Buying AMR as a Service - A Utility s perspective. Thomas Pehrsson, E.ON Elnät Sverige AB (former Sydkraft Nät AB)

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1 Buying AMR as a Service - A Utility s perspective Thomas Pehrsson, E.ON Elnät Sverige AB (former Sydkraft Nät AB)

2 Content E.ON Elnät Sverige Deregulation in Sweden Project Fjäder Experiences from pilot projects Conclusions Page 2

3 E.ON Elnät Sverige AB E.ON Elnät Sverige AB o A distribution company, subsidiary of the E.ON group o grid customers, in three main areas, Götaland,Mälardalen and Södra Norrland o Mixed urban and rural distribution Customers Customers Customers Page 3

4 Content E.ON Elnät Sverige Deregulation in Sweden Project Fjäder Experiences from pilot projects Conclusions Page 4

5 Deregulation in Sweden Started in Grid and retail business in separate companies - Change of supplier with 1 months notice Hourly meter reading for customers with > 200A meter fuse since 1996 Profile settlement for small customers New legal framework: -Hourly meter reading for customers with meter fuse above 63 A from July 1, Montly meter reading for customers with meter fuse up to 63 A from July 1, 2009 The requirements for the montly meter readings lead to that all customers in Sweden has to be read by AMRsystems by 2009 Page 5

6 Content E.ON Elnät Sverige Deregulation in Sweden Project Fjäder Experiences from pilot projects Conclusions Page 6

Project Fjäder Project Fjäder overall goals Provide our customers with simple and accurate invoices based on actual consumption Implement quality-assured and efficient routines for

7 Project Fjäder Project Fjäder overall goals Provide our customers with simple and accurate invoices based on actual consumption Implement quality-assured and efficient routines for handling of meter readings Comply with Parliament s decision in regard to monthly meter reading and to hourly metering Create efficient handling of supplier changes and move-in/move-outs Page 7

8 Project Fjäder Project Fjäder scope Cover all of our one million electricity customers and also large customers of gas and heat. All existing electricity meters will be replaced and equipped with new smart meters Sydkraft s investment will amount to approx. SEK 2 billion and an increased annual cost of SEK per customer Page 8

9 Project Fjäder AMR concept by E.ON Sverige - why Installation project No internal workforce all outsourced Turnkey Delivery - One contractual party - Warranty incl installation Färdigt Mätvärde E.ON can focus on core business: asset management power system operation customer service incl meter reading, billing Meter Operator can focus on his core business Operating AMR system Skill/competence, efficient use of resources, systems etc Cost efficiency Competitive market Cost sharing Page 9

10 Project Fjäder - Turnkey installation Central system Meter data collection Meter/Meter terminal SAP Multipoint Meter/Meter terminal (el, heat, gas) Turnkey installation Sydkraft assumes ownership following approval of delivery and installation Page 10

11 Project Fjäder Färdigt Mätvärde Färdigt Mätvärde SAP Central system Meter data collection Service Meter/Meter terminal Multipoint Meter/Meter terminal (el, heat, gas) Invoice The Färdigt Mätvärde service Includes the central system functions, communications and operation/fault correction for the entire system concept Page 11

12 Content E.ON Elnät Sverige Deregulation in Sweden Project Fjäder Experiences from pilot projects Conclusions Page 12

13 Project Fjäder Pilot projects goals Test different technical system solutions Test logistics around material deliveries and installations Test project management routines Test routines regarding customer management and invoicing Verify cost/benefit calculations Page 13

Pilot projects Örebro 1 400 customers Aim: Test technology, invoicing Technology: Low-frequency radio Supplier: SENEA AB Karta: Billeberga Billeberga north of Malmö 10 300

14 Pilot projects Örebro customers Aim: Test technology, invoicing Technology: Low-frequency radio Supplier: SENEA AB Karta: Billeberga Billeberga north of Malmö electricity customers and 550 gas customers Aim: test project routines, technology etc in semi-urban area Technology: electricity network communication Supplier WMData & Iskraemeco Page 14

Pilot projects Vikbolandet outside Norrköping 5 300 customers Aim: test project routines, technology etc in rural area Technology: radio

15 Pilot projects Vikbolandet outside Norrköping customers Aim: test project routines, technology etc in rural area Technology: radio communication Supplier: Kamstrup Karta: Vikbolandet Roslagens archipelago & Norrland customers Technology: Turtle PLC communication with L+G meters Page 15

16 Pilot Projects - experiences The challenge is not to measure energy, it is to handle logistics and communication Technology Radio and PLC are almost equal with respect to performance Multipoints concentrators/repeaters is a new type of asset in the distribution grid Radio could possibly lead to more maintenance in the operational phase Installation problems: Quality of documentation 0,5% customers not available for meter change <1% bad installation 1% mains switch is off Page 16

17 Project Fjäder Pilot projects Experiences Operational problems Customer turns off their mains switch No communication with the individual metering point Meter as repeater would cause a problem Variations in radio communication performance, (weather etc) Interruptions, service work in the power network affects communication, both PLC and radio Connected appliances could affect PLC-communication (noise) Issues How detect and identify communication problems from power interruptions? How design a robust communication infrastructure? Page 17

18 100,00% 99,50% 99,00% 98,50% 98,00% Performance Vikbolandet Performance Vikbolandet 7 days after requested meter reading In contract: -98% after 1 day -100% after 7 days Page november 2005 december 2006 januari 2006 februari 2006 mars 2006 april 2006 maj 2006 juni 2006 juli 2005 oktober

19 Content E.ON Elnät Sverige Deregulation in Sweden Project Fjäder Experiences from pilot projects Conclusions Page 19

20 Conclusions General Implementing AMR is not only to buy & install a system AMR affects all your internal processes, as marketing, operations and asset management Start work with processes, workflows and development of your IT systems early AMR systems must be robust and future-safe Industrialized solutions Based on open communication standards Installation support & tools needed Page 20

21 Conclusions Färdigt Mätvärde Buy AMR-operation as service is proven to be succesful! Success factors Be a good and skilled contract manager is essential Clear Service Levels and responsibilities in contract with operators Good tools to monitor service levels To have the same contractor installing the system and also operating it for the initial phase Advantages: Cost efficiency Customer driven quality improvements Disadvantages Less influence on technology and day-to-day operations Page 21

22 Thank You! Thank You for Your attention! Thomas Pehrsson E.ON Elnät Sverige AB Phone: Page 22

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