Smart Metering Systems 'comfortable' despite energy supplier crisis

Energy infrastructure company Smart Metering Systems updated the market on its operations on Thursday, having noted that there had been “considerable” turbulence recently in the UK energy market.

The AIM-traded firm was responding to the failure of a number of independent energy suppliers, and Ofgem’s ‘Supplier of Last Resort’ (SoLR) mechanisms being enacted.

It said it remained “comfortable” with its previously-guided contracted smart meter order pipeline for the group.

In grid-scale batteries, the company said it had now secured a further 50MW project which was previously under exclusivity, increasing the secured pipeline to 290MW, and had added a further 150MW to those sites remaining under exclusivity, now totalling 330MW.

The total pipeline had thus increased from 470MW as at 30 June to 620MW.

Smart Metering Systems said its first 50MW site had now been energised, and entered testing.

Construction of the site and the remaining secured pipeline was still progressing in line with its expected cost and construction programme.

Trading for the financial year currently remained in line with expectations, and the company said it was in a “strong” net cash position, reflecting the net proceeds of its recent equity placing.

“The strength of our contracted smart meter order pipeline, despite the ongoing turbulence in the energy market, reflects the resilience of our business model,” said chief executive officer Alan Foy.

“Grid-scale batteries are critical to balancing the increasing volume of intermittent renewable energy generation and to accelerate the adoption of renewables, which are fundamental to the net-zero energy transition.

“The continued progression of our batteries pipeline is a testament to our ability to leverage on our fully end-to-end integrated platform.”

At 0955 GMT, shares in Smart Metering Systems were up 0.7% at 833.8p.