Section one: Contracting entity
one.1) Name and addresses
Southern Water Services Ltd.
Southern House
Worthing
BN13 3NX
Telephone
+44 1903264444
Country
United Kingdom
Region code
UKJ2 - Surrey, East and West Sussex
Internet address(es)
Main address
one.6) Main activity
Water
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
338,072,984.00
Reference number
prj_4725 – Alternative Metering Services
two.1.2) Main CPV code
- 38421100 - Water meters
two.1.3) Type of contract
Supplies
two.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.
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £338,072,984
two.2) Description
two.2.3) Place of performance
NUTS codes
- UKJ - South East (England)
two.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".
two.2.5) Award criteria
Quality criterion - Name: Technical / Weighting: 70%
Price - Weighting: 30%
two.2.11) Information about options
Options: No
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Negotiated procedure with prior call for competition
four.1.3) Information about a framework agreement or a dynamic purchasing system
The procurement involves the establishment of a framework agreement
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: No
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2023/S 000-020671
four.2.9) Information about termination of call for competition in the form of a periodic indicative notice
The contracting entity will not award any further contracts based on the above periodic indicative notice
Section five. Award of contract
Lot No
1
Title
Services
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
11 July 2025
five.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
five.2.3) Name and address of the contractor
Horizon Water Infrastructure Limited
Salisbury
SP12AP
Country
United Kingdom
NUTS code
- UK - United Kingdom
National registration number
15786027
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £300,000,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Southern Water
Southern House
Worthing
BN13 3NX
Country
United Kingdom