The Smart Meter rollout programme
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- Philomena Morton
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1 The Smart Meter rollout programme Cambridge Cleantech 3 rd July 2013 Ash Pocock Head of Industry, Regulatory and External Affairs EDF Energy July Smart Metering - Key Questions Policy will it deliver the Governments impact assessment? Timing is the delivery timeframe realistic? Market Model what challenges will a Supplier-led model with a regulated data and communications infrastructure have to resolve? Regulation how will the obligations being imposed upon the market be delivered and maintained? Design is the end-to-end architecture robust, scalable, secure and fit for a national rollout? Consumers will the consumer engage, and benefit from the deployment of Smart Metering? 2 1
2 Content Background to EDF Energy in the energy market Focus on EDF Energy s smart metering/homes plans Issues for a EDF Energy and the supply sector about the roll out Needs of EDF Energy to help the Company with the roll out 3 EDF Energy WHO ARE WE? 4 2
3 EDF Energy Part of One of the 3 largest energy companies in Europe Largest UK producer of low carbon energy Generate around 20% of the Nations Energy Operate 3 conventional and 8 Nuclear power stations, with plans to build 2 New Nuclear plants in UK Operate renewable generation including on/off shore Supply energy to over 5.5m residential and business customers - Biggest Supplier of Electricity in the UK Will need to install over 5m smart meters in GB and 35m in France by end Issues for EDF Energy and the supply sector about the roll out POLICY WILL IT DELIVER THE GOVERNMENTS IMPACT ASSESSMENT? 6 3
4 EU smart meter electricity rollout plans 8 Source: anchez%20jimenez.ppt/view Dated 06/12/12 EU smart meter gas rollout plans 9 Source: anchez%20jimenez.ppt/view Dated 06/12/12 4
5 Summary of the GB Smart Metering Business Case/Impact Assessment 20,000 18,000 16,000 14,000 12,000 m 10,000 8,000 6,000 4,000 2,000 0 Source: Smart meter roll-out for the domestic and small and medium non-domestic sectors (GB) 11 Issues for EDF Energy and the supply sector about the roll out MARKET MODEL WHAT CHALLENGES WILL A SUPPLIER-LED MODEL WITH A REGULATED DATA AND COMMUNICATIONS INFRASTRUCTURE HAVE TO RESOLVE? 5
6 National technical architecture Energy service companies CSP north CSP middle CSP south DCC DSP Network operators Some MSMO data? Meter Service Management Operator Opted out SME Possibly early SMETS meters Suppliers GB mandate & market model creates unique challenges Suppliers CSP north CSP middle CSP south DCC DSP Network operators Technical interoperability Need to create and procure a national centralised data & communications monopoly Energy service companies New code to govern Market changes DCC and disconnection ability in gas & electricity meters creates higher security risk IHD Comms hub Gas first installations Gas meter 6
7 Issues for EDF Energy and the supply sector about the roll out TIMING IS THE DELIVERY TIMEFRAME REALISTIC? 14 GB mandate regulatory timelines Roll-out obligations: Complete roll-out by Installation Code of Practice: 31/12/2019 Set consumer expectations for Pre-DCC installation process (pre and during) Security: Supplier e2e security Effective Switching (i): Customer 1 Nov 2012 Switching: Interim Advise customer Change may of lose Supply smart services arrangements Avoid misleading data on IHD on CoS Data Access: Rights & responsibilities for data usage DCC Finish! 7
8 Issues for a EDF Energy and the supply sector about the roll out REGULATION HOW WILL THE OBLIGATIONS BEING IMPOSED UPON THE MARKET BE DELIVERED AND MAINTAINED? 16 DCC services Core Communications Services Provided to all DCC users as appropriate to their role in the market, must be provided at a standard ( postage stamp ) charge to service users for meters at domestic premises throughout GB, regardless of geographic differences in the cost of providing the service. Non domestic charges are to be cost reflective. Elective Communications Services These should facilitate competition in energy supply and related activities and have charges reflecting costs (i.e. Other communications services connected with energy supply, provided at the service user s request Enabling Services Those things that DCC undertakes in support of the provision of Core and Elective Communications services, and may, for example include the provision of a helpdesk and enrolment services. Value Added Services These are potential; future services not relating solely to energy supply but which may use the underlying DCC capabilities and whose provision must be authorised by the Authority. For Example Household security and monitoring. 8
9 Smart meter functionality High level functionality Electricity Gas A Remote provision of accurate reads / information for defined time periods delivery of information to customers, suppliers and other designated market organisation B C D E F G H Two way communications to the meter system Communications between the meter and energy supplier or other designated market organisation Upload and download data through a link to wide area network, transfer data at defined periods, remote configuration and diagnostics, software and firmware changes Home area network based on open standards and protcols Provide real time information to an in-home display Enable other devices to link to the meter system Support a range of time of use tariffs Multiple registers within the meter for billing purposes Load management capability to deliver demand side management Ability to remotely control electricity load for more sophisticated control of devices in the home Remote disablement and enablement of supply That will support remote switching between credit and prepayment modes Exported electricity measurement Measure net export Capacity to communicate with a measurement device within a microgenerator Receive, * Domestic store, only communicate total generation for billing * Examples of core and elective services Examples of Core services Product Management Update Import Tariff Update Price Prepayment Top Up Device Update Debt Customer Management Display Message Restrict Access Reading Read Import Registers Read Export Register Examples of elective services Fast processing of core services Managing HH and AMR metered sites Messages to the IHD Energy services products EV and heat pumps Examples controls of Value Added services Commercial Services Non-energy, eg., Water Metering, Heat Metering. 9
10 Interaction with other Government policies No joint requirements LOW Enables 2 way interaction Delivers export functions Enables generation interaction High level of interdependence High Energy Companies Obligation (ECO) OLEV AMR rollout FITS RHI Smart Grid Forum Needs of EDF Energy to help the Company with the roll out DESIGN IS THE END-TO-END ARCHITECTURE ROBUST, SCALABLE, SECURE AND FIT FOR A NATIONAL ROLLOUT?
11 Technical architecture within the property Micro generation meter Trusted devices Smart appliances Home automation controller Laptop CAD Trusted devices Unlikely available at go live Untrusted devices CSP procured Supplier install Heat pump IHD Electricity meter Gas meter Comms hub CSP 22 EV charge point Sites without DCC coverage Not all sites will have WAN coverage. WAN coverage may also improve over time. - The first two years of the rollout depending on the winning CSP bidders could have a more limited coverage This impacts; - rollout planning - How to deal with impacted sites from a service and customer communications view point - not spots and MDU s - How to deal with PAYG customers is a major concern - Suppliers will have to run dual processes for smart and non smart indefinitely 11
12 Needs of EDF Energy to help the Company with the roll out CONSUMERS WILL THE CONSUMER ENGAGE, AND BENEFIT FROM THE DEPLOYMENT OF SMART METERING? 24 Directly smart meter benefits to the customer What benefits can the customer expect from the introduction of smart meters? Accurate billing, no more estimated bills Greater visibility over energy usage and cost The ability to change and control usage Better choice of tariffs and easier to switch supplier More choice over payment method eg. pay-as-you-go Analyse and control consumption through new technology In a competitive market supply businesses will use greater innovation to deliver desirable smart products to customers. For smart metering to lower bills customers will have to change behaviour
13 GB customer obligations Data and installation Data is owned by the customer Data access framework: Level of data Domestic customers Non domestic customers Monthly regulated duties no consent regulated duties no consent Daily clear opportunity to opt out clear opportunity to opt out Half hourly explicit opt in clear opportunity to opt out All customers can exercise/change their data access choice at any time. Suppliers must install smart meters in accordance with the Installation Code of Practice (SMICoP) Demonstrate the smart metering system Offer domestic customers an IHD at no upfront cost Face to face marketing only with prior consent No sales activity at the installation Offer energy efficiency advice at the visit 26 Pay As You Go (PAYG) Smart Prepayment will facilitate a better customer experience for customers allowing: Customers to take more control of their energy consumption Choose how to Top Up their meter balance WAN HAN HUB Electric From Home From Town Pay As You Go payment card
14 Challenges CSP north CSP middle DSP CSP south DCC Conclusion Smart Metering is right for Great Britain Supports energy reduction, better investment and wider decarbonisation of energy, but It s large, complex and has significant risks It s technically challenging: New meters, new technology, new DCC, 100% gas & electricity customers, security, interoperability, etc.. Key building blocks need strong foundations End date now looks achievable We have to get it right first time!!! 14
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