurement processes.

The regulator has reviewed DCC’s procurement of five contracts between 2021 and 2024. Of these, one contract was awarded through non-competitive process and one to DCC’s parent company, Capita. The regulator recognises that such procurement did not lead to any identifiable consumer detriment, but notes that DCC should have processes in place to ensure that future Fundamental Service Capability contracts are not awarded to companies where DCC is a related undertaking (as defined in the licence conditions).

Since the licence inception, Capita has put in place and built a significant national network enabling smart meter monitoring via Smart DCC. As previously announced, this contract will be transitioned to a not-for-profit service provider in the coming year.

Notes:

1Smart DCC is a wholly-owned subsidiary of the Group which is not consolidated into the Group’s financial statements. For further details see note 4.7 of the Group’s 2025 Annual Report and Accounts.

For more information, please contact:

Investor enquiries:

Helen Parris
Director of Investor Relations
Email: IRteam@capita.co.uk

Stephanie Little
Head of Investor Relations
Email: IRteam@capita.co.uk

Media enquiries
Email: media@capita.co.uk

About Capita plc

Capita is a modern outsourcer, helping clients across the public and private sectors run complex business processes more efficiently, creating better consumer experiences. Operating across eight countries supporting primarily UK and European clients with people-based services underpinned by market-leading technology. We play an integral role in society - our work matters to the lives of the millions of people who rely on us every day.

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