Industry experts have said that G4S and Capita have firm bids on the table for the DCC licence, and CapGemini is no longer in the running.
Elexon is still involved in the process but its bid ran into difficulty after regulator Ofgem in January rejected its plan to set up a subsidiary company for the DCC contract.
The balancing and settlement code (BSC) company has been struggling to design a structure that would let it diversify while protecting its core business.
Sources close to the bidding process said there were “always issues” around Elexon’s bid, and that the BSC company has now been “timed out” of the process.
The DCC will be responsible for ensuring an effective service is provided to energy suppliers, network operators and other authorised parties.
Meanwhile, three bidders remain in the procurement process for the Data Service Provider (DSP).
Utility Week understands that HP, IBM, and Logica have made it through to the next stage, but that CSC fell short.
The DSP will develop an application to link data from gas and electricity smart meters to energy suppliers’ systems.
The DCC and DSP tenders are now entering the final negotiation stage. The Department of Energy and Climate Change is expected to announce the winners by July.