3rd August 2009
Phil Nash
Smart Metering
Team
Department of
Energy and Climate Change
Area E, 1st Floor
3 Whitehall Place
London SW1A 2HD
A Consultation on Smart Metering for
Electricity and Gas
Dear Mr Nash,
Engage Consulting is pleased to have the
opportunity to respond to the Government consultation on smart metering,
published on 11th May 2009.
Engage Consulting is the leading
provider of GB specific smart metering consultancy advice. Over the last 3 years, we have led the smart
metering programme for the major 6 domestic energy suppliers through the Energy
Retail Association and have provided smart metering advice to metering service
providers, meter manufacturers, communications service providers and a major systems
integrator. We have also provided advice
on the smart metering trials in Ireland
and on smart metering across Europe, and so
have a pan-European view.
Our clients all have different perspectives
on smart metering and so we do not consider it appropriate to provide a
detailed response to the specific questions raised. However, there are common factors that are
key to realisation of the significant benefits smart metering can bring and our
response focuses on these.
Certainty in Policy
It has been the uncertainty in future
Government policy and the future definition of the market that has constrained
investment and progress to date. This certainty
is needed to secure the Board room investment decisions that are required to
deliver smart metering to all households by 2020. The time is now right to provide this
certainty by agreeing the market model and timetable and establishing an
industry wide delivery programme to develop and define the detail of smart
metering roll-out and operation.
Industry Programme Mobilisation
We agree with Government that a central
industry programme is required and believe that this should be mobilised promptly
so that momentum is not lost. The key
elements of the central industry programme should be:
·
strong central leadership and
decision-making (Government sponsorship and Ofgem programme leadership);
·
clear and transparent
governance with appropriate stakeholders identified and engaged;
·
clear and transparent programme
objectives, scope and plan (in a Programme Initiation Document); and
·
programme resource with
industry, technical and delivery expertise.
The Long Term Vision
The introduction of smart metering in GB is a single opportunity
that will require significant investment.
It is therefore vital that the longer-term vision for smart metering is
considered, up front, in the industry programme - including the role it will
play in a GB smart grid solution.
Whilst the Government's high-level
vision and requirements for smart grids are not due to be published until later
this year, as highlighted in the recently published UK Low Carbon Transition
Plan, it is likely that smart metering will need to form a key component of a smart
grid solution.
Interoperability
With in excess of 100,000 changes of
supplier per week, interoperability is a key principle that must underpin the
smart metering solution. The fragmented nature
of our retail markets will provide challenges that other international network operator
based smart metering initiatives have not had to contend with.
Change of supply must be efficient, must
be simple and must be controlled by the supplier. This will require both technical
interoperability (data content, format and service levels etc); and commercial
interoperability (commercial / contractual meter asset arrangements etc). The sooner these interoperability
arrangements are established and relevant standards are agreed, the sooner the
industry can invest, with confidence, in the metering assets and devices
required to implement smart metering solutions.
Whilst much progress has been made in these areas, there is still a
significant amount of work to do and this should not be underestimated.
The potential benefits of smart metering
are significant and there is a long journey ahead in order for these to be
realised. Whilst there will be many detailed
aspects to consider en route, we believe that the matters highlighted above are
the most important currently and are those that need consideration now in order
to make the important transition from aspiration to reality.
We look forward to continued involvement
in the development and implementation of smart metering in Great Britain, which we believe is
fundamental to the future vision of our energy industry.
Yours sincerely,
John Peters
Managing Director
Engage Consulting Limited |
