Iberdrola exits UK smart meter market
Image courtesy Iberdrola
Global utility giant Iberdrola is selling its UK smart meter business, marking their exit from the UK smart metering market.
Iberdrola has signed an agreement with Macquarie, a global financial services group headquartered in Australia, to sell 100% of SP Smart Meter Assets Limited (SPSMAL), which manages 2.7 million smart meters in the UK.
The deal values SPSMAL at approximately £900 million ($1.2 billion at current rates).
The transaction is still subject to approval by the UK’s competition authority, and is expected to complete in the third quarter of 2025.
Upon completion of the sale, Macquarie will enter a long-term meter rental agreement to provide Smart Meter Asset Provision (MAP) services to Iberdrola-owned utility Scottish Power and support the business in the further roll-out of smart meters across Great Britain.
The acquisition will add around 2.7 million meters to Macquarie’s portfolio in the UK, meaning it will manage over 13 million meters nationwide.
Macquarie is currently one of the largest independent MAPs in the UK. Established in 2003 its meters business currently manages over 10 million meters in total, including 7.9 million smart meters and 2.5 million traditional meters, across Great Britain.
It has also provided over £1.5 billion ($1.7 billion) of funding to assist with Britain’s smart meter rollout.
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Commenting in a release was Julian Liddy, senior managing director, Macquarie Specialised and Asset Finance:
“Having played an active role in the roll out of more than 7.5 million smart meters to British households and businesses, this transaction provides an opportunity for us to add further scale and continue to drive progress towards UK government targets and bring benefits to British electricity and gas consumers.
“We are pleased to be taking ownership of a business with a track record of strong performance under the management of Scottish Power and look forward to supporting its further growth.”
Iberdrola is calling the transaction part of their strategy of rotating non-strategic assets.
In accordance with its Strategic Plan 2024/2026, Iberdrola already exceeds €10,000 billion ($13.2 billion) in alliance and divestment operations.
This transaction is the second largest divestment in Iberdrola’s history after the sale of the combined cycle plants in Mexico in 2024.
Commenting over social media platform Linkedin was David Mesonero, global head of corporate development, partnerships and M&A at Iberdrola:
“Another important step in Iberdrola’s asset rotation strategy…Very happy with this transaction in the UK!
“This transaction demonstrates, once again, our firm commitment to creating value through active portfolio management and to partnering with top-tier investors across the energy sector.
“Congratulations to our M&A and ScottishPower Retail UK teams for their professionalism and relentless effort to make this possible.”
At the end of 2024, 38 million smart meters had been installed in British homes and small businesses under the Smart Metering Implementation Programme.
The programme is led by the UK’s Department for Energy Security & Net Zero, regulated by the Office of Gas and Electricity Markets (Ofgem), and delivered by energy suppliers.
