ROAD-MAPPING CUSTOMER FACING APPLICATIONS TO ENABLE SMART GRID

Transcription

1 ROAD-MAPPING CUSTOMER FACING APPLICATIONS TO ENABLE SMART GRID JOSE ANTONIO T. VALDEZ VICE PRESIDENT MARKETING, CUSTOMER SOLUTIONS & INNOVATIONS MANILA ELECTRIC COMPANY

2 ABOUT MERALCO 109 years in service Franchise area: o 5 M accounts o 25 M people 25% of Philippine population o 50% of Phil GDP o About 30 manufacturing economic zones are MERALCO customers 60% of Phil output 56% of Phil electricity sales 4th largest Phil company by market capitalization ($6.9 B) 2

3 ABOUT MERALCO Generation* Transmission Sub-transmission Primary Distribution Secondary Distribution Philippines biggest power distributor: 113 substations 839 circuits 16,590 kms of conductors 213 power transformers 151,489 distribution transformers 30 business centers 10 sector offices Our Customers: INDUSTRIAL COMMERCIAL RESIDENTIAL 3 * Plans underway to re-enter into power generation

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5 SYSTEM AVAILABILITY & RELIABILITY ALL-TIME BEST From 2010 to 2011: Total Interruption Frequency Rate (Reliability) improved by 21.8%, at 3.70 times Forced Cumulative Interruption Time (Availability) improved by 25.5%, at 2.46 hours Pre-Arranged Cumulative Interruption Time (Availability) improved by 13.7%, at 1.39 hours 16,42 Pre-arranged CIT Forced CIT Total IFR 9,08 7,83 3,70 2,46 1,

6 SYSTEM LOSS PERFORMANCE ALL-TIME LOW System Loss is 1.15 percentage points below the cap of 8.5% 2. System Loss has been below the cap for the last 4 years 3. Savings are passed on to customers 11,10% System Loss SL Cap 10,39% 9,50% 8,50% 7,35%

7 CUSTOMER SATISFACTION INDEX increase of 0.32 highest in the last 8 years 2. Continuing innovation in service excellence and delivery 7,56 7,65 7,54 7,32 7,27 7,31 7,33 7,19 7,00 6,90 7,17 6,

8 Global Imperatives: Why we need to move forward Energy consumption re-distribution By 2030, more than 60% of the global population will live in cities Power needs growth By 2030, global electricity demand is expected to increase by 75% Electricity price increase Double-digit price increases are already commonplace Subsidies being withdrawn -> social unrest Sustainability must be achieved > 40% of our current emissions are from electric generation Industrialized nations live on borrowed time More than 50% of grid infrastructure is reaching the end of their design life 8 Prosperity vs. sustainability Creative tension in achieving prosperity in a sustainable manner

9 SMART GRID MANY DEFINITIONS... 1,500 PROJECTS GLOBALLY IN DIFFERENT STAGES OF IMPLEMENTATION 9

10 SMART GRID VALUE TO EVERYONE Economic competitiveness (improved business performance, new technology, jobs creation, etc.) Energy infrastructure performance (improved reliability and security, generation diversity, new technology enablement, etc.) Empowerment- Consumer (new services, energy management, etc.) Environmental sustainability (more renewable and distributed generation) 10

11 SMART GRID PROGRESSIVE POLICY AND REGULATION Policymakers establish the targets 1. Energy security (e.g. supply demand, generation mix, etc.) 2. Energy value chain price (e.g. taxes, investment environment, etc.) Clean energy technology/solutions and standards Regulators provide the incentives 1. Enable customer driven innovation and benefits 2. Balanced approach to supply demand management Investment recovery guidelines - Innovative rate designs 11

12 5 year CAGR 12 PHILIPPINES IMPERATIVES 1. Price of electricity in PH is high Findings of John Morris, International Energy Consultants, July 2012 We don t subsidize We don t have natural resources Our national grid is small, then unbundled Island territories drive up costs 2. Looming supply shortage 3. Clean power an increasing demand from PH s critical commercial / industrial sector 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% 35% RUBBER & PLASTICS* 4% NON_METALLIC* (Cement, Glass Ceramic) FOOD & BEVERAGE 7% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 9% REAL ESTATE ( including BPOs) Share of Total Corporate Sales SEMICON* (Chips, TV/Radio transmitters) 21% 4% * Segments where service reliability and power quality are important RETAIL TRADE (Malls, Groceries, Fastfood, CVS)

13 CONCERNS OF OUR CUSTOMER SEGMENTS Based on the nd Semester Customer Satisfaction Study November-December 2011 Rates & Price Service Reliability & Quality Innovativeness Residential Value for money Reasonable rates Fast response to power quality or facilities related inquiries/ complaints Commercial / Industrial Reasonable rates Fast response to power quality or facilities related inquiries/ complaints Clean Power (allows proper operation of sensitive electrical equipment) New or modern meters Remote identification of problem areas Need for innovative and more responsive service offerings is imminent! 13

14 MERALCO EFFORTS TOWARDS SMART GRID PREPAID ELECTRICITY HOME ENERGY MANAGEMENT ELECTRIC VEHICLES 14

15 On March 16, 2021, the Philippines will shine brightly on its Quincentennial Year. With our own Power Generation, we will enable Filipinos to enjoy more reliable and affordable electricity. With our wider distribution network, we will reach more homes and businesses. With our Smart Grid and through our alliance with PLDT, Smart and Metro Pacific, we will allow Filipinos to experience: Home Area Network Pre-paid electricity Affordable electricity rates MERALCO, as a responsible corporate citizen, will support Electric Vehicles, one of our efforts to keep our planet green. 15

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17 PREPAID ELECTRICITY CUSTOMER BENEFITS SACHET PRICING NO BILL SHOCK ABOT-KAYA 17

18 HOME ENERGY MANAGEMENT CUSTOMER BENEFITS CONSUMPTION MANAGEMENT APPLIANCE 18 CONTROL

19 TARGET MARKET AND PROFILE PREPAID ELECTRICITY and HOME ENERGY MANAGEMENT Ave. Electricity Bill: PhP 12,500 (or 287 USD) Ave. Monthly Consumption: 950 kwh Count Usual Electrical Appliance: 12 Ave. Electricity Bill: PhP 3,000 (or 65 USD) Ave. Monthly Consumption: 230 kwh Count Usual Electrical Appliance: 9 *Sources: 1. Consumer Panel Research, Jan-Feb, Marketing Decision Support System, June

20 ELECTRIC VEHICLES MITSUBISHI TURNOVER OF i- MiEV CONCEPT CHARGING STATION MERALCO ELECTRIC SHUTTLE 20

21 STEPS TO GET THERE 1. On-going dialogue with various Philippine government agencies such as the Department of Energy, Energy Regulatory Commission and National Telecommunications Commission to secure government support and align on rules 2. Jointly learn with policy and rule makers on global learnings, best practices, practical policy frameworks among emerging and progressive economies. a. And how these may be applied to the Philippines 3. Do pilot tests to validate benefits to customer, country, and community 4. Set the policy framework and implementing rules 21

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