The document discusses interoperability challenges in the UK energy market and options for an interim solution before the rollout of smart meters. It notes that the existing system cannot communicate with smart meters and a central communications system is needed. Several interim options are presented, including supplier-owned or centralized head ends. Key considerations are the impact on consumers, privacy, and existing market arrangements. The document argues for enhancing interim arrangements through standardization and centralization to simplify processes and enable a transition to the future centralized Data Communications Company system.
2. Interoperability Questions
How did we get here?
Why is change needed?
What are the interim options?
Who could govern the interim?
“Those who cannot
remember the past are
condemned to repeat it”
George Santayana, Spanish
philosopher
3.
How did we get here?
Why is change needed?
What are the interim options?
Who could govern the interim?
4. Many Industry Functions
• Change of Supply
• Customer Billing
• Energy Balancing and
Settlement
• Change of Agent
• Metering Services
• Distribution Use of
System Billing
6. Inter -
operability
Networks
A Highly Functional Solution
Meter
Maintainer
Data
Aggregator
Distribution
Operator /
Transporter
Prepayment
Infrastructure
Provider
Supplier
Data
Collector
Consumer
Metering
System
8. Data Transfer Service
High Volume
Gateway
Low Volume
Gateway
Monitoring
Helpdesk
Remote User
Systems Primary Hub Secondary Hub
Managed
Network
9. An “Industrial Grade” Network
DTS (flat
files)
Commercial
data flows
(e.g. RGMA)
Web traffic
(e.g. HTTP)
Web services
(e.g. SOAP,
REST)
Any other
application
protocol
ElectraLink Data Transfer Network
Authentication, Encipherment, Resilience,
Reliability
Multi Protocol Label Switching (MPLS) Network
Connectivity, Protocol Agnosticism
Physical layer e.g. Ethernet, fibre
10.
How did we get here?
Why is change needed?
What are the interim options?
Who could govern the interim?
14. The answer - Centralised Comms
“Suppliers will have to use the DCC – a
single entity – as that will aid switching
and data management. It will control
access to the data and secure
communications, so it must be
independent.”
15. A Future Centralised Market
CP
EMS
MG
HHDC
NHHDA
HHDC
NHHDC
REG
COS
COA
MAP
MAM
MAP
SH
GT
PP
IGTIGT
SU
GEN
SUP
PPMIP ECOES
ASP
MOP
DCC
DIST
NHHDR
DSM
scoges
ECOES
SET
16. New investments for Suppliers
leading early rollout
• Smart Meters
• Head End systems
• WAN Comms contracts
• Smart Prepayment
• All associated IT
17. New problems for Suppliers
leading early rollout
• New concept of “installing supplier”
• Stranded Assets
• Negotiating Comms contracts
• Dependencies on other Suppliers
• Building Market share
18. Ofgem’s timetable suggests 8-10 million interim meters by DCC Go-Live
20192018201720162015201320122011 2014
20192018201720162015201320122011 2014
Phase 2 Develop regulatory framework
Phase 3 Tender and award DCC licence
DCC Setup and procure service providers
Build and trialling of DCC services
Go-Live
DCC
Meter rollout profile
Delivery Timetable
19.
How did we get here?
Why is change needed?
What are the interim options?
Who could govern the interim?
20. Core Principles
1. Impact on the consumer
2. Privacy & Data Security
3. Speed and Cost of Implementation
4. Re-usability
5. Avoiding Scope Creep
6. Existing market arrangements
21. Interim Options (1)
1. Supplier owned HEs non-standard
interfaces to Central Service
2. Supplier owned HEs with standardised
interfaces to Central Service
3. Centrally owned HEs providing Central
Service
22. Interim Options (2)
4.Installing Suppliers provide readings
to a central store
5. Installing Suppliers provide Smart
Meter Services direct to 3rd Parties
6. Suppliers Migrate Smart Meters to
gaining Supplier’s HE on CoS
23. Key Influencing Factors
• Industry has immature Smart
Metering infrastructures
• Not all Suppliers have a Smart
programme at all
• The industry needs to see interim
as a step to DCC
24. Supplier Meter Asset
Provider
HH Data
Aggregator
Distributor Meter
Operator
HH Data
Collector
SVAA
Meter Data
Management
Site Meta Data Interval Data
AuthenticationandAccessControl
Translation
Services H/E
Smart
Meters
XML
Interoperability
Interim Interoperability Arrangements
Novated
comms
contracts
from CoS
HE
HE
Smart
Meters
Customer Changes Supplier
1. Meter migrates to interim HE
2. Comms contract novates to central body
3. Translation service starts
HE
Enhancement A
Centralise all head ends
Enhancement B
Standardise interfaces
Enhancement C
Add legacy support
Simplify business processes
A Roadmap for Interim
25.
How did we get here?
Why is change needed?
What are the interim options?
Who could govern the interim?
26. The ideal regulatory framework
• A dedicated Smart Energy Code
• Governing access to smart electricity
and gas meters
• Defining commercial relationships
between DCC and its users
• A code common to both gas and
electricity
28. Existing regulatory frameworks
• The Master Registration Agreement
• The Supply Point Administration
Agreement
• The Uniform Network Code
• The Balancing and Settlement Code
• The Data Transfer Services Agreement
29. Comparing frameworks
• The MRA and SPAA do not provide for
data transfers service provision
• The UNC and BSC do cover data
transfer but also a much wider area
• The DTSA is solely about metering-
related data transfer, associated
services and governance
30. What would be needed?
• A transparent mechanism for cost
recovery
• An obligation on gas and electricity
Suppliers to join
• No restriction on the use of intellectual
property by a future DCC
• Any user objections being ultimately
resolved by Ofgem
31. Interoperability Questions
How did we get here?
Why is change needed?
What are the interim options?
Who could enforce this?
“... when men and women
agree, it is only in their
conclusions; their reasons
are always different.”
George Santayana, Spanish
philosopher