As the end user ultimately covers the cost of utilities implementing smart metering solutions, it is essential to make full use of the technology. A strategy is to combine an app with the smart meter rollout to ensure the utility’s financial viability and value for the consumer. Nicolette Pombo-van Zyl reports.
Globally, utilities are struggling to keep the lights on. Whether due to ageing infrastructure, network resilience challenges, or extreme weather events, electricity consumers are subjected to frequent and prolonged blackouts, resulting in a lack of public trust in utilities.
According to Dominic Wilhelm, executive director of The Global Trust Project, this mistrust stems from perceptions that electricity providers may lack honesty, commitment to the public good, the expertise required to effectively address and resolve issues, and a genuine willingness to pursue enduring solutions.
Securing confidence and building trust – while managing infrastructure challenges – starts with utilities providing effective and transparent public communication.
An ideal route is through combining smart meters with apps. However, the technology can only be successful if the user and stakeholders leverage its full benefits. As a starting point, utilities must acquire more information and provide actionable notifications based on data from smart meters to achieve the desired outcomes.
“Installing a smart metering system, collecting data and generating a report with basic analytics
will not be sufficient to ensure the project’s success.”
India’s 250 million smart meter rollout
In India, the high rate of aggregated technical and commercial (AT&C) losses prompted the government to implement a smart meter roll out as part of its Revamped Distribution Sector Scheme (RDSS). The AT&C losses in 2015 were recorded in the high 20 and 30 percentages with the highest being 52.27% (Jammu and Kashmir State).
The government believes smart meter technology will allow the country’s distribution companies to conduct system monitoring and customer billing without manual intervention. Thus, the Ministry of Power set a nationwide target of 250 million smart meters by 2025 at an expected cost of around Rs2.5 trillion (about $29.9 billion).
The scheme was initiated in July 2021 to improve the distribution companies’ financial and operational efficiencies, including reducing AT&C losses to 12- 15% by 2025. However, even though the government provides grants, the consumer will ultimately bear the cost of the smart meter through tariffs payable to the utility.
It is this financial burden that prompts Rajesh Bansal, the former CEO of BSES Rajdhani Power, and Harsh Mathur, a consultant working with the Expert Group on Smart Metering under the Ministry of Power for implementation of the RDSS, in their paper Smart Metering – A Powerful tool to Enrich Consumer’s Experience, to state that the utility must leverage the technology’s maximum benefit to ensure financial viability and no extra burden on consumers.
In general practice regarding smart metering and technology, the maximum emphasis is on using the technology and data to enhance the efficiency of utility operations. The emphasis, however, should equally be on how improving utility operations will improve the services and quality of power delivered to consumers.
The authors add that regarding the direct benefit to the consumer, it is true that the smart meter project executors who provide consumer apps offer information about the prepaid system, billing data and load consumption data. However, it is essential to acknowledge that these apps may only partially address all consumer issues, concerns and expectations.
Restricting the consumer’s concerns about billing is not a proper justification for investing in this technology. Therefore, improving the apps to provide more actionable information will comprehensively address end-user needs and expectations.
Adding value to the end user, adds value to the utility
An often-overlooked opportunity is how more information and actionable notifications can be inferred from smart meter data. This can enrich the consumer experience in terms of safe power, better protection, quality power, green power, lower commercial impact and finally, better services.
Augmenting the smart meter’s app notifications will build trust and engagement between the utility and the end user. These benefits are invaluable and will justify the cost of the project.
The power distribution system is witnessing a significant transformation, especially regarding the high level of unpredictability due to grid-connected renewable energy and the anticipated demand for EV charging.
Adding to the shift in the ESI, consumers’ expectations concerning reliability and safety have increased. There is a need to address these concerns, namely the significant variation and unpredictable demand curve, power reliability, minimising accidents and consequential damages, improving commercial performance and preventing revenue leakage. These are central issues and objectives for utilities.
Worldwide, utilities have started installing smart metering, primarily for asset health monitoring, load forecasting, outage information and meter billing reading.
Incidentally, ensuring financial viability is a big question mark with such objectives and hardly enriches the consumer experience, say the authors. The fact is that even utilities are not leveraging the full benefits regarding their operations.
Installing a smart metering system, collecting data and generating a report with basic analytics will not be sufficient to ensure the project’s success. There is a need to address all utility objectives, including the consumers’ expectations and concerns.
Understanding abnormalities in the network
Loading patterns, network capabilities, defects in workmanship, faulty devices in the network and abnormal consumer behaviour can affect the electrical parameters and performance of the network. Any electrical abnormality will damage network assets or affect their lifespan, thus making it unacceptable.
Notwithstanding, if electrical abnormalities last long, they can cause more damage. The solution lies in using intelligent metering systems to generate data that detect abnormalities when adequately analysed. Early detection of abnormalities will prevent more extensive damage.
Any abnormalities that can directly affect the consumer – whether at the consumer’s premises or due to consumer behaviour – should be detected and relayed to the consumer. This will enhance the customer experience and reduce damages, thus benefiting both parties.
The need is to have appropriate smart consumer apps
Safety: Electrical accidents can result in property damage and even deaths. Properly analysing the smart meter data can identify safety hazards and the potential cause of accidents.
The utility could send a safety notification to this effect: House Wiring Notification Dear Customer, We detect an earth current leakage at your premises. This can occur when wiring is intermixed with another property or earth wire. Have a licensed electrician check the wiring within 15 days or call your utility for assistance.
Prepaid and billing system: Consumption and billing data from intelligent meters can generate various notifications using meter demand management (MDM) software. These messages can include low balance alerts, recharge acknowledgements, disconnection or reconnection alerts and statistics on weekly consumption and monthly recharge rates.
Simplified route to notification generation for smart meter consumer apps
• Identify concerns, issues and expectations.
• Convert them into objectives.
• Define what is not acceptable (the abnormalities).
• Define how to detect and find the cause and location.
• Capture the parameters and identify such events.
• Develop the app and include a mechanism to send an Action Taken Report or feedback.
• Send notifications and messages along with what actions to take.
• Enjoy achieving your objectives.
Supply outage and restoration notifications
Real-time data from these meters enables prompt alerts regarding power outages and restoration, benefiting consumers by keeping them informed. Furthermore, consumers should receive notifications regarding planned outages and the expected restoration time, ensuring they are well-informed and prepared.
Similarly, the utility can automate sending notifications for various abnormalities and observations which are inferred from the data:
• To avoid commercial penalties
• How to reduce bills
• Educate consumers on billing and payment options
• Suggestions about load patterns
• Wiring defects
• Utility projects and special schemes
It is important to note that not all notifications need to be about abnormalities and warnings, but they can also be suggestive or informative.
Everyone benefits from smart meter apps as timely notification about electrical abnormalities followed by timely action by the consumer prevents accidents and network damage. These notifications can also encourage energy efficiency and more sustainable energy uses, thus allowing for more renewables onto the distribution network.
The gain from saving human lives and preventing damage due to fire is far more valuable than the project cost. All smart metering system-related service providers should develop such consumer apps, as the fundamental advantages and needs are beyond question.
With time, it may become regular practice worldwide for apps to generate notifications for consumers (and possibly utility stakeholders). This will result in mutual trust, better power quality and enrich consumer experience and ensure consumer engagement. ESI
