smarter customers smuk jan 2014

SMARTER CUSTOMERS –SMART METERING AS AN ENABLER

Simon Harrison, Product, Innovation, Technology and TriallingManager, RWE npower Smart Programme

Setthescenefortheday

Whoaresmartcustomers?

Howistheworldchanging?

Whatrolecouldsmartmeteringplay?

Notgoingtoreviewchartsorresearch– thereareplentyofopportunitiestoengagewiththelatestviews

Provokebychallengingsomeoftheassumptionsandacceptedthinkinginthisspace

Notsureifthereareanswerstothesequestions,butI’dliketomeetthepeoplewhobelievetheyhavesome

Mostofthiscontentreflectsmyopinion,andcertainlyshouldn’tbetakenastheofficialRWEnpowerposition

smartcustomer (def):

1. erm,Acustomerwho’ssmart…?2. or,onewithsomesmartstuffintheirhome?

What do today’s smart customers look like?

They could be checking their energy bills...

Everyone uses energy – smart energy should be as accessible as all the other smart technologies

Ifwecan’tdefineasmartercustomerbyworkingoutwhotheyare,canweworkoutwhattheywant?

Smart Energy

Cost

Convenience

Confidence

Comfort

Nobody wants to spend more thanthey should, but it is not the #1 priorityfor all consumers

Cost

Using sensors and controls toautomate the unnecessarily repetitive

Convenience

Is my home safe, is it locked, is itsecure, who’s at home?

Confidence

Is my home warm (or cool)? Is it light?Turn my music on…

Comfort

Weallwantthesamethings– itistheproportionsthatvary

I want my smart home to give me more time

with my family

I’m a gadget snob, I like to

show off

Smart Energy

Cost

Convenience

Confidence

Comfort

Did I switch the iron off?

I don’t trust all this technology, especially

not in my homeI love this stuff, where

do I sign up for a hoverboard?

It’s all boys and their expensive toys, isn’t it?

I like the idea, but how much fiddling will I

have to do?

I don’t trust all this technology, especially

not in my homeI love this stuff, where do I sign up for a hoverboard?

It’s all boys and their expensive toys, isn’t it?

I like the idea, but how much fiddling will I have to do?

ManydifferentcustomerswillliveinthesamehouseWhoorwhatmakesitasmarthome?

I know I said that I didn’t want that gadget, but actually, now I’ve seen it, can I have it? And I’ve told my friends

about it too…

I’m over my 2 month old gadget, what else do you

have that’s new?

Thefutureishereandit’saccessibleandaffordable

Absolutely Pointless

Absolutely Brilliant

Weallknowsomeonewhostillusesthis,andsays– “allIneedaphonetobeisaphone”

Atthesametime,thereareplentyofuswaitingforourGoogleGlassesandthechancetobeTonyStark

Conclusion (or assumption) – people’s taste in smart home technology will be as individual as their taste in home design

smartcustomer (def):

1. Couldbeanyone,iseveryone.2.Hasrequirementsandexpectationsthatevolve.

3.Doesn’tknowthefuture.4.Isunique.

5.Isreadyforchange,expectsanddesireschange

Asmartcustomerisactuallythetechnologyuser– notthecommodityconsumerwe’veknownfordecades.

Thesameperson,butwithverydifferentdrivers

Theroleofsmartmetersinasmarthome

Smartmetersareintendedtobethe

foundationofthenewsmartgrid– providingenergyinsightandcontroltousersand

operators

Butaretheyreallytheheroesofthesmart

home?

2006 2014

Inthebeginning,smartmeterswerethekeytoourenergyfuture– isthisstillthecase8years,

andtoofewmeters,later?

2007 Smart Meter Design begins

2015 Mass Roll Out Begins

2020 50 million meter Roll Out Complete

Asignificantachievement– implementinganewnationalinfrastructuretoeveryhomeandbusiness

–improvingcustomerservice,energyoperationsandfacilitatingmaterialcostsavings

UtilityContext

2007 Smart Meter Design

2015 Mass Roll Out Begins

2020 50 million meter Roll Out Complete

2007 iPhone launch –smart phone <5%

2014 smart phone @75% in GB

2017 smart phone forecast over 80% in GB

2010 –ipad Launch – tablet at 0%

2014 –tablet adoption at 50%

2020 –forecasts unknown!

Howrelevantwillsmartmetersbetothecustomersof2020?Hasthemomentpassedbeforeithappened?

TechnologyContext

Theinstallationof50mmetersisamassive

undertakinginGB,andabiggereffortacrossEurope.Creatingjobs,improvingservice,

buildingoutenormousnetworks.

Butformostcustomers,thesmartmeter

experiencecouldbe…

Smartmetersessentiallydelivertheservicethat21st centurycustomersexpect.

Accuratebills,betterservice,instantfeedback.

ThenoveltyofanIHDdoesnotlastlong

Howmuchfurthercouldsmartmetertechnologydevelop?

Whatwillbefirstforthemajorityofcustomers– smartmetersorthesmarthome?Willweberetrofittingour

metersintoanexistingconnectedhome?

Whatmakesthesmartmetersspecial?Whatcantheirdataprovidethatothersensorscannot?Smartplugs(orcircuitsorsockets)cangivedetailedinsightthatmeterscannot

Whowillcustomerstrustwiththeirsmarthome,smartsensorsandsmartdata?Canweexpecttherighttobetheir

smartpartner?

Onceinstalled,themetersthemselveswillbecomeacommodityagain,oneoftheworkerbeesoftheenergyindustry,ratherthanthecentre ofattentiontheyhave

beenforthepastfewyears

But,providingtheyareaccessible,interoperableandstandardsbased,thedatasmartmetersprovidecansupportsomeveryinterestingpropositions

Energyusageandpricingdatahasakeyroletoplayinthesmarthomeofthefuture– butithastobeavailableand

reliable,smartcustomershavenopatience

CH

Smart Meters in a Smart Home Setting

Scope of Smart Programme

Scope of Smart Innovation

E GSmart Meters

DCC

IHD

Internet

LightHeat

WashClean

Chill SafeSecure

CookFun

CAD ADSL

1

1 The mandated smart architecture provides customers with aggregated information on energy – in real time in the home and at D+1 or later via web or apps

2

2 New smart products will enable Customers to interact with their energy use in a new way

The link to smart metering is not mandatory, but is the unique opportunity for Energy Retailers to own this space.

Insight

Control

Action

AutomaticOn

Demand

At device/circuit level

Rules based - Binary, Scheduled, Responsive

Hardware, Plugs, Sensors

Rules and actions applied to the controls

Savings, Comfort, Convenience, Trust

Outcomes for individuals

3

3

4

4

Products, Services and Partners to help customers understand and control their energy usage.

There is a risk of Customers providing their data to 3rd party service providersAnd an opportunity for npower to provide product and services to non-energy customers

5

5

Wherecanwego?

Areweallsecondguessingwhatcustomerswant?

Whatdoutilitieswant?Dowereallywanttoownthesmarthome?Areweequippedtodeliveragainstthecompetitioninthisspace?

Howdoweusethesmartdatatotellcustomersacompellingstory?Doesthatmakethemmoreorlessinclinedtotreatus

asthecommodityprovidersthatweare?

Thekeywillbefindingtheproductsandservicesadjacenttothecommoditythatengageourcustomersanddelivervalue

CONCLUSION…SUMMARY…InClosing

Issueheremightactuallybetheword‘smart’– itistooeasyalabeltoapplytoeverythingandisindangerof

becomingmeaningless

Smartmeteringisimportant,butneedstobepositionedcarefullyinabroaderstrategythatcoverssmartservices,homes,gridsandcities

Thespeakersthroughouttherestofthedayshouldhelptoprovidesomeinsightintotheroadahead…

AnyQuestions?

simon.harrison@npower.com +447572871809 @raygunsimon

THANKYOU