Contract award notice – utilities
Section I: Contracting
entity
I.1) Name and addresses
Southern Water Services Ltd.
Southern House
Worthing
BN13 3NX
UK
Telephone: +44 1903264444
E-mail: jo.broad@southernwater.co.uk
NUTS: UKJ2
Internet address(es)
Main address: https://southernwater.co.uk
I.6) Main activity
Water
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
338,072,984.00
Reference number: prj_4725 – Alternative Metering Services
II.1.2) Main CPV code
38421100
II.1.3) Type of contract
Supplies
II.1.4) Short description
As part of Southern Water's AMP8 (2025-2030) delivery programme, we aim to reduce overall demand for water, by cutting leakage by 13% and helping our customers become even more efficient by installing more than 1 million smart meters.
The successful bidder would manage the overall service provision as a prime contractor, including the supply and ownership of Smart meters and associated devices, installation of those Smart meters, connecting them to an Advanced Metering Infrastructure (AMI) network, maintaining a service to provide Southern Water with meter reading data and procured as an end to end financed solution. The successful bidder would own the meter assets, with Southern Water paying service fees over the term.
Southern Water has a high percentage of metered customers (88%) through our pioneering Universal Metering Programme. By 2030, the successful bidder would upgrade our household meter estate of ~934k household meters, and 52k non-household meters, to Smart AMI enabled meters, incorporated into the service. The successful bidder would also install 34k new AMI enabled meters to currently unmetered customers. We expect a mix of standard, non-standard, and complex work types that will be managed through this arrangement.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
338 072 984.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UKJ
II.2.4) Description of the procurement
The successful bidder will operate across Southern Water's supply area, for household and non-household premises.
In total, the number of Smart meter assets in the scope of the full service is 1.02m. The successful bidder will install and commission, operate and maintain the Alternative Metering Service, inclusive of smart AMI meters and devices, communications network, and data pass back provision to Southern Water. The successful bidder will include enabling activities within the scope of services to deliver the stated outcome.
The successful bidder will be responsible for:
(i) Supply of Smart AMI water meters warranted for 15 years
(ii) Planning, pre-installation surveys and meter installation for standard works i.e. meters to 934k household properties where the meter is situated externally (86%), or internally (14%)
(iii) Planning, pre-installation surveys and meter installation for non-standard works i.e. 45.2k meters to non-household properties where the meter is situated externally (80%), or internally (20%)
(iv) Planning, pre-installation surveys and meter installation of meters for complex works i.e. 6.4k meters over 20mm in size, 34k new meter installations to unmetered sites, or boundary box replacements in the highway/verges (excavation, backfill and reinstatement, traffic management)
(v) Communications network (non-dedicated to Southern Water) recording 24 hourly reads per day and transmitting the data once per day
(vi) Smart meter and network issue resolution
The Contract is awarded in July 2025 and will be for a total period of 20 years, with the Smart meters being deployed within the first 5 years "installation phase".
II.2.5) Award criteria
Quality criterion: Technical
/ Weighting: 70%
Price
/ Weighting:
30%
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Negotiated with call for competition
IV.1.3) Information about a framework agreement or a dynamic purchasing system
The procurement involves the establishment of a framework agreement with a single operator.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
No
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2023/S 000-020671
IV.2.9) Information about termination of call for competition in the form of a prior information notice
The contracting authority will not award any further contracts based on the above prior information notice
Section V: Award of contract
Lot No: 1
Title: Services
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
11/07/2025
V.2.2) Information about tenders
Number of tenders received: 4
Number of tenders received by electronic means: 4
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Horizon Water Infrastructure Limited
15786027
Salisbury
SP12AP
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 300 000 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
Southern Water
Southern House
Worthing
BN13 3NX
UK
VI.5) Date of dispatch of this notice
12/08/2025