Independent perspective Martin Pollock Siemens Energy Services - - PowerPoint PPT Presentation

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Nov 08, 2022 553 likes •666 views

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

SLIDE 1

Independent perspective

Domestic Metering Innovation

Martin Pollock Siemens Energy Services

SLIDE 2

What the utilities want vs What the residential consumer wants

Lowest cost to serve Settlement performance Regulatory and Legal obligations met Industry obligations met Minimum number of reads Minimum call centre activity No credit risk No bad debt Competitive price No estimated bills1 Safety Reliability Ability to optimise Ability to exploit offers Minimum inconvenience Special service on demand

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.

Conclusion: consumers have just as much direct interest in better data as utilities do

SLIDE 3

Sophisticated Meters

The case has been considered for the “sophisticated meter” Cost not justified on core functionality so:

Time of use pricing
Load reduction
Reduction in peak demand
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.

Other functions e.g. security,

fire alarms

Remove factors which do not

support case (safety)

SLIDE 4

Share of overall costs broken down by sub component

1. Source: DataMonitor

£6.75 £6.48 £6.88 £6.70 £6.75 £6.25 £7.12 £4.12 £3.78 £3.22 £3.38 £2.87 £2.69 £2.81 £2.40 £2.27 £2.34 £2.24 £2.36 £1.97 £10.07 £8.65 £8.54 £8.44 £8.60 £8.12 £6.69 £3.58 £23.74 £21.31 £20.91 £20.86 £20.46 £20.30 £18.46 £0 £5 £10 £15 £20 £25 £30 npower Centrica Scottish Power UK Average Powergen EDF Energy SSE Cost per customer

Total service centre costs per customer Total payment costs per customer Total billing costs per customer Total metering costs per customer Cost to serve per customer

Relative costs across industry

Total cost to serve1

The highest cost operator is 29% above the lowest
Operator with the highest metering costs has the lowest overall costs

Ave

SLIDE 5

Simple is best

AMR “smart” scheme architecture

Internet PSTN GSM

Utility

Home

Meter

.. . . .

Meter

SLIDE 6

Simple is best

AMR “smart” scheme architecture

Internet PSTN GSM

Utility

Home

Meter

.. . . .

Meter

SLIDE 7

Simple is best

AMR “smart” scheme architecture

Internet PSTN GSM

Utility

Home

Meter

.. . . .

Meterinfo

Meter

SLIDE 8

Simple is best

AMR “smart” scheme architecture

Internet

Utility

Home

Meter

.. . . .

Meterinfo

Meter

PSTN GSM

SLIDE 9

The cost of AMR has fallen

Frequency of data packets Cost per year

Manual Trad AMR New AMR

5 10

Break-even has fallen from ~10 to ~2 packets per year

SLIDE 10

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