Capita, Spain's Telefonica and CGI have been selected as the preferred bidders by the Department for Energy and Climate Change (DECC) for smart meter installation across UK.

Capita has won the data and communications company licence, which is valued at £175m.

CGI has been selected as preferred bidder to develop and operate the system controlling the movement of messages to and from smart meters, while the contract is valued at £75m.

In addition, Germserv has been selected for a £10m contract as the bidder for the Smart Energy Code Administrator and Secretariat contract to maintain and update the industry code governing the use of smart meters across the energy industry.

DECC also announced that communications company Arqiva has been selected as the preferred bidder to provide the smart metering communications service for northern England and Scotland.

Sensus and Arqiva, will provide the long-range radio technology for a private, secure and resilient communications network.

The UK government’s £11.7bn smart grid program is expected to help energy customers reduce gas and electricity bills by allowing them to monitor how much they are using through a smart meter in their house.