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Smart Meter Operational Services Deployment In The UK
1. Energy, Utilities and Chemicals | the way we see it
Smart Meter Deployment
in the UK
Meeting the challenges of mass rollout
2. The government is currently consulting on the
mandatory deployment of smart electricity and
gas meters to every home in the UK by 2020. This
represents one of the greatest challenges and
opportunities that the UK energy industry has ever
faced. The wide-ranging issues being addressed
during the consultations include technology, tariffs,
data management and finance.
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3. Energy, Utilities and Chemicals | the way we see it
However, the issue that is arguably most critical to network operators (DNOs). The
deployment of meters needs to be
the overall success of the programme is the physical properly integrated with the network
deployment of the meters themselves. Mandatory implementation (see panel overleaf).
deployment of gas and electricity meters will require The UK deployment challenge presents
a visit by engineers to every home in the country some unique physical and engineering
challenges when compared with
over an eight-year period, starting in 2013, to replace programmes in the US and Canada.
25m electricity and 22m gas meters and (possibly) For example, in contrast with North
American practice, electricity and gas
install in-home displays for every household. This will meters in the UK tend to be located
be a massive undertaking in terms of complexity as inside dwellings and commercial
premises, presenting access problems
well as size. for engineers and potential issues
Our view is that a regionally with network connectivity. Also,
organised, franchise-type approach UK electricity meters are typically
to deploying the meters and mounted on to the back board and
implementing the underlying network hard-wired to the incoming line using
is likely to emerge as the best option ties; they will therefore need replacing
to maximise time to value, minimise by trained electricians, each of whom
costs and keep customers on-side. will probably only be able to replace
Such a model is equally feasible a maximum four to five meters per
whether deployment is retailer day based on the time required for
or DNO led. Other prerequisites the tasks. In North America, meters
include rapid expansion and training are generally socket-based, meaning
of the deployment workforce, that non-qualified staff can be used,
the development of alternative replacing up to 40 a day.
customer service channels, and the
introduction of sophisticated field Many antiquated electricity meters
force and work scheduling systems. are still in place here, connected to
even more aged infrastructure. Some
Analysing the challenges will require considerable additional
Our experience of carrying out mass work to ensure safe and compliant
smart meter deployments around installation of a smart meter. Since
the world gives us insight into the meter engineers will not usually know
scale and nature of the challenges which dwellings require this work
involved in this programme. These until they get on site, follow-up visits
challenges include complexity and will be necessary. Gas meters will have
cost, shortage of implementation skills, similar issues: perhaps greater ones in
the additional customer service burden terms of safety checks. Relatively few
and the need to capture information to engineers today are qualified to deal
support resource allocation. with both gas and electricity meters,
a fact that could cause additional
Complexity and cost of complexity and increase the frequency
physical deployment with which multiple visits to the same
This is one of the most complex property are needed.
logistical challenges attempted
in the UK. In addition to the Cost is a critical issue for the
installation of the 47m meters and entire smart meters programme,
the associated in-home displays, particularly as it will influence
a central communication network customer perceptions, which are key
may also be architected, designed, to the success of the programme.
built, commissioned and integrated Uncoordinated nationwide
to manage the meter data and deployment, is likely to be inefficient
disseminate it to retailers and other (see panel). Such an approach would
industry bodies such as distribution increase costs, complexity and risk of
Smart Meter Deployment in the UK 3
4. Our experience of mass poor service, and thereby alienate the are out at work will often need to be
public, whose support is critical to the scheduled for evenings and weekends
deployment in other programme. (further limiting the numbers of
countries, together with meters that can be deployed in a given
A final source of complexity is the time by given resources). Engineers,
our knowledge of the fact that the deployment process is meanwhile, will need to be equipped
UK energy industry, also the energy companies’ primary to deliver training, to answer customer
opportunity to educate customers questions, and perhaps to promote
positions us to develop about smart meters and their effective other energy conservation services.
potential approaches use. That means that each customer
will need to be present , not just to Shortage of implementation
and solutions to the let the engineers in but to receive skills
challenges raised. their introduction to the new smart The resources required to meet the
technology. This would apply to initial 2020 deployment target will be
visits and any necessary follow-up approximately three times the level
visits, and would eliminate options of the existing workforce. A massive
such as, for example, leaving the recruitment and training effort will be
key with a neighbour for access. required, but is unlikely to start until a
This need for customer interaction mandate is agreed – a factor that could
means that visits to customers who jeopardise the 2020 completion target.
The case for a regional deployment model
The proposal that each retailer should deploy to their own customers would involve
multiple supply chains, workforce management and customer systems. Most retailers
have customers nationwide and so, given the number of non dual-fuel customers, it
could well be envisaged that multiple workforces could turn up several times to the same
houses in the same street. This pattern has already been seen in European deployments
and has a major impact on costs, as well as increasing the risk of customer perception
and bad service. Additionally, some retailers are reluctant to undertake replacement
of meters in areas where they do not currently have workforce coverage or third-party
arrangements in place. It is clear that a franchise model or a DNO led deployment would
simplify many of these challenges. However, there are other technical issues that also
compel examination of regional and more logically driven roll out such as the Network
requirements.
Depending on the type of communications technology selected, it is possible that
implementation of the network will need to be integrated with meter deployment in order
to avoid network reliability and redesign issues. Also, retailers may be reluctant to deploy
smart meters without a network connection present as this will mean they are effectively
putting in a “dumb” meter. In this situation the engineer would be unable to demonstrate
the meter fully to the customer, and there would probably have to be more customer calls
during switch-on, and possible revisits once connection is made to address customer
and performance issues.
Therefore, it is a fair assumption that the network needs to be available before meters
are deployed. However, if a network architecture like PLC or mesh is chosen, the
network could not realistically be deployed across the country in one step. It would
typically be deployed in logical areas, and by default meter deployment would follow its
availability. (Note that this problem would not arise if nationwide GPRS were used as the
sole infrastructure; however, GPRS has potential problems of its own, such as uneven
coverage, and reception difficulties underground or in dense urban structures, and so it
is likely to be used as part of a portfolio of different network architectures.)
We believe that these issues, combined with the very real constraints on cost, mean
that it is almost inevitable that some kind of regional deployment will emerge, and that
it is preferable to plan and optimise this deployment model up-front rather than letting it
evolve in an uncontrolled way.
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5. Energy, Utilities and Chemicals | the way we see it
Training of engineers who can install is a high risk of losing control of the
both electricity and gas meters is likely deployment, with substantial financial
to be a priority. and reputational costs for the utility
and for the deployment as a whole.
Additional customer In addition intelligent use of existing
service burden data about the housing stock will
Positive customer perceptions are make it possible to plan the roll-out in
vital to the success of the programme. a more effective manner. For example,
Customers will be aware of the by pinpointing older properties that
costs of installation, and realise that are likely to have outdated gas and
those costs are likely to be added to electricity meters and connections,
their bills. They will therefore want companies can forecast which houses
to understand how they can get are likely to need extra installation
something back from the devices: and safety work. Longer visits can be
how to use them, what tariffs are scheduled for these cases minimising
available, the billing arrangements, the need for return visits.
and so on. Customers will also
demand prompt service and well Our conclusions
managed appointments. Unless these Our experience of mass deployment
expectations are met, they are unlikely in other countries, together with our
to support the deployment. knowledge of the UK energy industry,
positions us to develop potential
Satisfying these requirements will approaches and solutions to the
necessitate an enormous customer challenges raised. Below we discuss
services capability across the UK. the main requirements for a successful
Customer interactions will begin pre- deployment.
deployment, when utilities will need
to work with each customer to plan A regional, franchise-based
appointments and answer questions. approach
Immediately post-deployment, Experience and insights from both the
customers will probably have queries UK industry and other deployments
about the operation of the devices, abroad suggest that a regional
even if they have seen a demonstration approach to both meter deployment
by the installation engineer; these and network implementation will be
queries might relate to faults or energy the most cost-effective and efficient
conservation. On an ongoing basis, the in terms of both resources and
extra data provided by smart meters customer management. It allows
will prompt customers to interact a single capability to be used for
more frequently with their utility. coordination, planning, supply chain,
The additional interactions could workforce management and customer
potentially overwhelm utilities, leading management, rather than duplicated
to considerable additional costs. capabilities which would necessitate a
further layer of complex coordination.
Capturing and organising
information to support A logical approach for a regional
resource allocation deployment could be to use the 14
Another important task will be to distribution zones to demarcate
align the available resources accurately the rollout zones. As each zone is
with the work that needs to be done. complete, smart grid capabilities can
The frontline workforce – engineers be tested and rolled out. This approach
and customer service staff – will be also offers the option of splitting the
the first to uncover issues such as communications hub and meter data
missed appointments, installation management across smaller regional
and engineering problems and billing subsets if this proves more cost
discrepancies. If these issues are not effective and/or reliable than having
effectively captured and managed there one large UK-wide hub.
Smart Meter Deployment in the UK 5
6. One way to tackle regional deployment Enhancement of customer
would be with a franchise model, service channels
whereby a single deployment entity To manage increased customer
approved by the retailers in scope contact, and to avoid customer service
works on all the meters in a given centres and existing channels being
region. Such an entity could be the stretched and incurring additional
dominant retailer in a specific region, costs, retailers will need to ensure
or one of the licensed meter operator they have the right channels and
and services companies. Compared capabilities in place. Many retailers
with a situation where each retailer are already investing in these types
would have its own deployment team of capabilities, including web portals
in each region, this would make for and Interactive Voice Response (IVR)
a more efficient, cheaper and more systems, and this investment will
coordinated deployment, with a need to continue and in some cases
clearer path of communications for be increased as mass roll out begins.
end customers. While this method While this is necessary to ensure
could appear at odds with the that customer interaction can be
competitive deployment ethos of managed efficiently, it also brings
the consultation documents, it can the opportunity to take advantage
drastically reduce overall programme of the “smart revolution” to roll out
costs, length of deployment and additional offers and capabilities to
time to benefits, as well as the risk of customers via multiple channels.
customer disruption and alienation. It
has no impact on retail competition for Field force and work
energy or energy services at all, and in scheduling systems
fact provides a better deal to customers Our experience shows that an
and retailers through lower cost. integrated field force and work
Therefore, a regional approach is likely scheduling system is the only way
to be an attractive option. We believe to coordinate, schedule and track a
deployment models must be agreed deployment of this scale. We have
as soon as possible to allow effective designed and rolled out systems
deployment planning, process and that combine the work scheduling,
systems design and resourcing to start. meter supply chain, meter location
and billing capabilities into a single
Rapid expansion and training Control Centre for the utility to
of the deployment workforce manage their deployment. The field
Another argument for completing force is managed and optimised using
consultations as soon as possible is the bespoke handheld devices for the
need to plug the resource gap. Once a engineers. This device is integrated
deployment approach and governance into the deployment management
have been defined, funds should be systems, billing systems and
made available to start recruitment procurement and warehouse systems
and training to achieve the necessary to ensure that information from the
increase in the number of engineers frontline is instantly available to the
available. Retailers and government relevant business units and vice versa.
must work together to launch the
recruitment campaigns and initiate the
training schemes required.
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7. Final comments
Based on our past and current involvement in the strategy, planning and execution
of the deployment of millions of smart meters globally, together with our deep
knowledge of the UK energy sector, we believe that only by building on the
principles above can a mass deployment across the UK be successful. Even then,
the scale of the undertaking must not be underestimated. Outstanding programme
management will be needed if crippling cost overruns are to be avoided.
The UK is contemplating one of the largest smart meter deployments in the world.
If we take this opportunity, let us make sure we put in place the capabilities and
governance to make it the most successful in the world.
Smart Meter Deployment in the UK 7
