FEATURE MONITORING & METERING SYSTEMS
SMART METERING: Are we ready for countdown?
Martin Evans Strategy Director at Utiligroup discusses the results of research carried out amongst 20 of the top 35 independent energy companies, in order to assess suppliers’ readiness for the mass smart meter roll-out in 2017. Here’s what the results revealed
T
he 2009 promise of every home being fitted with a smart meter by 2020
could be looking like a pipe dream, as Smart Energy GB – the company set up by the Labour Government to deliver the project – has warned that the government was ‘not good’ with such projects. The smart meter rollout was based on a prediction that the net benefits will exceed £6 billion, but the cost of implementing the roll-out increases as more layers of complexity are revealed – so, is the industry right to be concerned? The reality of accomplishing this has certainly raised more than an eyebrow or two from energy suppliers. Utiligroup surveyed 20 of the top 35 independent energy companies and has found that 67 percent of respondents believed that the industry will not meet this 2020 deadline for a high proportion of customers. It’s a huge undertaking, with multiple agencies and companies – Smart Energy GB and the Data and Communications Agency (DCC), to name a few – working in tandem with Ofgem and the Department of Energy and Climate Change (DECC). The sector has a long way to go. With just 1.6 million of the estimated 26 million smart meters installed, the initiative is coming under increasing scrutiny. Smart Energy GB only highlights
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11 suppliers by name as a reassurance to the public. These 11 suppliers are in varying stages of progression with it, too – a select few are installing meters on a mass scale already, some are trialling the infrastructure and software, while others are at discussion stage with Smart Energy GB. With the mass roll-out due to start in early 2017, it’s clear that more could be done to proactively manage the estimated remaining 24.4 million devices to be installed.
THE NEW DCC PROCESSES Regardless of the size or nature of the suppliers, however, providers must understand the interaction and overlap between the current industry processes and the new DCC ones as they navigate through this transitional process. The demands of the changes required include: CRM, billing, meter data management, industry interfaces and meter asset provision. How can the industry be prepared for
managing these complexities? And what will happen to the smaller providers when two thirds of these small and independent suppliers believe that the roll-out will not enable them to differentiate their offering from competitors? Perhaps it’s too early to tell. That being said, 88 percent of respondents agreed that a shared
Figure 1: Smart metering holds huge potential for energy efficiency but technology and service rollout needs to be carefully addressed to maximise on the potentials
solution is the best possible way to meet their smart meter obligations – one that is efficient, affordable and productive. Not only is the issue of timescales a problem, there’s also a resounding attitude that, perhaps, this smart meter roll-out might not be as beneficial to all suppliers as it once seemed. Three quarters of respondents stated that they believed that the DCC actually increases the barriers for new entrants to the industry, which suggests that the DECC clearly has a huge task to undertake in order to gain the buy-in it needs from these small and independent suppliers, in order to not leave them behind. Furthermore, 83 percent of respondents agreed that the advantages of the smart meter roll-out were clearly in the favour of the ‘Big 6’. The technical challenges facing the
industry are extremely evident. While the vision of enabling consumers to be more selective on how they use energy is appealing, the only way that this will be possible is through robust infrastructure – from the meter itself, to the DCC and the providers. It’s not all doom and gloom, however.
The DECC remains committed to its approach. A spokesperson commented: "Last year, an independent review on the smart meters programme backed the current delivery model, which is going to deliver the benefits of smart meters at the lowest possible cost to bill payers." Similarly, in July, Amber Rudd, secretary of state for energy and climate change, echoed: “It will be important that all suppliers maintain their focus on delivering the roll-out of smart meters by the end of 2020, to the benefit of all customers.” Even more positively, the DECC’s commitment is also reflected by a number of independent providers, with the majority surveyed claiming that they were satisfied that their actions to date have prepared them for the DCC’s live date.
Utiligroup
www.utiligroup.com 01772 770 208
/ ENERGYMANAGEMENT
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