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Ben Nicaudie
Head of Consulting, ElectraLink Limited
Interoperability Questions
 How did we get here?
 Why is change needed?
 What are the interim options?
 Who could govern the interim?
“Those who cannot
remember the past are
condemned to repeat it”
George Santayana, Spanish
philosopher
   
How did we get here?
Why is change needed?
What are the interim options?
Who could govern the interim?
Many Industry Functions
• Change of Supply
• Customer Billing
• Energy Balancing and
Settlement
• Change of Agent
• Metering Services
• Distribution Use of
System Billing
Many Market Participants
Inter -
operability
Networks
A Highly Functional Solution
Meter
Maintainer
Data
Aggregator
Distribution
Operator /
Transporter
Prepayment
Infrastructure
Provider
Supplier
Data
Collector
Consumer
Metering
System
All using flat files
Data Transfer Service
High Volume
Gateway
Low Volume
Gateway
Monitoring
Helpdesk
Remote User
Systems Primary Hub Secondary Hub
Managed
Network
An “Industrial Grade” Network
DTS (flat
files)
Commercial
data flows
(e.g. RGMA)
Web traffic
(e.g. HTTP)
Web services
(e.g. SOAP,
REST)
Any other
application
protocol
ElectraLink Data Transfer Network
Authentication, Encipherment, Resilience,
Reliability
Multi Protocol Label Switching (MPLS) Network
Connectivity, Protocol Agnosticism
Physical layer e.g. Ethernet, fibre
   
How did we get here?
Why is change needed?
What are the interim options?
Who could govern the interim?
The existing system can not talk
to the meters
With Smart Meters we need the
Wide Area Network to talk and
listen
ReadingsConfiguration
D
a
t
a
Data
XXT 0019.12
0001889.126
Head
End
Head
End
Customer A
Customer B
SMS
GPRS
Supplier to Meter Operations
The answer - Centralised Comms
“Suppliers will have to use the DCC – a
single entity – as that will aid switching
and data management. It will control
access to the data and secure
communications, so it must be
independent.”
A Future Centralised Market
CP
EMS
MG
HHDC
NHHDA
HHDC
NHHDC
REG
COS
COA
MAP
MAM
MAP
SH
GT
PP
IGTIGT
SU
GEN
SUP
PPMIP ECOES
ASP
MOP
DCC
DIST
NHHDR
DSM
scoges
ECOES
SET
New investments for Suppliers
leading early rollout
• Smart Meters
• Head End systems
• WAN Comms contracts
• Smart Prepayment
• All associated IT
New problems for Suppliers
leading early rollout
• New concept of “installing supplier”
• Stranded Assets
• Negotiating Comms contracts
• Dependencies on other Suppliers
• Building Market share
Ofgem’s timetable suggests 8-10 million interim meters by DCC Go-Live
20192018201720162015201320122011 2014
20192018201720162015201320122011 2014
Phase 2 Develop regulatory framework
Phase 3 Tender and award DCC licence
DCC Setup and procure service providers
Build and trialling of DCC services
Go-Live
DCC
Meter rollout profile
Delivery Timetable
   
How did we get here?
Why is change needed?
What are the interim options?
Who could govern the interim?
Core Principles
1. Impact on the consumer
2. Privacy & Data Security
3. Speed and Cost of Implementation
4. Re-usability
5. Avoiding Scope Creep
6. Existing market arrangements
Interim Options (1)
1. Supplier owned HEs non-standard
interfaces to Central Service
2. Supplier owned HEs with standardised
interfaces to Central Service
3. Centrally owned HEs providing Central
Service
Interim Options (2)
4.Installing Suppliers provide readings
to a central store
5. Installing Suppliers provide Smart
Meter Services direct to 3rd Parties
6. Suppliers Migrate Smart Meters to
gaining Supplier’s HE on CoS
Key Influencing Factors
• Industry has immature Smart
Metering infrastructures
• Not all Suppliers have a Smart
programme at all
• The industry needs to see interim
as a step to DCC
Supplier Meter Asset
Provider
HH Data
Aggregator
Distributor Meter
Operator
HH Data
Collector
SVAA
Meter Data
Management
Site Meta Data Interval Data
AuthenticationandAccessControl
Translation
Services H/E
Smart
Meters
XML
Interoperability
Interim Interoperability Arrangements
Novated
comms
contracts
from CoS
HE
HE
Smart
Meters
Customer Changes Supplier
1. Meter migrates to interim HE
2. Comms contract novates to central body
3. Translation service starts
HE
Enhancement A
Centralise all head ends
Enhancement B
Standardise interfaces
Enhancement C
Add legacy support
Simplify business processes
A Roadmap for Interim
   
How did we get here?
Why is change needed?
What are the interim options?
Who could govern the interim?
The ideal regulatory framework
• A dedicated Smart Energy Code
• Governing access to smart electricity
and gas meters
• Defining commercial relationships
between DCC and its users
• A code common to both gas and
electricity
But this is highly complex...
Existing regulatory frameworks
• The Master Registration Agreement
• The Supply Point Administration
Agreement
• The Uniform Network Code
• The Balancing and Settlement Code
• The Data Transfer Services Agreement
Comparing frameworks
• The MRA and SPAA do not provide for
data transfers service provision
• The UNC and BSC do cover data
transfer but also a much wider area
• The DTSA is solely about metering-
related data transfer, associated
services and governance
What would be needed?
• A transparent mechanism for cost
recovery
• An obligation on gas and electricity
Suppliers to join
• No restriction on the use of intellectual
property by a future DCC
• Any user objections being ultimately
resolved by Ofgem
Interoperability Questions
 How did we get here?
 Why is change needed?
 What are the interim options?
 Who could enforce this?
“... when men and women
agree, it is only in their
conclusions; their reasons
are always different.”
George Santayana, Spanish
philosopher
Questions?
Ben Nicaudie
www.electralink.co.uk
ben.nicaudie@electralink.co.uk

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Interim Smart Meter Options

  • 1. Ben Nicaudie Head of Consulting, ElectraLink Limited
  • 2. Interoperability Questions  How did we get here?  Why is change needed?  What are the interim options?  Who could govern the interim? “Those who cannot remember the past are condemned to repeat it” George Santayana, Spanish philosopher
  • 3.     How did we get here? Why is change needed? What are the interim options? Who could govern the interim?
  • 4. Many Industry Functions • Change of Supply • Customer Billing • Energy Balancing and Settlement • Change of Agent • Metering Services • Distribution Use of System Billing
  • 6. Inter - operability Networks A Highly Functional Solution Meter Maintainer Data Aggregator Distribution Operator / Transporter Prepayment Infrastructure Provider Supplier Data Collector Consumer Metering System
  • 8. Data Transfer Service High Volume Gateway Low Volume Gateway Monitoring Helpdesk Remote User Systems Primary Hub Secondary Hub Managed Network
  • 9. An “Industrial Grade” Network DTS (flat files) Commercial data flows (e.g. RGMA) Web traffic (e.g. HTTP) Web services (e.g. SOAP, REST) Any other application protocol ElectraLink Data Transfer Network Authentication, Encipherment, Resilience, Reliability Multi Protocol Label Switching (MPLS) Network Connectivity, Protocol Agnosticism Physical layer e.g. Ethernet, fibre
  • 10.     How did we get here? Why is change needed? What are the interim options? Who could govern the interim?
  • 11. The existing system can not talk to the meters
  • 12. With Smart Meters we need the Wide Area Network to talk and listen ReadingsConfiguration
  • 14. The answer - Centralised Comms “Suppliers will have to use the DCC – a single entity – as that will aid switching and data management. It will control access to the data and secure communications, so it must be independent.”
  • 15. A Future Centralised Market CP EMS MG HHDC NHHDA HHDC NHHDC REG COS COA MAP MAM MAP SH GT PP IGTIGT SU GEN SUP PPMIP ECOES ASP MOP DCC DIST NHHDR DSM scoges ECOES SET
  • 16. New investments for Suppliers leading early rollout • Smart Meters • Head End systems • WAN Comms contracts • Smart Prepayment • All associated IT
  • 17. New problems for Suppliers leading early rollout • New concept of “installing supplier” • Stranded Assets • Negotiating Comms contracts • Dependencies on other Suppliers • Building Market share
  • 18. Ofgem’s timetable suggests 8-10 million interim meters by DCC Go-Live 20192018201720162015201320122011 2014 20192018201720162015201320122011 2014 Phase 2 Develop regulatory framework Phase 3 Tender and award DCC licence DCC Setup and procure service providers Build and trialling of DCC services Go-Live DCC Meter rollout profile Delivery Timetable
  • 19.     How did we get here? Why is change needed? What are the interim options? Who could govern the interim?
  • 20. Core Principles 1. Impact on the consumer 2. Privacy & Data Security 3. Speed and Cost of Implementation 4. Re-usability 5. Avoiding Scope Creep 6. Existing market arrangements
  • 21. Interim Options (1) 1. Supplier owned HEs non-standard interfaces to Central Service 2. Supplier owned HEs with standardised interfaces to Central Service 3. Centrally owned HEs providing Central Service
  • 22. Interim Options (2) 4.Installing Suppliers provide readings to a central store 5. Installing Suppliers provide Smart Meter Services direct to 3rd Parties 6. Suppliers Migrate Smart Meters to gaining Supplier’s HE on CoS
  • 23. Key Influencing Factors • Industry has immature Smart Metering infrastructures • Not all Suppliers have a Smart programme at all • The industry needs to see interim as a step to DCC
  • 24. Supplier Meter Asset Provider HH Data Aggregator Distributor Meter Operator HH Data Collector SVAA Meter Data Management Site Meta Data Interval Data AuthenticationandAccessControl Translation Services H/E Smart Meters XML Interoperability Interim Interoperability Arrangements Novated comms contracts from CoS HE HE Smart Meters Customer Changes Supplier 1. Meter migrates to interim HE 2. Comms contract novates to central body 3. Translation service starts HE Enhancement A Centralise all head ends Enhancement B Standardise interfaces Enhancement C Add legacy support Simplify business processes A Roadmap for Interim
  • 25.     How did we get here? Why is change needed? What are the interim options? Who could govern the interim?
  • 26. The ideal regulatory framework • A dedicated Smart Energy Code • Governing access to smart electricity and gas meters • Defining commercial relationships between DCC and its users • A code common to both gas and electricity
  • 27. But this is highly complex...
  • 28. Existing regulatory frameworks • The Master Registration Agreement • The Supply Point Administration Agreement • The Uniform Network Code • The Balancing and Settlement Code • The Data Transfer Services Agreement
  • 29. Comparing frameworks • The MRA and SPAA do not provide for data transfers service provision • The UNC and BSC do cover data transfer but also a much wider area • The DTSA is solely about metering- related data transfer, associated services and governance
  • 30. What would be needed? • A transparent mechanism for cost recovery • An obligation on gas and electricity Suppliers to join • No restriction on the use of intellectual property by a future DCC • Any user objections being ultimately resolved by Ofgem
  • 31. Interoperability Questions  How did we get here?  Why is change needed?  What are the interim options?  Who could enforce this? “... when men and women agree, it is only in their conclusions; their reasons are always different.” George Santayana, Spanish philosopher