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Getting Smart About Energy Consumption
Great Britain is currently rolling out a Smart Meter Implementation Programme, which is jointly led by the UK government and energy industry for the installation of approximately 53 million smart electricity and gas meters to domestic properties and non-domestic sites in Britain.
Smart meters measure energy use, and unlike traditional meters, they automatically send this information over wireless networks to a supplier. The display shows energy usage in real time, giving greater control to users and more accurate readings to providers.
Communication hubs are the devices which effectively allow smart meters to 'talk' to each other and share data, and companies such as Arqiva and Telefonica UK provide these.
No Ordinary Securitisation
The Smart Data Communications Company (DCC) builds and maintains the national infrastructure that underpins the roll-out of smart meters, including Smart Meter Implementation Programme communication hubs. These devices are installed in British homes through a diverse pool of energy suppliers, who have procured the communication hub equipment from Arqiva and Telefonica. When these are delivered by Arqiva and Telefonica, a receivable from the DCC is created. Given the unique nature of the DCC as an entity licensed by BEIS and regulated by Ofgem, this transaction required both technical structuring capabilities and regulatory expertise.
The use of a securitisation SPV structure allows a range of potential investors to finance the DCC's communications hubs, including banks and institutional investors. Through a greater diversity of funding, MUFG's structure ensures long term, economic financing for the DCC's communications hubs, further supporting British consumers and sustainability in the nation.
Supporting The Future Of Electricity And Gas Infrastructure
Communication hubs and smart meters are an essential component of the national decarbonisation agenda, allowing consumers to more easily switch energy suppliers and better manage their habits, practices and energy use, resulting in reduced carbon emissions. They also allow the energy system to map demand from homes and businesses more accurately, leading to lower costs, less energy wasted and more efficient deployment of resources. The financing arranged by MUFG also resulted in significant cost savings for the DCC, which benefit the British energy suppliers, and in turn their consumers.
Our energy systems need to keep pace with advances in modern technologies and low carbon targets; this transaction provided significant financial support needed for the roll-out of the Smart Meter Implementation Programme, contributing to a greener society and better value for consumers.