A SWITZERLAND-BASED company headed by Irish businessman Cameron O'Reilly has landed a lucrative four-year contract to supply three million "smart" electricity meters in Texas.
No value has been placed on the contract, but industry sources estimate it to be worth about $360 million (€228 million) to Landis+Gyr, which supplies advanced metering systems to energy suppliers around the world.
The meters, which cost about $120 (€76) each, will allow consumers to monitor their electricity consumption more closely and help them reduce consumption and wastage. They also enable energy suppliers to predict demand more accurately.
Landis+Gyr signed the deal with Texas utility company Oncor, which will fit the meters in homes and businesses across the state. In all, about seven million consumers will use the meters in Texas.
This is thought to be the most lucrative contract landed to date by Landis+Gyr. Commenting on the contract win, Mr O'Reilly, who is a son of billionaire businessman Sir Anthony O'Reilly, said: "This is a significant win and confirms our presence as an industry leader in smart metering. Through this contract, Texas will now be able to manage energy better."
The US government enacted a law in 2005 mandating utility companies to introduce advanced metering to improve energy efficiency. Oncor is investing $690 million in Texas, including the cost of the Landis+Gyr meters.
Landis+Gyr plans to open an office in New York to manage its US activities. Mr O'Reilly entered the energy industry in 2002, when he set up a private company called Bayard Group to invest in energy-efficient businesses. The holding company is backed by a number of large institutions and wealthy individuals. Sir Anthony is believed to be an investor in the group.
Bayard was last week rebranded as Landis+Gyr, a long-established brand name in Switzerland. It now has operations in more than 30 countries, annual turnover of about $1.3 billion and some 5,000 staff. The group is thought to have earnings before interest, tax, depreciation and amortisation of about $200 million a year.
Recent reports have suggested that Landis+Gyr is being prepared for a stock market flotation, with the business estimated by some analysts to be worth up to $3 billion. "It has always been our intention to float but contrary to recent speculation we have not made a final decision on when or where," said Mr O'Reilly, who is group chief executive.
