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SMART METER

CHAPTER 1

INTRODUCTION

1.1 HISTORY

The Smart Meter is innovative technology has already been successfully implemented for
electricity in several countries (Italy, Sweden, the Nether- lands, the United Kingdom,
Victoria (Australia), Ontario (Canada), California (USA) and Northern Ireland) . The Italian
utility ENEL introduced smart meters already in 2001 in their "Telegestore project". Before
deregulation of the energy market ENEL (still as a state-owned monopolist) made the in-
company investment decision to introduce smart meters as first utility worldwide. Important
reasons for ENEL were the expected savings or revenues in the areas purchasing and
logistics, field operations, customer services and revenue protection (fraud). The regulator or
government or other market parties had no or only marginal in°uence on requirements ENEL
had to fulfil. Regarding the type of meter or the communication infrastructure ENEL was left
totally free. ENEL has chosen for a smart electricity meter that communicates through PLC
to the nearest substation. Next, centralised control rooms read the data through GSM. By the
end of 2005, ENEL had 27 million smart meters installed, of which 24 million meters are
being remotely managed and bimonthly read.

In Sweden the first studies into smart metering were carried out in 2001. Some companies
had pilot projects then, but the government foresaw opportunities for energy savings and
wanted to exploit the potential benefits. By obliging the grid companies to a monthly meter
reading for all electricity users by 2009, the government stimulated the introduction of smart
metering. This bill was passed in 2003. Since, investments in smart metering have developed
in a faster rate than required by law.

In the Netherlands, the government is considering legislation to introduce smart metering


after having conducted a detailed cost-benefit analysis for nationwide introduction of AMR.
The proposed legislation should become public by September 2006. Starting in 2008, all
residential customers will get a smart meter. Proposed time frame for this introduction is 6
years. Minimum requirements for these meters are currently being established. In the mean
time some pilot projects are being developed.

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The Dutch grid operator Continuon has started with a pilot project in 2006. Some 50,000
smart meters will be installed with selected customers in 2006 to build experience with all
operational aspects of smart meters. The smart meter (Metripoint) registers both electricity
and gas and communicates through PLC.

Also a new energy supplier and certified metering company in The Netherlands, Oxxio has
started in 2006 to offer smart meters to its customers. Oxxio chose to pursue this initiative as
they kept being confronted with administrative problems at their counter partners. Customers
with a smart meter also have entry to a personal website with the actual energy use and
energy costs. Oxxio's smart meter registers both electricity and June 2006 gas and
communicates through GSM/GPRS.

In the UK, regulator Ofgem has recently been exploring the potential of smart meters Drivers
are among others the potential contribution to meeting requirements from the Kyoto protocol,
requirements by the EU Energy Services directive, rising energy prices and international
developments in smart meters. Ofgem is still open to all options; the consultation process will
take some more time.

In Victoria, Australia, increasing summer electricity demand peaks by air conditioning


caused extra investments on low use plants. Introduction of smart meters to customers was
seen as a mechanism to link wholesale and retail markets. The government changed
legislation as instigated by the Essential Services Commission of Victoria. Installation is
started in 2006 for dedicated categories; in 2013 about one million smart meters should be
installed.

In Ontario, Canada, increasing electricity demand peaks were also the driver for smart
metering. Energy conservation and demand side management have become important
objectives within the energy policy. The Ontario Energy Board has proposed basic smart
metering functions and some minimal technical standards. Each energy company is free to
develop its own smart metering framework. Targets are installation of 800.000 meters by the
end of 2007 and covering all 4.3 million Ontario customers by the end of 2010.

The main driver for introducing AMR in California is to increase the reliability of electricity
supply in this state, through the reduction of consumer peak demand. California has a
summer peak demand for power during approximately 50 to 100 hours per year. This peak is
mainly due to the increasing use of air conditioners. The main energy agencies of California
saw demand response as an important mechanism to decrease this peak. All three major

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California utilities 2 developed their own plans to implement AMI systems to all residential
customers. Deployment plans call for installing all advanced meters and communications
infrastructure by 2012 or 2013, and represent some of the largest AMI deployments in the
world. In response, a number of significant changes are occurring in AMI technology
innovation and price reductions, as vendors seek to capture their share of this market. The
Northern Ireland Electricity plc used prepayment meters. Complaints and operational costs
were increasing and necessitated installation of a new system. The introduction of the
'Liberty 'Credit Management' keypad meter' has started since 2000. By 2005, some 155 000
meters have been installed, covering 22% of customers. Since 2005 also trials have been
undertaken in new customer services. These focus on pricing, offering different rates in
specific periods, and indicate reduction of energy use by customers.

1.2 EVOLUTION OF SMART METER

1.2.1 ELECTROMECHANICAL METERS

The most common type of electricity meter is the electromechanical induction watt-hour
meter. The electromechanical induction meter operates by counting the revolutions of
an aluminium disc which is made to rotate at a speed proportional to the power. The number
of revolutions is thus proportional to the energy usage. The voltage coil consumes a small and
relatively constant amount of power, typically around 2 watts which is not registered on the
meter. The current coil similarly consumes a small amount of power in proportion to the
square of the current flowing through it, typically up to a couple of watts at full load, which is
registered on the meter.

1.2.2 ELECTRONIC METERS

Electronic meters display the energy used on an LCD or LED display, and can also transmit
readings to remote places. In addition to measuring energy used, electronic meters can also
record other parameters of the load and supply such as maximum demand, power
factor and reactive power used etc. They can also support time-of-day billing, for example,
recording the amount of energy used during on-peak and off-peak hours.

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Fig 1.1 Evolution of smart meter

1.3 DIFFERENCE BETWEEN CONVENTIONAL METER AND SMART


METER

The basic difference between conventional meters and smart meters is that conventional
meters provide one-way of communication whereas smart meters provide two-way
communication. For instance, in order to carry out a meter reading using a conventional
meter, the meter reader needs to physically visit the customer premise and take reading. This
reading will be sent to the utility company for billing. But in case of smart meters, this can be
done automatically. The system operator will create a meter read request from the utility
company office.
The smart meter sends the meter reading as per the request to the utility company. This
avoids manual intervention during meter reading and provides more accurate, real-time data
to the company.

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Fig 1.2 Comparison between conventional meter and smart meter

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CHAPTER 2

SMART METER

2.1 INTRODUCTION

A smart meter is a device dedicated to reading and managing the energy supply and has, in
addition, a two-way communication capability. It can send and receive information by relying
on different telecommunication technologies. Smart meters are digital devices that collect
energy-use data and – unlike traditional meters – transmit and receive data, too. A smart
meter is usually an electrical meter that records consumption of electric energy in intervals of
an hour or less and communicates that information at least daily back to the utility for
monitoring and billing purposes. Smart meters enable two-way communication between the
meter and the central system. Unlike home energy monitors, smart meters can gather data for
remote reporting.

Fig 2.1 Smart Meter

A smart meter appears to be very similar to traditional electricity, gas, or water meter
located in a residence or business. Both smart and traditional meters provide metrology by
measuring quantities of voltage, current, pressure, velocity, temperature, or flow rate, and
communicate this information to the utility.

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Additionally, the Advanced Metering Infrastructure (AMI) of smart meters differs from
traditional automatic meter reading (AMR) in that it provides two-way communication
between the utility and the user, and AMI supports remote reporting. The key factors
involved in a smart meter installation are energy awareness (providing cost signals to the end
user device), energy response (allowing the end user device to respond to the price signals)
and energy emergency (ability to provide immediate response to power shortages).

2.2 NEED FOR SMART METERS

Since the inception of electricity deregulation and market driven pricing around the world,
government regulators have been looking for a means to match consumption with generation.
Traditional electrical meters only measure total consumption and as such provide no
information of when the energy was consumed. Smart meters provide an economical way of
measuring this information, allowing price setting agencies to introduce different prices for
consumption based on the time of day and the season.

Electricity pricing usually peaks at certain predictable times of the day and the season. In
particular, if generation is constrained, prices can rise significantly during these times as
more expensive sources of power are purchased from other jurisdictions or more costly
generation is brought online. It is believed that billing customers by how much is consumed
and at what time of day will force consumers to adjust their consumption habits to be more
responsive to market prices. Regulatory and market design agencies hope these "price
signals" will delay the construction of additional generation or at least the purchase of energy
from higher priced sources thereby controlling the steady and rapid increase of electricity
prices.

The reasons for installing these meters are :

1. they are much cheaper to read


2. they allow the electricity to be cheaper at off hours
3. they encourage using less electricity
4. they encourage shifting usage to off-peak hours
5. they are more accurate (when working correctly)
6. the utilities have better usage information
7. they allow the utility to better manage the grid
8. they allow more solar and wind power to be used
9. they help locate line breaks

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10. disconnect/reconnect of service is much simpler

2.3 PURPOSE OF SMART METERS

Smart metering generally involves the installation of an intelligent meter at residential


customers and the regular reading, processing and feed back of consumption data to the
customer. A "smart" meter has the following capabilities:

1. Real-time or near-time registration of electricity use and possibly electricity generated


locally e.g., in case of photovoltaic cells;
2. Offering the possibility to read the meter both locally and remotely (on demand);
3. Remote limitation of the throughput through the meter (in the extreme case cutting of
the electricity to the customer)
4. Interconnection to premise-based networks and devices (e.g., distributed generation)
5. Ability to read other, on-premise or nearby commodity meters (e.g., gas, water)

Usually, a smart meter is considered for registry of electricity and gas use, but also water
consumption registration is a possibility. In figure 2.2, an example of a typical smart meter
and its functions are schematically shown.

Fig 2.2 Schematic overview of a typical smart meter configuration

The 'intelligence' of the meter is incorporated in the electricity meter. It has three basic
functions: measure the electricity used (or generated), remotely switch the customer off and
remotely control the maximum electricity consumption. The electricity meter communicates
by means of a modem.
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An important characteristic is the communication infrastructure used by the smart meter for
this communication. Amongst the possibilities is Power Line Carrier (PLC, using the existing
electricity grid); a wireless modem (GSM of GPRS) or an existing permanent internet
connection (ADSL). An interface connects the smart meter to home appliances or a home
display. Appliances can be controlled directly and the display can be used to show (historic)
energy data and energy cost.

A smart meter is a logical successor of the mechanical electricity meter, just as the pick-up,
the dial phone and the typewriter are replaced with digital, more intelligent alternatives.
Smart Metering is often referred to as automated meter reading (AMR), or in the case of real-
time, two-way communications, as advanced metering infrastructure (AMI).

2.4 PHYSICAL COMPONENTS OF A SMART METER

Fig 2.3 Physical components of a smart meter

The function and description of the various physical components of a smart meter are
given below:
Table 2.1 Description of the various physical components of a smart meter

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CHAPTER 3

INSIDE A SMART METER

3.1 BLOCK DIAGRAM OF SMART METER

The three main internal areas of a smart meter design include the power system,
microcontroller, and communications interface. The power system has a switched mode
power supply and battery backup to ensure that the metering electronics remain powered
even when the main line is disabled. A MicroController Unit (MCU) typically includes an
Analog-to-Digital Converter (ADC) and Digital-to-Analog Converter (DAC) to provide
intelligence. Finally, a wired or wireless communication interface allows the meter to interact
with the rest of the grid, and in some cases the end user’s network. The main and auxiliary
sections of a smart meter design are shown below in figure 3.1.

Fig 3.1 Smart meter block diagram

3.1.1 POWER SYSTEM

A switched-mode power supply provides power to the electronics in the meter, converting
from the main line Alternating Current (AC) voltage to the Direct Current (DC) voltages
required. A switch will turn on the battery backup AC/DC only when there is no power from
the main line. The battery remains isolated from the power system during normal operation.

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3.1.2 MICROCONTROLLER

While a microcontroller is of central importance to the design, there are several possible
levels of integration with the other functional blocks in the system. The figures below
illustrate three possible architectures for a smart meter that all include Analog Front End
(AFE) metrology, ADC, Digital Signal Processor (DSP) or MCU, and communications.

The first example is a two-chip solution that provides flexibility for system upgrades shown
in Figure 3.2. Second is a single-chip solution with tight hardware and software integration,
making it less flexible for upgrades or modification shown in Figure 3.3. The data
transmission over the network, shown third in Figure 3.4, may be the best communication
solution depending on the location.

Fig 3.2 Two-Chip Architecture

Fig 3.3 Single-Chip Architecture

Fig 3.4 Network Architecture

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3.1.3 DESIGNING FOR VARIED COMMUNICATION INTERFACES

As with the microcontroller architecture, no single solution has been adopted for
communication between the smart meter and the utility or end user. Communication
protocols vary widely based on factors such as geographical regions, location of an individual
meter, what is supported by the utility servicing the area, and the maturity and longevity of
those supported technologies. Wireless protocols are quickly emerging as the preferred
method of connecting the networks within the grid.

Radio Frequency (RF) based technology is changing the way that customers and the utility
company interact with the use and sale of resources. In some cases, smart meters act as the
gateways for home automation, using RF signaling such as Zigbee to communicate the
resource pricing and consumption to the end user. Devices operating with 6LoWPAN,
Zigbee, and RFID are examples of RF based technology connected with RF mesh networks.
Cellular solutions make use of the existing cellular network to transmit metering information.
Broadband over PowerLine (BPL) has been viewed as a potential replacement of POTS and
cable networks for providing broadband, though it is not in service in all areas. It is desirable
for a network to be capable of connecting a variety of device types, like WiMax is, since it
increases the interoperability of equipment from different manufacturers following numerous
protocols.

With this variety of protocols, the equipment that supports communication in the grid will be
quite diverse. The following table outlines a selection of the types of equipment that are
found in these networks.

Fig 3.5 Network Equipment in Smart Meter System

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CHAPTER 4

SMART METERING SYSTEM

4.1 INTRODUCTION

A smart metering system of AMM ( Advanced Metering Management ) kind relies on the
installation, in each home (or “delivery point”) of a smart box capable of reading and then
transmitting energy consumption information as well as receiving orders and acting
accordingly (e.g. load limiting, disconnection and reconnection, ability to switch between
time zones, etc.). The collected data are transmitted through a Wide Area Network to a
central information system, in charge of managing these data and the whole communication
infrastructure, and responsible for interfacing all involved external actors.

4.2 SMART METER TECHNOLOGIES

Smart Meter Systems are varied in technology and design but operate through a simple
overall process. The Smart Meters collect data locally and transmit via a Local Area Network
(LAN) to a data collector. This transmission can occur as often as 15 minutes or as
infrequently as daily according to the use of the data.

The collector retrieves the data and may or may not carry out any processing of the data. Data
is transmitted via a Wide Area Network (WAN) to the utility central collection point for
processing and use by business applications. Since the communications path is two -way,
signals or commands can be sent directly to the meters, customer premise or distribution
device. Figure 4.1 shows the basic architecture of Smart Meter System operations.

Fig 4.1 Smart Meter System Basic Architecture

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4.3 BASIC TYPES OF SMART METER SYSTEMS

There are two basic categories of Smart Meter System technologies as defined by their LAN.
They are Radio Frequency (RF) and Power Line Carrier (PLC). Each of these technologies
has its own advantages and disadvantages in application. The utility selects the best
technology to meet its demographic and business needs. Factors that impact the selection of
the technology include evaluation of existing infrastructure; impact on legacy equipment,
functionality, technical requirements as well has the economic impact to the utility’s
customers. The selection of the technology requires a tho rough evaluation and analysis of
existing needs and future requirements into a single comprehensive business case.

4.3.1 RADIO FREQUENCY – RF

Smart Meter measurements and other data are transmitted by wireless radio from the meter to
a collection point. The data is then delivered by various methods to the utility data systems
for processing at a central location. The utility billing, outage management, and other systems
use the data for operational purposes.

RF technologies are usually two different types:

1. MESH TECHNOLOGY

The smart meters talk to each other (hop) to form a LAN cloud to a collector. The collector
transmits the data using various WAN methods to the utility central location.

1. Mesh RF Technologies’ advantages include acceptable latency, large bandwidth , and


typically operate at 915 MHz frequencies.
2. Mesh technologies disadvantages include terrain and distance challenges for rural
areas, proprietary communications, and multiple collection points.

2. POINT TO POINT TECHNOLOGY

The smart meters talk directly to a collector, usually a tower. The tower collector transmits
the data using various methods to the utility central location for processing.

1. Point to Point RF technologies advantages include little or no latency, direct


communication with each endpoint, large bandwidth for better throughput, some are
licensed spectrum, and can cover longer distances.

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2. The disadvantages of point to point RF networks are licensing (not for 900MHz),
terrain may prove challenging in rural areas (Line of Sight), proprietary
communications used for some technologies, and less interface with DA devices.

4.3.2 POWER LINE CARRIER - PLC

Smart Meter measurements and other data can be transmitted across the utility power lines
from the meter to a collection point, usually in the distribution substation feeding the meter.
Some solutions have the collection point located on the secondary side of a distribution
transformer. The data is then delivered to the utility data systems for processing at a central
location. The utility billing, outage management, and other systems use the data for
operational purposes.

1. PLC technology advantages include leveraging the use of existing utility


infrastructure of poles & wires, improved cost effectiveness for rural lines, more
effective in challenging terrain, and the capability to work over long distances.
2. PLC disadvantages include longer data transmit time (more latency), less bandwidth
and throughput, limited interface with Distribution Automation (DA) devices , and
higher cost in urban and suburban locations. There are other Smart Meter Systems in
use that differ from those described above. However, these are generally a hybrid or
combination design, a slight variation of the basic types, or niche products. The major
Smart Meter System Technologies in use today are of one of these basic types.

4.4 SMART METERS AND THEIR COMMUNICATION


The electricity meter communicates through a modem. An important characteristic is the
communication infrastructure used by the smart metering for this communication. Amongst
the possibilities is Power Line Carrier (PLC, using the existing electricity grid); a wireless
modem (GSM of GPRS), or an existing permanent internet connection (ADSL). An interface
connects the smart meter to home appliances or a home display. Appliances can be controlled
directly and the display can be used to show (historic) energy data and energy cost.

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Fig 4.2 Smart Metering System

Smart meters with a display can provide up-to-date information on energy consumption in the
currency of that country. This will end the practice of estimating bills as the consumption will
be accessible on daily basis. This will also help people to regulate their energy use as per
their requirements. It records consumption in detail and relays consumption pattern back to
the utility so that the information can be used to benefit the consumers.

While regular meters monitor general consumption during the day, smart meters can mark the
time in which a consumer uses more electricity. This can help regulatory bodies introduce
“time of the day” pricing - higher rates during peak hours and lower during non-peak hours.

A direct benefit will be the reduction in losses due to theft. A smart meter is split into a
metering device and a display unit. The metering device is in the custody of the utility and the
display unit is fixed at the consumer’s premises. This ensures that fraudulent users cannot
tamper with the meter. If generation is low and demand high, we have to ask consumers to
conserve electricity. A customer can time his smart meter to directly switch off cretain high-
consumption appliances, such as air conditioners.

A smart meter is a device dedicated to reading and managing the energy supply and has, in
addition, a two-way communication capability. It can send and receive information by relying
on different telecommunication technologies.

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In the system described in Figure 4.3, the communication infrastructure combines 2 modern
technologies to transfer readings and management orders between the central information
system and the smart meters.

Fig 4.3 Example of a smart metering system

Firstly, communication is achieved between a set of meters and a nearby “concentrator” by


the Power Line Carrier (PLC). A PLC modem linked to each meter and to each concentrator
allows data to be encoded and decoded as an electrical signal above the 50 Hz mains voltage
frequency.

This PLC technology, which uses the existing network of electrical cables, provides a
convenient and economical solution that is particularly well suited to densely populated
areas. It does however have a limit since the low range signal deteriorates with distance and
is completely lost beyond a certain point (some few hundred metres at most). The PLC is
therefore used only to transfer information between several meters and the nearby
concentrator, on an existing network structure.

The data are then encoded in digital format by the concentrators and sent to the central
information system using the GPRS network. This type of communication is reliable and
suited to the transmission of data over large distances with few new infrastructure
requirements (e.g. antenna, etc.). Operating costs for the transfer of information by the GPRS

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network can be optimized by ensuring that off-peak bandwidth time slots are used and by
efficient data compression.

In the example 4.3, PLC technology is used to carry information between smart meters and
concentrators, and GPRS technology is used to carry information between concentrators and
the central information system.

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CHAPTER 5

BENEFITS OF SMART METERING

5.1 BENEFITS FOR ENERGY CONSUMER

The benefits of smart metering to the other actors generally benefit the consumer by reducing
costs of energy and its distribution. Competition and regulation help to transfer this kind of
benefits to the energy consumer. In addition, smart metering may bring consumer direct
benefits such as

1. more accurate and timely billing


2. improved access to the electricity market via accurate consumption history and
possibilities to benefit from demand flexibility
3. feedback on energy consumption to the consumer and his energy automation
4. Systems
5. improved safety of humans and equipment through better power quality and fault
6. Management

5.2 BENEFITS FOR AN UNBUNDLED DSO

Payback time of AMR investments is too long, if the only objective is replacing manual
meter reading and self meter reading. Frequently changing customer at difficult to reach
metering points cause relatively high costs for manual meter reading, but installing AMR
only to certain areas reduces other benefits and increases cost per meter point. With some
additional ICT investments AMR enables simple, efficient and homogenous business
processes related to metering, settlement, customer service, state estimation, management of
faults and power quality.

In power distribution networks monitoring power quality, power flows and faults in low
voltage networks as well as load control give benefits. Problems can be detected and
corrected faster. Damage of customers' equipment and risks of compromising human safety
can be avoided. Efficiency of outage management and customer service is improved.
Temporary overloads that sometimes destroy low voltage transformers can be avoided.
Providing consumption data to network information systems etc. and using it there still needs
much development. In Italy the AMR benefits to network business are considered biggest at
the old urban areas where the loads are rapidly increasing but strengthening the network is

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difficult. In Finland DSOs expect more network management and operation related benefits
from rural networks (long distances makes network strengthening expensive, periods of
simultaneous high loads exist, overhead lines, rarely visited consumption points) than from
urban networks.

5.3 BENEFITS FOR THE COMPETITIVE ELECTRICITY MARKET

Profile metering enables new retail market products that enable using the controllability of
the distributed energy resources at the electricity market. This increases fast price flexibility
of the market thus improving competition and better and more reliable functioning of the
electricity market. Market risks of retail electricity suppliers are reduced due to ability to
react to price peaks and due to reduction of very high price peaks. In some countries market
rules and legislation limit the possibilities to use the controllability of small customers in the
electricity market.

Some modern meter data management systems are capable of supporting hourly metering
based electricity market access of at least hundreds of thousands of customers. They can
calculate balances for many retailers etc.

Data mining combining smart metering results with the contents of other data bases (such as
customer data bases and data bases on building properties) enables retail energy suppliers to
better understand their customers. Products can be designed and targeted more individually.
Predictability of loads is improved which reduces costs and risks of the retail supplier.
Detailed information on customer behaviour can be a threat on confidentiality and privacy.
Thus rules for data mining need to be set in dialogue with consumer bodies.

5.4 BENEFITS TO THE SOCIETY AND ENVIRONMENT

Smart metering has potential to improve energy efficiency both in the energy supply
infrastructure and in the end use. Timely and accurate feedback on energy and water
consumption enables consumers, home automation and authorities to react fast enough and to
target their efforts to most efficient measures.

Direct energy saving is not the only benefit type. Connecting small controllable energy
resources to the electricity market and ancillary services for the grid enables the use of
renewable energy sources and high efficiency

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5.5 BENEFITS TO MULTI FUEL AND WATER SUPPLY
APPLICATIONS
There are distribution networks also for water and some other energy forms than electricity.
All of them need consumption metering. Smart metering brings benefits for all of them. Often
communication with these other meters is done via a smart electricity meter. This has the
advantage that the electricity meter can provide the power supply for the communication.
Sharing the remote communication channel can also greatly reduce the combined costs of
communication.

Metering of all energy forms is needed to get a complete view of the energy consumption and
close the energy balance of the target with metering. Thus for analysing and improving
energy efficiency it is often necessary to bring together the measurement results for all the
energy forms.
Table 5.1 Benefits of Smart Metering

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CHAPTER 6

SMART METER SYSTEM ISSUES

The implementation of Smart Meter Systems has generated some concerns, which the local
jurisdictions and serving utilities have addressed or are addressing. Three major issues have
been raised and addressed by utilities and the industry. In this regard, utilities have used
verification, technical data, and numerous third party investigations to address the customer
concerns appropriately.

6.1 METER ACCURACY


As Smart Meter Systems have been deployed nationally, concerns have been raised in
different parts of the country concerning the accuracy of these new meters. Although the term
Smart Meter is relatively new, the electronic metering technology has been used effectively
by utilities for over fifteen years in delivering accurate billing data for at least a portion of
their customer base. This new technology was developed with the same due diligence and
scrutiny associated with the older mechanical counterparts. All meters, of any technology and
design, are required to meet national standards such as ANSI C12 for meter accuracy and
operation. Test Equipment used to certify meter performance are traceable to the National
Institute of Standards and Technologies (NIST).

Metering professionals have been working with manufacturers over this period to develop the
electronic technology referred to today as the Smart Meter. Electronic meters have tighter
accuracy tolerances than their mechanical counterparts. Smart Meters were designed to be a
more precise and functional measurement device over the life of the product. In addition, the
meters are tested for accuracy as part of the manufacturing process and go through
acceptance testing by the utility before they are qualified for installation.

Even though Smart Meters as a group are very accurate and precise devices, individual
meters can and do sometimes fail. Therefore, utilities have controls in their billing and
operational processes to screen for these anomalies and errors can then be corrected before
the customer ’s bill is generated.A large subset of recent complaints came after installation
and was perceived to be caused by the changing from an older mechanical meter to a new
electronic Smart Meter. In actuality, most changes in meter usage are usually caused by
differences produced by load additions, longer billing periods, estimation, new rate
structures, or extraordinary weather occurring simultaneously with meter upgrades.
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Texas was one of the first areas that had accuracy concerns raised by customer groups. The
utilities in this jurisdiction conducted additional tests at the request of the Public Utility
Commission of Texas to satisfy customer complaints. This study was conducted by an
independent third party not affiliated with any local utility or the regulatory agency. They
addressed the meter accuracy and the results of the Smart Meter installation processes. The
meter testing consisted of using new Smart Meters and returning Smart Meters installed in
the field for testing in a third party testing facility. In addition, some smart meters were tested
in parallel field tests with the old premise meter and the installation process was studied for
accuracy. Both types of meter tests confirmed the accuracy of the new Smart Meter devices.

In summary, the same due diligence and precision have been used to develop Smart Meters as
with previous mechanical devices. The accuracy of Smart Meters, both in development and
practice, has been proven to improve on the accuracy of the old meter technology. The
installation practices were developed to improve and enhance the process of customer billing.
All meters, utilizing different technology and designs, are required to meet national standards
such as ANSI C12 for meter accuracy and operation before being installed. The development
of electronic Smart Meters spanned over fifteen years and produced more stable accuracy,
more functionality, and less costly devices for delivery of customer bills.

6.2 RADIO FREQUENCY (RF) EXPOSURE

Various Smart Meter Systems work by transmitting information wirelessly. The Federal
Communications Commission (FCC) has jurisdiction over the approval and use of radio
frequency devices, whether a license is required for the devices or if unlicensed operation is
allowed. The FCC has a twofold role in ensuring safety:

1. The FCC has allocated the radio spectrum into a variety of sections, most of which needs
coordination and a license before operation is permitted. At the same time, the FCC has
allocated some frequencies for unlicensed operation (e.g., allowing consumers to
purchase products at retail outlets and install them in their homes). These devices operate
at low power levels, enabling communications but posing no known health effects to
humans. Examples include the WiFi routers , wireless baby monitors and garage door
openers. Most Smart Meters fall under this low power, unlicensed criteria.
2. The FCC’s second role is to approve radio devices for manufacture,import and
sale.Regardless of whether the equipment operates on low power unlicensed channels or
at higher power levels that require authorization, each device must be tested to meet FCC

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standards. The sale of untested and unapproved equipment is a serious offense and the
FCC aggressively prosecutes violators.

Specific to RF safety issues, the FCC is required by the National Environmental Policy Act of
1969, among other things, to evaluate the effect of emissions from FCC-regulated
transmitters on the quality of the human environment. Several organizations, such as the
American National Standards Institute (ANSI), the Institute of Electrical and Electronics
Engineers, Inc. (IEEE), and the National Council on Radiation Protection and Measurements
(NCRP) have issued recommendations for human exposure to RF electromagnetic fields. On
August 1, 1996, the Commission adopted the NCRP's recommended Maximum Permissible
Exposure (MPE) limits for field strength and power density for the transmitters operating at
frequencies of 300 kHz to 100 GHz. The FCC also presents OET Bulletin 65 to offer
suggestions and guidelines for evaluating compliance. The revised OET Bulletin 65 has been
prepared to provide assistance in determining whether proposed or existing transmitting
facilities, operations or devices comply with limits for human exposure to RF fields adopted
by the FCC.

All Smart Meter radio devices must be certified to the FCC ’s Rules. Radio transmitters are
integral parts of the meter itself; integrated into the circuit board of the device. The
manufacturers test the devices to FCC specifications and then present the test results to an
independent certification laboratory, or the FCC directly. Only when the FCC reviews the
detailed report and certifies the device can the manufacturer market and sell the devices.
There are two types of potential effects due to RF emissions, non-thermal and thermal. To
date, there is no conclusive research that confirms negative non-thermal health impacts
caused by non-ionizing RF emissions. There is, however, scientific consensus that for certain
RF signal strengths there could be negative health effects. Therefore, most health studies
have focused solely on the thermal effects of RF.

Utility installation and operational practices and the impacts of all equipment used in the
premise service location affect the exposure levels of RF greatly. Smart Meters are
universally mounted in metal enclosures referred to as sockets or bases. These enclosures are
generally mounted outside and facing away from the living space of a home. Single family
dwellings typically have one socket located at the point of service. For multi-family housing
such as apartments, condominiums, and townhouses, the sockets are a single unit with
multiple meters. They are usually located in designated meter rooms, on the outside structure
wall, or in the basement of high rise apartment buildings. Most of these typical mounting
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locations are either facing away from or are not adjacent to living areas. In addition, local fire
codes and practical construction techniques limit the number of meters that are typically wall
mounted, as described above for multi-family dwellings and are not usually readily
accessible. In larger multi-family buildings, i.e. mid-rise and high-rise units, the meters are
typically located in meter rooms or in the basements and are ordinarily secured for limited
access.

Exposure in living spaces will be even less due to the attenuation of RF signal caused by
building materials in the walls and other structures. A typical building wall construction
combined with a surface mounted meter base will represent a nominal minimum 10 inch (25
cm) distance between the transmitter and the interior wall surface and potential internal
dwelling RF exposure to humans.

At all meter premise locations, the meter socket acts as a barrier for RF emissions entering
the home. Manufacturers point out that the area behind the meter socket is virtually a dead
spot for RF emissions. In addition, measurements have shown that at 8 inches behind gang
meter sockets, the RF exposure is over 10 times less than the same distance in front of the
sockets and less than 1% of the FCC exposure limits. The metal meter socket reflects almost
all of the RF out of the front of the meter. The only path for RF to get into a building is by
first bouncing off the ground or an adjacent house and then back into the building. The
distances required for this to happen dramatically reduce the power signal by the time it has
traveled a minimum of 4-5 feet to the ground and into the living space.

In summary, the RF exposure effects of Smart Meters are very small compared to exposure
from other sources in the home. Smart Meters operate significantly below FCC exposure
limits. In addition, the location, distance from the transmitter, shielding by meter enclosures,
attenuation of building materials and direction of RF emissions even further reduce exposure
to consumers. All smart meter radio devices must be certified to the FCC ’s rules.

6.3 SMART METER SECURITY


Since the inception of advanced meters with communications capabilities in the last 10-15
years, utilities and vendors have recognized the need for robust security provisions to protect
the integrity of data and billing information. As meters evolved with power line and wireless
communications modules concerns have been raised about uncontrolled access to the revenue
meters.

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With the evolution to AMR and AMI system deployments, the stakes have been raised to
protect data and data privacy. These security efforts have extended beyond endpoint security
to the collector and head-end system level access control, data validation, and error checking
as well as the encryption of data. The use of utility backhaul communications and increase
usage of public wireless networks has increased the exposure to potential security intrusions.
The proliferation of using the internet and provocative media reports about computer network
hacking has raised concerns around the world about the integrity and security of the Smart
Grid.

The culmination of the CSWG efforts was achieved in August 2010 with the release of a
comprehensive set of cyber security guidelines as outlined in the publication of the NIST
interagency report NISTIR 7628 – Guidelines for Smart Grid Cyber Security. This
document recognized the major role that Smart Meters play in the build out of the Smart
Grid. The publication of this document has triggered important development and
enhancements to Smart Meter systems across the industry. Endpoint and system vendors are
being asked to comply with new requirements to address remote access, authentication,
encryption, and privacy of metered data and customer information. Third party security
certification of smart meter vendors is now being seen across the industry. This will continue
to improve and enhance the security and reduce the vulnerability of systems being deployed,
including smart meters with integral service switches and load control devices. These cyber
security provisions could also extend into Home Area Networks (HAN) as they evolve as
well.

Clearly, security and integrity of customer meters has been and continues to be a major
concern by utilities and vendors. As the cyber security guidelines continue to evolve, the
industry will continue to keep their eye on the ball with regard to data integrity and privacy of
customer data.

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CHAPTER 7

APPLICATIONS OF SMART METER

7.1 SETTLEMENT AND BILLING

1. MORE ACCURATE SETTLEMENT

Smart metering improves settlement procedures by providing accurate and rather up to date
consumption data for metering points. Thus most needs to estimate consumption data and
correct the settlement and billing afterwards are removed. In other words DSOs may
eliminate costly additional settlements procedures.

2. MORE FREQUENT AND CHEAPER SWITCHING OF RETAIL ELECTRICITY


SUPPLIERS

One of the core functions in Smart Metering is a possibility to request metered data from a
metering point at any time. Considering that regulators require steady shorter periods for
changing of retail electricity suppliers (in Norway it is two weeks now and will be reduced
even further) possibility to read data remotely at any moment of time, reduces costs for
DSOs. In the future it will also provide a possibility to implement an automated supplier
switching procedure.

3. CORRECT AND TIMELY BILLING

The EU Commission emphasises in its ESD Directive 2006/32/EC the importance of


providing actual energy consumption data to customers and billing, based on actual
consumption data. Smart Metering obviously enhances this possibility

7.2 STATE ESTIMATION OF POWER DISTRIBUTION NETWORKS

Today the knowledge of the power flows at and near the low voltage end of the distribution
networks is often very inaccurate, because it is typically based on network models, estimated
loads and measurements at primary substations. By adding measurements taken at, or near,
the customer point of connection (kWh meter).

The loading and losses of the network can be known more accurately. This can help to
prevent overloading components (transformers and lines) and to avoid power quality
deviations.

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State estimation is an advanced technique, where a large number of measurements from a
network are combined with a model of the physical network and its loads. The combination
of measurements and model allows calculating both unknown variables (e.g. losses or
reactive power flow) and to identify unreliable measurements and other dubious model input
data. A sample of all meters can be used to measure the demand in very small time intervals
(e.g. 1 or 5 minutes) and used for state estimation.

7.3 MONITORING OF POWER QUALITY AND RELIABILITY

Power quality covers the voltage quality supplied by the distribution network and the current
quality of the loads. Adequate voltage quality in AC networks means that the voltage does
not deviate too much from the ideal voltage. An ideal alternating voltage is a perfect sinusoid
with the rated constant amplitude and frequency. In multiphase systems it must also have
certain phase order and symmetry with respect to the phases. A more specific voltage quality
description is the European Standard EN 50160. Most voltage quality problems originate
from customers, but the distribution company is responsible for the voltage quality at the
point of customer connection. The kWh meter is in this point.

Continuous monitoring of voltage quality enables fast and accurate response to customer
complaints. It also enables preventive reaction to power quality problems, before any harm or
damage to the network or to the customers occurs. The traditional approach of bringing
power quality analyser to the complaint location after a complaint is inefficient and labour
intensive and is inadequate as a proof of power quality during the incident causing the
complaint.

Recording of the power supply interruptions, voltage dips and some voltage quality
characteristics as experienced by the customer’s helps distribution companies to understand
where network investments are most needed and what kind of power quality related advice to
the customers is relevant. Roughly the same voltage is received by many customers; thus
detailed monitoring of the voltage quality at every kWh meter is not needed. Integrating
power quality monitoring to smart metering of consumption can give advantages such as
sharing dispersed equipment, installation, maintenance and communication networks.

7.4 CUSTOMER SERVICE BY DSO, RESC AND ESCO

Customer service includes providing customers with relevant information on

1. energy network faults, maintenance, repair and installation

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SMART METER
2. customer connection and disconnection
3. power quality
4. their energy consumption and energy efficiency and energy saving possibilities
5. possibilities to save in energy costs

Smart metering can improve the efficiency and service quality of the customer service call
centres. Up to date measurement based information available to the control centre enables
fast and accurate service and partial automation of replies.

Customer service includes also connection and disconnection of loads, giving mutually
beneficial offers that enable customers to reduce their energy costs or improve their energy
efficiency. Fast and predictable service improves customer satisfaction.

7.5 LOAD ANALYSIS, MODELLING AND FORECASTING


Consumption data for gas, electricity, heat and water can be used for load analysis. E.g.
hourly data combined with information about type of consumer can be used to construct user
profiles, e.g. a standardized profile for single family houses with electric heating or
supermarkets or an industrial sector. Such profiles can be based on a statistical sample and
can be representative for the type of end user type. The dependence of the load on the type of
the day as well as on outdoor temperature and possibly other environmental variables can be
modelled. By combining simple information with the load profiles, time variations, total
energy use and peak demand can be estimated and forecasted.

Such information is useful for retail suppliers and their customers. It is also useful for the
DSO when planning or operating the power distribution network. Detailed energy use
information can also be used to evaluate energy savings campaigns. This can be done by
combining information about the end use activity with the development of energy
consumption. Potential targets for energy efficiency improvements can be identified by
comparing properties of the building (taken from databases and building requirements) with
the measured consumption.

7.6 ANCILLARY SERVICES SUCH AS FREQUENCY CONTROLLED


RESERVE, VOLTAGE AND REACTIVE POWER CONTROL

Ancillary services are all services necessary for the operation of an electricity transmission or
distribution system; see Electricity Directive (2003/54/EC). These include compensation for
energy losses, frequency control, balancing, voltage and power flow control and restoration

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SMART METER
of supply. Smart meters may include remote control functions with local control outputs and
local measurements of frequency, reactive power and voltage level. These enable to some
extent the provision of ancillary services with distributed energy resources.

7.7 SERVICES FOR MONITORING AND IMPROVING ENERGY


EFFICIENCY OF END USE AND DISPERSED GENERATION,
CUSTOMER INFORMATION FEEDBACK

The information obtained from the utility meter, in particular about energy consumption,
shall be provided to the end user; in this way the end user would be in the position to both
reduce its energy consumption or to shift its energy use. For end users with interconnected
distributed generators, the meter measures both import and export. The display should enable
the end user to maximise their benefit from the embedded generator, for instance by
indicating to them when they have surplus generation that can beneficially be used in house,
rather than exported.

Concerning interconnected distributed generators, it is important to note that:

1) The data should originate from the utility meter to avoid issues over reconciling data
from multiple sources. This data may be taken from the metered value data base and
presented to the customer over the internet. For the customer it is better to get the data
directly from the meter, because delays make fast responses impossible and because there is a
small risk that some data base data is estimated and not measured due to system failures.
2) There is no agreed best practice on how the information should be provided to the end
user, such as graphs, numerical data, kWh’s, CO2 emissions or financial basis. However, it is
assumed that the information is updated frequently, such that the end user can recognise their
usage patterns. The ESMA project does not favour any method at present.
3) A number of different routes are possible for providing information to end users, such
as displays linked to the meter or web pages accessible over the Internet. The ESMA project
does not favour any route at present.
4) Supplementary information should be provided to the end user, such as a guideline on
how to make energy savings using metering data. This information should be designed to
complement and integrate the data provided by the information display.
5) End users may not be willing to reduce their consumption although their energy
supply contracts may reward them financially for shifting or reducing consumption.

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7.8 PROVIDING INFORMATION FOR AUTHORITIES AND
RESEARCHERS
Different authorities and researchers need measurement data in order to know the situation
and the potential to improve it. Such information is needed both on the loads and on the
electricity distribution and energy retail market. Some authorities and researchers are
interested in analysing energy end use and some (such as regulating authorities) the quality of
the network, its voltages and the services provided by the power distribution companies. Fast
and accurate feedback on the energy efficiency measures allows choosing and tuning most
efficient ways to improve energy efficiency and regulation of the natural network
monopolies.

7.9 SAFETY, SECURITY, TELEMEDICINE, SOCIAL ALARM


SERVICES
Smart metering provides a secure communications channel between the end user and their
energy supplier or other agent plus, optionally, in the house communications network.

This infrastructure can be used to provide additional services. These include:

1 SAFETY

Fire, carbon monoxide and other safety related alarm signals can be transmitted via the smart
metering communications channel. The infrastructure must deal with directing the
information to the correct recipient and validating the alarm, if appropriate.

2 SECURITY

Burglar alarms and panic alarms signals can be transmitted via the smart metering
communications channel. The infrastructure must deal with directing the information to the
correct recipient and validating the alarm, if appropriate.

3 TELEMEDICINE

Smart metering infrastructure can be used to transmit medical data from patients to medical
experts. This would depend on the security and reliability aspects of smart metering systems.

4 SOCIAL ALARMS

Smart metering may support monitoring services for of the homes of the aged. Alarming
temperatures and usage patterns of electricity and water may be detected, for example.

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These services most likely are going to be somehow regulated. EU and national regulators are
concerned about cross subsidising of these services. Competition in these services may be
severely distorted if natural distribution monopolies participate in it.

7.10 FRAUD DETECTION

Here fraud means illegal withdrawal of energy from the grid or affecting billing by tampering
the metering system, etc.

Electromechanical meters have a number of features designed to reduce fraud. For instance,
the meter may feature a stop to prevent it from running in reverse. Smart metering must, at
least, provide an equal degree of revenue protection. This is made more complex because, a
major benefit of AMR is the removal of the need to physically visit meters. This means that
the meters will not be inspected, implying that the meter itself should provide information on
any fraud attempts. Also, to some extent, smart metering may introduce immature new
features that create new opportunities for fraud, but more importantly smart metering can
enable timely detection of various fraud attempts.

Smart meters are able to detect and to promptly signal any illegal attempt to:

1. open the meter box,


2. modify the connections to the meter
3. reprogram the meter software.

In districts where there is a high risk of fraud, together with smart meters could be installed
units for measuring the energy balance of the system. Then in case the difference between the
transformed energy and the sum of the energy measured from the connected customers is
significantly below the technical energy losses, the utility could start an investigation to
detect possible fraud.

Meter manufactures believe that it is possible to deliver greater levels of revenue protection
with smart meters than with electromechanical meters. Indeed, revenue protection is itself a
justification for switching to smart metering where levels of fraud are high. Defining revenue
protection features is difficult, because there has been no agreement on standardising them
and manufacturers believe that they can offer differentiated revenue protection features.

A basic definition would be:

The smart metering system shall offer revenue protection features such that protect against
end users defrauding the utility providing them with their energy services.
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SMART METER
Notes:

1. Revenue protection features should take account of developments in distributed


generation; power export can no longer be assumed to be a sign of fraud.
2. Meters should automatically report any attempt at fraud, as it cannot be expected that
they are physically inspected.
3. The smart metering system provides at least the equivalent level of fraud protection as
conventional or existing meter systems.
4. The smart metering system shall ensure that communications are secure and reliable.

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SMART METER
CHAPTER 8

THE FUTURE SCOPE OF SMART METERING

So what is the future of smart metering? Is it a hype that stops after some (demonstration)
projects or will smart metering become common technology for utilities within the next
decade? There is no doubt about the potential benefits of smart metering. Smart meters
appear to be the biggest innovative development of the last year, and indispensable for all
market parties:

1. for metering companies to decrease meter reading costs;


2. for grid operators who want to prepare their grid to the future;
3. for energy suppliers who want to introduce new, customer made services and reduce call
centre cost;
4. for governments to reach energy saving & efficiency targets and to improve free market
processes;
5. for end users to increase energy awareness and decrease energy use and energy cost.

Introduction of smart metering seems also a logical step in a world where all communication
is digitalized and standardized (Internet, E-mail, SMS, chat boxes etc.) and where cost of
'digital intelligence' are still rapidly decreasing.

Moreover, an advanced metering infrastructure offers more than just reading and controlling
smart meters. It can be seen as a dedicated gateway to the customers home, offering
additional energy related services. It can be used both for demand response (stimulate the
customer to change his energy behaviour) and demand side management (direct control of
household appliances such as the washing machine or the air conditioner). In relation to local
generation of electricity (micro-CHP), it offers the possibility to realise a virtual power plant.

However, two important issues hamper the general introduction of smart metering. Firstly,
there are many parties involved, and the benefits of smart metering may accrue to other
parties than the ones that bear the costs. Secondly, there is still much uncertainty about the
quantification of the benefits as practical experience and historical data are lacking.
Therefore, investments in smart metering means taking risks. In a liberalized market, these
risks are weighted carefully. In a regulated market there are often no incentives to take risks.
This sometimes leads to an impasse in the energy market.

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SMART METER
Currently, the way to break through this impasse is by setting (inter)national standards and
adopting appropriate national and/or international rules and legislation based on arm energy
policy. For Sweden, the Netherlands and California, this is the main driver.

Italy is an exemption, but the decision for introducing smart metering there was made by a
monopolist before liberalization of the market.

So it looks like future of smart metering will depend heavily on the energy policy and
decisiveness of the governmental bodies involved. Energy savings and an increased security
of supply will be main drivers and believe in smart metering as a means to reach these goals
is indispensable

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SMART METER
CONCLUSION
Smart Metering is an opportunity for suppliers to create a new world order in terms of when,
why and how consumers use their energy. It’s almost a blank canvas that will deliver social
change; a more responsible society, one in which the energy companies will lead the way.

This kind of change will come at a cost, it always does. The suppliers that come out on top
will be the ones that manage this cost, get the service right and get it right first time.

There will be huge investment in infrastructure and not just in terms of meters but also back
office systems to support this new business model. Exposure to revenue losses could have
long term effects on the sustainability of suppliers business models if the right safeguards are
not implemented.

Providers still have a number of hurdles to overcome, these are technical and operational.
There are many unseen challenges. Risk Management is a key element of the program but
some-how the focus still seems to be on the meter. There is a lot of attention being paid to
how the communications network will be put together; which technologies will provide the
most robust environment and how these pieces of string will tie together

However, there are a number of areas that are not getting the right level of attention. There is
a lack of understanding over the risks in the back office systems (billing, provisioning,
customer care, audit and control).

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SMART METER
REFERENCES
1. http://www.bchydro.com/planning_regulatory/projects/smart_metering_infrastructure
_program.html.
2. http://www.smartmeters.com/the-news.html.
3. http://www.businessgreen.com/bg/news/1869927/first-utility-kicks-nationwide-smart-
meter-roll.
4. http://en.wikipedia.org/w/index.php?title=Smart_meter&oldid=511589003
5. http://en.wikipedia.org/wiki/smart_meter
6. http://www.smartgridnews.com/artman/publish/Business_Markets_Pricing/Good-
news-for-smart-meters-and-buildings-a-squall-for-marine-energy-
5140.html#.UISXPMUsngk
7. http://www.beama.org.uk/en/energy/smart-metering/
8. http://www.google.co.in/imgres?imgurl=http://www.ti.com/graphics/blockdiagram/bl
ockdiagram_images/6141.gif&imgrefurl=http://www.ti.com/solution/smart-e-meter-
diagram

MAHANT BACHITTAR SINGH COLLEGE OF ENGINEERING AND TECHNOLOGY 37

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