Utility Business Winter 2012 by Energy and Utilities Alliance (EUA)

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UTILITY BUSINESS WINTER 2012

THE QUARTERLY PUBLICATION FROM THE UTILITY NETWORKS DIVISION

ACHIEVING 26 MILLION SMART ENABLED HOMES Foreword by the Department for Energy and Climate Change

In this issue: Consumers and the Smart Metering Programme Connected Energy Networks – Smart Grid A Green Deal for the Energy Market

Utility Business Winter 2012

siemens.co.uk/metering

A first class journey to a smart destination Siemens Metering, Communications and Services is uniquely placed to support the UK market on the journey from traditional services to smart metering. Our customers do not have to worry about the route or the itinerary – we will take care of everything. Using knowledge gained in the UK and from our international smart meter deployment experience, Siemens has developed the Sie-Smart range of solutions. Through a single interface, this provides scalable services that will keep pace as smart implementation evolves: from the foundation phase through to the enduring market.

Helping you through the smart journey, our range includes: • Smart Asset Finance and Management • Smart Installation and Maintenance • Smart Grid Applications and Services • Smart Data and Communications Services • Energy Supplier Data and Management Services • Smart for Business Services • Communication Solution for Complex Multi-Occupier Buildings Our services combine proven scalability and interoperability that will take your business into the next chapter of smart metering management in a simple, cost effective and risk free way.

Answers for Infrastructure & Cities. 2

Energy & Utilities Alliance Utility Networks Division Director: David Jones davidjones@eua.org.uk Administrator: Ana Ray ana@eua.org.uk

01926 513760

01926 513761

Marketing & Communications: Caroline Taylor caroline@eua.org.uk 01926 513762 Manager - Events, GSOG: Vanessa Webster vanessa@eua.org.uk 01926 513763 Manager: Gary Cottrell gary@eua.org.uk

01926 513764

=================================== Chairmen Utility Networks Board: Steve Murray (National Grid Distribution)

Welcome

from your editor Welcome to the Winter Utility Business. This extended length edition covers a lot of the current debate around Government’s smart meter programme – from consumer engagement to the wider issue of smart grids - and we hope you find the content of interest. We’ve certainly tried to give a broad range of subject matter. We really welcome the Foreword by Smart Metering Programme Director, Rob Turner, at the Department for Energy & Climate Change (DECC). Managing the programme is no mean feat and we are extremely supportive of the leadership and organisation DECC has achieved thus far. There is so much work going on in the smart meter arena at the moment and no let up in the near future, with EUA a key contributor to the debate through the various working groups and consultation responses. The Winter issue also includes an update from a very busy seminar period for us. We take pride in compiling a strong, topical events calendar which offers value and benefit to both members and industry stakeholders and, looking forward, 2013 should be no exception – make sure you take note of the dates for key events coming up next year and get in touch if you want to participate – either attending, speaking or sponsoring. Hope you enjoy the issue. If you have any news to share regarding developments in your own company, please do drop me a line. Until the next issue…

Dist/Trans Equipment Group: Richard Stone, (AVK UK Ltd) Network Engineering Group: Ian Foster (Fulcrum)

Caroline Taylor, Editor caroline@eua.org.uk

Metering Services Group: Vic Tuffen (Tuffentech)

In this issue…

Metering Technology Group: Jeff Cooper (Elster Metering)

Feature

Gas Storage Operators Group: Roddy Monroe (Centrica Storage)

Achieving 26 million smart enabled homes

Data & Communications Management Group: Mike Buss (Sensus Conservation Solutions)

Consumers & the smart metering programme

=================================== Editor/Enquiries Caroline Taylor caroline@eua.org.uk 01926 513762 ISSN Number Energy and Utilities Alliance Camden House, Warwick Road, Kenilworth, Warwickshire CV8 1TH Tel: 01926 513765 Fax: 01926 857474 www.eua.org.uk Visit the blog at www.utility-business.org

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THE QUARTERLY PUBLICATION FROM THE UTILITY NETWORKS DIVISION

WELCOME FROM YOUR EDITOR // CONTENTS

UTILITY BUSINESS

Foreword by DECC

Smart Metering: View from the manufacturers 14 Connected Energy Networks - Smart Grid

A Green Deal for the Energy Market

Regulars Utility Networks News

Regulatory Update

New Members

Viewpoint

Member News

Member Directory

Golf Circle

24 3

Utility Business Winter 2012

Utility Networks News EUA events calendar 2013 11 Jan 8 Feb 19 Mar 7 May

An Audience with Basil Scarsella, Hogan Lovells, London EUA Dinner Dance, Hilton Birmingham Metropole Utility Street Works Seminar, ICE, London EUA/IGEM Awards Lunch, Hilton on Park Lane, London

12 June June/July 26 Sept 30 Oct

Data & Comms for Smart Metering Seminar, IET, London Utility Regulation Seminar, London Utility Metering Seminar, National Motorcycle Museum, Birmingham (19 or 26 Sept) Utility Asset Management Seminar, PwC, London

For information on attending, speaking, sponsoring or exhibiting at any of the above events, please contact Vanessa Webster 0196 513763 or Vanessa@eua.org.uk

Events Update The Division has had a really busy and successful Summer/Autumn of events â&#x20AC;&#x201C; see details over the next few pages. Information and dates for the 2013 calendar are almost finalised and a new events blog launches this month to support our event activity, which will provide even more opportunity to find out what is coming up and for your company to get involved with our events programme.

June 2012 Utility Regulation: Regulating for Change and Sustainable Development The eighth annual Utility Regulation seminar gave a strategic update on gas, electricity and water regulation and addressed how best to deliver the investment in supplies, smarter systems, and greater reliability for all stakeholders and ensure developments are delivered in a sustainable way.

May 2012 Data & Communications for Smart Metering This brand new addition to the calendar for 2012 shared latest news, developments, industry views and opinions on challenges in the smart metering/communications sector with senior-level representatives from utilities, telecoms and service providers. The London event examined the current state of smart communication and identified key issues and requirements the industry is facing including: smart metering implementation, data security, data privacy, HAN and smart homes, consumer services opportunities and the evolution of data and communications services.

Are such developments achievable and compatible with competition? How will network owners, suppliers, regulators and investors be able to work together to develop, adapt and deliver the utility business model to make our 21st century utility systems work? In an open forum discussion, delegates heard the opinions of heads of leading utilities on whether the UK has the right strategic direction. Taking part in the discussion were Basil Scarsella,CEO, UK Power Networks, Mark Horsley, CEO, Northern Gas Networks, Stephen Kay, Managing Director, Cambridge Water, Chris Harris, Head of Retail Regulation, RWE npower, Dr Tony Balance, Director of Strategy & Regulation, Severn Trent, Tony Smith, CEO, Consumer Council for Water and David Rees, Co-Head of Asset Management, Infrastructure Europe, AMP Capital. The event was kindly sponsored and hosted by Hogan Lovells at their fantastic London offices. > Alistair Buchanan

The conference brought together top industry speakers from Energy UK, DECC, SmartReach, Cable&Wireless Worldwide, Gemserv, Utiligroup, Consumer Focus, Power Plus Communications, Field Fisher Waterhouse, Corona Energy, IBM UK, Bglobal Metering, Red Island, TTP and the Institute of Energy and offered a topical exhibition and excellent networking opportunity. Sponsored by

Sponsored by

Very kindly hosted by PwC, at their fantastic London office location at More London Riverside, the event concluded with a networking drinks reception.

Energy and Utility Alliance is supporting this Energy Institute event

5 December 2012 Energy Institute, 61 New Cavendish Street, London, W1G 7AR

Gas storage is it necessary? Does the UK need to increase its gas storage provision? With intermittent wind and other renewables energy and the fact that the UK is now a net importer of gas, some might say yes. This one day conference will discuss the challenges and opportunities available to the gas storage industry, what needs to be done to develop it and what hurdles need to be overcome in the process. Chris Barton, Head of International & Domestic Energy Security at DECC will deliver the key note address, looking at the role gas storage plays in enhancing energy security. Other high profile speakers include Geoff Bullock from Dalton Warner Davis, George Grant from Stag Energy, David Howard from the Environment Agency, Andrew Knights from Deloitte, Chris Le Fevre of Le Fevre Consulting, Luisa Leyenaar of RBC Capital Markets and John Roberts of Halite.

Gas 2012 IGEM and EUA jointly organised this year’s annual one day Gas 2012 Seminar. Around 70 delegates gathered at the IMAGO conference facility in Loughborough and gained insight into the topics currently shaping the sector at this highly anticipated industry update. > Tom Greatrex, Entitled ‘Achieving greater energy efficiency Shadow Energy Minister to tackle climate change, whilst ensuring safe and affordable energy supplies’, this year’s conference secured an exciting and stimulating programme of high profile speakers to cover the subject matter. Tom Greatrex, Shadow Minister for Energy and Climate Change, provided the keynote address with views on the forthcoming Energy Bill and the UK energy mix. The breadth and range of topics met with approval from delegates who gave extremely positive feedback on the day. The event was kindly sponsored by GL Noble Denton and Morrison Utility Services. With special thanks to David Morgan, Carl Arntzen and Chris Murray, Chairmen throughout the day. Sponsored by

The event takes place at the Energy Institute and costs £200 (ex VAT) for members and £360 (ex VAT) for non members. To find out more call Gemma Wilkinson on 0207 467 7174 email: gwilkinson@energyinst.org

Member Survey 6

We are pleased to report positive results from our 2012 membership survey, which ran in the Autumn. We would like to thank all members who contributed. This feedback plays a valuable part in helping us maintain a high level of service and in developing our focus for 2013 and beyond.

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Regulatory Update Gas Generation Strategy

As Utility Business goes to print Industry awaits publication of the Energy Bill, which the Department of Energy and Climate Change (DECC) advised would be available Autumn 2012. The Energy and Climate Change Committee conducted an inquiry to scrutinise the draft Bill over the summer and the recommendations have been considered and welcomed by DECC. The Bill will establish a legislative framework for delivering secure, affordable and low carbon energy. A key element of the Energy Bill is Electricity Market Reform, which proposes reform to the electricity market to secure the £110 billion investment in energy infrastructure required.

RIIO Price Controls The gas distribution price control (RIIO-GD1) will run from 1 April 2013 to 31 March 2021. Companies have developed and submitted business plans to Ofgem, which will inform the setting of the price control components, to be agreed by Ofgem before year end. Ofgem has published a consultation on the next price control for Britain’s 490,000 miles of electricity distribution network (RIIO-ED1) which runs from 2015 until 2023.

UTILITY NETWORKS NEWS // REGULATORY INDUSTRY NEWS UPDATE

Energy Bill

Industry also anticipates a response from Government’s call for evidence for its Gas Generation Strategy, which will require investment in new electricity generation capacity and help shape the UK’s future energy infrastructure.

The future of heating: A strategic framework for low carbon heat This strategy published by DECC was consulted on by industry over the summer. It sets out how the UK supply’s and uses heat and how the heat system will need to evolve over time, identifying substantial changes required. The Strategy provides the strategic framework which will inform the development of policy proposals in Spring 2013.

The Dr Gill Owen Column

DEVELOPING AN EFFECTIVE DEMAND SIDE IN THE ELECTRICITY MARKET In Australia and in the UK a major focus for the energy industry and policy makers is how to deliver demand reduction and demand response for economic and environmental reasons. If this is to be achieved there are two key messages that will have to be taken on board. •

ot all units of electricity saved have equal N value in the electricity system.

•

he customer is key to developing an T effective demand side in the electricity market.

In Australia, total demand met by grid supplied electricity has been falling in the last couple of years but prices have been rising due to increased network costs to meet peak demand. The fall in total demand is due to a variety of reasons including cooler summers, economic downturn, measures to improve efficient use, on site generation (including household PV).

As in the UK, whilst a unit saved will save the customer money whatever time of day it is saved (in the absence of time of use pricing), costs in the electricity system may not fall. If total demand falls but peak demand remains the same this will mean that costs in the system could even increase. So, not all units of electricity saved have equal value in the electricity system. In the traditional electricity market a relatively small number of actors had to be engaged to deliver a secure supply, whilst everyone else just used what was delivered. Now we are potentially looking at millions of actors being active in the electricity market – providing demand side response, supplying distributed generation etc. The customer is key to developing an effective demand side in the electricity market. We need to ensure that consumers have effective information to take part in this market and are given the correct policy signals. For example, we may want to encourage households with

PV to use it to run their washing machines and dishwashers at times of maximum PV output (daytime), rather than switching their appliances on in the early evening when demand is likely to be higher. A combination of price signals and technology is likely to be needed – for example, many time of use trials have found that the best demand response comes from a combination of price signals, automated control (so consumers don’t have to do all the work to benefit from reducing demand at peak times) and clear simple information. But unless we are going to force people onto time of use tariffs or direct load control the first and often challenging task is to get them to sign up in the first place – so they need to understand what’s in it for them. Back again to the second point – the customer is key.

Gill Owen is living in Australia for the next few years and will be working on electricity demand issues there as well as continuing her role as a Senior Research Associate at the Energy Institute, University College London and Associate with the UK think tank Sustainability First. Until her move to Australia in August 2012 she was also Vice Chair of the Government’s Fuel Poverty Advisory Group, a Non Executive Director of Ofwat, a member of Ofgem’s Consumer Challenge Group for the network price control reviews and a member of the DECC Smart Meters Consumer Advisory Group. This article is written in her personal capacity.

Utility Business Winter 2012

ACHIEVING 26 MILLION SMART ENABLED HOMES Foreword by Rob Turner, Programme Director, Smart Meter Implementation Programme

By the end of 2019 53 million smart meters will be installed across Great Britain, this will involve visits to 30 million homes and businesses. We are now coming up to halfway through the foundation stage of this challenging programme, a lot has been achieved, but there is still much to do as we prepare for mass roll-out in 2014. A number of significant milestones have been achieved in the past few months; The programme has completed the parliamentary process for the Prohibition Order, which allows us to create the central data communications company (DCC). We have laid the regulations which set out the process for the DCC licence award and started that process, and we have laid the rollout licence conditions placing the obligation on suppliers to complete the rollout by 2019. Following a public consultation we will shortly be publishing new rules for smart meters on privacy, security and how consumers should be engaged. In addition, our latest impact assessment shows the smart metering programme will secure total net benefits of ÂŁ7.2 billion over the next 20 years. These achievements mark an exciting step forward in delivering the smart meter programme. Engaging consumers is key to ensure a roll-out that works across Great Britain. We recognise that consumers will only fully realise the benefits of smart meters if they are effectively engaged. But Government, industry and others recognise the action of individual suppliers on their own will not be enough to secure effective engagement. We have proposed that a

Central Delivery Body (CDB) should be established to deliver a centralised programme of consumer engagement activities, in addition to those delivered by suppliers. The CDB will be governed by licence conditions and will be set up and funded by suppliers; it will be in place by June 2013. This is a programme which is driving forward at a rapid pace to meet some very challenging time scales. The recent achievements I have mentioned have been made by working together with service providers, manufacturers and consumer groups. We continue to be grateful for their collaboration, expertise and support as we enter the second year of foundation with the shared goal of a successful roll-out and programme.

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ACHIEVING 26 MILLION SMART ENABLED HOMES // PROTECTING CONSUMERS INDUSTRY INTERESTS NEWS

Protecting Consumers Interests Smart roll-out will be a major undertaking involving visits to every home in Great Britain and many small businesses. It has the potential to radically change the energy retail market, the products and services consumers are offered and how customers use and are charged for energy. The £11.5 billion roll-out/installation of 55 million gas and electricity smart meters will get under way by 2014 and energy customers need to know they are getting value for money for the smart meters and the correct advice. But just who is working on consumers behalf to ensure that we are protected in a smart world and that everyone benefits, no matter where they live, what their circumstances or how wealthy they are?

NEA Which? The consumer champion Which? is best known for testing household products like washing machines and digital cameras. But confronting important consumer issues is also a key part of their work. They are working hard to ensure the roll-out of smart meters benefits consumers, and that measures are in place to protect consumers from potential risks. They support smart metering and see the potential for consumers to engage with their energy usage and for increased energy literacy and better control of energy consumption and costs. However, they have concerns about levels of consumer awareness and apathy. An effective engagement programme must tackle the whole range of financial and non-financial barriers to engagement and give personal and timely advice from trusted sources be appealing and hassle-free and will probably be most effective if it is community focused they believe.

National Energy Action (NEA) is a national charity which aims to eradicate fuel poverty and campaigns for greater investment in energy efficiency to help those who are poor and vulnerable. They have real concerns that some vulnerable consumers may struggle to access smart metering benefits.

People with physical or mental health problems, and those with low levels of literacy or numeracy, for example, may find it harder to understand In Home Display’s and how it works and are carrying out research in this area which will be available soon. www.nea.org.uk Age Concern is also taking a keen interest in smart metering and how it may affect their demographic. Citizens Advice carries much consumer energy advice on its website www.adviceguide.org.uk and is now the lead body to aim energy company queries and complaints at by calling their helpline 08454 040506.

Which? has a large array of consumer advice on offer, carries out research and is constantly challenging policy decisions being taken on behalf of consumers. www.which.co.uk/energy

Trade and other Bodies

Consumer Focus

Energy regulator Ofgem has responsibility for safeguarding consumers’ interests. Smart meter roll-out will transform how energy markets operate and Ofgem’s role is to ensure consumer interests are fully protected during this process of change to market arrangements and the development of smarter markets. www.ofgem.gov.uk/e-serve/sm/

Consumer Focus supports the roll out of smart metering to help end estimated and inaccurate billing, a major source of customer complaints, as a tool to help consumers better manage their energy consumption and as a way to bring environmental and social benefits. But it does have real concerns that the programme will fail to deliver the benefits for consumers. They have completed consumer research on smart tariffs and smart prepay and work closely with Government and industry, bringing cross sector experts together. They have been a lead voice in pushing for a number of key proposals around functionality, data privacy and codes of practice within the programme. www.consumerfocus.org.uk/get-advice/energy

Trade Bodies (including Energy and Utilities Alliance) Energy UK, AMO, BEAMA, SSWG, ESTA, Intellect, ICOSS, Energy Networks Association etc all participate in Government’s industry working groups, such as the Consumer Engagement and Roll-out group CERG.

Department for Energy and Climate Change To ensure that consumer interests remain at the heart of the Smart Metering Implementation Programme, DECC operates working groups focused on just this. The Consumer Engagement and Roll-out group (CERG) and the Consumer Advisory Group, play a key role in policy and programme proposals and advise on how best to protect and promote consumer interests and engagement. www.decc.gov.uk/en/content/cms/tackling/smart_meters/ smart_meters.aspx 9

Utility Business Winter 2012

UTILITY BUSINESS

CONSUMERS AT THE HEART OF THE SMART METERING PROGRAMME

Smarter engagement… happier customers? By John Peters, Managing Director, Engage Consulting

The Government’s target for smart metering is an ambitious one: by 2019 it wants every UK home to have a smart meter. This means 28,000,000 more smart meters than we have today. There is much discussion within the industry about the need for consumer engagement with smart meters. Smart meters promise consumers some valuable benefits: greater information about their energy usage and more accurate billing leading to reduced bills and energy savings. However, it appears that consumers still aren’t on board. A recent survey by DECC showed that only around half of energy bill-payers had heard of smart meters. Interestingly, in the US, a much more mature market in terms of smart meter rollout, similar levels of consumer awareness are common[i]. What’s clear in Britain is that there is some way to go before consumers are fully aware of what smart metering will mean to them.

Does customer engagement really matter for smart metering? A fair question to ask. After all unless there is a major backlash against smart metering, it is reasonable to assume that most consumers will accept the meters and naysayers, seeing the benefits enjoyed by others, are also likely to make the switch. Energy providers need to consider what is the right balance between active consumer engagement versus less active consumer education, focussed on avoiding negative reaction from consumers. Smart meter benefits such as reduced demand and the collection of more data are premised on consumer engagement – if the industry is willing to forego these benefits then roll out could be undertaken with lower levels of engagement. One thing is certain, as energy supply is largely a commodity service, getting the British public excited about in home displays and finer-grained metering data will be a tough challenge. However, in smart meter deployments around the world customer engagement has been a critical ingredient in the recipe for successful smart metering rollouts. Effective engagement can allay consumer fears and is likely to increase take up particularly where consumers are not legally required to accept the installation of a smart meter. Moreover, when engagement goes wrong, as it did in California (higher bills than expected, and a reaction against some communication technologies) and in The Netherlands (consumer privacy concerns), the impact on the success of the rollout can be severe. The argument for active consumer participation over an approach which simply seeks to avoid a backlash is particularly important where the business case for smart metering is partly predicated on consumers reducing consumption – as is the case in the UK.

The key to consumer engagement is…engagement! So what should a consumer engagement programme address? Firstly it needs to address people’s reservations. When they think about smart meters, consumers have, quite reasonably, voiced concerns about the cost as well as privacy and health issues. They typically have many questions from who will

pay for the meter, through to worries about the health implications of having a wireless network. They are also concerned about the security of their data being sent to energy suppliers. One of the key problems at present is the knowledge gap; consumers haven’t been educated about the benefits of smart meters - many don’t even know what smart meters are let alone the potential benefits they could deliver. This needs to change in order for the government to meet its smart metering targets; consumers need to be informed, educated and engaged and industry, government and the regulator all have a part to play in this. Together, they need to communicate what the smart metering rollout is all about and how it will benefit people. Communication needs to be multi-channel, not only in terms of the method used to get messages across - whether that be via a centralised communication campaign, press, social media, or more local and personal engagement with communities and interested parties - but also in terms of who is articulating the message. In the US, leading operators adopted a strategic approach to their communications strategies and successfully engaged third party advocates to help spread their message about smart metering. From ‘Mom Central’ an influential online community, to the National Council of Churches, US energy suppliers are benefitting from spreading the word about smart meters through groups and individuals that their customers know and trust. The most effective US operators – in terms of customer engagement – faced the top consumer concerns (cost, data security and health) head-on to help ensure a positive customer mind set ahead of installations and then followed up after installations. One supplier, San Diego Gas & Electric, even used retired former employees to follow up meter install visits.

What is the UK energy industry and UK government doing to engage consumers? In the UK Government’s business case for smart metering is based upon 97% installation[ii] success and ensuring that customers look favourably upon smart metering is crucial. Government, through DECC, has proposed that a central delivery body (CDB) will design and implement consumer engagement activities on behalf of the industry and the government for the rollout programme. The CDB, which is currently under consultation, is expected to begin its work in 2013 and its role will be to co-ordinate and standardise communications across the industry. It will help to ensure that customers receive the same message about what smart meters are and the impact on their households regardless of who supplies their energy. Parallels have been drawn between the smart metering rollout and the

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SMARTER ENGAGEMENT… HAPPIER CUSTOMERS? digital TV switchover. Early scepticism about the digital TV rollout was overcome by effective customer engagement and good delivery. While lessons can certainly be learned from the success of the TV switchover, there are important differences. From a consumer perspective there are significant differences, for example the desirability of TV - over a commodity such as energy supply - may have led to consumers being more interested in understanding the impact of the TV changeover than they will be about meters.

The installation For the installation of a smart meter, access to the customers’ homes will be needed, and provides a good opportunity for suppliers to communicate with the customer. The Smart Metering Installation Code of Practice (SMICoP) with which all suppliers will comply, lays down how suppliers will engage with customers during these installations. The SMICoP aims to ensure that the customer experience is positive while protecting customers throughout the process. Suppliers will be obligated to provide energy efficiency guidance and impartial sources of information but not ‘sell’ during an installation visit – to avoid customers feeling pressured, ensure customers have a clear explanation of the equipment and how it’s used and know what to do if they experience faults or have a complaint.

What next for consumer engagement in Britain’s roll-out? The window of opportunity to take hold of the agenda and foster a positive consumer perception of smart metering is closing. Industry will be working

hard on raising consumer awareness and engagement in 2013, but equally needs to be prepared for the smart meter roll out even if consumer apathy abounds or there is a backlash. Hopefully, this will not be the case. Smart meter deployments overseas, such as the early rollouts in California, where communications were unclear or uncoordinated have shown the industry the damage that can be caused by poor consumer engagement. While looking at ‘failed’ rollouts overseas can be instructive, the employment of co-ordinated, multi-channel communications by successful operators shows how a strategic approach to communications can help make Britain’s smart metering rollout a success.

About Engage Consulting Engage Consulting, www.engage-consulting.co.uk, is a specialist energy and utilities consultancy, delivering demanding, complex projects for government, trade organisations and operators.

[i] A survey by the Smart Grid Consumer Collaborative, revealed that a year after its first consumer survey, 54% of US consumers have never heard of the Smart Grid. http:// smartgridcc.org/news-events/new-research-consumer-pulse-wave-3 [ii] https://www.nationalgrid.com/NR/rdonlyres/A805A0F3-7EDD-4A5B-9E9F2515259D0BD4/56451/ApproachandPricingModelDocument.pdf

Utility Business Winter 2012

Getting users ‘smart ready’ is key challenge for energy sector By Chris Saunders, CEO, Navetas Energy Management

Smart meters are central to Government targets of lowering overall energy demand and use, and reducing the UK’s carbon emissions. “By putting intuitive and intelligent energy displays in homes during the foundation years much can be achieved in preparing consumers for smart meters” > Navetas Interactive House Demonstration on their website www.navetas.com

With significant rises in energy costs, smart meters have also been heralded as critical to reducing bills for energy users.

use figure. This makes it very difficult to identify what changes in behaviour will lead to money savings.

must find new ways of visualising energy use for consumers through multi-platform online portals and via mobile phone apps.

However, can smart meters deliver on these promises?

For smart meters to be effective, they need to go far beyond providing an accurate reading and monthly bill. They need to provide households with detailed usage data and deliver information in a way that is not only easy to interpret, but also illustrates the clear benefits of any behavioural changes.

The next two years will be foundation years for the smart meter roll out, as DECC and energy providers ensure the new infrastructure will work as intended before the full roll out in 2014. But they will also be critical years in ensuring consumers are brought along on the journey before the mass-market rollout.

The complex challenge to provide this information as a core deliverable of upgrading infrastructure is a task that cannot be ignored if the Government, energy providers and energy consumers are to truly reap the full benefits of smart meters.

By putting intuitive and intelligent energy displays in homes during these foundation years – and also allowing access elsewhere, through the web and smartphones – much can be achieved in terms of preparing consumers for smart meters and beginning the process of altering long term behaviours.

For many, smart meters are simply viewed as an infrastructure upgrade, offering accurate readings and, as a result, accurate bills, with a greater understanding of demands on the grid. Viewed in this way, smart meters are unlikely to help achieve the targets of lowering energy demand and reducing overall energy use in the long term. Any new infrastructure must be combined with greater consumer engagement to help users make behavioural changes linked to new technology and equipment. Consumers need to buy in to smart meters if they are to take control of their energy usage, save money and reduce emissions. Therefore, new infrastructure must go hand in hand with better services, clearer information and more transparency for consumers, around how energy consumption is impacting energy bills.

The information gap The current problem is that users have very little information to help them understand how they can use less energy, typically relying on the presentation of a monthly cost and a total energy

Understanding and engagement To instigate meaningful changes to energy consumption, it’s absolutely critical to stimulate an understanding of energy use and build long-term engagement. Interactive, highly visual ways of presenting data is the key. The information and insight that energy management systems can provide to consumers will be worthless unless it is easily understood and creates a long term connection that enables users to understand why – and how – they can change their behaviour. This means that technology vendors and suppliers

Getting users ‘smart ready’ Now is the time to unlock the potential of smart meters and make sure consumers are empowered with the technology that will transform their energy use. While smart meters themselves will not be installed until 2014 and beyond, energy display and management technologies are available now. Government and energy suppliers must start looking at rolling these devices out to consumers to empower them to make better, more informed energy decisions.

Navetas Energy Management Ltd was founded in 2008 in recognition of the increasing global importance of energy management and its focus is on delivering innovative and tailored services in these fields to empower consumers with intuitive energy consumption information. Their vision is to bring new technology and innovation to the energy supply industry and empower consumers to manage their energy consumption in a more cost effective and environmentally friendly way.

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GETTING USERS ‘SMART READY’ IS KEY CHALLENGE FOR ENERGY SECTOR // RETAIL COMPANIES SEE REAL SAVINGS WITH SMART METERING INITIATIVES

Retail companies see real savings with smart metering initiatives As the planned supplier-driven roll out of smart metering to the domestic sector picks up steam, one area which has been flagged as ‘problematic’ is consumer engagement. Cue consultations between the Energy Retail Association and stakeholders to develop a Code of Practice and the inclusion of an educational aspect to the training programme currently under discussion by the National Skills Academy for Power.

monitor and reduce their energy usage. Being in a recession makes this more of a necessity than ever and as senior managers continually look to their bottom line, energy efficiency is clearly one way of impacting their financial and energy strategies.

Contrast this with the commercial sector – retail in particular - where such ‘marketing’ or ‘information’ campaigns are practically unheard of. That’s because the sector tends to be aware of the financial savings intelligent metering systems offer and dedicated energy managers tasked with juggling hundreds of individual sites for large corporations don’t need to be asked twice to considering switching to smart metering initiatives. In fact, in many cases, they make the initial approach themselves according to one gas metering installation and management company.

“With the exception of size, retail sites also tend to be predictable in that they’re open at regular hours and gas use tends to be similar ie for heating and restaurant or catering facilities etc. This provides opportunities for benchmarking as savings generated in one store can translate to other stores. As a result, when retailers sign up, they tend to do so one hundred per cent.” Or in other words, one of the major differences between the commercial sector and the domestic roll-out is that retailers want smart metering whereas the success of the domestic rollout will all hinge on the public buy-in. In order for large companies to benefit from AMR installation the data has to be monitored and analysed, often requiring dedicated staffing. In the retail sector the position of Energy Manager is commonplace.

Livingston-based Energy Assets is the leading independent provider of gas metering services to the UK Industrial and Commercial market. They hold a number of accounts for brand-leading household names including the John Lewis Partnership, Cost-Co and Bookers where they are responsible for each company’s entire portfolio. In fact, one upmarket supermarket chain recently had its 700th Automated Meter Reading (AMR) logger installed by Energy Assets. The company has been busy of late acquiring Manchester-based Gazprom Global Energy Solutions Ltd (GGES). This acquisition enables it to extend its reach further and provide integrated multi-utility AMR and site works services to blue-chip clients. In the meantime though, the retail sector is one of Energy Asset’s biggest customer bases – second only to local authorities. “The retail sector is continuing to welcome AMR with open arms,” said Energy Assets CEO Phil Bellamy-Lee. “They want accurate bills and consumption information to allow them to

And, of course, there is another benefit of installing smart metering technology as a spokesperson for John Lewis explained: “Managing and reducing our energy use is a key part of ensuring we are a responsible and sustainable business. Smart metering provides an effective means of helping us to do this.” Despite the government’s playing down of the financial aspect of the Carbon Reduction Commitment (CRC) where poor performing commercial organisations were penalised on carbon usage, many retailers continue to bear targets in mind and look to demonstrate their green credentials. In doing so their public image benefits meaning that smart metering solutions, as well as reducing costs, are proving a PR winner too.

Case study Earlier this year Energy Assets agreed a second five-year-deal with the John Lewis Partnership to continue supplying more than 293 John Lewis and Waitrose stores with AMR services. The company has helped the John Lewis Partnership identify instantly how much gas is being used at a particular location and prevented unnecessary wastage. It’s also meant the store has been able to meet carbon targets and cut back on utility spending overall.

> Phil Bellamy-Lee, Energy Asssets

“At a time when the government is focused on rolling out its domestic gas metering programme, it’s fitting that one of the country’s top respected retailers can, with AMR, lead by example,” said Energy Assets CEO Phil Bellamy-Lee. 13

Utility Business Winter 2012

Smart Roll-out: Member companies reflect on smart metering progress s being Are the right preparation on track? made - is the programme Director, ITRON Nigel Hughes, Managing

twelve investors. Over the past me by the board and our of ed 1. ask ETS n SM ofte h is wit ich ard important steps forw Itâ&#x20AC;&#x2122;s a tough question wh ch of the industry made the technical roa ure app ens tive to ora nt lab orta col imp the ly months be crucial completion of SMETS2 will benefits. Going forward, the timely realisation of customer and ns utio sol ng teri me art sm of ty bili era n rop inte y and end to end solutio inds in the face of securit dw timely arrangements for hea ide nce ngs erie alo exp sion and mis ind the track today successful SMETS2 sub a ugh thro red ove rs. Weâ&#x20AC;&#x2122;re probably a little beh rec can be n and data service provide have no doubt that this associated communicatio compliance testing. We nications company and mu com a dat the of art metering nt the establishme keholders to ensure sm twelve months with all sta t nex ces will shape the our r res ove er age wat eng ly manage our energy and we continues to collaborative way ry the ust t ind tha the t lise tha rea nt Itâ&#x20AC;&#x2122;s importa benefits and that all , they deliver customer solutions are right for GB the next century.

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TACKLING DISRUPTION ON OUR ROADS SMART ROLL-OUT: MEMBER COMPANIES REFLECT ON SMART METERING PROGRESS - VIEW FROM THE MANUFACTURERS

Becoming Smarter the transition continues ing Ltd Steve Case, Commercial Director, Elster Meter mme, and they don’t During the lifecycle of any major change progra Smart Grid; it is and ing Meter Smart UK than come much bigger has been achieved always worthwhile taking time out to review what . Looking back ahead lay still that nges challe the sider and to re-con last 2-3 years, the over sector utility the at the progress made within knowledge gained the and ed achiev ones milest the ing assess and come to mind; over this period, a number of common analogies “Knowledge is Power” and “Seeing is Believing”. have seen a number Since the DECC mandate of smart metering, we within the ments deploy e volum to it comm ers Suppli y Energ of meters (SMETS smart for s cation specifi initial the Foundation Phase; for the DCC laid tions founda 1) being approved and released; and the raging, in encou y Equall ers. Provid e Servic ions unicat and the Comm acturers, Manuf Meter event, ark landm a what must be considered as rship to support partne in g workin s, player ry indust key other and interoperability by the development of system and communication or “SSWG”. forming the Smart Specification Working Group integral However, while most would acknowledge that these success, perhaps partnerships are an absolute requirement to ensure learning ding rewar and nging challe ive, the most comprehens

gained by being a curve for Elster has been the experience we have of their early part as ers chosen partner to individual Energy Suppli exity of multiple compl The . mmes progra ” dation “Foun or deployment ions and unicat comm the align to er key stakeholders working togeth and reliable smart le perab intero an for d neede ses proces ss busine within an energy solution should not be underestimated, especially electricity data and gas te market traditionally operating with separa flows. the Foundation The industry now needs to apply the learning of place to manage in are plans ment deploy Phase and ensure mass in dealing with the commercial interoperability between Suppliers le workforce with change of Supplier pre DCC, and engage a scalab and resource data IT, the with deal to s appropriate planning system , post 2014. annum per s meter of s million ing install for ds deman gained during Elster now look forward to applying our expertise er partners and Suppli our of er numb a with ments deploy Foundation igm shift parad the with ry indust the continue to support and shape . ahead

Consumer Engagement is Key and , Landis+Gyr UK and Irel Steve Cunningham, CEO

positive e and, more recently, the lementation programm imp ment to ter mit me art com sm nt’s the “The publication of reaffirmed the Governme set the regulatory sultation process, have o con als 2 e hav ETS s SM ent the pm of elo ss progre t. These dev affordable national roll-ou s with confidence. deliver an innovative and suppliers to move forward and rs ure act nuf ma ble ena will ich wh tion nda fou lic. rts and minds of the pub industry – is to win the hea whilst the benefits and r, nt nne me ma ern t ren Gov for spa – tran a The key challenge now must be addressed in acy priv and y urit sec a of dat Concerns around issues d out. s need to be clearly mappe be critical in available to UK household and manufacturers – will t from energy suppliers por consumer in sup the full age h wit eng – o iod als loyment tactics, they will during the Foundation per s dep ent und loym aro e dep enc ale evid -sc d Community utilities with har d.” Not only will they provide general public is engage meeting that challenge. y be truly successful if the onl will t -ou roll the , tely a meaningful way. Ultima

EUA is an active participant in Government’s continuing Smart Meter Programme ensuring that our members receive the best possible representation at the highest level within DECC. EUA member groups steer and formulate the consensus view on industry issues and provide useful information sharing and networking opportunities for members. The groups meet on a regular basis allowing debate and discussion on matters affecting their business sector and of course update on the smart meter programme. If you are interested in contributing to the work or would like information please contact gary@eua.org.uk. Full members wanting to attend member group meetings to hear updates on these issues should contact ana@eua.org.uk to be added to the mailing list 15

Utility Business Winter 2012

UK SMART GRID – THE TIME IS NOW By James Pace, Senior Director of Business Development, Silver Spring Networks

The time for a smart grid system in the UK is now. The need for a smarter grid has never been greater as the current infrastructure is tasked to handle increasingly distributed and intermittent renewable energy. At the same time, consumers seek greater empowerment over their energy usage, and energy security and carbon reduction move towards the top of the political agenda.

a smart grid - particularly with regards to the communications fabric underpinning the grid - the greater the needless loss of potential benefits and therefore indirect costs to consumers and utilities.

The costs of building a smarter grid have flattened out with improved technologies and greater systems installation experience. The benefits of smart grid are well documented and remain as compelling as ever. With increased intelligence and data, consumers are empowered to make choices about their energy use, helping smooth the peak demand that places huge cost and operational burdens on the delivery of energy. Outages will be minimized, but even when they do occur, detection will become instantaneous and post-outage restoration times will be reduced. Integration of renewable energy sources will be efficiently enabled on a large scale. And improved energy storage and enablement of electric vehicle technology will become commonplace.

It is vitally important however, that the UK converges on an open, standards-based communications architecture that easily enables new services and applications to come online seamlessly, in order to avoid significant investment in a system that becomes obsolete soon after being deployment. The wrong architecture will preclude benefits. The efficiency and effectiveness of a smart grid that connects every device depends on communications systems that are reliable, responsive, always-on, secure and cost-effective.

Utilities are realising significant value from applications being deployed today such as advanced metering, distribution automation and demand response capabilities; and increasingly, emerging applications such as electric vehicles, conservation voltage reduction and distributed generation demonstrate great potential. The benefits are real and concrete. For example, Oklahoma Gas & Electric expects its demand response programme, based on a robust IPv6 smart grid communications platform, to allow it to avoid building costly peaking power plants. Smart grid development in the UK is now at a critical stage. It takes on average 2-4 years from programme inception to benefits capture for a smart grid project, the delay caused by factors such as regulatory, and the time taken for integration. The UK can no longer afford to wait for a much needed smart grid to realise its significant societal, economic and environmental benefits. The longer it deliberates over the creation of

We recommend that the UK consider an IPv6based approach, which allows for a scalable, future-proofed deployment that includes existing transports such as radio mesh and emerging transports such as LTE and TV White Spaces. This approach has been used to great effect in smart grid projects around the world, particularly in the United States where utilities such as Oklahoma Gas & Electric (OGE) and Sacramento Municipal Utility District (SMUD) have already seen significant a significant impact on consumer energy behavior. In Australia and the Americas, where a full range of technologies are available for communications networks, utilities have overwhelmingly chosen a technology known as ‘wireless mesh’ for their smart grid programmes. This technology is highly cost effective and meets all of the reliability and security requirements of the smart grid. A sound smart meter communications architecture will create the foundation for smart grid. The smart meter requirements for the UK are no different to that in other parts of the world - smart metering requirements are universal, although it should be noted that they

are also universally difficult to meet! An effective smart metering communications system needs to be open, secure, ‘future proof’ (i.e., able to accommodate new technology in the future), ubiquitous, scalable cost effective and have the capacity for new services and rapid response times for grid control. In attempting to realize its vision of 26 million smart enabled homes, the UK must also consider the part they will play in an effective smart grid system, and choose its communications architecture carefully with this in mind.

About Silver Spring Networks Silver Spring Networks is a leading networking platform and solutions provider for smart energy networks. With its pioneering IPv6 networking platform, Silver Spring has connected more than 12 million homes and businesses throughout the world with the goal of achieving greater energy efficiency for the planet. Silver Spring’s innovative products enable utilities to gain efficiencies, integrate renewable energy sources, and empower customers to monitor and manage energy consumption. Silver Spring Networks is used by major utilities around the globe including Baltimore Gas & Electric, CitiPower & Powercor, Commonwealth Edison, CPFL Energia, Florida Power & Light, Jemena Electricity Networks Limited, Pacific Gas & Electric, Pepco Holdings, Inc. and United Energy among others.

For more information please visit www.silverspringnet.com Join the Silver Spring Networks Conversation Follow @SilverSpringNet on Twitter Like Silver Spring Networks on Facebook at www.facebook.com/silverspringnetworks

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UK SMART GRID - THE TIME IS NOW // HOW SMART DOES A SMART GRID NEED TO BE?

HOW SMART DOES A SMART GRID NEED TO BE? By Steven Vallender, National Grid

Unsurprisingly smart metering remains a central component of many utilities’, suppliers’ and regulators’ strategic objectives. This is driven by government commitments which are spurred on by a growing demand for information on energy consumption from an ever more energy conscious society. Smart metering represents the visible consumer end of this new technology but for network operators and asset managers there remains a bigger prize in the pipeline, smart grids. A few years ago an internet search for smart grid(s) would have resulted in just a few thousand hits; in contrast a search for smart metering would have delivered to your screen a lifetime of possible sites for endless surfing… literally! And whilst smart metering will provide an incredible source of customer data that will influence how individuals consume energy and allow network operators to enhance their asset management decisions, on its own it will not meet the information requirements of all network operators. For an asset manager there are many more feedback and input points where data could be an enabler for much more informed management and control of the network. However, the critical question remains: How smart does a smart grid need to be? The answer will depend upon what the operator wants, or needs the network to do, for example, do you need to; • S upport the adoption of dual fuel supplies, balancing the supply of energy and supporting the associated tariffs. • S upport the injection of non conventional gas, monitoring of gas quality controlling flows to ensure supply can be taken, or • P rovide feedback on the condition and performance of assets to ensure minimal whole life cost.

The use of such data in itself is not revolutionary in fact, in the UK and in other countries, network operators are already using data flows to manage parts of the network, or to undertake specific functions such as controlling flow and system pressures to minimise future emissions. Such “separate” initiatives have not yet been brought together into a single end to end system. The reason that this has not happened is because the technology has been too costly coupled with there being no direct incentives in place. However the needs of asset managers and the technology at their disposal are changing rapidly. Future energy supply scenarios, which show an ongoing presence of gas utilisation, will necessitate much more intelligent grids to ensure balance of supply is maintained. This is critical to ensuring the UK has an energy network in place that remains both secure and economical to operate and maintain over the long term.

This long term driver is coupled with increased regulatory requirements on asset strategies and decision making to be more transparent as consumers increase their focus on energy bills. To facilitate these requirements asset managers will seek to embed more intelligence into the network in the form of feedback loops and control systems. This will require significant investment across the industry, be it in smart meters or upstream monitoring and control. National Gird are reviewing the options for adopting smart grids in the context of what we need the networks to do, in the short medium and long term. A possible scenario is that grids will develop at different rates depending upon the needs of the operator and the requirements of customers and stakeholders. What is clear is that the interest in smart grids is shifting and it will play an important role in the future of UK energy supply. This shift is illustrated in a simple search on the internet with the few thousand hits being replaced with a very different picture.

Std Search (all these words) Nov 12 - Hits (000’s) 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0

smart metering

smart meter

smart meters

smart grids

smart gas grid

smart gas grids 17

Utility Business Winter 2012

THINKING ENERGY SMART HOMES PROJECT Over the last 12 months, E.ON has been trialling Smart Home technology in 75 homes in Milton Keynes, as part of their Thinking Energy project. Through partnership with Milton Keynes Council and the National Energy Foundation (NEF), the results and data collected will provide insight into households’ behaviour towards energy. Now, at the mid-point in the two year trial, E.ON report that over three-quarters of people have changed the way they use energy in their homes, some saving up to £200 off their annual energy bill. Developed with GreenWave Reality, the global smart home innovator, trial homes have been fitted with technology that allows customers to measure individual appliance usage through smart plugs, meaning participants can easily monitor and control their energy right down to individual appliances such as TV, PC, washing machine or fridge. The project, running between Autumn 2011 and Winter 2013, will operate in a series of phases and, as well as testing general use, test the following concepts: Power – Better information about how electricity is used in the home

Each concept will be evaluated against how well the technologies integrate, what benefit the customer gains and whether there is sufficient commercial value. The technology works for both gas and electricity via E.ON smart meters and provides a wide range of interactive tools and tips on energy use. Presenting minute-by-minute visibility of energy use, the trial households are able to securely view the data via a web browser, tablet and smartphone app. Benefiting from an engaging online portal interface which is visually appealing and easy to understand, Milton Keynes participants can customise their settings to suit everyday behaviours.

Mobility - Linking an electric vehicle charge point, solar panels and ‘home battery’ to store the energy produced and use it to charge the electric vehicle;

In the near future, the solution will be extended to include Smart Thermostats integrated into the platform, that can be controlled via the same intuitive interfaces running via the browser and smartphone app. This will enable remote control of temperatures throughout the home. Connected Lighting is also being explored which comprises low energy LED bulbs with internet connectivity to provide fully controllable lighting.

Hot Water - Linking a solar panel and gas boiler together to make the most of water heated for free via the roof panels

Feedback already shows that customers are benefiting from making more informed decisions – they better understand the financial cost of using

White Goods - Linking solar panels and a smart washing machine or dishwasher, so that white goods can be scheduled to run when the solar output is high.

Heating - Creating a more effective way to control the home heating through intelligent management of the system

individual appliances and are reducing wastage and saving money by specifically locating secret energy guzzlers such as PCs on standby, set-top TV boxes, underfloor heating and Hi-Fi amps. They feel more in control as they can schedule groups of selected devices to go on or off to suit their lifestyles, including home, away and night, smart controls, and can personalise them to suit their needs - examples include ‘homework hour’ where parents turned off games consoles remotely to focus children on school assignments. The online tools help budgeting and learning by setting goals and monthly targets, which are tracked by the system and enable customers to see if they’re going over and above their desired usage and the Energy Coach rewards progress and accomplishments. The Thinking Energy project is part of the European-wide E.ON Innovation Centre for Smart Homes and complements similar activities in Germany and Sweden. For more information, you can visit http://www.eon-thinkingenergy.co.uk/.

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THINKING ENERGY - SMART HOMES PROJECT // WINNING THE WAITING GAME WITH SMART METERS

Winning the Waiting Game with Smart Meters By Matthew Weaver, TOA Technologies

During smart meter deployment, utilities that ensure service engineers’ punctuality will win customer loyalty and avoid cost overruns. To deploy smart meters in 80 percent of all EU households by 2020, energy suppliers face enormous challenges – not the least of which is customer relations. For instance, the U.K.’s Department of Energy and Climate Change has planned a £100 million marketing and consumer engagement campaign for smart metering in that nation alone. It aims to allay persistent privacy and health fears while emphasizing long-term energy savings. With winning public confidence so critical in smart meter deployment across Europe, success or failure depends heavily on service engineers. Whether in-house employees or contracted resources, on-site installers interact directly with the public, representing the face of the utility. With effective field service management, energy providers can use smart meter installation to enhance consumer confidence and boost brand loyalty.

Courting Lack of Confidence Consumers don’t like to be kept waiting. In a recent survey conducted by IBOPE Zogby International, 14 percent of British consumers and 22 percent of Germans refused or canceled a product or service they had ordered, simply because the delivery kept them waiting at home too long. If waiting for hours prompted so many consumers to turn down a product or service that they actually wanted, how patiently will the public wait for installing a smart meter – a product no one asked for and many regard with suspicion, at best?

token, smart metering also affords utilities a rare opportunity. In both the UK and Germany, on-time arrival ranked as the number-one reason consumers would recommend a company to a friend.

The High Cost of Tardiness Tardiness results in more direct costs as well. After sacrificing a paid holiday, calling in sick or taking unpaid leave, many consumers simply give up and go back to work when a provider keeps them waiting. In the IBOPE Zogby survey, 36 percent of British consumers and 24 percent of Germans confessed to leaving providers in the lurch after waiting too long. Such a high rate of “not-at-home” incidents results in significant budget overruns for smart metering rollouts, because they require rescheduling and returning for a second or third visit. According to U.S. market analysts McKinsey & Company, failure to install on the first visit can increase the cost of a smart meter installation program by as much as 20 percent. Based on current DECC budget projections, for example, that would add £320.00 to UK residential installations alone.

Solutions to Ensure Success

Unfortunately for utilities, the same survey found that energy providers ranked among the worst enterprises at punctuality. After receiving a 2-hour window during which to expect an engineer’s arrival, British consumers waited an average of 5 hours and 30 minutes for an electricity service call and 3 hours and 30 minutes for gas. Germans waited 5 hours and 45 minutes for either service.

Using advanced technology, field service management can get service engineers to customers’ doors punctually – not only reinforcing brand loyalty, but also dramatically reducing operational costs. For example, time-based, predictive software can shrink customers’ wait window from “all day” to 60 minutes or less, having workforces keep that commitment for 95 percent of all appointments. Such tools have also enabled telecommunication service providers and similar companies to increase daily job completion rates by 47 percent, among other productivity gains.

If utilities maintain this woeful on-time record for smart meter appointments, they risk undermining customer confidence – multi-million-pound PR campaigns notwithstanding. In the IBOPE Zogby survey, missing an appointment by 30 minutes or more had serious consequences for a company’s reputation and trustworthiness. But, by the same

Roughly half of consumers surveyed say that communication about the appointment has a high impact on the company’s reputation. With predictive customer communications,

the same software that manages the service engineers can remind customers of an impending visit the day before and the day of the appointment – by their choice of phone, SMS text, social media or e-mail. And it lets the customer confirm, cancel or reschedule it, also by the channel of their choice. Aside from cementing customer loyalty, these reminders dramatically reduce costly not-athome outcomes. Most consumers will see and touch a smart meter for the first time when the service engineer arrives to install it. Keeping the only promise associated with that first impression – the appointment time – can engender lasting trust not only in a device, but also in the brand that provides it.

About the Author Matthew Weaver is a director of utilities, operations and strategy, EMEA, for TOA Technologies (www. toatech.com), a global provider of cloud-based field service management solutions. Weaver has more than 17 years of experience serving in the utilities industry in various roles and capacities. He has gained a deep understanding of the key business drivers and challenges facing utilities, and leverages this experience at TOA Technologies to deliver superior solutions for better field service management.

Utility Business Winter 2012

PROTECTING THE CRITICAL INFRASTRUCTURE By Lindsay Kent, Vice President Product Development, Entrust

The rollout of smart meters will play an important part in the UK’s transition to a low-carbon economy and help meet long-term challenges in ensuring affordable, secure and sustainable energy supply. Due to the governments strict guidelines and time frames, smart meters are already being rolled out, with full roll out due to be completed between 2014 and 2019 to 26 million homes in the UK – 46 million gas and electricity meters in total *. However, smart meters could introduce a number of security vulnerabilities, as recently highlighted** by the European Data Protection Supervisor who said safeguards were needed over how firms used the collection of consumers’ data uploaded by smart meters.

Key Security Issues Some of the key security issues are centred on the protection of the Critical Infrastructure itself. The growing reliance on smart meters results in an increasing demand to secure this data as it moves through the supply chain which comprises of data management systems, applications, and end-points such as terminals and smart meters, to ensure authenticity, integrity, confidentiality, and non-repudiation. No one needs reminding of the havoc and controversy that the infamous Stuxnet virus caused – the most destructive and sophisticated attack of its kind to date. As a result, the Department of Energy & Climate Change (DECC) is requiring security mechanisms to protect the communication from the utility to the smart meter, involving a number of parties: a Data Service Provider will be appointed in order to manage the data communication between the energy companies and the homes, while one or more Communication Service Providers will be responsible for delivering network coverage to the homes. A third party, Data Communications Company, will be selected and responsible for overseeing and managing the entire process. Given that energy supply is a critical national infrastructure, and that smart grids will have the

capability to cut off the gas and energy supplies to homes, end to end security is crucial.

of digital identities, and provide a scalable, secure and proven method of strong identity and security.

Public Key Infrastructure (PKI)

Smart Electronic Entities

Security research has highlighted flaws such as poor authentication, lack of encryption and inadequate authorisation in smart metering rollouts, therefore effective security to protect data must accompany their deployment.

All “smart” electronic entities in the electricity or gas grids should be provided with a digital identity. This digital identity is equivalent to an ID card or a passport, thus allowing an entity to prove who it is. For example, when a specific smart meter is reporting back to the central system on electricity usage, status, etc, the grid should therefore also authenticate the source to ensure its legitimacy. In this example, it is highlighted that the digital ID can allow the smart meter to automatically and without human intervention, authenticate the source securely.

Cyber security in the SmartGrid is all about trust, which a Public Key Infrastructure (PKI) can provide. Within this, a hierarchy of trust is created through a Certification Authority (CA) which generates and manages cryptographic certificates used to establish the identity of users and devices, as well as the accuracy and authenticity of messages sent across the IT networks. Identity-based security should be at the heart of the service, as the demand for security is going beyond the utility’s protected perimeter. This means that power and energy organisations need to know who, and what, is communicating between these smart meters and the central system as the threat landscape keeps evolving. In fact, analyst firm Deloitte highlights the ballooning number of digital identities*** and we would recommended that PKI is the most scalable, secure and proven method to offer strong identity and security. A Public Key Infrastructure provides digital certificates, a digital identity document which could include information such as a smart meter’s name, address, etc. The digital identity is bound to the smart meter in a manner it cannot be duplicated, and with strong enough security to last a lifetime of constant attacks to duplicate the identity. The digital identity document is then digitally signed by a trusted third party organisation, and as a result, PKI can help to secure and validate the ever expanding number

Utility grids are a high profile security target for hostile organisations seeking to cause damage and disruption. If these security incidents are expected, it is vital that they are planned for to ensure minimum disruption at the power generation plant itself, and all the way to the consumers smart meter Entrust provides identity-based security solutions to more than 5,000 organisations spanning 85 countries. With more than 125 patents granted and pending, their world-class solutions include strong authentication, physical and logical access, credentialing, mobile security, fraud detection, digital certificates, SSL and PKI www.entrust.com * http://www.intellectuk.org/policy/smart-meters ** http://www.bbc.co.uk/news/technology-18407340 ***http://www.deloitte.com/view/en_US/us/ Services/consulting/technology-consulting/ d9b4d2ed56335310VgnVCM2000001b56f00aRCRD.htm

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PROTECTING THE CRITICAL INFRASTRUCTURE // A GREEN DEAL FOR THE ENERGY MARKET

“The scope of the Green Deal is to provide an energy efficiency improvement revolution”

A GREEN DEAL FOR THE ENERGY MARKET

With the legal framework for Green Deal now in place, Green Deal providers, assessors and installers can start to become authorised, and display the Green Deal Quality Mark, and put in place systems for delivering assessments to consumers. However, consumers won’t be able to sign up to a Green Deal finance plan until 28th January 2013. Utility Business found out more about the scheme from Isaac Occhipinti of the Heating & Hotwater Industry Council. The Green Deal is the Coalition Governments flag ship policy aimed to improve the energy efficiency of the UK housing stock. In the words of Greg Barker, Minister of State for Energy and Climate Change: “The green deal is a game-changer for the energy market. The deal will open up the energy-efficiency market, broaden consumer choice and to facilitate growth in the market” The basic principal of this new policy is to allow the householder to borrow against the savings new energy efficiency products installed will provide. This forms the basis of the so called ‘Golden Rule’. The Golden Rule states that: “The expected financial savings should be equal to or greater than the costs attached to the energy bill”. This means that if the financial savings of installing a new measure are £100 the costs cannot exceed this amount. The Green Deal has a strict process. This starts with an assessment. In order to get a Green Deal the householder has to get a Green Deal accredited assessor to produce a report on their home. This is in part an EPC (Energy Performance Certificate) and part usage assessment. This report highlights measures that can be improved. Ones that can be fully financed by the Green Deal will have a green tick next to them, more expensive ones an amber tick. Likely green tick items are insulation measures and draught proofing. With this report the householder can ask Green Deal providers to give them a quote for providing a finance arrangement for selected improvements. This means that agreed and licensed Green Deal provider companies, likely to be large merchant chains and national installation companies, can offer householders up front money to complete the works in return for monthly repayments. So if you want loft insulation, for example, you can

ask a Green Deal provider to loan the required £250 and then repay this for around 2-3 years through your electricity bill. Your bills should not actually increase because the energy saved should be greater than the monthly cost. All works must be carried out by a Green Deal accredited installer and the householder will receive a warranty for the lifetime of the Green Deal finance arrangement. There are over 30 measures included in the list of Green Deal products, from fabric improvements like insulation, to appliances like Boilers and also included items such as new front doors. The scope of the Green Deal is to provide an energy efficiency improvement revolution. However, while the principal is straightforward enough the detail is often confusing. If you have read this and fully understand how the Green Deal will actually work then that is some achievement. Many people who have been involved with this scheme since the beginning, over two years ago, still don’t understand how it will work. And if the supposed experts are confused then where will this leave the consumer? Currently we really don’t know how successful or not this scheme will be. It is due to become available from 28th January 2012 and it will be at this point when we will be able to judge its effectiveness. At the moment there are a lot of unknowns. If a householder could get a boiler almost completely fully funded by the Green Deal then this could be a real incentive which will drive uptake. However the likely interest rate of 7.5% means that often a householder could get a commercial loan at a cheaper rate. DECC’s own impact assessment painted a bleak picture in the number of installations actually carried out by the scheme in its first few years. While this picture will improve with time, it is up for debate how long ministers and the public will persevere with a scheme that is not attracting

uptake. Therefore it is likely that the Green Deal of 2015 will be very different to the one that is launched early next year. The one area that the Green Deal may be a success from the start is through the public sector and housing associations. The easy access to finance may be a suitable draw to many local authorities wanting to renovate their housing stock. In fact a number of councils, like Birmingham, have already announced very large Green Deal schemes. The heating industry is always keen to see new and innovative ways of encouraging householders to fit energy efficient measures and it hopes that the Green Deal will be a success. However the large numbers of variables mean that no one can predict the likely impact and success of the policy and therefore we shall just have to wait and see.

About HHIC The Heating & Hotwater Industry Council (HHIC) is a member organisation committed to effectively driving, supporting and promoting the sustained growth of the UK domestic heating and hot water industry. Members include companies operating in or directly associated with the UK heating and hot water industry - manufacturers, merchants and distributors, installers, service providers and trade associations. See the HHIC website for more information www.centralheating.co.uk 21

Utility Business Winter 2012

New Members Gentrack Gentrack is a specialist developer of smart billing, CRM, collections and meter data management solutions for energy and water utilities. Extensive knowledge of these industries and a proven track record in developing, implementing and supporting its leading software, Gentrack Velocity and mDATA21, is what sets Gentrack apart from other ERP vendors. “Our software is designed with the smart grid in mind, ensuring utilities have the tools to understand and engage with customers in new ways,” says Gentrack CEO James Docking. “We continue to innovate a set of powerful CRM, workflow, billing and communication tools to enable utilities to establish new customer touch points, and to engage with customers around new channels including Social Media, Smart Portals, in-home displays and SMS.” Gentrack’s specialist software solutions provide exceptional value to utilities. Gentrack Velocity is one of the few global utility billing and CRM products that offers true multi-utility billing capabilities and is considered a leader in its ability to integrate residential, commercial and network billing processes into one complete solution. Designed to lower a utility’s cost-to-serve, Gentrack software is proven to streamline utility workflows, enabling utilities to transform the customer experience and maximise the benefits of smart grid technologies. “Customers are critical to smart grid success. Utilities need the right vendor relationships and specialist billing and CRM tools to understand consumption behaviours, to drive demand-side initiatives and deploy a range of smart products to meet consumers’ changing energy and water requirements. Our specialist software enables utilities to drive these smart initiatives.” As well as developing its own software, Gentrack is accountable for endto-end project delivery. “Maintaining a direct relationship with our utility customers is fundamental to our business,” concluded Docking. “Our customers look to our experts to ensure project success. Our people are passionate about the solutions they deliver and we have a history of actually delivering what we say we are going to deliver.”

Calvin Asset Management Limited Calvin Asset Management Limited is one of the largest independent Meter Asset Providers in the UK. Based in Manchester our investment focus is in the domestic metering market, offering innovative funding solutions for energy suppliers to provide them with off-balance sheet funding arrangements. Whilst our core market is domestic metering we are also exploring opportunities for investment in other energy related assets, such as Solar Power and other opportunities within the Green Deal. The company is wholly owned by Infracapital Partners LP, part of the Prudential, and to date have financed both the procurement and installation

of in excess of 4 million gas and electricity meters across the country. Under this arrangement Calvin finances the procurement of the meters and pays for their installation subsequently owning and managing the assets on behalf of the energy suppliers who use them. Calvin has relationships with all key stakeholders in the metering market and leverages these relationships to deliver competitive finance and robust MAP services on behalf of its partners. The Metering Market in the UK will shortly commence a strategic shift and transformation with the mandated roll out of smart meters to be completed by 2019. The Government has estimated that the roll out of smart metering across the UK will require circa £11 billion worth of investment and Calvin believes it is well placed to utilise the experience it has gained over the last 10 years to grow its business and further support its relationship with the Energy Suppliers. To support this roll out Calvin is working closely with DECC, Ofgem and other key stakeholders to ensure that the funding aspects are properly considered and that steps are taken to reduce and eliminate the associated funding risks. In this regard we have helped to establish the Community of MAPs (CMAP) and we are heavily involved in a number of industry working groups - while already actively supporting energy suppliers in funding their current smart meter roll-out.

DNV KEMA Energy & Sustainability DNV KEMA Energy & Sustainability specialises in providing world-class, innovative solutions in the fields of business & technical consultancy, testing, inspections & certification, risk management, and verification. The organisation has a heritage of almost 150 years and consists of over 2,300 experts in 30+ countries around the world. As an objective and impartial knowledge-based company, DNV KEMA advises and supports organisations along the energy value chain: producers, suppliers and end-users of energy, equipment manufacturers, as well as government bodies, corporations and non-governmental organisations. The appointment of DNV KEMA as the latest member of the EUA aligns with the broadened scope of the EUA since its recent rebrand, which reflects its expanding remit beyond a focus on the gas industry. As a leading global authority in business and technical consulting, and testing, inspections and certification services across the energy value chain, DNV KEMA will be a valuable contributor to the EUA. The new membership also coincides with a growth period for DNV KEMA Energy & Sustainability, following the recent merger whereby DNV and KEMA’s expertise combined to offer full support to organisations across the energy sector. One of the key areas of focus for DNV KEMA in the UK is smart

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NEW MEMBERS metering, at a time when the UK smart meter programme has reached a critical point. National policy is fast becoming reality as the sector strives to meet government targets for rollout by 2019, and DNV KEMA contributes particular expertise in interpreting programme requirements and making them tangible. DNV KEMA has more than 80 years of experience in inspections, testing and certification throughout the world. Performance improvement, risk management and quality control are central to resolving dilemmas related to availability, sustainability and profitability across the energy chain. This technical nous is bolstered by the organisation’s consultancy expertise on both a business and technical level. Joining the EUA is a significant move for DNV KEMA as it actively engages in the UK industry conversation. The organisation’s primary objective in this space is to contribute its expertise at interpreting deep commercial and technical aspects of energy programmes towards intelligent policy and business considerations. DNV KEMA is committed to driving the global transition toward a safe, reliable, efficient, and clean energy future and joins the EUA as one of just a handful of valuable consultancy members. As an active member, DNV KEMA will be a beneficial addition to the group, contributing both technical and commercial expertise from an objective standpoint. For further information please contact: Matt Freeman, Head of Smart Metering Programme, DNV KEMA Energy & Sustainability Tel: +44 (0) 203 170 8165 Email: matt.freeman@dnvkema.com

water meters and transfer it to the building’s power cables. From there it is uploaded to the power grid using standard broadband protocols, and read using a Network Management System. “This pilot demonstrates the ability of the technology to help water utilities move from conventional metering to a smart infrastructure,” said Ian Sykes, Siemens MCS Global Headquarters Product Group. Overcoming the High Rise Challenge Using a combination of technologies, PPC found a solution to challenges that typically affect Smart Metering in high rise environments. Systems that rely solely on 3G technology encounter problems where some meters are below ground level, or surrounded by metal pipes. LAN and fibre-optic solutions involve expensive and time-consuming rewiring. With hundreds of meters transmitting data from the same location, wireless and radio signals can under-perform. PPC used a combination of radio and 3G signals to bridge gaps, but the core of the system relies on the transfer of broadband data over existing power lines, making it very robust, reliable and cost-effective. Seamless Installation The components were installed without any disruption to the building’s occupants, connected to cabling in hallways rather than directly to meters in each household. Each gateway device took just a couple of minutes to connect without any need to switch off power or water supplies. Within hours of installation, data from the meters began to be available, and readable in near real-time. In the event of a leak, anomalous data can be identified and narrowed down to a specific meter, and a repair team dispatched to the right part of the building.

Power Plus Communications Power Plus Communications (PPC) is a leading provider of broadband powerline communication systems, supplying utilities and distributed network operators with key technologies and solutions for Smart Metering and Smart Grids. Chips Building Manchester It’s not just an outstanding landmark, Manchester’s Chips building is hiding some remarkable technology that makes it one of the smartest buildings in the city: it can tell you if it springs a leak. The building is installed with a ground-breaking smart metering system that has the possibility to: Read its own water meters Measure water consumption in real-time Communicate breakdowns and leaks as soon as they occur. Power Plus Communications (PPC) installed a combination of modems and gateways to collect information about water usage from 142 individual

Results & ROI • 142 smart meters enabled for remote reading in near real-time • Installation time per gateway less than two minutes, under power • Significant savings on meter reading and maintenance costs Power Plus Communications is also collaborating on a Smart Grid project with the University of Manchester and Electricity North West, and have built a grid monitoring installation on the Isles of Scilly in partnership with Western Power Distribution.

Utility Business Winter 2012

Viewpoint

Smart Meter Roll-out – Triumph or Dis

The Olympics was a triumph from start to finish and a great boost to the National Self very public project management disasters, most notably the Channel Tunnel, Wemble

These were all huge projects that suffered from long delays and gross overspending but in terms of their complexity they were dwarfed by the Olympics. Probably not since the Second World War has a project had to deal with the challenges of years of huge construction and IT projects, political interference, mass mobilisation of thousands of people in hundreds of companies, a huge influx of foreign visitors over a short period of time, which tested the security and transport infrastructure and at the end of it, we had to broadcast thousands of events to billions of people all over the globe. It is hard to believe that the only public glitch seemed to be the problems encountered with recruiting sufficient people of the right calibre to carry out security checks. The UK’s smart meter program is scheduled to start the “Enduring Phase”, which is the full blown roll out, in just under two years time. There are approximately 21 million domestic gas meters and 24 million electricity meters installed in homes and small businesses across the UK. All domestic meters will need to be exchanged for Smart Meters by the end of 2019. Typically the smart meter system comprises of a number of elements, all of which will be defined by the programme. The Home Area Network (HAN) will usually be a wireless system generated by a dedicated communication device which may stand-alone or may be an intimate part of the electricity meter. The HAN will encompass the gas and electricity meters and the In Home Display (IHD). The IHD provides consumers with real-time information on their energy use and is a key strand in the government’s energy and carbon reduction strategy. All the energy-use data generated in the home will be sent to the new Data and Communications Company (DCC) using one of 3 new regional Wide Area Networks (WAN). The DCC will act as an independent data depository. Energy companies will access their consumer’s

data through the DCC. At the same time relevant messages or changes e.g. tariffs, will be sent back to the HAN from the energy company via the DCC and through the WAN. The DCC and the new regional WAN will be put in place over the next two years. This is a Government implemented project that comes under the authority of The Department for Energy and Carbon Change (DECC) who have now established a project team of approximately 150 civil servants. The project is broken down into a series of working groups each attending to specific areas from security protocols to smart meter equipment specifications and consumer engagement to procurement contracts for the DCC. The working groups are attended by volunteer delegates from all stake holder groups including Trade Associations, Consumer Protection organisations and where necessary energy suppliers and invited experts. The Energy and Utilities Alliance is represented on most of the working groups. Consumer Engagement is an area where DECC continues to develop its strategy. Many parallels have been drawn with the Digital Switchover which completed reasonably smoothly and with little public disquiet. It did have the benefit of being able to plan a regional communications strategy. The smart programme will not be rolled out regionally and this does present a real issue for those who are planning to keep the public informed. That said, the national message on digital switchover started to drip through about two years before the roll out started. As yet as far as I am aware there are no plans to start a national television or press information campaign on smart metering in the near future and this has to be a concern as the initiative is already spawning many press articles which are negative or misleading, which DECC are managing on an individual basis.

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@ EUAUN

lf Esteem. It made a refreshing change after some ey Stadium and the Edinburgh tram system.

The project is currently in the “Foundation Stage”. This is the period when all the preparations for the main rollout are to be completed. During this stage Energy Companies will be busy completing the development of their back office systems. They will be busy trialling the systems with new smart meters and they will be recruiting and training sufficient meter workers to complete the testing and trials and commence the Enduring Phase. Indeed some of the energy suppliers have started their programmes and there have been published plans to install several million meters before the Enduring Phase but at the moment these plans appear to have been scaled back. This isn’t surprising when the companies involved face the risk of installing equipment that will not fully comply with the final smart specifications and face the prospect of having to remove them all prematurely. It is expected that the completed SMETS 2 specification will be accepted by the EU Commission by April 2013 and the contracts for the DCC will be awarded at the same time. For the energy suppliers to have sufficient stock of approved and trialled products ready to commence the roll out In October 2014 they will need to place orders in the early part of 2014 at the latest. This can only be done if the manufacturers have had sufficient time to complete their developments and the energy companies have been able to install sufficient of them, to ensure that they are happy with the amount of end to end testing, that they will have been able to do, once the DCC is ready. My worry is that we are already running out of time. At £11.5 billion the smart meter project is £2 billion bigger than the Olympics and the challenges are just as impressive. We have to change 55 million meters in 5 years which will probably result in political interference,

VIEWPOINT

saster Vic Tuffen, Managing Director Tuffentech Services Ltd.

mass mobilisation of thousands of people in hundreds of companies, the completion of some very large IT projects, the management of huge transport and logistics challenges involved in moving hundreds of thousands of meters about every month and in the midst of all that, the meter installers have to recruit sufficient people of the right calibre to carry out the work. The question is, do we want the smart meter project to be an Olympic scale triumph or another very public Wembley scale disaster?

About Vic Vic is widely acknowledged as one of the foremost authorities on meter lifecycle management in the Industry. Few people have the breadth and depth of experience that he has amassed over 30 years in the Industry. He joined British Gas North Western in 1980 as a Gas Engineering Technical Apprentice and after completing the 4 year course held several positions in the Regional Service Department both in the domestic but specialising in the non-domestic market. He left the region in 1993 and joined the Emergency and Meterwork Project. In 1996 he joined Transco where he progressed to Principle Engineer for Metering before moving to Advantica where he managed the R&D and technical support teams for metering. In 2002 he moved to GWi as their Divisional Head of Engineering where he remained until he established Tuffentech Services in 2008 providing consultancy and technical solutions to the Energy and Utility sector. Today he is actively involved at committee level for both IGEM and the EUA whom he represents at the DECC Smart Metering group for Consumer Engagement and Roll Out.

Utility Business Winter 2012

Member News Murphy completes new gas infrastructure for Mansfield community J. Murphy & Sons Limited has successfully completed its largest scheme with National Grid Affordable Warmth Solutions (AWS), laying over eight kilometres of gas infrastructure to replace the District Heating System to over 1,000 properties in Mansfield, Nottinghamshire. Working with Mansfield District Council and other partners National Grid Affordable Warmth Solutions appointed Murphy as its main contractor for the project on the Oak Tree Estate in the town. Each property, including the homes of private tenants and landlords, will now benefit from individual energy

efficient gas boilers, new pipes and radiators. Murphy Utility Connections provided a free gas connection to all targeted households, whilst any vulnerable private sector households gained new central heating systems funded by the programme. More than 8km of new gas mains were laid and 1,090 new service connections installed.

Carillion selected for “Green Deal” energy services contract Carillion has been named as the preferred bidder for the Birmingham Energy Savers (BES) scheme. The contract is a major milestone in establishing the Green Deal programme in Birmingham. The eightyear BES contract is estimated to be initially worth up to £600 million, but has the potential to be extended to the wider West Midlands area. Carillion will work with Birmingham City Council to improve the energy and carbon efficiency of up to 60,000 households across the City, together with schools and other non-domestic Council properties. The scheme gives households affordable ways of improving their properties by fitting energy efficiency measures, such as insulation and new boilers under the Green Deal. Carillion will also launch a programme to install its innovative EcoPod heating system to tackle the heating and hot water challenges of tower blocks across the City.

Fulcrum wins landmark contract Fulcrum will oversee the creation of a new pipeline linking remote Speyside distilleries at The Glenlivet, Tormore Cragganmore and Tomintoul with Scotland’s main gas network. The underground pipeline, set to be completed by the summer of 2014, will end the distilleries’ reliance on expensive heavy fuel oil and tanker deliveries, which can be compromised by severe winter weather conditions. The distilleries were founded before the gas networks and their distant locations were often chosen for fresh spring water supply above all else. Bringing them online with the main gas network will bring environmental and economic benefits. This will be one of the most ambitious gas infrastructure projects in the UK for a number of years and the 16-mile gas pipeline will potentially cut energy costs by 30 per cent. The pipe will be constructed from high density polyethylene and steel pipework and will consist of a main spur with three “legs” serving four distillery termination points. For most of its route, it will be buried under local roads. > New gas pipeline links remotes Speyside distilleries with Scotland’s main gas network

Drain Center delivers for an icon Drain Center has worked with DGR Mechanical Services to deliver the pipework package for the Shard, the tallest building in Europe standing at 1,016 feet high. Designed by Italian architect Renzo Piano to replicate a shard of glass, the iconic building has transformed London’s skyline and will provide 1.4 million square feet comprising office space, a hotel, residential apartments, restaurants and viewing galleries. The Shard is located in a busy part of London and as well as the space constraints of the site, it is in close proximity to London Bridge station, a hospital and a fully operational bus station. DGR chose Wolseley UK as a supply partner for the public health services; with all of the cast iron and domestic copper pipework and components provided by its Drain Center branch in Brimsdown and the remaining copper and stainless steel pipes provided by the London City Pipe Center branch. DGR was appointed by main contractor Mace MEP to supply and install the chilled water, condenser water, low temperature hot water (LTHW) heating, hot and cold water, gas, drainage, rainwater and public health services throughout the shell and core of the building. The site provided a logistical challenge due to its extremely confined footprint. No materials could be stored on site due to space constraints and deliveries had to be planned and booked in at set times because there is only one road in and out. The significant logistical challenges of building the Shard required innovation from suppliers at every stage of the build process.

Clever innovation from Tuffentech will help support the smart meter program One of the major costs involved with the Smart Meter program, is that of getting a qualified meter fitter to the site at the same time as the consumer. What happens when the engineer arrives on site and finds that the meter box is compromised with a missing or broken door? The engineer has to reschedule another visit, thereby wasting time money and resources and inefficiency for the customer. The Short Term Utility Meter Protection (or S.T.U.M.P) is a new product launched by metering services company Tuffentech, that can ensure the installation goes ahead, with no worry of the electronics being compromised due to water ingress because of bad weather. The product is both quick and simple to install, and comes in two sizes, ensuring that all domestic meter boxes can be secured against bad weather in the short term, very quickly.

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Member Directory NETWORK ENGINEERING GROUP

BGE Ltd (Bord Gais Eirann) Centrica Storage Cheshire Cavity Storage Group Ltd EDF Trading Gas Storage Limited E.ON Gas Storage UK Ltd Eni Uk Ltd Gateway Storage (Stag) Humbly Grove Energy Ltd Halite Energy Group INEOS Enterprises Ltd Islandmagee Storage Ltd King Street Energy SSE Hornsea Ltd ScottishPower Energy Management Ltd Statoil Storengy WINGAS Storage UK Ltd DISTRIBUTION & TRANSMISSION EQUIPMENT GROUP

GL Noble Denton AMEC Group Limited Balfour Beatty Utility Solutions Bureau Veritas Carillion Utility Services Clancy Docwra Limited Denholm Pipecare Ltd Enterprise plc Fulcrum Future Energy Group J Murphy & Sons Morrision Utility Services Morland Utilities Ltd National Grid Northern Energy Connections Ltd Northern Gas Networks Ltd P N Daly Limited Squire Energy Ltd Veolia Water Outsourcing Ltd METERING SERVICES GROUP

Aeon International Ltd AVK UK Ltd Crane Ltd t/a WASK Drain Center Fiorentini UK Limited Fusion Provida Limited Gas Measurement Instruments Ltd. George Fischer Sales Limited GPS nrg2 PLCS Limited Radius Systems Ltd SARCO Stopper Ltd Syddal Engineering Limited Synthotech Special Products Limited DATA & COMMUNICATIONS MANAGEMENT Alcatel Lucent Arqiva Bglobal Metering Ltd Electralink ELEXON Ferranti Computer Systems Hewlett Packard DNV KEMA Ltd Logica UK Ltd Sensus Conservation Solutions Serck Controls Ltd Power Plus Communications AG METERING TECHNOLOGY GROUP D I UK Limited Elster Metering George Wilson Industries Limited Itron Metering Solutions Landis+Gyr Secure Meters

Axiom Metering Ltd Calvin Asset Managment EDF Energy Customer Field Services Energy Assets Ltd (was Pulse 24) E.ON Energy Solutions G4S Utility Services Ltd Gentrack Lowri Beck Services Ltd Providor Siemens Metering, Communications & Services Tuffentech Services Ltd ASSOCIATE MEMBERS BG Group plc ByBox Capita Symonds Ltd CEVA Logistics Limited CNG Services Ltd Develop Training Ltd DHL Exel Supply Chain Engage Consulting Enzen Global Ltd Generis Technology Ltd Gtc Kingsley Plastics Ltd Lightsout Computer Services Lomax Training Services Ltd Rhead Group Ltd Wilcock Consulting Xoserve

Autumn Meeting

MEMBER NEWS // MEMBER DIRECTORY // GOLF CIRCLE

GAS STORAGE OPERATORS GROUP

> Neil Williams, Golf Circle Captain (left) presents Mark Freeman with the Woodall Salver

The Autumn Golfing Circle meeting took place at the picturesque parkland course of Kirby Muxloe in Leicestershire. The morning Greensomes event was held over nine holes and was won by Jeremy Nesbit from NG Affordable Warmth with Val Harris from J Murphy & Sons. Losing by only one point was David Jones, EUA and his guest Steve Mather from Utilise. Rain set in for the eighteen hole afternoon singles match, and whilst it did not detract from the overall enjoyment, scores were lower than expected. Results Mark Freeman P Edgar Steve Brophy Steve Brophy Jeremy Nesbitt/Val Harris Simon Evans Myrriden Cowley

Woodall Salver (< 10) Yates Bowl (10-18) SAGEM Cup (> 18) Aird Cup (Combined Meetings) Essex Cup Guest Winner PM Guest R-Up PM

Captains Challenge

> The winning team from Affordable Warmth The Captains challenge was originally planned for July, but due to a waterlogged course was cancelled and rearranged for August. Surprisingly the event was postponed again due to a waterlogged course and finally played on the 23 October. The Olton Golf Club course was still quite wet but completely acceptable for play. Results were: Affordable Warmth EUA PH Jones GL Noble Denton SBGI GC Landis+Gyr

93 pts 92 pts 91 pts 88 pts 79pts 78pts

Noel Hughes has been elected the new Golf Circle captain for 2012/2013. 27

Dinner Dance Hilton Birmingham Metropole, NEC Friday 8th February 2013 Champagne reception Five course meal with wine & liqueurs Comedian – Jamie Sutherland Dancing to top band – Hot Stuff Charity raffle Tickets: £95 + VAT per person (Bookings accepted for tables of 10 or individual places)

Comedian Jamie Sutherland