George Ferreira Ex-ED, Electricity and Energy Nelson Mandela Bay Municipality Port Elizabeth, South Africa
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1 George Ferreira Ex-ED, Electricity and Energy Nelson Mandela Bay Municipality Port Elizabeth, South Africa
2 Overview The history of the NMBM - Pilot projects outcome - NMBM Financial trends What is a smart meter? - Benefits - Cost Commercial and Industrial meters Environment Future smart meters
3 The history of the NMBM AMR Pilot Project 2003 for domestic units across socio economic demographics of NMBM Financial viability study consisting of the following components: o Historical arrears recovery o Managing of bad debts o Messages to customers
4 The history of the NMBM (cont) o Tampering detection o Accurate billing and detection o Water management o Water loss management o Leak detection o Remote disconnection/reconnection o Remote reading of consumption o Time of use metering
5 Pilot projects outcome Questionable whether technology is applicable to low income homes No standard before NRS 049 Compatibility between systems Systems have to be changed to ensure any success Capital investment versus realised returns questionable
6 NMBM financial trends NMBM being a medium-sized city is probably representative of trends in the RSA Overall financial picture changed over the last four years Budget for bad debts increased from R32m in 2011 to R113m in 2012 Gross profit on electricity dropped from 46.3% in 2007 to 30,8% in 2011
7 NMBM financial trends (cont) Free basic electricity total increased by 39% over the last financial year, due to increased unemployment out of customers are on the indigent scheme and get 75kWh of electricity for free per month Consumption reduced by 1% in 2010 and a further 1% in 2011
8 What is a Smart Meter? It is a meter that has the ability to perform complex metering and switch function and communication It be used to reduce MD by switching off load It can be used for customer disconnection and reconnection It can be used to manage losses It can be used for time-of-use (TOU) It can be used as a load recovery tool What other functions make a meter a smart meter?
9 Benefits of Smart Meters in the current economic climate It is doubtful whether for the indigent customers there is any sense in employing this technology at a premium cost for the meter while a large percentage of electricity is supplied free of charge.
10 Benefits (cont) For the high income consumers there could be benefits in TOU metering in recording grid profiles, eg. If a customer can switch 100 units per month from peak to off-peak in the NMBM a saving of about 60c per unit per month can be achieved. That can result is a saving of R700 per annum for the customer as well as a saving for the NMBM.
11 Benefits (cont) At a projected cost of R2 500 per meter the simple payable period of 4 years could be realised. For maximum demand control additional equipment must be fitted by the customer at a high expense. No real saving to the customer and a questionable (at R40 per kva) it relates to R20 per customer if a 0,5kVA ADMD can be achieved)
12 Benefits (cont) It will result in an annual saving of R240 per customer. A policy for disconnection and reconnection for non-payment is often not applied due to political pressure and as such, is of limited benefit.
13 Cost of Smart Meters As experienced during the pilot project, all municipal systems must be integrated to make a Smart Metering System really work. As such, the NMBM will have to install smart meters (or at least and then operate on two different management and billing systems.) At approximately meters, such capital requirements will be R300m which is about 4 times the current capital budget. All other infrastructural upgrades will have to wait. What is the life expectation of a Smart Meter where electrical technology became redundant with in 2 5 years?
14 Commercial and Industrial The NMBM has in excess of on-line smart meters operational for large customers. This seems to be very successful as it allows the customer and the NMBM to view real-time energy usage and profits. The high consumption of these customers and the relatively small number makes perfect sense and easy to manage.
15 Commercial and Industrial (cont) Smart meters for larger customers is highly recommended and should be made available to all customers using in excess of units per month.
16 Environment Currently:- 1. Financial pressure 2. Reduction in consumption 3. Energy shortage 4. More tariff structures for social needs 5. Increased outages 6. More political pressure on customer services across the economic groups Domestic smart meters might not be able to alleviate the above pressures it could actually contribute
17 Environment Changing:- 1. Energy Efficiency 2. Green power 3. Carbon emissions/reduction 4. Distributed generation 5. Drastically reducing prices 6. NERSA permitting small embedded generation
18 Environment DOE seemingly amended the electricity Regeneration Act 12 allows for traders and IPP s. On a typical house using units of electricity, we will be seeing a trend of installing embedded generation of about units of electricity per month. Looking at the future it seems as though the functionality in a smart meter as required in the past might be of lesser importance in the future.
19 Environment In support of the future direction for metering one only has to consider the state of the Nation Address, the National, Regional and Local Green Economy, President Zuma and Minister Gordon s job fund with attractive incentives to see where we should go. There is no doubt that new market requirements based on renewable energy will materialize and special metering will be needed.
20 Future Smart Meters It is quite possible that the future functionality of smart meters will be based on the measurement and support of renewable embedded generation and that the functionality of such meters as envisaged in the past might not be needed.
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