DCC Draft Development Priorities to

Transcription

1 DCC Draft Development Priorities to Date: December 2017 Classification: DCC Public

2 Table of Contents 1 Executive Summary Introduction Drivers for our development Horizon scanning Strategic priorities Appendix DCC Draft Development Priorities DCC PUBLIC Page 2 of 30

3 DCC Draft Development Priorities DCC PUBLIC Page 3 of 30 1 Executive Summary This Development Priorities paper is a draft summary of our planned business development objectives for the next five years, commencing 2018/ /23. It will inform the completion of our full Development Plan, due for publication in February 2018 in conjunction with the DCC Business Plan. The purpose of this paper is to share with customers our thinking on trends and factors affecting the industry and by extension, DCC; our emerging strategic priorities and the shift we are making to become a business focused on delivering highperforming, cost effective business-to-business services for our customers. As part of an active development planning cycle we want to get your views on whether we are heading in the right direction. The UK energy industry is going through a period of change that is unprecedented in the last 25 years. The growth of renewables, changing consumer expectations, disruptive technologies, digitisation, new business models as well as political pressure and reformed regulatory arrangements are reshaping the way that energy markets and the energy system will operate. The implementation of smart meters and the digitisation of other core industry processes such as switching are an essential part of this revolution. Without secure access to near realtime data, provided by smart meters, the energy system will remain an analogue island in a digital world. As the provider of the centralised data and communications services that underpin smart metering, the Data Communications Company (DCC) has a crucial role in supporting the industry to deliver this transformation to the advantage of the consumer. Since 2013, DCC s focus has been exclusively on the implementation and operation of the smart metering system and the delivery of support programmes such as the enrolment and adoption of SMETS1 meters and the introduction of the dual-band communications hubs. With the service live and SMETS2 meters being installed by customers, now is the time for industry and DCC to enter into a productive and valuable dialogue on how DCC services should develop to meet the needs of customers and industry over the next five years. Consultation details Making our development planning work for you is absolutely critical for us and your feedback on this paper will be used to shape and update the DCC Development Plan which we will publish in February 2018 in conjunction with the annual DCC Business Plan. We have sought to increase the ease of providing responses through an online survey and would be very grateful to receive responses by Friday 19 th January If you would prefer to feedback via a teleconference or face-to-face meeting we would be more than happy to set this up. Further information on the consultation including contact details for any queries are provided within the Appendix of this document. Please click here to access the survey DCC Draft Development Priorities DCC PUBLIC Page 3 of 30

4 DCC Draft Development Priorities DCC PUBLIC Page 4 of 30 2 Introduction 2.1 Who we are and what we do Smart DCC Limited (DCC) is a special purpose vehicle established to implement and operate the data and communications infrastructure that is enabling energy suppliers to install smart meters in 30 million homes and small businesses by the end of The requirement for all energy suppliers and network operators to use our services means that we operate as a licenced monopoly. Compliance with our licence to operate is regulated by Ofgem, who ensure we develop and deliver our services in line with our regulatory obligations. DCC s number one priority is the implementation and operation of scaled, secure and reliable smart metering data and communications services. Alongside this we have an important role to play in facilitating and enabling competition and innovation in the energy sector that will ultimately benefit the consumer. In carrying out these objectives we must ensure that our services deliver value for money and that we are delivering on opportunities to reduce our charges to customers. These requirements and expectations sit at the heart of our development ambitions. Further details of our role, functions and regulation as a party to the Smart Energy Code can be found on our website. 2.2 Our Services Since DCC s formation in 2013, our focus has been on designing, developing and implementing a highly secure, data and communications infrastructure that will connect our customer systems to smart meters. This service is now operational and customers are entering the early stages of rollout of SMETS2 smart meters. With this shift, DCC must pivot away from a focus on programmatic delivery of functional releases and align its business behind the provision of high-performing, cost effective business-to-business (B2B) services for our customers, whilst continuing to deliver functional enhancements, fixes as well as new products and services. As part of that transition we recognise the importance of clear articulation of the services that we provide to our customers. We believe that the scope, performance and expectations of DCC Draft Development Priorities DCC PUBLIC Page 4 of 30

5 DCC Draft Development Priorities DCC PUBLIC Page 5 of 30 our services needs to become the basis of our relationship with customers and industry governance groups. Well defined services unlock a continuous cycle in which performance and capacity can be evaluated, improvements and efficiencies delivered and future requirements and functionality enabled too meet the needs of our customers and the wider industry as it evolves. A test case for this approach is that customers are able to consume, review and evaluate DCC services in a common manner regardless of whether a smart meter is part of the SMETS1 or SMETS2 architecture DCC Services Five core service categories have been established through extensive mapping of DCC activity (services, sub-services and processes) and cross referenced against the relevant services identified within the Smart Energy Code. We have sought to test these categories with customers at a recent development workshop (Shaping DCC s Development 4 th Oct) and would welcome further feedback on this approach. Testing helping customers integrate and communicate with the DCC systems, interfaces and security. Communication hubs developing, supplying and managing the communciations hubs our customers need. Service management providing the tools, platforms and a single point of support to help customers use our secure systems. Communication and connectivity enabling the transmission of customer messages and responses. New service implementation supporting industry and consumers through the development of new services and functionality. 2.3 Purpose of this Paper This development priorities paper is a draft summary of our planned business development objectives for the next five years, commencing 2018/ /23. It precedes the completion of our full development plan, due for publication in February 2018, in conjunction with the DCC business plan. The paper has been informed through a series of engagement activities, in alignment with our drive to increase customer and stakeholder input into our development planning. By consulting on this paper we aim to ensure that the full development plan is better informed by customer feedback, particularly in relation to: the context in which DCC will need to operate the trends and factors that may affect the future development of the business. DCC Draft Development Priorities DCC PUBLIC Page 5 of 30

6 DCC Draft Development Priorities DCC PUBLIC Page 6 of 30 development priorities and initiatives - gaining feedback on whether our intended development activities are well considered and accurately reflect the future needs of our customers and the energy sector in general. the breadth and depth of information customers would like to see in our full Development Plan. A series of consultation questions are appended alongside details of how to respond within the Appendix (Section 7). The paper is intended for a wide audience including non-technical readers. We anticipate the document being of interest to (and would welcome response from): strategic and smart meter leads from our existing customer base (energy suppliers, distribution networks, managed service providers, third party intermediaries, other users) trade bodies, manufacturers, technology companies, innovators and entrepreneurs research bodies, academic institutions and public sector organisations. DCC Draft Development Priorities DCC PUBLIC Page 6 of 30

7 DCC Draft Development Priorities DCC PUBLIC Page 7 of 30 3 Drivers for our development The UK government has recognised that the energy system and market needs to be transformed to meet a complex set of interdependent challenges: delivering de-carbonisation managing increasing energy demand and ensuring security of supply integrating and optimising a diversifying generation mix enabling energy system flexibility integrating new technologies reducing whole system costs down. The introduction of smart meters via the Smart Metering Implementation Programme (SMIP) is a major foundational upgrade in the country s energy infrastructure. In parallel, supporting programmes - such as faster reliable switching and the introduction of half hourly settlement - will create the basis for sectoral transformation. Through our development planning we will seek to establish the most effective and efficient path to deliver benefit from smart meters, supporting flexible energy system and ultimately, delivering benefits and cost reduction for customers and their consumers. Maintaining a smart meter infrastructure- that is all times stable and secure- is critical. Of equal importance is ensuring that the system and services are scalable, flexible, adaptable and accessible to an increasingly diverse customer base. Advances to smart meter and communication technologies originally identified by the government are both inevitable and beneficial. Developments in computer processing, cloud and edge computing for example, were, at that time, insufficiently mature to merit full consideration for utilisation with the smart metering system. A balanced focus on development which builds in future flexibility - whether in the capacity of our testing services or enabling functionality of future smart meter devices - represents the best and most economical means of unlocking the wider benefits of a smart energy system. We need to ensure that our services have: Capacity to accommodate greater demand without impacting on service provision. Maintaining a smart meter infrastructure that is all times stable and secure. Capability exploiting new ways of working, new practices and substantial learning from an ever evolving smart energy ecosystem to ensure continual improvement in our services. Operational performance delivering high levels of customer satisfaction Flexibility ensuring adaptability and accessibility of services Lowest possible cost identifying opportunities to increase scale, drive improvement and offer greater reducing functionality whilst delivering efficiency in our costs DCC Draft Development Priorities DCC PUBLIC Page 7 of 30

8 DCC Draft Development Priorities DCC PUBLIC Page 8 of 30 Future-proofed exploring different and emerging technology that may offer efficiencies, better service and wider opportunities. Our challenge is to balance these different dimensions. We recognise that gathering views and input from our customers represents the best means of getting this right. 3.1 Industry feedback as context for our development Over the past months we ve received feedback from customers and stakeholders on a number of key areas and themes relating to how we operate and priorities as we continue to mature as a business. This provides valuable context, both for our priorities for development but equally our approach to development. You told us: Cost stability and transparency Accessibility and communication Modifications Readiness to respond Putting customers and their consumers first We need to provide more detail and greater clarity on our planned development initiatives, demonstrating the rationale and business case. Better alignment of our business and development planning is the first step in this process. We need to make interaction with DCC easier and more accessible, particularly for smaller organisations with limited resources. We need to make information easier to find and easier to comprehend. We need to deliver on our obligations in a structured manner. We need a clearly articulated rationale for any prioritisation, balancing future development with our current portfolio of requirements. Customers have yet to fully experience our services at scale. We need to be-able to improve and develop our service performance and functionality quickly to meet evolving or unforeseen demands. We have been too focused on delivering the requirements set out in front of us. We need to think more about the needs of our customers and their consumers. We need to take a more customer-centric approach. We are listening and responding. Our business change function have been working hard to develop a number of companywide initiatives to enhance our capability and improve our performance - underpinning our ability to develop and deliver better services for our customers. They include: Putting our customers first improving the customer experience of interacting with DCC and focusing on what customers want. Restructuring our delivery model improving how we deliver new product, services and changes so we can deliver to time, cost and quality. DCC Draft Development Priorities DCC PUBLIC Page 8 of 30

9 DCC Draft Development Priorities DCC PUBLIC Page 9 of 30 Governance and controls improving business and controls so we make good decisions and deliver our objectives. People and culture investing in people through development, talent management and working practices. As the business evolves and we continue to scale our operations, we will engage with customers as appropriate on key and relevant change initiatives. 3.2 Our approach to development planning To enhance our development planning approach we have sought to ensure our priorities are informed by customer feedback and market insight. We want to provide greater transparency throughout our development planning and ensure demonstrable support for the activities that we seek to progress. The key activities to inform and test our development priorities include: Horizon scanning environmental analysis, desk based research, consultation and event attendance to inform our understanding of the future market in which we are likely to operate. Customer and stakeholder engagement a series of bi-lateral meetings and workshops with a broad range of existing customers and wider stakeholders. Alignment with business planning improving the linkage between the development initiatives we need to initiate for industry and the costs to our customers. Our forthcoming Business Plan will provide further details of our plans to engage with customers to inform DCC decision making, including relating to major development initiatives. Consulting on our draft priorities gathering formal feedback through this priorities plan before we finalise our full plan. DCC Draft Development Priorities DCC PUBLIC Page 9 of 30

10 DCC Draft Development Priorities DCC PUBLIC Page 10 of 30 4 Horizon scanning The move to cleaner economic growth through low carbon technologies and the efficient use of resources is described in the Industrial Strategy as one of the greatest industrial opportunities of our time. The revolution underway in the energy sector will provide the bedrock on which much of that opportunity can be realised. Changes impacting customer businesses, the energy market and operation of the energy system will, in turn, have a profound impact on how DCC services need to develop. Rapid technological advances, new disruptive business models, financial pressures, regulatory changes and policy commitment are driving radical change and innovation. In the past year alone we have witnessed: a continual shift away from traditional energy generation models with distributed generation hitting 27% of installed capacity across the UK. greater competition in the energy retail market as supplier switching rates extends to 16%, and market share of other suppliers (non-big six) increases to nearly 20%. indicators of significant acceleration in new low carbon technologies such as battery storage, home energy management and electric vehicles as costs decrease, regulatory hurdles are overcome and consumers awaken to the potential advantages. Government actions and ambitions within the Smart Systems and Flexibility Plan, Industrial Strategy and Clean Growth Strategy. the installation of over 3m SMETS 1 meters, bringing the total number to more than 8.6m. The smart meter programme is a key enabler of this evolution initially providing near real time energy consumption data through a secure data communication system. Longer term, the system will help to support time of use tariffs, demand-side flexibility and provide a platform for new and innovative digital engagement models to unlock benefits for the consumer. For our customers the benefits are significant. For example, reduced operating costs through remote meter readings for energy suppliers and better network visibility and planning for DNOs. For all of our customer groups, the smart meter system will help to enable new business models and digital channels of engagement. Over the next three years, incredibly high volumes of smart meters installations will take place. Our services must be entirely robust, scalable and sufficiently flexible to unlock future benefit and opportunity economically, without duplication or waste. Horizon scanning, combined with evaluation of our services and feedback from our customers informs our strategic and service development priorities. DCC Draft Development Priorities DCC PUBLIC Page 10 of 30

11 DCC Draft Development Priorities DCC PUBLIC Page 11 of Key Themes In an industry deep in transition, maintaining focus on the most relevant trends is important. Through extensive desk based research and feedback from our customers, we have prioritised four key themes that we believe are most pertinent to our development. Growth of the smart ecosystem A rapidly changing energy retail market Energy system flexibility Digitisation and emergent technologies What factors will affect the rate of the smart meter roll out and what can we do to maximise success? How do we think the energy market will change over the next five years? How can we ensure fair competition that allows new business models to flourish? What are the implications of a transition to a flexible energy system? How can we best facilitate innovation and support this transition? Which new technologies offer better value and greater functionality to meet the requirements of an evolving industry? Within the following section we consider each theme, drawing out relevant drivers and considering the implications for our future development in context with the needs of our customers. Subject to customer and stakeholder feedback, the full development plan will explore these and other themes more fully and where possible further consider issues of materiality and impact. DCC Draft Development Priorities DCC PUBLIC Page 11 of 30

12 DCC Draft Development Priorities DCC PUBLIC Page 12 of 30 Growth of the smart ecosystem Context Drivers How DCC needs to respond to support customers To date around 8.6m smart meters (SMETS1) have been installed in domestic properties across the UK - approximately 8% of the total required to complete the programme. Energy suppliers will be embarking on the scaled roll out of SMETS 2 meters with advanced security and functionality imminently with volume of installations expected to reach many hundreds of thousands per month as we move toward the 2020 deadline. As forecasts become installs, we will gain further insight into the impact of a series of drivers that can impact on deliverability of those roll out plans and in turn the demands placed on the DCC systems and services. We recognise the critical importance of service stability, scalability and the maximising the reach of the roll out to give our customers the very best chance of success against their targets. Market dynamics - Continued growth of the smart energy ecosystem including number of energy suppliers. - Pressure on smart meter installation supply chain, resourcing and logistics. Consumer behaviour - Sensitivity of take up rates to external forces (customer perceptions and experience, marketing success, media coverage). - Consumer engagement with energy, switching rates and supplier incentives. - Take up of pre-pay meters. Policy - Decision on non-domestic opt out to smart metering programme. - Outcome of BEIS consultation on SMETS 1 transition flexibility. Technology - Developments that extend the reach of the roll out. - Developments that help create consumer demand for a smart meter. DCC performance Service Management - Delivering robust scalable business operations. - Ensuring available capacity and greater accessibility of DCC services from a greater and more diversity customer base. - Understanding and enhancing customer experience. - Providing enhanced data access and reporting functionality. Testing - Better structured testing services delivered collaboratively and in co-ordination with manufacturers. - Enabling collaboration with a wider market including through integrated testing opportunities. - Enhancing service effectiveness through process, controls and transparency. - Scalability and flexibility in our testing infrastructure. Core communication and connectivity - Scalability and reliability of systems to deliver at the highest rates of network demand. - Delivering economic and effective technological solutions to maximise roll out coverage (for example the dual band communications hub) DCC Draft Development Priorities DCC PUBLIC Page 12 of 30

13 DCC Draft Development Priorities DCC PUBLIC Page 13 of 30 - Service stability and timely delivery of developments that support the roll out. - Managing growing demand for data and access New service implementation - Enhancing customer and consumer experience through quality service provision including interoperability and interchangeability of smart meters - Supporting other developments including Alt- HAN and the Smart Meter Device Assurance (SMDA) scheme. A rapidly changing energy retail market Context Drivers How DCC needs to respond to support customers The energy retail market is changing rapidly, driven by regulatory pressures, increasing consumer expectations and emergent technologies. In parallel the connected home and home energy management market continues to gain traction. Competition and continued pressure on utilities have all been factors in the creation of new services and business models often seeking to increase consumer engagement through digital channels. The energy supply chain is being challenged and re-invented as companies respond and new entrants from within and outside the industry seek to secure competitive advantage. Market dynamics - Retail market instability and impact of Brexit. - Expansion of energy retailers into new service offerings to combat falling revenues and increased competition. - Growth of public sector and community energy supply models. - Incorporation of IoT technologies into digital energy services (home energy management systems for example). New services and business models - Emergence of automated switching services. - Introduction of innovative tariffs (including energy as a service, service bundling) and - Accommodating potential growth in market entrants but also consolidation and merger. - Monitoring increased volume of devices connected to the home area network (and potential for relative increase in issues for resolution, connectivity for example). - Ensuring the communications hub remains fit for purpose. - Managing future demand for further modifications and or elective communication services to support / enable new business models and functionality. DCC Draft Development Priorities DCC PUBLIC Page 13 of 30

14 DCC Draft Development Priorities DCC PUBLIC Page 14 of 30 subscription offers to drive consumer recruitment and retention. - Increase in time of use tariffs driven by half hourly settlement and an improved business case leading to greater consumer interest. - Increasing retail activity in connected homes and home energy management services. Technology - Need for greater interoperability, automation and security to unlock wider growth in connected homes and smart appliances. - Potential for white goods manufacturers to take further interest in the smart energy market. - Demand for opportunities to test technology interoperability with DCC system scalable infrastructure and test facilities. - Monitoring energy consumption data retrieval requests including for public interest. Support development of appropriate solutions to manage demand effectively. - Managing and scheduling upgrades and new product developments better to create greater time and cost certainty Policy - Impact of price cap on Standard Variable Tariffs on new energy market retail services. - Decision on half hourly settlement leading to increased volume of time of use tariffs and other smart products. - Government commitment to removing barriers to smart technologies and enabling smart homes and businesses. - General Data Protection Regulations impact on energy retailers and new business models - New regulatory requirements volume and cost of change for industry. DCC Draft Development Priorities DCC PUBLIC Page 14 of 30

15 DCC Draft Development Priorities DCC PUBLIC Page 15 of 30 Energy system flexibility Context Drivers How DCC needs to respond to support customers Economic, environmental, national and international climate change ambitions are driving monumental changes in the way in which electricity and heat are generated and supplied across the energy networks - in transition to a low carbon future. Within the new energy system, homes and businesses are increasingly pairing their own renewable generation assets with battery storage, creating more intermittent demand on the grid. Ever increasing uptake in renewables has resulted in over 12GW of solar connected to the distribution networks. In parallel, electricity demand is forecast to increase as the electric vehicle market continues to accelerate rapidly. This creates both challenges and opportunities for the energy system, and particularly network operators. To reduce the need for infrastructure investment, system flexibility balancing supply and demand at a local level can be used to manage Market dynamics - Rate of take up in distributed generation technologies (renewables, battery storage). - Varied UK wide adoption of distributed generation technologies driven by regional variances (e.g. weather), demographics and localised innovation and funding. - Growth of electric vehicle market. - Changing role of distribution network operators. System flexibility - Introduction of domestic demand side response services enabled through stronger pricing variation and Half-Hourly settlement. - Growth in storage and virtual power plants Smart data for public benefit - Implications of increasing demand for energy consumption data for public benefit purposes to manage the energy system - Ensuring full functionality for distributed generation systems. - Exploring implications of EV market growth and demand for DCC services. - Ensuring smart meter communications infrastructure can and will continue to support innovation across the distribution networks. - Evaluating implications of demand for data at increasing speed and granularity whilst maintaining system security and resilience. - Working collaboratively with DNOs to support new capabilities and service needs. - Monitoring demand for data retrieval through DCC systems and exploring a full range of mitigating strategies. DCC Draft Development Priorities DCC PUBLIC Page 15 of 30

16 DCC Draft Development Priorities DCC PUBLIC Page 16 of 30 constraints. Time of use tariffs, alerts and pricing signals to devices connected to the home - battery storage, electric vehicles and smart appliances can be used to drive savings for the consumer directly by smoothing demand peaks leading to avoidance of energy infrastructure costs. Policy - UK Government accelerating shift to low carbon transport, energy efficient homes, and clean, smart flexible power. - Activity to enable domestic demand-side response through the Smart Systems and Flexibility Plan and half-hourly settlement. - Implications of the General Data Protection Regulation potential for growth in data services exploiting smart energy data. - Supporting Government with the Half-Hourly Settlement Programme. Digitisation and emerging technologies Context Drivers How DCC needs to respond to support customers Enhanced computer processing, ubiquity of advanced digital communications infrastructure and sophisticated data processing algorithms are converging to realise benefits for smart energy and smart city systems. As data generation from distributed systems and connected devices grows, parallel reductions in the anticipated cost of storing and analysing data will further the opportunity to create substantial operational efficiencies across the energy system and beyond. The various component technologies and systems are in different stages of maturity from prevalent Market Dynamics - Impact of intersection, convergence and rapid innovation of information, operational, energy, automotive and consumer technologies. - Growth of open innovation. Emergent technologies and business models - Performance characteristics cost and licensing implications of digital communications infrastructure including 5G. - Enhanced data processing and storage through cloud and edge computing. - Increasingly granular and intelligent data analytics underpinned by machine learning and artificial intelligence. Continual review of our architecture and technology systems to: - Evaluate potential for new technology that can drive cost savings and improve performance throughout the roll out. - Ensure our services won't hinder market development and innovation through interoperability or performance characteristics. - Identify where technological development might unlock wider use of the communications infrastructure, driving down use costs. Evaluating demand for technical support services relating to smart home technologies. DCC Draft Development Priorities DCC PUBLIC Page 16 of 30

17 DCC Draft Development Priorities DCC PUBLIC Page 17 of 30 to emerging. The future interoperability between systems, driving seamless and secure automated services is key to unlocking future benefit. - Development of blockchain technologies to underpin peer to peer trading. Policy - Accelerating the development and uptake of next generation digital infrastructure - including full fibre and 5G. - Increased governmental focus on smart cities and infrastructure and data driven efficiencies in energy and water management, transport and lighting. - Increased scale and complexity of cyber risks - threat of cyber-attack and system failure. Supporting new business models and technologies. Enabling innovation across the digital energy technology community sharing knowledge, innovation and brokering collaboration. DCC Draft Development Priorities DCC PUBLIC Page 17 of 30

18 DCC Draft Development Priorities DCC PUBLIC Page 18 of 30 5 Strategic Priorities Our development activities are based around five strategic priorities which have been derived from feedback from our customers and stakeholders, our horizon scanning activities and the performance of our services to date. We consider that these priorities continue to reflect our Licence obligations and the industry s expectations of our role over the next five years: No Strategic Priority Headline Activities 1 Providing reliable, scalable services and timely new solutions that give all households the opportunity to benefit from a smart meter. Efficient and effective service scaling and stability. Delivery of the dual band communications hub. Delivering SEC modifications. Delivering the SMETS 1 adoption and enrolment programme. 2 Exploiting new technology and new ways of working to deliver continual improvement and cost reduction. 3 Ensuring appropriate flexibility, functionality and accessibility in our services to help unlock the benefits of a smart energy system in an economical way. Service improvements and enhancements to our testing infrastructure. System and application enhancements improvements including communication hub order management. Establishing future test facility requirement including potential to support a wider smart ecosystem. Managing network capacity and maintaining target response times for larger and new message types. DCC Draft Development Priorities DCC PUBLIC Page 18 of 30

19 DCC Draft Development Priorities DCC PUBLIC Page 19 of 30 No Strategic Priority Headline Activities 4 Supporting programmes that will enable transformation in the supply of energy and operation of networks. 5 Delivering value for money by exploring and encouraging opportunities for re-use of the communications infrastructure in other markets. Delivering the Switching programme. Supporting the Half-Hourly Settlement Programme. Monitoring markets and industries. Developing partnerships and opening lines of communications. Evaluating future technologies in context with future market drivers. As discussed in Section 2, clear articulation of our services, the performance of those services (and underlying systems and technology) in context with the external factors and customer feedback will ensure that improvement and new functionality is aligned to meet the demands of our customers and the wider industry as it evolves. The following section provides snapshots of our service plans, including further details of the scope of each service, the drivers for change and the development initiatives in delivery and planned. It is important to note that we remain in an early stage of operation. Customers have had limited interaction with our full portfolio of services and our evaluation of system performance, capacity and utilisation is limited by the scale of service take up currently taking place. As service take up increases throughout next year, our development planning cycle will incorporate more detailed analysis of service performance and utilisation. 5.1 Release Management and SEC Modifications We recognise the importance of embedding a consistent approach for delivering additional feature functionality to existing services and especially the implementation of approved SEC modifications. Our recently released Release Management Policy (Oct 2017) is currently out to consultation (closing 15th Dec 2017). The document sets out plans to implement a schedule that will enable us to deliver two in-life Releases per year in a reliable, DCC Draft Development Priorities DCC PUBLIC Page 19 of 30

20 DCC Draft Development Priorities DCC PUBLIC Page 20 of 30 predictable and economical manner. We will update our new delivery operating model and embed the capabilities, processes and infrastructure delivering on SEC modifications through an improved delivery model from the start of 2019 onwards. We will be engaging with customers on the content of each future release; further details of this approach will be provided within the Development Plan at the start of next year. 5.2 Testing service snapshot Testing service Summary Service scope and subservices This service allows organisations to test the ability of their systems and devices to integrate and communicate with relevant components of the DCC system and interfaces, including security systems. - User entry process testing - to help customers check their ability to communicate with meters by executing service requests and accessing the Self Service Interface. - Smart meter key infrastructure and repository infrastructure entry process testing helping customers (systems, personnel and processes) to use the SMKI and SMKI repository interfaces. - Early user connectivity testing validating a customer s connection to DCCs user integration testing environment. - User integration testing helping customers to validate environment connectivity, interpretation of message formats, cryptography and implementations of Parse and Correlate. - GBCS interface testing allowing customers to emulate the sending and receipt of GBCS messages to help identify and differences with their interpretation of GBCS. GIT / GFI. - Enduring testing allowing customers to conduct device and user system tests against the full DCC system including interoperability of meters and back office systems. - Replacement of test lab facilities managing de-commissioning and establishing functional requirements for new labs. Technology systems and infrastructure - Environments - Test labs - Remote test labs (delivered through Service Management) - DCC Gateway Connection (delivered through service management) - Defect management system - GBCS testing for industry - Emulators - Instrumented Communication Hubs (delivered through service management) Performance and capacity Please see Annual Service Report 2016/ Performance of Services Provided to SEC Parties Testing Services p20. Service provider performance reports including percentage service availability for user integration testing. Device set capacity SMIP End-to-Testing Approach Document. DCC Draft Development Priorities DCC PUBLIC Page 20 of 30

21 DCC Draft Development Priorities DCC PUBLIC Page 21 of 30 Issues and challenges We have continued to deliver improvements to user entry testing services, in particular through resolution of operational issues and enhancements in our Service Management. Assumptions on which initial test lab capacities were established have proven to be below volume to meet market demand, particularly in relation to the number of device sets available. We are working on establishing over-arching performance metrics for our defect resolution times, for example in relation to triage time, cause analysis, resolution. Service efficiency and improvement priorities - Structured testing services delivered collaboratively and in co-ordination with manufacturers. - Enhancing service effectiveness through process, controls and transparency. - Overcoming capacity issues through scalability and flexibility in our testing infrastructure. Future market priorities - Reducing barriers to entry for non-sec parties, smaller businesses and new market entrants. - Fair platform for innovation across wider smart energy eco-system. - Testing for non-functional requirements (performance, scalability, reliability). Development initiative Strategic priority Summary Timescales Status Structured testing for E2E Automation advances SP1, 2 Process improvements to enhance our end to end testing, defect management and SLAs Q In development SP1, 2 Automation of interoperability testing, regression and service testing. Q2-Q In development Technology Transformation SP 1 4 Environment review and enduring environments - a strategy and delivery plan to design, build test and transition to end-to-end strategic environments to meet and scale with DCC's future needs. This will include exploring the potential to reduce forecast costs through the use of cloud hosted environments 2018/9 Developing value proposition in collaboration with industry SP 1 5 Scoping, design and delivery of an enhanced DCC test facility capable of support scaled DCC operations and regular releases, better supporting the needs of DCC service partners, device manufacturers and wider industry as a platform for innovation. 2018/9 Developing value proposition in collaboration with industry DCC Draft Development Priorities DCC PUBLIC Page 21 of 30

22 DCC Draft Development Priorities DCC PUBLIC Page 22 of Service management service snapshot Service Management Summary Through our service management service we provide the tools, platforms and a single point of support to help customers use our systems. Service scope and subservices Technology systems and infrastructure - Service desk - Application support - Infrastructure support - Business process support - Reporting - Security management - Remedy System provides a single service management system across the DCC ecosystem - Self-service interface - Self-service management interface - Reporting (Business IMI) - management system - Anomaly detection management - Security operations centre - Registration authority services - Security audits - SMIKI Recovery - Billing system - Identity management system - Security incident and service management system Performance and capacity Issues and challenges Please see Annual Service Report 2016/ Performance of Services Provided to SEC Parties Service desk / DSP performance reports - Speed of issue / incident resolution - Availability and accessibility of systems Service efficiency and improvement priorities - Understanding and enhancing customer experience - Scalability and reliability of service management services - Customer empowerment through enhanced data access and reporting functionality - Efficiency through automation Future market priorities Flexibility in reporting outputs and data available to meet market need Exploiting technological advances in automation, data analytics and machine learning to deliver efficiencies. DCC Draft Development Priorities DCC PUBLIC Page 22 of 30

23 DCC Draft Development Priorities DCC PUBLIC Page 23 of 30 Development initiatives Strategic priority Summary Timescales Status Production Proving SP1, 2 Working with stakeholders to determine the feasibility of DCC undertaking production proving. This would allow us to prove new requirements within the production environment, assuring certainty of success of new functionality with less input from customers. 2017/18 Establishing feasibility System and application enhancements SP1 Improved functionality, customer experience and issue resolution through improvements to key systems including DSMS (Remedy) Self Service Interface (SSI). Q3 2018/19 In development Business intelligence management information SP2 Integration of service provider databases to enhance asset level reporting and support firmware management Q2 2017/18 In development Enhanced service support SP1,2 Co-location of skilled resources close to the Service Desk to enhance capability and deliver efficiencies Underway In delivery Enhanced Support Service + SP1,2 Process developments will be focused on the development of diagnostic decision trees, DSMS (Remedy) templates and system enhancement Q1 onwards In development Virtual Network Operations Centre SP1,2 Embedding visibility of network status (provided by our CSP s) into DCC operations. Q4 2016/17 In delivery Performance Monitoring SP1,2 Business process monitoring end to end across all DCC systems providing greater and better coordinated visibility of performance. Q4 2016/17 In development DCC Draft Development Priorities DCC PUBLIC Page 23 of 30

24 DCC Draft Development Priorities DCC PUBLIC Page 24 of Communication hub service snapshot Communication hubs service Summary Service scope and subservices Developing, supplying and managing the communications hubs our customers need - Products we are responsible for supplying communication hubs for energy suppliers to install within homes. The communication hub connects smart meters and other devices in the home via a Home Area Network (HAN), which connects to the smart meter wide area network and ultimately to energy company systems. Different comms hub variants are required for different areas across the UK. New products such as the dual band communications hub are being developed and delivered to increase the number of GB properties in which a HAN can be set up. - Specification developments we help define the mandatory features, interfaces and interoperability testing required to ensure the compliance of new products. - Forecasts, ordering and logistics we provide the systems and support through which our customers can order communication hubs. We oversee orders across our customer base to ensure efficiency and deliverability across the communications hub supply chain. - Training- we provide training materials to support comms hub services and train the trainer sessions to ensure our customers can provide the best experience to households when communication hubs are installed. - Diagnostics and maintenance we provide tools to allow customers to check the performance of an installed communications hub. Through our service management service we work to resolve any issues or incidents. Technology systems and infrastructure - Order management system - Communications Hub Availability and Diagnostics Check via Self-service interface - Logistics systems - Comms hub database - Comms Hub Manager - Remedy (returns support process) - Self-Service Interface - Message Gateway Performance and capacity Please see Annual Service Report 2016/ Performance of Services Provided to SEC Parties Communications hubs services p16. Service efficiency and improvement priorities - Bringing new comms hubs to market in a timely and economic fashion - Delivering efficiency and scalability in supply of communication hubs including through automation of manual order management processes. - Simplification / reduction of variants Future market priorities - Ensuring comms hub functionality meets new market demands for sustaining multiple devices on the home area network. DCC Draft Development Priorities DCC PUBLIC Page 24 of 30

25 DCC Draft Development Priorities DCC PUBLIC Page 25 of 30 Development initiatives Strategic priority Summary Timescales Status Dual band communication hubs SP 1 A DBCH solution in development which will allow suppliers to install smart meters in a greater proportion of properties across the UK. Delivered in parallel with R2.0 expected September 2018/19 In development Order management system SP 1,2 Providing a single customer interface to ensure ease of access and greater functionality covering all regions. Q2 2018/19 In development Instrumented test comms hub service SP 1,2 A test comms hub with increased diagnostic capabilities. Q1 2018/19 In development Comms hub height reduction SP 1, 2 Product height reduction (Arqiva models) to reduce manufacturing costs and enhance ease of installation. Q4 2017/18 In development Comms hub assurance framework SP 1,2 Providing confidence that any CH firmware change being introduced will operate successfully in the DCC ecosystem. Q /19 In development Enduring firmware strategy SP 1, 2 Working with industry to co-ordinate the deployment of device firmware to the smart metering estate. Q2 2018/19 In development 5.5 Core communication and connectivity service snapshot Core communication & connectivity Summary Service scope and subservices Enabling the transmission of customer messages, responses and alerts via our secure systems and wide area networks. - Service requests, responses and alerts (SMETS 2 communications) enabling a variety of two way communications between smart devices and DCC customers DCC Draft Development Priorities DCC PUBLIC Page 25 of 30

26 DCC Draft Development Priorities DCC PUBLIC Page 26 of 30 - Change of supplier supporting customers with the processes that are required to support transfer of DCC enrolled smart meter devices between suppliers. - SMKI, DCCKI and IKI security services to authenticate messages between devices, DCC interfaces and customers - Parse & correlate - all critical service requests that are sent through DCC systems are converted from xml into GBCS format. The parse and correlate service allows our customers to check that the conversion has not changed the underlying request. - Anomaly detection a mechanism to prevent excessive or malicious data being processed via the DCC system and issued to devices. - Installation and coverage data - an online tool, accessible by Users which identifies SMWAN coverage availability at a consumer premise level in each postcode. - Elective services bilateral agreement between customer and DCC for the development of be-spoke communication services. Technology systems and infrastructure - DCC Gateway Connection - SMWAN Coverage Checker - Self-service interface - DCC User Interface - SM WAN - Registration database - Smart M2M platform (Telefonica) - Transform (Xml to GBCS DCC side) - SMIKI subscriber device portal - SMKI repository / DCKII repository - Key management system Performance and capacity Issues and challenges Please see Annual Service Report 2016/ Performance of Services Provided to SEC Parties - Service stability - Defect reduction - Timely delivery of enhancements Service efficiency and improvement drivers - Delivering SEC modifications - Functional enhancement of systems and services customers use - Better management of network peak load Future market drivers - Creating a digital platform communication service for other markets Development initiatives Strategic priority Summary Timescales Status Release 2.0 SP1-3 An uplift of Single Band comms hub firmware and BSS/OSS to support version 2.0 of the technical specifications for GBCS and DUIS. Q2 2017/18 In development Demand management SP1-3 A suite of activities to profile demand on the network, identify and mitigate against peaks and develop policies to drive efficiencies, reduce congestion and better schedule network maintenance Underway In delivery DCC Draft Development Priorities DCC PUBLIC Page 26 of 30