Interoperability the key to success. Presented by Franco Pucci, Director of the STS Association; Engineering Director of Conlog Durban, South Africa

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1 Interoperability the key to success Presented by Franco Pucci, Director of the STS Association; Engineering Director of Conlog Durban, South Africa

2 What is interoperability

3 TOKEN TOKEN TOKEN The ability of a user to seamlessly purchase, deploy and use a system from multiple suppliers OR The ability of two or more systems, or components, to exchange information and to periodically use the information that has been exchanged (Source: IEEE Standard Computer Dictionary)

4 Why is interoperability important

5 Innovation > Manufacturers have to be innovative to maintain a competitive advantage Service Price Expertise > The purchaser selects manufacturers based on their service delivery (improved after sales service, add-on service offering) > By enabling open competition, rather than an exclusive proprietary system, the purchaser benefits from market related prices > Purchaser reaps the expertise and experience of many different companies

6 What are the levels of interoperability? > Meter level: look and feel, mechanical mount, operation, protocols > System level: billing, tokens, vending standard, infrastructure, protocols > Application level: prepayment, postpayment, smart metering

Interoperability: meter level > Mechanical: look and feel; size; shape (DIN, ANSI, BS); type of connection; enclosures & ratings (IP) > Electrical: noise; voltage; frequency; reticulation (dips,

7 Interoperability: meter level > Mechanical: look and feel; size; shape (DIN, ANSI, BS); type of connection; enclosures & ratings (IP) > Electrical: noise; voltage; frequency; reticulation (dips, outages); operational considerations; lifespan of product (ALT) > Functional: basic functions and customer specific functionality; advanced features; not defined (training of users, installers, technicians)

8 Interoperability: system level > Protocols: communication protocols many specifications used, many proprietary! > Security: transaction; transfer of credit; audit information; accessibility > Transfer: token carrier/system (cost and transport); vending infrastructure; transfer of information > Independent: vend to all meters; use new technologies (scratch card, internet vending)

Interoperability: application level > Prepayment: IEC for data transfer and token types; various IEC for hardware; various proprietary > Post payment: Various IEC for hardware; Proprietary; DLMS

9 Interoperability: application level > Prepayment: IEC for data transfer and token types; various IEC for hardware; various proprietary > Post payment: Various IEC for hardware; Proprietary; DLMS (Device Language Message Specification) and others > AMR: Proprietary; DLMS > Smart metering: Various country specific standards, no international accepted spec; NRS-049 published (RSA currently); NTA8130 Dutch standard; DLMS being upgraded for smart metering; other comms protocols exist

10 What has prepayment taught us?

Lessons learnt about interoperability > Current prepayment users learnt early that interoperability was a key to success > Promotes innovation, competition and market related prices > Ensures

11 Lessons learnt about interoperability > Current prepayment users learnt early that interoperability was a key to success > Promotes innovation, competition and market related prices > Ensures specifications (open standards) are developed and maintained by industry experts > Standards and products maintain backward compatibility to existing systems (greater return on your investment)

12 Lessons learnt about interoperability > Prepayment is spreading quickly throughout the world > Critical time to ensure we do not have a multitude of products without much in common > Too many proprietary systems already in existence! > Imagine every time to purchased a new brand of TV, you had to buy a new satellite dish > Or if your mobile phone needed a new SIM card every time you were in a different country

Lessons learnt about interoperability > Take

> STS published as an IEC spec for exactly this

13 Lessons learnt about interoperability > Take lessons learnt in prepayment over the past 20 years > Apply them to new prepayment sites > Advantages for the utility are significant! > STS published as an IEC spec for exactly this reason > To make implementation of prepayment easier for utilities

14 What is STS (Standard Transfer Specification)

15 The power of STS (IEC62055-xx) > IEC62055-xx series (lodged in IEC central office, Switzerland) > Only international, global standard for prepaid electricity > Multiple manufacturers from around the globe > Peace of mind for utility (continuity of supply) > Controlled by international institution not a local utility IEC Particular requirements for static payment meters IEC Application layer protocol for STS, transfer data to meter IEC Physical layer protocol for token carrier types IEC Physical layer protocol for two way virtual token carrier

The power of STS (IEC62055-41) > An open standard to ensure interoperability between manufacturers of prepaid electricity > Secure and robust > Never been compromised > Over 10-million STS

16 The power of STS (IEC ) > An open standard to ensure interoperability between manufacturers of prepaid electricity > Secure and robust > Never been compromised > Over 10-million STS compliant prepaid meters installed at some 400 utilities, spanning over 30 countries > No specification for the token carrier (SMS, paper token, magnetic card, internet, smart card, ATM and more)

The power of STS (IEC62055-41) Algeria Angola Aruba Bangkok Bangladesh Benin Botswana Burundi Columbia Comores Dominican Republic Ecuador Gambia Ghana Indonesia Israel Ivory Coast Lesotho Madagascar

17 The power of STS (IEC ) Algeria Angola Aruba Bangkok Bangladesh Benin Botswana Burundi Columbia Comores Dominican Republic Ecuador Gambia Ghana Indonesia Israel Ivory Coast Lesotho Madagascar Malawi Malaysia Maputo Mozambique Namibia Netherlands New Caledonia New Zealand Nigeria Norway Just some of the countries using IEC62055 New Guinea Philippines Rwanda Sao Tome Senegal Solomon Island South Africa Sudan Swaziland Tanzania Thailand United States Venezuela Zambia Zimbabwe

The future of STS (IEC62055-41) > STS Association has the technical experts and resources available to evolve the functional specification > Industry demand will dictate when,

18 The future of STS (IEC ) > STS Association has the technical experts and resources available to evolve the functional specification > Industry demand will dictate when, and how, the specification needs to be enhanced > Envisaged that when demand is created, the specification will accommodate technologies such as smart metering, AMR, RMM and more

19 Thank you Smart power choices for Africa May 2009 CTICC, Cape Town South Africa

PLEASE NOTE: firms may submit one set of research questionnaires covering both China and Hong Kong or separate sets for each jurisdiction

PLEASE NOTE: firms may submit one set of research questionnaires covering both China and Hong Kong or separate sets for each jurisdiction Americas Argentina (Banking and finance; Capital markets; M&A; Project development) Bahamas (Financial and corporate) Barbados (Financial and corporate) Bermuda (Financial and corporate) Bolivia (Financial