Raul PuigVP International

SalesIUSAMexico

Mexican Case:

The Simple Solution in Energy and Water Metering

� Covers almost 2 million square

kilometers.

� It is the fifth largest country in

the Americas.

� The 14th largest independent

nation in the world.

Mexico's Data

� With an estimated population

of 111 million, it is the 11th

most populous country.

� The national power utility is

CFE (Federal Commission of

Electricity).

Mexico's Data

� CFE has 177 generator plants with capacity of 50,200 MW.

� Mexico has 33 million of electricity meters, 20% are poly-phase meters.

� The average consumption of the 80% of the consumers is 150kWh/month, 5kWh/day. This represents the 20% of the utility's income.

CFE Characteristics

� Currently employ 12,000 reading employees.

CFE Characteristics

� Billing process is every 2 months, average billing is 300 kWh.

� The consumer base grows 1.3 million each year.

� 12% non-technical losses.

� For several years CFE looked for the best technology suitable to the Mexican market.

CFE Characteristics

� 80% of customers are low income.

� 80% of customers have a low consumption of energy (3-5 kWh/day).

� Most customers receive their income payments per week.

� Customers commute long distances to the utility office to make the energy service payment.

Mexican Customers´Characteristics

� The system's objective is to diminish the financial and operating costs of distribution among companies.

� The system facilitates a better consumption control for the consumer, as well as allowing the user more payment options.

Simply Smart Solution

� Is composed by a solid state meter and a contactless smart card that works in a two-way communication.

Simply Smart Solution

Benefits for the Utility

� Eliminates reading and billing costs.

� Eliminates the connection and disconnection costs.

� The Utility does not loose contact with the customer, as the meter data updates each time the customer recharges the smart card.

� The meter detects tampering, using the management system based on the frequency the customer buys the service and consumes it.

� The meter is installed in the same base of the actual meters, it doesn't require any preparation nor any new communication system costs.

� The management system can transfer the meter’s data to the billing system of the utility.

Benefits for the Utility

� The customer CONTROLS the payment and consumption in accordance to their income.

� This system promotes the culture of: “if you save resources (energy, water or gas) you save money”.

� This system avoids surprises of high invoiced amounts.

Benefits for the Customers

� The customer can buy services with small amounts of money.

� The system is very easy to use.

Benefits for the Customers

� The meter turns on the LED alarm to remind that credit is running out.

� The consumer goes to the Point of Sale to purchase energy, water or gas.

� The Point of Sale sends information to Central Servers at the Utility so they authorize the sale.

Pre-Payment

� The consumer goes back home with new credit charged on his/her smart card and discharges the purchased credit into the meter.

� These transactions can also be done through Internet, at the customer’s home or office.

Pre-Payment

� At the end of each 30 day period, the consumer sets his/her smart card on top of the meter in order to read last month's usage.

� The consumer goes to the nearest Point of Sale to pay his/her service. He can also complete this transaction through Internet.

Post-Payment

� After the consumer makes the payment, he sets the smart card on top of the meter to confirm the payment, so it will not shut down the service.

� The customer may have access to his/her statistical information as defined by the utility, both in pre-payment and post-payment modes.

Post-Payment

� Connect and disconnect the service supply with the same smart card.

�Manual service supply: The consumer may connect and disconnect the service any time he wants.

� Automatic service supply: The meter will connect the service supply when its has credit and will disconnect the supply when it runs out of credit.

Main Features

Main Features

� Warnings for recharges:The system can configure a warning level for each consumer, so the LED turns on when the consumer needs to recharge his/her meter.

� Display Screens: The screens on line are current voltage, power factor, frequency, disconnections and inversions of the meter. The utility can select all or some of them to have them shown on the display, including the accumulated monetary value of consumption during a 30 day period.

� Test mode: The meter can be configured in test mode to validate its functions and calibration.

Main Features

� All parameters mentioned are independent for each final consumer and they can be configured using the smart card by changing the software at the utility.

Main Features

� CFE (Federal Electric Commission) installed several deployments and pilots in order to choose among several technologies: AMR, AMI, Smart Meters and Smart Grids.

� The AMR pilots were successful technically, but not economically, because the cost of equipment and operation was too high to make a big deployment.

Choosing a System

� We want to share with you the following comparative charts between Smart Meters and AMR as follows.

Choosing a System

� Low product cost.

� Does not require a communication network, saving on maintenance costs.

� There is no installation network cost.

� Does not require the emission and delivery of an invoice.

Advantages of the SSMM System vs AMR

� The collection time is reduced

since the consumer doesn’t have to

wait for the invoice.

� As the consumer has a close

contact with the meter, he/she

may control his/her consumption

and therefore a saving culture is

generated.

Advantages of the SSMM System vs AMR

� The consumer can restrict the use of the service.

� When being away from home, by the manual operation function through the card.

Advantages of the SSMM System vs AMR

� The utility may restrict the

service if the consumer exceeds

the contracted demand, at the

same time, the consumer can

restore it by means of the card

without calling the utility.

� The consumer is responsible for

keeping his/her service flowing.

Advantages of the SSMM System vs AMR

� Reading in real time, in a periodic form.

� Remote shut down of service.

� Tampering detection in real time.

� Payments can be made through Internet, charging a credit card or other banking alternatives.

Advantages of the SSMM System vs AMR

� At the beginning of 2009, CFE made an international bid to select the best technology to substitute the actual electromechanical meters. The Simply Smart Solution won the bid.

� During 2009 to 2010, CFE bought During 2009 to 2010, CFE bought

5,280,000 of these simply smart 5,280,000 of these simply smart

meters.meters.

New deployment in Mexico

� Benefits obtained to date.

� Important reduction cost of billing process.

� Better cash flow.

� Tamper reduction to avoid technical losses.

� Saving energy with consumer participation.

� Technology modernization in the country.

New deployment in Mexico