Business cost consultants focusing on energy, water and telecommunications services
Smart Metering
19 June 2007
The term "Smart meter" typically refers to an electrical meter, but the term is also starting to be applied to the measurement of natural gas and water consumption.
Meters which record electricity usage and communicate meter reads to the supplier have been in use for some time in the "half-hourly" electricity market (commercial and industrial supplies over 100KW in size), and have enabled users to monitor the effects of energy saving measures that have been implemented, and also monitor where process changes have an adverse effect on consumption. This information can be made available almost immediately to the end user, so that nasty billing surprises can usually be avoided. It is only relatively recently that these facilities have become available in the non-half hourly electricity market, and for gas and water consumption.
Of all smart meter technologies the critical technological problem is communication. Each meter must be able to reliably and securely communicate the information collected to some central location. Considering the varying environments and locations meters find themselves in, that problem can be daunting. Among the solutions in use are the use of mobile telephone networks, licensed radio, combination licensed and unlicensed radio, and power line communication. The communication system that is most extensively used at present is the SMS messaging system, due to its robustness. There are several other potential network configurations possible, including the use of Wi-Fi and other internet related networks. To date no one solution seems to be optimal for all applications. Rural utilities have very different communication issues than urban utilities or utilities located in challenging locations such as mountainous regions or areas ill-served by wireless and internet companies.
The main benefits for the consumer are:
- An end to the practice by utility companies of billing based on estimated meter reads;
- More stable, lower energy pricing, with pricing based on actual consumption; and
- Early notification of leaks and increased consumption resulting from process control failures.
By the end of 2005 the dominant Italian utility company, Enel SpA, had more than 27 million smart meters installed at an estimated cost of €2.1 billion, to give an operational saving of €500 million per year (an incredible 4 year payback). In Canada 800,000 smart meters will have been installed in homes by the end of 2007, with a target of 100% installation by 2010. In June 2003 the Swedish parliament passed regulations requiring all electricity meters in Sweden to be read every month by 01 July 2009. Counting both households and companies, there are over 5 million electricity users in Sweden.
To date, there is no obvious plan by the UK government to make smart metering a mandatory requirement, despite the obvious benefits for the consumer. EnergyWatch, the energy consumers "watchdog", have been lobbying for the adoption of smart metering, and have published an excellent report which can be found at www.energywatch.org.uk/uploads/Smart_meters.pdf. New research published on 15 May 07 by the Carbon Trust has identified that the use of smart metering by small and medium sized enterprises (SMEs) could save 2.5 million tonnes of CO2 emissions per year - equivalent to the entire annual carbon footprint of Bristol - and also provide a net financial benefit to the UK economy.
This research was carried out as part of a three year Carbon Trust field trial into the use of smart metering in SMEs. The aim of the trial was to demonstrate the potential benefits of the technology and understand whether there was a case for encouraging its widespread adoption by SMEs. The largest financial benefits were seen by multi-site businesses, such as retail and wholesale chains, and for high energy users, such as small manufacturing companies. Based on the findings from the trial, the Carbon Trust is calling for new policy measures to support the installation of advanced meters in all small and medium sized businesses across the UK.
SmithBellerby are working with a number of clients to install smart meters and usage monitoring equipment at sites where one or more of the following situations exist:
- Energy efficiency measures are being introduced (if you can't measure accurately where you are now, you won't know if your energy efficiency measures are actually working);
- There is a history of inefficient plant operation or leaks that need to be identified and rectified as soon as they occur;
- Existing meters are inaccessible e.g. inside locked cupboards, thus generating continuously estimated invoices.
For more information please contact Smith Bellerby Ltd on 01952 825 820