The 26 million meter dash

The race to implement smart metering is on, but are utility suppliers aided or hampered by the absence of precise technology requirements?

The UK government pledged in 2009 to oversee the rollout of smart meters to some 26 million homes and several million businesses by 2020, at a cost of between £7bn and £10bn. According to the Department of Energy and Climate Change (DECC), which is overseeing the initiative, smart meters are a key building block in the race to cut carbon emissions and reduce the nation’s electricity consumption.

Controversially, the energy suppliers are looking to pass on the costs of implementing smart meters to customers, despite the fact that the technology will allow them to reduce their operational expenditure. But ministers argue that the accurate consumption information that meters provide should make it easier for users to lower their bills by optimising their energy use.

“Smart meters have a vital role to play in our transition to a low carbon economy. They will provide consumers with the information they need to manage their energy usage effectively; encourage innovative services in the management of energy supply; provide opportunities for the industry to streamline processes; and pave the way for smart grids,” stated an open letter jointly prepared by Charles Hendy, Minister of State for Energy and Lord Mogg, Minister of State for Energy Chairman, Gas & Electricity Markets Authority in December last year.

Energy sector regulator Ofgem has published a rollout timetable that should see the first smart meters going live by next summer. The project will be led by suppliers, who must report to a central body called the Data Communications Company (DCC). The DCC’s precise role is yet to be finalised, but it will probably take on some form of procurement responsibility.

From a technology perspective, DECC and Ofgem have been fairly vague about their requirements, leaving utility suppliers, manufacturers and trade associations to flesh out what is needed. Even so, the Smart Metering Functional Requirements Catalogue published on 30 March 2011 (http://bit.ly/uhI88T) presents 119 different demands that outline the features required, if not the precise definition of what is needed to deliver them – “a baseline for the further development of the technical specifications”, in DECC parlance.

The 26 million meter dash

The race to implement smart metering is on, but are utility suppliers aided or hampered by the absence of precise technology requirements?

These call for gas and electricity meters, exchangeable home area network (HAN) equipment, wide area network (WAN) modules and in-home displays (IHDs). The meters must be able to store 13 months of half-hourly consumption data and alert suppliers and networks when the consumer is left without power. Also, the WAN module should be physically interchangeable from the meter itself (ie not built in) so that suppliers and consumers can use different network interfaces. The catalogue also includes guidelines on adequate meter performance testing, electromagnetic sensitivity (to stop interference with other devices), a standard meter interface language, and meter battery life. In all areas, there are exceptions for non-domestic, ie business, users.

The Energy Retail Association (ERA) has also provided some guidance, as has the British Electrotechnical and Allied Manufacturers Association (BEAMA). Elsewhere regular consultations between energy suppliers, meter manufacturers, communications companies and DECC have anticipated potential issues to a certain extent.

Petter Allison, managing director of technology and innovation at British Gas, says the lack of a detailed hardware and software specification may have delayed matters initially, but has at least forced industry to work harder at developing interoperable technology standards for the smart meters being proposed.

“It made things a lot harder in the beginning and slowed us down, but it also gave us an opportunity to coalesce standards by using the industry itself,” says Allison.

“We published early detailed requirements ourselves, and the industry stepped up to meet those. Even though it [the smart meter spec] was quite loose, we could take guidance from DECC and Ofgem, which engendered confidence in energy suppliers though it took time to build it.”