Market Analysis & Costing Model for Electricity Consumption Data. January 31, 2018

Transcription

1 Market Analysis & Costing Model for Electricity Consumption Data January 31, 2018

2 Project Overview IESO has engaged MNP to assist in valuing the de-identified SME data for third party use. The scope of the project includes the following: o Collect and interpret economic and financial information specific to the use and value of data in various sectors (energy and non-energy) and for various types of purposes (e.g. public, private or research); o Performs high and detailed level analysis and modeling based on the market and business inputs; and o Establish viable options leading to a model that will support IESO s future policy for charging on various third parties using and accessing the de-identified electricity data from the provincial MDM/R. 2

3 Operating Principles Given the sensitivities involved with the monetization of de-identified consumption data, the following principles will be followed: 3

4 Customer Profiles Government Municipalities, Utilities & Crown Corporations Research and Education Private Industry Each group has their own unique needs with respect to the data. 4

5 Pricing Model Alternatives Based on research, the following models have been considered: o Fixed Fee Business Model; o Fixed and Variable Fee Business Model The models have taken into consideration the following: Cost recovery only Revenue generation Differentiated Fees (Non-Profit & For Profit) IESO will determine the appropriate fees for each customer group based on defined operating principles. 5

6 Interviews Participants o Veridian; o MPAC; o OEB; o Fortis; o Hydro One; and o Ministry of Energy. 6

7 Key Themes LDC Consideration: Privacy and security of data is primary concern; Supportive of the process; LDCs have capacity to do data analytics in house; LDCs primary uses of data is for customer billing; Customers may want the option to opt out of having their data shared; Various business uses for custom data requests (e.g. Asset analytics, pricing, CDM business decision and initiatives, drive policy changes, support Municipalities and Government decision making.) 7

8 Key Themes MPAC Considerations: o Royalty structure (Potential future initiative); o Profit Generating > Cost Recovery (Profits reduce costs to consumers); and o Fair pricing is critical. Regulatory Considerations: o Fair pricing; o Estimated request frequency Bi-annually; o Support policy decisions and rate changes; o Data protection is primary concern; o Prefer easy to use online method; o Supports fixed and variable costing model. 8

9 Data Request Costs The costs associated with data requests include the following: Cost Categories Registration & Enrolment Evaluation Legal System Registration Confirm Authentication Controls Finalize registration Privacy Analysis Data Processing Request Confirmation Process Request Quality Assurance Package Data Data Verification Deliver Data 9

10 Preliminary Findings Fixed Fee Business Model Pros o Consistent fee for every request o Reduces the burden of tracking level of effort for requests Cons o Third Parties will have to pay the same rate regardless of the complexity of data requests o Fees may not reflect the cost of data requests for the IESO as the amount of effort greatly varies 10

11 Preliminary Findings Fixed and Variable Fee Business Model Pros o Variable pricing reflects the level of effort required for IESO to prepare data requests o Fixed pricing is simple to employ for IESO o Clients will be able to pay for the amount of information required and scale to fit their needs Cons o Determining the appropriate rates will be critical to ensure cost recovery for IESO o Dependent on the rates, the initial fixed fee may be a deterrent if it is too high 11

12 Next Steps 1. Finalize the pricing model 2. Submit for approval to the OEB 3. Implement Pricing Model for Third Party Data Access Project. 12