Beyond The Prospectus:

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21 Νοε 2013 (πριν από 3 χρόνια και 6 μήνες)

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Beyond The Prospectus:

The Retailer’s Challenge

Iain Matthews

Smart Metering Market Development Manager, Energy Retail


18
th

May 2011

The expectations have been set...

This programme will directly
affect us all. For Great Britain, it
provides a platform to help us
meet those challenges of
energy security and climate
change.…”

We have…made a full rollout of
smart meters to homes and
businesses a key part of our
Programme for Government”

“The Foundation Stage will be
critical. By delivering a positive
consumer experience of smart
metering, by ensuring that
industry is ready and able to roll
out millions of meters, it will
build a solid platform for the
mass rollout”

“The central Programme will be
managed by DECC, but its
success will depend on the
engagement and expertise of
industry, national representative
organisations, local
organisations and
individuals......”

Source: DECC SMIP Prospectus Response Briefing , April 2011

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

2

The timelines have been set...

2012

2013

2014

2015

2016

2017

2018

2019

2011

DCC

Go Live

Rollout

Completion

Approved

Tec Spec

Compliant
Smart Meters

Mass Rollout
Commences

Phase 2

Go Live

MASS ROLLOUT

FOUNDATION

Regulatory Obligations

incl. ICOP

DCC Licence Award

DCC Service Provider Appt

Foundation

Change of Supplier

Registration

Migration

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

Source: DECC Prospectus Consultation Response, March 2011

3

The Retailer’s challenges remain...

Technology

Data

Commercials

Consumer
Engagement

Mobilisation

Resourcing

Smart Metering Implementation

Future Smart Grid Requirements

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

Fully Competitive Market



Components of smart metering rollout are many and complex in their execution




More complex in execution than other world
-
wide deployments



Future Smart Grid Requirements

EU Directives



Smart Metering/ Grid

4

Technology

Beyond The Prospectus: The Retailer’s Challenge

Multiple technical challenges


Combination of multiple new components and technologies


Technical interoperability


Potential for deployment of multiple technical end to end solutions


Robust, secure end to end solutions



New complex processes


customer consent


asset tracking and maintenance



Support of a smart data catalogue


New DCC interfaces



Multiple technical implementations


Foundation Change of Supplier


Mass rollout


Future central Registration



Potentially complex market entry testing arrangements










Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

6

Our commitment is clear....


Our future investment remains uncertain....

Achieving the technical challenge


Comprehensive and timely technical specification


smart metering system components


final communications technology



Clearly defined


market entry processes


security requirements to operate within a critical national infrastructure



Timely availability of


a full smart data catalogue


detailed definition of DCC interfaces



Programme timescales which recognise the necessary levels
of testing


component


interface


end to end


penetration









Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

7

Data

Beyond The Prospectus : The Retailer’s Challenge

The data challenge



Cleansing

Maintenance

Smart Data Catalogue

Security

Migration

Critical National Infrastructure

New Data Items and Interfaces

Cross Industry Initiatives

Alignment

There is an opportunity to ensure industry data is
of the best quality prior to migration to the DCC

Accuracy

Legacy to Smart New World


Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

9




Data improvements require cross
-
industry sign
-
on



Timescales and scope require recognition within DECC Programme



Clearly defined objectives with central co
-
ordination



Alignment of electricity and gas data items to a common standard



Linking of data items at an individual premise level



Opportunities now for proactive measures during scheduled site visits









Data
is a key programme component...

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

10

Our commitment is clear....


Our future investment remains uncertain....

Commercials

Beyond The Prospectus: The Retailer’s Challenge

Investing in smart...



DCC service cost arrangements



DCC inc. WAN maintenance cost
recovery



Levels of consumer engagement



Asset provision and maintenance


Consumers right to refuse smart
metering




Levels of consumer engagement



Level of data visibility to develop and
offer new products




Future obligations



Differing end of life for individual
smart metering system
components




Programme timescales / delays



Certainty of future requirements






Procurement of multiple components




New supply chains




Contracts with multiple providers




Novatable contracts




Significant legal undertakings



Complex
Supply
Chain

Investment

Cost
Recovery

Consumer
Engagement

Smart
Commercial
Delivery

12

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

Embedding the commercial model


Significant dependencies on DECC programme delivery still remain



Delivery

of

an

approved

technical

specification




Development

of

arrangements

for

the

novation

of

commercial

contracts

and

meter

volumes

into

the

DCC



Confirmation

of

lead

times

for

technical

components



Full

and

detailed

understanding

of

consumer

protection

measures



Clear

definition

of

DCC

operation

and

the

cost

recovery

model



Engagement

between

market

participants

to

address

remedial

issues

with

appropriate

funding

arrangements

in

place



13

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

Our commitment is clear....


Our future investment remains uncertain....

Consumer Engagement

Beyond The Prospectus: The Retailer’s Challenge

Consumer Engagement

DPA

Smart Energy
Code

Data Privacy
Charter

Installation
Code of
Practice

Behavioural

Change

DPA

Regulated
Duties

Consumer
Engagement

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

From....


To....

15

Detailed clarification is still required

Benefit
Delivery

Consumer

Expectation

Future engagement


Regulated

duties

and

access

to

consumer

data

requires

further

analysis



Installation

Code

of

Practice

will

determine

on
-
site

activities



Data

Privacy

Charter

will

provide

consumers

with

greater

clarity



Education

of

customers

will

be

in

a

environment

of

increasing

consumer

protections



Complex

consumer

consent

processes

will

need

to

be

managed



Delicate

balance

between

technical

advances,

education,

perception

and

communication



A level of intrusion cannot be avoided in order to deliver the behavioural change

and energy education measures which the Government business case demands...

16

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

Resourcing

Beyond The Prospectus: The Retailer’s Challenge

The resourcing challenge


Multiple aspects to resource demands


On
-
going support of the DECC Programme and working groups


Internal smart programme requirements






Rollout






Multiple resourcing challenges



On
-
going support of DECC’s Programme


Working Groups


Decision Groups


Milestones in the future to be planned for such as Registration migration



Internal smart mobilisation and delivery programme demands



Field force recruitment


Direct dependency between rollout and recruitment profiles


Avoidance of large field force post mass rollout completion / ramp down



Field force training


New technology deployment = new technical skills


Education of consumers at point of install = new training skills












18

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

Our commitment is clear....


Our future investment remains uncertain....

Resourcing


A number of key factors will still determine the resourcing in terms of:



Numbers



Skill sets



Balance between internal and external resourcing



Key factors include:



Programme timetable delays



Roll out volumes caps during the Foundation Stage



Complexity of final smart metering infrastructure



The level of consumer engagement required during individual installations



Obligations around asset maintenance









19

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

Our commitment is clear....


Our future investment remains uncertain....

Smart Implementation

Beyond The Prospectus: The Retailer’s Challenge

The rollout task ahead...


As

an

industry

we

have

undertaken

may

implementations


we

install

and

replace

millions

of

meters

each

and

every

year


we

recruit

and

train

resources

to

ensure

they

have

the

correct

skills

in

order

to

work

in

a

safe

and

proficient

environment


we

already

manage

contracts

with

third

party

service

providers



We

operate

in

a

complex

and

highly

competitive

market




We

are

used

to

implementing

technical

and

business

change




21

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

The task ahead presents

new and numerous challenges...

Same challenges...new context...


Challenging timescales


Rollout of significant volumes of smart metering systems by 2019


Against the potential for significant financial penalties



Compliance measures


Regulation


Smart Energy Code; Installation Code of Practice,


Potential for new accreditation and certification processes


Security


Consumer protection



Dual focus


Foundation Stage obligations


Mass rollout and beyond



Deployment of new technologies


Sufficient testing of both individual components end to end infrastructure


Resource skills



Benefits realisation




22

Our commitment is clear....


Our future investment remains uncertain....

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

Smart Grid

Beyond The Prospectus: The Retailer’s Challenge

Development of a secure yet agile critical network infrastructure from

which benefits for all market participants and consumers can be realised.....

The Smart Evolution


Significant

challenges

lie

ahead



Increasingly

complex

offerings

to

the

end

user

as

time

goes

on



Smart

metering

will

be

a

critical

step

towards

delivering

an

enduring

smart

grid

capability

in

the

UK



Need

to

ensure

investment

in

solutions

now

delivers

the

future

smart

grid

model



Increasing

data

volumes

which

must

be

used

and

stored

appropriately



Potential

command

and

control

conflicts

between

the

Retailer

and

DNO



Increasing

numbers

of

entry

and

exit

points


Electric

vehicle

charging


Solar

and

wind

contributions







24

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

Single Approach


Need

to

work

together

as

an

industry

to

ensure

the

correct

levels

of

investment

are

made



Assurance

that

the

correct

technologies

are

adopted



Return

on

investment

are

not

reduced

by

incorrect

decisions



Ensure

engagement

at

an

EU

level

takes

account

of

EU

roadmap

aspirations

and

that

lessons

learnt

from

around

the

world

are

properly

assessed






25

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

Conclusions

Beyond The Prospectus: The Retailer’s Challenge

Delivering the expectations...


Programme timescales are realistic...



Requirements are clearly defined...



Investment certainty increases...



Flexibility to allow innovation...




27

Considerations today must not limit


the energy market of tomorrow....

Beyond The Prospectus: The Retailer’s Challenge 18
th

May 2011

Questions?


Thank you


Iain Matthews

Smart Metering Market Development Manager, Energy Retail


iain.matthews@scottishpower.com