The future of Utilities software in Australia

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1 The future of Utilities software in Australia

2 What should participants be focusing on to get the most out of the Smart Grid? What new solutions, technologies & architectures need to be used or put in place? How can Smart Grid Value be created for End Users?

3 Climate Change (Fossil fuel to Renewables) Distributed Generation ( Solar, Wind, Micro) Smart Meters, Smart Grid, Smart Utilities???? Extraordinary Retail Competition and Churn (28% Vic) Rising Energy Prices - Wholesale(?) - Retail(YES) Customer Expectations in regard to Technology (Information, Apps, Mobility) Peak Demand, Demand Response Technology Advancements

4 Data Management & Quality (Volume, Verification and Reconciliation) Event Driven Processing (Near Real Time ) The move from Batch to Event Driven processing Customer Interaction & Engagement (Portals) Better information, Better Accuracy & Advice

5 Customer Interaction & Engagement

6 54,289 Complaints to Ombudsman (2011 Victorian Energy & Water Ombudsman) 28% more than the year before 197% more than five years ago In % of customers in Victoria complained to the Ombudsman!

7 Certainty of supply Certainty of price Accurate Bills Climate friendly energy sources (ie renewables) Information and assistance on how to reduce their energy expenditure

8 Customers don t want to talk to you! Customer want access to timely, relevant and accurate data at a time and place that suits them (ie. the web) If the only interaction you have with your customer is via their monthly bill, you are in trouble! Customer Interaction and Engagement will be via a web-based Energy Portal

9 REAL TIME CALCULATION

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15 Portals with poor data will: Generate even more complaints Reinforce negative suspicions Ultimately Lose customers Where is the Data?

16 Data Management & Quality

17 Standing Data Meter Data Reconciliation Approximately 5% of NMI s have revenue affecting errors ie: out of sync with MSATS Our experience is that Meter Data for Type 1-4 Meters and AMI meters is generally high quality Most Market Settlement,NREC, BREC issues are due to incorrect Standing Data. Data errors result in Revenue Leakage for Retailers of 1% to 5% of Gross Revenue (lower in DB s) However, it is common for Meter data to be missing, reissued or sent incorrectly to the wrong participant. This is actually a standing data issue. Network Bills represent approximately < 50% of Gross Revenue for Retailers. ALL Network Bills contain errors! STRANGE BUT TRUE: Some Retailers do not reconcile their Network Bills, some use inaccurate tools, partial recon s or estimates

18 Massive Increase in volume due to Smart Meters Further increase due to Appliance Data and churn The velocity of data is also increasing Every transaction, every version, every update must be stored These issues are not a problem if you have the right architecture and tools in place. The solution is to separate Standing Data and Meter Data from other systems (ie.portal, Billing)

19 Accurate Standing Data and Meter Data are critical in the bill calculation process (both Network & Retail) Any customer Interaction (Portal or Bill) MUST be based on accurate data Over the coming years ALL participants will put much greater emphasis on reconciling their data. This requires an automated software solution. Q: How many business s Reconcile their bank account (100%) Q: How many Participants reconcile their Standing Data & Meter Data (?)

20 The move to Event Driven Processing

21 What is Event Driven Processing? Significant Architectural change at system level As data arrives the appropriate business process is initiated, and results generated Atomic level ie. single NMI or customer Its more than In Memory computing Why Do It? It allows Customer Responsiveness It supports better Management Decisions

22 Current Mode Data Arrives and is acknowledged EOD Processing occurs Information is available next day EOD, EOW, EOM, EOY Processing produces most information Future Mode Data Arrives and is acknowledged Data is processed immediately Information is available Immediately, or ad hoc EOD, EOW, EOM, EOY still occurs where required

23 Customer Facing Systems (CRM, Billing, Portal) Low Impact Med Impact High Impact Portal CRM Billing Operational Systems SDR, MDM, N.Recon, B.Recon, Data Warehouse Financial Systems (AR, AP, GL, Analysis) All DataWarehouse Standing Data Meter Data Reconciliation Exec Mgmt Systems (Dashboard, Reporting, Analytics) Reporting Dashboard Analytics

24 How can Smart Grid Value be created for End Users? Data Management & Quality Accurate Billing Lower $Rev Leakage Lowe Cost to Serve Happy Customers Higher Profits Event Based Processing Real Time Results Better Decision Making Faster Mode of Business Customer Interaction & Engagement Informed Engaged Satisfied Customers Less Complaints Lower Churn

25 Thank You Mike Hamilton