Getting Smarter

Reino Unido : October 08, 2010

In order to effectively manage one’s energy consumption you need to measure when and how much energy is being used in any given period of time.  With non-half hourly (NHH) meters the consumption is often estimated by the suppliers who have a statutory requirement to read a meter only once every two years.  Therefore with the majority of meters being NHH the ability to manage your consumption is quite limited.  The installation of Automated Meter Reading (AMR) equipment (which would provide half hourly data from smaller supplies) has been discussed within the industry for many years with relatively low levels of take up.

However, a major change in attitude occurred in October 2008 when the UK government announced that as of 6 April 2009 suppliers would be required to install AMR to all new maximum demand electricity supplies and all new gas supplies expected to use more than 732,000 kWh per annum.  In addition all metering to existing supplies within the same category are to be upgraded to AMR by 6 April 2014.  Two million smaller commercial supplies, along with some 27 million domestic supplies are to follow with the installation of Smart Meters by the end of 2020.

Installation of AMR is one of many steps bought about by the 2008 Climate Change Act which lays out targets to reduce by 2020 GHG emissions from the UK by 34 percent compared to 1990 levels and by a massive 80 percent by 2050.

Whilst the ultimate rollout of AMR firmly sits as the responsibility of the suppliers, the CRC Energy Efficiency Scheme has provided the incentive for organizations to install AMR equipment as part of the early action metrics.  However as 1 April 2010 to 31 March 2011 is the qualification period for the second phase of the scheme (which commences in April 2013), installation of AMR will be counted as core electricity supplies and used to meet the qualification criteria of 6,000 MWh through half hourly (HH) metered electricity.

AMR installation will provide HH energy consumption that, for the first time, will allow organizations to measure, monitor and manage these smaller supplies and reduce inefficiencies and waste.  Additional benefits from AMR include: an end to estimated invoices, assist in billing validation, improved cash flow through reduced consumption and the identification of an accurate meter profile.

Although the installation of AMR is a great start, installation alone cannot create sustained energy efficiency and associated energy reduction.  A recent year long trial undertaken by Scottish Power, on behalf of the regulator Ofgem, monitored the effect of installing smart meters in households compared to a group that remained on conventional meters.  The study found that although there was a measureable change upon the initial installation of the Smart Meters, the impact soon faded.  It is expected that this will also be the same result with industrial and commercial organizations unless management builds an energy reduction culture and continually reinforces the message.  Fundamental changes to working policies and individual KPIs are required to ensure that energy reduction is being taken seriously and the installation of Smart Meter technology does not become an expensive wasted effort.