Independent perspective Martin Pollock Siemens Energy Services - PowerPoint PPT Presentation

Domestic Metering Innovation Independent perspective Martin Pollock Siemens Energy Services

What the utilities want vs What the residential consumer wants Competitive price Lowest cost to serve No estimated bills 1 Settlement performance Safety Regulatory and Legal obligations met Reliability Industry obligations met Ability to optimise Minimum number of reads Ability to exploit offers Minimum call centre activity Minimum inconvenience No credit risk Special service on demand No bad debt Conclusion: consumers have just as much direct interest in better data as utilities do Meters, interval recording, load limiting, instantaneous consumption, daily/weekday/weekend averages, innovative solutions, additional services 1. In prepay this is manifest as a desire to match expenditure to income, in value and time. People who are paid weekly, want to spend weekly.

Sophisticated Meters The case has been considered for the “sophisticated meter” Cost not justified on core functionality so: •Other functions e.g. security, •Time of use pricing fire alarms •Load reduction •Remove factors which do not •Reduction in peak demand support case (safety) •Real-time control But why would anyone want to put all this in a meter especially considering its likely location? Already conceded that remote display/interaction is needed Conclusion: Put the sophistication where the user interaction is.

Relative costs across industry Total cost to serve 1 Share of overall costs broken down by sub component £30 £23.74 Cost to serve per customer £21.31 £25 £20.91 £20.86 £20.46 £20.30 £18.46 Total service centre Ave costs per customer £20 £10.07 Cost per customer £8.65 £8.54 £8.44 £8.12 £8.60 Total payment costs £6.69 £15 per customer £2.81 £2.40 £2.27 £2.34 £2.36 £1.97 £2.24 Total billing costs per £10 £4.12 customer £3.22 £2.69 £3.78 £3.38 £2.87 £3.58 £5 Total metering costs £7.12 £6.88 £6.75 £6.70 £6.75 £6.48 £6.25 per customer £0 npower Centrica Scottish UK Average Powergen EDF Energy SSE Power •The highest cost operator is 29% above the lowest •Operator with the highest metering costs has the lowest overall costs 1. Source: DataMonitor

Simple is best AMR “smart” scheme architecture .. . . . Home TV PSTN GSM Utility Internet Meter Meter

Simple is best AMR “smart” scheme architecture .. . . . Home TV PSTN GSM Utility Internet Meter Meter

Simple is best AMR “smart” scheme architecture .. . . . Home TV PSTN GSM Utility Meterinfo Internet Meter Meter

Simple is best AMR “smart” scheme architecture .. . . . Home TV PSTN GSM Utility Meterinfo Internet Meter PC Meter

The cost of AMR has fallen Manual Trad AMR Cost per year New AMR 0 5 10 Frequency of data packets Break-even has fallen from ~10 to ~2 packets per year

Innovation Metering would be smart and innovative if it.. •Improved quality of service •Reduced overall cost to serve •Increased consumer choice •Enabled increased awareness of energy usage (emissions) •Enabled efficient consumption (cost) •Offered a practical national deployment route •Delivered identifiable primary benefits (no estimated bills) •Enabled suppliers to optimise consumer value propositions