Simmons & Simmons has advised Telefónica UK on its appointment as the Communications Services Provider for the Central and South regions under the Smart Meter Implementation Programme. The objective of the Programme is to install smart meters in every home and premises in Great Britain by 1 January 2021 to enable people to manage their energy consumption and reduce carbon emissions.

Telefónica UK was awarded the contracts for the Central and South regions, which have a combined value of approximately £1.5 billion, as a result of a competitive public procurement process administered by the Department for Energy and Climate Change. Under the contracts, Telefónica UK will provide the communications systems which connect smart meters in homes to a data centre, enabling meter readings to be collected remotely and in real time.

Alongside its mandate to advise Telefónica UK on its bid to the Programme, Simmons & Simmons separately advised Telefónica UK on its landmark 10 year £1.2bn contact centre outsourcing to Capita, which was announced on 01 July 2013. This latest deal means that Simmons & Simmons has advised Telefónica UK on two of its largest and most strategically important commercial deals in 2013.

Steve Mortimer, Legal Counsel – New Business (Legal and Regulatory) and the lead lawyer for Telefónica UK on the deal, said:
“Simmons & Simmons played a significant role through each stage of the procurement process, providing Telefónica with clear and pragmatic business-focused advice on a variety of complex issues. They became an integral part of the Telefónica Smart Metering team, and provided commercially astute and workable solutions at all times demonstrating a strong understanding of the commercial and technical considerations.”

James Cotter, Simmons & Simmons partner in the firm’s Information, Communications & Technology group said: “We have been delighted to support Telefónica on its successful smart metering bid. Not only has the transaction been a key strategic priority for Telefónica but it has involved considerable complexities and captured the interests of everyone involved in the energy, wider utilities and TMT sectors.”

The transaction was managed by lawyers in Simmons & Simmons’ London office. The cross-practice team, was led by James Cotter (ICT) and assisted by Clare Adam (ICT). Employment advice was provided by Philip Bartlett and Anna Shelley. Asset Finance advice was provided by Christopher Boresjo. Tax advice was provided by Darren Oswick and Laura Allwright.

Simmons & Simmons has advised Telefónica UK on a range of matters in recent years, including the sale of Manx Telecom in 2011 and a finance and accounting outsourcing to Genpact in 2012.