Metering means Saving

Does anyone of us ever think if it is possible to change our habits concerning usage of water, heat, gas or electrical energy? Do we ask ourselves every day: How do I influence the global warming? Can I cause future generations in 50 years to breathe air that is worse than today?

The answer to those difficult questions would be much easier if we were able to precisely measure and foresee the effects of our everyday activities and present them in, for example, centimetres of yearly increase of the level of oceans or the increase of the number cancer cases. Unfortunately as for now all the calculations are ambiguous and every forecast or scientific report differs much from the previous one. This does not allow to build trust to climate change analysis and will probably not persuade us to saving.

Experience tells us that in such a situation the only effective tool for the change of everyday habits is the price we pay for the deterioration of the natural environment. The fuel crisis of 1970’s reminds us even today that economical cars were created only after the price of fuel increased so much that their users started to calculate expenditures for fuel into the number of kilometres driven. As people became aware of the measurement they stopped buying cars with high gas consumption, giving a clear signal for the producers to make changes on the market. Simple pricing signals are the starting point for the EU strategy for sustainable development which includes objectives concerning energy that should be achieved until 2020 (so called 3x20):

• decrease of greenhouse gasses emission by at least 20% in comparison to 199
• streamlining of energy usage and as a result limiting its usage by 20%
• increase the amount of energy produced from renewable sources to 20% of the total energy use.

The assumptions are straightforward and easy to remember, although their performance gives the governments of the richest EU countries a “headache”.

Tools to achieve them are simple but effective. Soon also in Poland we will see the implementation of “colour certificates” (white, red, green), that will impose additional payments on producers (and later distributors and consumers) for emission of greenhouse gasses or force them to use ecological means of production. Forecasts say that as a result of their implementation and freeing of the market, energy prices can increase in Poland by as much as 300% in the perspective of 2020. Such a “price signal” will surely cause most of us will use electrical energy in a more conscious way. We will have to measure and forecast monthly usage of facilities, so as a result we will start to plan and shape our influence on the environment in a rational way. Modern technologies, not widely known until now, will support us in this process.

 

Meter firs

The energy market is already free, although it is still young, it allows us to choose an electrical energy or gas provider. An age of smart distribution networks (smart grids) is coming. Their main element are remote reading data management systems known as advanced meter infrastructure (AMI), advanced meter management (AMM) or in most cases automatic meter reading (AMR).

Regardless of the name used and differences between them, their main function is to change the current method of settling the account of an electrical energy, water, heat or gas consumer from a three-month or half-year settlement based on direct meter reading to an “interactive” contact with the recipient, based on remote meter reading and making data available in a daily or even hourly mode.

AMRsystem Apator is one of such systems – a Polish version of a modern metering and data management system promoted by Grupa Apator.

Even though over a thousand remote reading meters of this Polish producer are already in use, the technology is still not widely known. In some countries of the European Union the situation is completely different: the impulse for the development of remote meter reading systems – AMR systems (Automated Meter Reading) – was given by Italy when ENEL, the state-owned electrical energy provider¸ installed over 30 million of “intelligent” remote reading (and remotely operated) energy meters. Thanks to this the provider is effectively “controlling” the demand for electrical energy, by the use of weekend, afternoon, evening, holiday and even peak hours rates, during which the price of energy may change by dozens of percent. Also multi-area rates are used. After nearly 5 years of AMR system utilisation the benefits are obvious. They include:

• decrease of energy usage in Italy by 3–5% every year, while in most EU countries it is growing by 2–3% per year;
  
• a total return of invested means;
• adaptation of energy demand to real needs. The recipient may choose a multi-area rate, that enables to turn on larger receivers during the period when it is possible to buy cheaper energy (this means the flattening of energy demand characteristics – energy is more expensive during peak hours);
• lower meter reading cost;
• lower problem analysis cost;
• better meter accuracy;
  
• less need to test meters;
  
• no need to go to the recipient to disconnect him (remote disconnection);
  
• decrease or elimination of "estimated" invoices;
  
• radical shortening of reading time (allowing for better balancing for free energy market needs);
  
• shorter payment time;
  
• less mistakes;
  
• clients have access to their metering data and usage forecasts;
  
• better reporting of energy supply cuts (quicker failure repair);
  
• decrease of lacks in client readings (even over 99% of current read-outs);
  
• postponing some network and source development investments (no need to "over-develop", more accurate planning and forecasting instead).
  

Other countries also develop remote reading systems:

• In the period from 2003 to 2008 Sweden will exchange 850 thousand meters;
  
• In the period from 2003 to 2007 Finland installed 360 thousand remote reading meters;
  
• In March 2008 a new metering law concerning installation of “intelligent meters” in every household was referred to the parliament in the Netherlands;
• Hungary, Latvia, United Kingdom, Ireland, Spain, Norway, Portugal, Turkey (laws already exist, partly compulsory).
  

 

Show second

The experience of providers and recipients using remote reading and data management systems similar to AMRsystem Apator show that the key element is the visualisation of results. This concerns both showing to the recipient the current electrical energy usage, its calculation into money and even direct CO2 emissions, as well as facilitate the work of the provider. AMRsystem Apator supported with SIPO software has a unique possibility to present the readings from meters and substations directly on a GIS map (similar to a car GPS system). The system informs immediately about any failures, meter or energy thefts, level of substation load etc., where repairs are needed most.

The effectiveness of visualisation as a savings catalyst is beyond doubt. According to data of international organizations (SmartGrids, ESMA – European Smart Metering Alliance) and data from first AMRsystem Apator installations it is clear that:

• 5–15% of recipient energy savings are the result of direct visualisation (on–line – remote displays, direct readings from meters);
  
• 0–10% of savings are the result of indirect visualisation (off–line – billing, accounts, websites),
  
• introduction of rates with differentiation of zones and prices may lead to another 4% decrease in energy usage.
  

 

Forecast and support third

It is widely known that persons who like to have control over their expenditures will rather choose prepayments over a licence fee – this is clearly indicated by the number of prepayment mobile phone users (over 40%). The case of utility usage is similar. LEWsystem Apator – prepayment energy metering and billing system is used in Poland by over 200 thousand people. Statistical data show that the usage of a prepayment meter decreases energy usage by about 30%.

This happens mostly because the prepayment billing system in a way forces to plan the usage which leads to saving. Of course the extended forecasting functions of modern prepayment meters, such as LEW meters, play a key role here. If we add the possibility to change the working mode from prepayment into post-paid and back, or the possibility of remote meter parameter configuration, or remote sending of codes for prepaid energy (such possibilities are granted by the latest LEW meters models), the reasons for the growing popularity of prepayment systems become clear.

We should also mention recipients who have problems with timely payments for used utilities – so called economically vulnerable customers. It is estimated that the scale of energy price raises before us may result in as much as 17% of Polish society might find itself under the level of “energetic poverty”, and this means problems with timely payments.

In such cases the prepayment meter becomes an indispensable tool for welfare. Local welfare facilities instead of granting direct financial aid may participate in purchase of a prepayment meter. It is also possible to purchase a portion of energy for a prepayment meter of a family in need. This way it can be ensured that the granted support will be used according to its purpose and shaping an appropriate attitude towards saving. Another important thing is the convenience of using a prepayment meter in case of families where a social worker is directly involved (sick, persons who cannot move by themselves). In such cases it is possible to buy a portion of energy from the provider and enter a code into a prepayment meter of the recipient. LEWsystem Apator allows the possibility of code purchase not only directly from the provider but also from energy vending machines (automatic devices selling energy), via the Internet, at a cash register terminal (at petrol stations, in supermarkets), and also via a mobile phone.

There are many possibilities for savings, let us hope we do not allow raises to surprise us and learn to use utility billing systems early enough.

Jarosław Wojtulewicz
Marketing Department Manager
Apator S.A.