Advanced Metering Infrastructure

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1 Advanced Metering Infrastructure Victorian AMI Project Stakeholder Forum 7 December 2007

2 INTRODUCTION Marianne Lourey Executive Director Energy and Earth Resources Policy Department of Primary Industries

3 AGENDA 1:00 1:05 1:30 1:55 2:15 2:40 3:00 Introduction Vision Policy In-Home Displays AMI Project Next Steps Questions Marianne Lourey Richard Bolt (for Minister Batchelor) Peter Clements Gary Tescher Stephen Thomson Peter Bryant Panel

4 INTRODUCTION Welcome to the 4th Stakeholder Forum Significant progress End of Establishment Phase

5 VISION Richard Bolt Secretary Department of Primary Industries

6 OVERVIEW Vision Key benefits Need for Government intervention Handover to industry

7 VISION That all residential and small business electricity consumers across Victoria have access to the benefits that smart meters and the full capabilities of AMI enable

8 BENEFITS (1) Consumer benefits: Energy management Service and products Competition Lower costs

9 BENEFITS (2) Consumers Energy Market Networks Increase options for consumers to better manage their energy use and understand greenhouse gas emissions. Encourage new and innovative products and prices, enable mprovements to customer service, competition and wholesale trading. Deliver operational efficiencies, improve network management and utilisation; defer augmentations and optimise investment. Choice, Convenience, Competition, Efficiency

10 NEED FOR INTERVENTION Ensure benefits accessible by all Split incentives among participants Need for clear policy and responsibilities

11 HANDOVER Responsible Party Activities Establishment Phase Government (DPI) Development of policy and relevant legislative instruments and guidelines Implementation Phase Industry under the coordination guidance of an Industry Steering Committee supported by a Project Office and Working Groups Detailed definitions, preparations for rollout and actual implementation

12 MOVING FORWARD Flexibility to deal with the unknowns Keep the end-game in mind Ensure that project decisions are pragmatic and timely

13 CLOSING Right direction Collaboration Flexibility Commitment

14 POLICY Peter Clements Director, Energy Retail and Distribution Policy Department of Primary Industries

15 OVERVIEW Policy Legislative instruments Timeframes and targets National policy

16 POLICY Universal accelerated rollout of interval meters with two-way communications and advanced capabilities

17 INSTRUMENTS Electricity Industry Act 2000 Amendments Cost Recovery Order in Council Functionality, Performance Levels and Service Levels Order in Council Minimum AMI Functionality Specification (Victoria) Minimum AMI Service Levels Specification (Victoria) Jurisdictional Derogation National Electricity Rules Amendments made August Gazetted 28 August Gazetted 12 November Published 18 October Published 18 October Submitted to AEMC 21 November

18 FEATURES (1) Cost Recovery Order: framework for setting revenues pricing principles timeframes and targets

19 FEATURES (2) Specifications and Order: technical functionalities and performance operational service levels allows for enhancements

20 FEATURES (3) Derogation: distributors responsible efficient rollout

21 TIMEFRAMES AND TARGETS % 75 60% AMI Meters as a % of installed base 50 25% % Phase 1 Phase 2 Phase 3

22 NATIONAL POLICY (1) COAG commitment Victoria fully committed Victoria the early adopter

23 NATIONAL POLICY (2) National Cost/Benefit Analysis: Phase 1 findings on advanced functionalities Phase 2 assessing case for a national rollout under various scenarios

24 NATIONAL POLICY (3) National framework: Establishment of industry group National minimum functionality Changes to National Electricity Rules New and replacement policy

25 NATIONAL POLICY (4) Implications for Victoria: Support for national process development Collaboration Ongoing processes to ensure alignment

26 CLOSING Clear policy Groundwork for an efficient rollout National alignment Flexibility

27 IN-HOME DISPLAYS Gary Tescher Millenium Electronics

28 Refer to separate presentation

29 AMI PROJECT Stephen Thomson Program Office Leader AMI Project Office

30 Refer to separate presentation

31 NEXT STEPS Peter Bryant General Manager Citipower / Powercor

32 Refer to separate presentation

33 QUESTIONS Panel Peter Clements Peter Bryant Stephen Thomson Gary Tescher

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