Counting down to a metered world
June 21st 2009 One of the key changes that has happened within UK energy policy over recent years is the commitment to smart and advanced metering for all consumers, argues Alan Aldridge, executive director of the Energy Services and Technology Association (ESTA).With accurate information on where and when energy (and water) is being used, the consumer will be in a position to make realistic choices about how they can be part of a low carbon economy
The aim of energy management is to optimise the use of the energy we all use in our energy-hungry, technologicallysophisticated world.The biggest challenge to energy management has been the difficulty of getting accurate information about consumption at reasonable cost and effort. The biggest barrier to widespread action on climate change is the lack of information about the emissions we are producing as individuals and as organisations.
A change in energy policy, signalled by the Energy White Paper, is now addressing this three-fold issue. The almost universal implementation of smart or advanced metering systems across the UK over the coming years should finally eliminate that quintessential symbol of the mystery that is energy supply – the estimated bill. ESTA’s experience suggests that over a quarter of electricity bills, a third of water bills ... and a staggering 80% of all gas bills are still estimated. And this at the beginning of the 21st century! The Government is promising what amounts to a revolution in the way most people view their utility consumption. The provision of smart meters to the domestic sector and advanced metering to the larger non-domestic user will mean that we can all have access to real information about the way we use energy and water.The expectation from Government is that we will then make rational decisions about our energy use.
Whether technology and behaviour are so neatly linked is subject to debate but without the metering, changes in behaviour certainly will not happen.
The other issue which the Government smart metering programme should address is the question of access.
Meters are often hidden away from public view, in cupboards or even, in the case of water meters, underground. Ensuring that the metered data is available to users – either in kitchen display units for the domestic sector or with a direct feed to PC software systems for non-domestic users – will be essential if the information is to be used.
One set of data for many uses
The data will also have a number of different applications. First of course there is the core energy management function: alerting staff to anomalous consumption including performance drift, breakdown or incorrect settings. This ability to minimise wastage is essential. Then the consumption patterns allow improvements to be planned and monitored.
But as part of modern automatic Monitoring & Targeting (aM&T) systems – which go beyond the simpler options the Government is offering – managers can check bills and also forecast future consumption which will enable them to plan energy purchasing strategy to minimise costs and supply volatility.It should be remembered that the ‘free’ Government-mandated systems will be designed and installed by the utilities. They derive from a supplier’s view of the market, which may or may not correspond to a demand-side, customer-driven set of requirements. A fully responsive metering and monitoring system, like the aM&T models developed over the last decade and being used to great effect, will probably require additional investment (the ‘free’ metering is of course ultimately paid for through our utility bills anyway!).
There are also several other uses for energy consumption data which many non-domestic users have to take account of. Display Energy Certificates (DECs), which use annual consumption data to establish a building’s operating efficiency, may currently only apply to public sector buildings but the revision to the relevant European legislation is almost certain to extend this assessment procedure to the private sector in the coming years. The newer aM&T systems can now produce approved DECs which reduces outlay on external consultancies (and so saves money).
And Part L of the current Building Regulations makes specific allowances against the carbon targets for buildings with aM&T systems installed. From there are powerful arguments for these energy efficient solutions from the design point of view as well as the operational aspect.
The Carbon Reduction Commitment will also require large users to account for their energy use and purchase the right number of carbon allowances to cover their emissions. Accurate metering will be essential but an intelligent approach to forecasting may help to avoid expensive adjustments to inventories of allowances.
Further, the CRC will recycle the monies gathered from the sale of allowances back to participants – but the distribution will be incentivised. Installation of aM&T systems will increase the entitlement to these funds so all potential participants should look closely at the benefits of using these products.But these will need to be in place before March 2011 to gain maximum benefit.
Aligning policies
The CRC provides a useful example, though, of the way in which policies are not – at least in ESTA’s view – quite aligned.Advanced meters are to be provided to all nondomestic users in electricity profile classes 5-8; this represents an annual electricity spend of more than £6,000 and about 170,000 meters. Yet advanced gas meters will only routinely be given to those with a consumption exceeding 732MWh; just 38,000 meters but an annual gas bill of more than £30,000! This means there will be a lot of organisations that will participate in the CRC who qualify for advanced electricity metering but not gas meters.While the current consultation about the domestic sector and small business premesis does allow for users to opt in to the advanced meter approach, ESTA believes that the advanced gas metering roll-out should be extended en-bloc to all customers using more than 73.2MWh – i.e. a ten-fold increase on the current proposals.
Whatever the result of the on-going debate over the threshold for advanced metering in the non-domestic sector, it is likely that the utility companies will want to start the programmes sooner rather than later. Supply licences have already been amended and from 1 April this year utilities had an obligation to begin the process of installing advanced meters in new and replacement situations. Other incentives for early action include the short timescale – the programme for non-domestic advanced metering has to be completed by 2014 – and the need to ‘learn by doing’ as engineers put it. The sooner the process starts the sooner any issues can be resolved and the smoother the process becomes.
While installation will be carried out by the different energy suppliers, there is – at least for electricity – an agreed procedure for standardising data collection. For gas, ESTA has been invited to prepare a Code of Practice so that customers can likewise be assured of accurate and reliable gas consumption data regardless of who their supplier is – and also in the case that they switch supplier.
Importantly, data will be available to users on a Day + 1 basis. No more estimates. However, the regulations are not clear yet whether utilities will be able to charge for supplying this data.
A new era for energy management
The world of energy management is changing: soon virtually every household, business and public sector organisation will have the benefits of up to date information about energy consumption. This is an important: it will provide the basis for a change in the way we view energy. However, this will not come automatically. The strategies and the skills to maximise the use of these new systems are not instinctive. They are learned.That is why ESTA has been at the forefront of developing new energy management standards to enable energy managers to take best advantage of the opportunities that these new technologies offer.
Technology is not sufficient on its own:the human factor is a key ingredient to getting the results – in terms of business efficiency and in terms of limiting climate change – that the Government is seeking. But the provision of the technology is the necessary first step. We are delighted that the Government has embarked on this path towards a more energy-efficient and environmentally-conscious economy. More articles from ESTA UK: | 
