Simplicity in Metering and Added Services

- is mandatory to meet the customer expectation

Willy Bergstrøm, DONG Energy, Denmark

John Heibel, POWRtec, USA

Abstract

� Engineering does not easily go with simplicity – it is by nature the opposite.

� As metering and added services is a low involvement task for most customers, the interface and content must comply with strict rules of simplicity to make the customer value proposition big enough to make them buy the services.

� The internal design is of necessity rather complex, but to achieve the needed operational reliability, simplicity becomes a vital parameter

� DONG’s AMR platform includes Smart Home facilities using the customer cell phone as the user interface avoiding PIN codes and internal cabling.

� The system has been created utilizing best in class skills which became possible applying simplicity in agreements and control systems.

� A short over view will be presented to demonstrate our perception of the phrase ‘simplicity’.

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� Marketing corporate energy products

� Market surveillance and analyses

� Corporate branding

� Selling electricity, gas, fibernet and special products

� Outbound customer contact

� Energy advice service

� 1 million customers (B2B/G and B2C)

� Product management

� Maintenance and operation of distribution grid

� Troubleshooting and power restoration

� Maintenance of customer installations

� Energy metering

� Inbound customer contact

� Complaints

� Customer advice service

� Technical dispatch

� Billing

� Collection of debts

MARKETING SALES DISTRIBUTION CUST. SERVICE BILLING

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� Distribution of natural gas from the transmission system to consumers

� Metering of consumption and billing of gas supplies

� Inspection of gas boilers and meters with the customers

� 6,200 kilometres grid

� 112,000 connection points to customers

� Approx. 500 stations regulating pressure

GASBEHANDLING GASDISTRIBUTION

� Distribution of 118 mill. barrels of oil a year

� 220 kilometres marine pipeline and 110 kilometres on land

� Storage of natural gas in order to secure

� equalization of seasonal fluctuations

� systems balance

� reserve stocks

� Stock volume of 800 mill. m3 (approx. 20% of Denmark's yearly gas consumption)

� Operation of gas treatment plants

OIL DISTRIBUTION GAS TREATMENT GAS STORAGE GAS DISTRIBUTION

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ELECTRICITY GAS FIBERNET

Market share>30% (number of customers) Customer profile860,000 B2C 55,000 B2B

Market share30% (number of customers)55% of volume soldCustomer profile100,000 B2C

8,000 B2B

The market is under development

Approx. 40 Danish electricity companies offer fibernet to their customers or plan to do so in the future

� POWRtec Corporation

� Dedicated to the design and manufacture of Electric Utility System Solutions

� Metrology – Intelligent Active and Reactive Meter solutions to Class 0.2 S

� Power Supply Integration and Certification

� Advanced Mechanical Design and Miniatureization

� Communications – RF (GSM and ISM) solutions for world applicability

� Economic System Design for Volume Production – US and China Manufacture

� Data Systems (CIM, Payment, Web presentment)

� Awarded the Utility Industry Product of the Year for “Smart Read” – 2006

� California-based private company with system and product deployments in Europe, Scandinavia, India and China.

� Development partner with DONG Energy for Customer Information and Services in Denmark.

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Introduction

� Framework

� The challenge of Simplicity

� Realistic Means

� Actual Case

� Conclusions

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Framework

� Smart Home add on to AMR

� No requirements of AMR in Danish legislation

� AMR implemented on a commercial basis

� Strict differentiation between trade/grid

� Infrastructure synergies

� Billing System

� Customer Interaction Centre

� Existing Customer Contacts

� AMR – Smart Home creates scale of operation

� DSM – the CO2 focus helps a lot

� No existing AMR system met the requirements

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The challenge of Simplicity

� Smart Homes are non-existent

� Pushed to the market for many years

� Technology-freaks and high-end consumers have been the early adopters

� Mrs. Peterson doesn’t have a clue of the possibilities

� Drivers for Adoption

� Safety -

� threatened consumers have already acted to purchase Alarm Systems

� Environment – bright future for the kids

� CO2-issues top of mind

� sustainable welfare realistic

� Barriers to Acceptance

� Hassle of adoption and incorporation in home design

� Visibility of the Benefits of the Smart Home - not

� Direct Cost of Implementation without Return on Investment

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Realistic means

� Smart Home a follower rather than an entry

� feel good doesn’t call for specific actions

� ‘in the mood’ reaction

� AMR links to energy – and CO2

� Energy Saver Campaigns – based on CO2

� Move in/out natural reason for contact to Energy Companies

� No hassle services – can’t be important

� easy to use – low attention

� try it – the only channel

� Market analyses – not relevant

� Mrs. Peterson doesn’t dream futuristic dreams – not about Smart Homes anyway

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Actual DONG Energy AMR strategy

� AMR vision

� enhance customer support utilizing no hassle billing

� present trustworthy supply metrics

� provide low cost home automation

� Commercially based roll out

� reduced number of contacts and reduced loses on bad debts

� energy saving effect – political request

� Smart Home add on service

� Characteristics

� selective roll out

� GSM/GPRS communication

� 1-2-3 phase meter

� voltage level surveillance and Zigbee local communication

� consumer cell phone user terminal

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Actual DONG Energy AMR strategy

� AMR customers

� SME customers

� Governmental multi-site customers

� Electrically heated houses

� Too-active customers

� Prepayment for bad payers

� Domestic spot price customers

� Smart Home customers

� Fiber to the Home

� identical services

� IP-based communication replaces GSM

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Smart Read POWRtec meter

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Technical details

� Modular construction

� Build in power supply 2 A / 4 V (operates on any phase)

� Voltage surveillance output

� Main Communication

� GSM / SMS

� Data sent as PDU SMS packed as SaSAT

� 24 reading in 1 SMS / 24 Hour

� or

� 31 Readings in 1 SMS P.C.M

� Alarm if phase drop out

� Registration of voltage level

� Local Communication:

� 2,4 GHz ZigBee for Home automation & reading of other energy meters

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Smart Read system overview

PIR-sensor

Control outlet

Meter

ZigBee

GSM

SMS-centerSRDB

Customer cell phone

SAP

Disconnect load

System operator

GW

External meter (gas/heat/wather)

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Involved Parties

Meter manufacturing(Unimeter)

GSM data logger(RTX)Smart Home Devices(Develco)

Meter development(POWEtec)

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Overview

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Overview

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SMS-commands

� Sent to 800 SIM Men u

� a1 = alarm on Alarm on

� a0 = alarm off Alarm of

� k1 = relay on Turn on

� k0 = relay off Turn off

� afl = read meter Read

� st = status Status

� If several connections: More+

� k21 = relay 2 on

� k20 = realy 2 off

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Home automation

� Customer segment

� worried

� summer cabins

� parents of school children

� children of elderly people

Concept

� no hassle

� no installation

� no pin code

� no noise

� no extra devices

� cell phone menu

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Actual status

� Field Test

� systems installed at selected sites

� no technical challenges detected

� usability extremely high

� Trial installations at customers

� system installed for 6 months for free

� collection of usability and price level

� Commercial roll out initiated

� launched this Easter

� summer cabins

� sustainable welfare customers

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Future needs

� Flexible pricing

� price fluctuation extreme

� prices may go up

� investments may go down

� customer incentives will rise

2-way communication

� direct contact to individual appliances

� reliable billing may be the challenge

1-way AMR

� kills flexible pricing

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Conclusions

� To keep it simple – is very complex

� the number of options are extreme

� natural wish for enhancements and flexibility is dangerous

� Traditional Market Analysis not applicable

� you will always get an answer – but it may not be worth the effort

� Kennedy had a dream – but no expectation

� Confront Mrs. Peterson

� she never lies

� always ready for a try – otherwise forget the rest

� public commitment is a strong internal driver