A Scoping Study: Possible lessons for smart meter rollout from Natural Gas Conversion in Britain

Transcription

1 A Scoping Study: Possible lessons for smart meter rollout from Natural Gas Conversion in Britain Page 1 Scott Laczay Centre for Energy Policy & Technology (ICEPT) Lessons from Historical Experience of Energy Transitions EPSRC/ E.ON funded Transition Pathways to a Low Carbon Economy Project Workshop Imperial College London 24 February 2010

2 Outline Identify hypothesis Discuss approach to research Establish historical background and context Identify smart meter challenges Discuss relevant Challenges of Conversion Identify and discuss findings and possible lessons Page 2

3 Hypothesis The experience of British natural gas conversion provides lessons for future energy transitions, specifically in smart meter deployment. Page 3

4 Approach Literature review Resource limitations Primary sources from National Gas Archives Potential primary sources from those directly involved in conversion Through National Gas Museum Page 4

5 Objectives Identify challenges in Smart Meter rollout Identify themes and relevant challenges in Conversion Identify possible linkages between the two Establish relevant lessons learned from conversion, applicable to smart meter rollout Page 5

6 Gas Conversion History Prior to manufactured town gas First receipt of LNG In First major British gas discovery in North Sea Gas Council decides all British appliances would have to be modified because of the different properties of natural versus manufactured gas Page 6

7 Gas Conversion History Technical challenge: Town v. natural gas properties Gas Council had two options: Reform natural gas Convert all appliances Conversion was significantly cheaper Page 7

8 Gas Conversion History The Process Area Boards each created conversion plans Areas were segmented based on natural gas availability and infrastructure The programme involved multiple visits to premises Thousands of appliance models needed kits created for them Infrastructure was enhanced during the programme Page 8

9 Smart Meter Challenges By the end of 2020, the UK Government intends to have rolled out electricity and gas smart meters to every domestic premise in the nation. Nearly 47 million gas and electricity meters will be needed This roll out will be mandatory However, meter distribution and installation will be left to private energy providers. (DECC, 2009) Page 9

10 Technical Smart Meter Challenges Interoperability Communications DECC is pursuing a central communications model Page 10 Testing new technologies Managerial Co-ordinated deployment of meters at the local level Issue of privatised energy industry

11 Smart Meter Challenges Workforce Training of certified workers for the duration of the rollout period Public relations Encouraging and enabling consumer engagement Sharing information about smart meters to customers Customer contact and preparation for installation Page 11

12 Smart Meter Challenges Important differences Gas industry during conversion was a public utility Gas and power industries are currently private Smart meter rollout will be left to each of the private suppliers to handle Page 12

13 Conversion Challenges Management Structure Twelve Area Boards Gas Council 1. How to approach the existing system so that conversion rollout would be organised, efficient and coordinated? 2. Meeting the needs of day-to-day business while planning and operating the conversion programme. Page 13

14 Conversion Response Central Coordination Restructuring of the Gas Council Divided into specific units Production, Planning, Marketing Creation of Conversion Executive Dedicated to conversion work Planning, Technical, Purchasing and Marketing (PR) sections Benefited from building close relationships Page 14

15 Provisional Findings The dedicated Conversion Executive was able focus exclusively on the problems of conversion This allowed for central planning and good coordination and liaising between Area Boards and Gas Council Allowed Gas Council to carry on with regular industry functions Page 15

16 Lessons The conversion programme benefited from gas being a public utility Allowed for creation of a centrally commanded programme via the managerial restructuring (Conversion Executive) Currently, energy suppliers are numerous private companies Central coordination allows for much information sharing, efficiency, streamlining and Page 16 therefore effectiveness

17 Conversion Challenges Conversion Workforce Recruit and train enough workers to a high level Ensure that they would work well within customer premises Demeanour, character, appearance Prevent workers from taking employment elsewhere once trained and prior to the contract finishing Page 17

18 Conversion Response Conversion Workforce Contracting workers Training schools Worker grade system Terminal payments Page 18

19 Provisional Findings Conversion Workforce Pre-planning and coordinated efforts with other organisations created an efficient training system Consideration of customer contact was important for initial positive customer relations Financial incentives to encourage contract completion were successful and saved money Page 19

20 Lessons Contracting workers provides a way to easily establish a workforce quickly A good training programme and formal schools with examinations generates high skilled workers Use of a grading system and terminal payments retains workers and prevents costly end of contract training Worker appearance and character will reflect directly on the programme and the company and is important in PR and customer contact Page 20

21 Public Relations Conversion Challenges Explain to customers what conversion involved, why it was necessary and ensure customer participation in facilitating work on C-day Negative media publicity Informing customers of important conversion dates and how to prepare for conversion Page 21Maintaining Imperial positive College Londoncustomer contact

22 Response Public Relations Conversion Executive created the Public Relations Handbook Strong pre-programme PR followed by postprogramme PR when necessary Managing the media Providing as much information as possible to customers Page 22 Post, pamphlets, media ads, posters, community groups

23 Lessons Providing clear information early before the programme allows customers to understand and accept it Ensuring customers understand procedures and specific dates of work saves time and money Having well informed staff aids in disseminating correct information to customers PR is an asset to all aspects of the programme Site work, company reputation, customer contact Page 23

24 London: Challenge of a large city Population Rather different from the rest of 1960 s/70 s UK Complications due to population density and varied types of dwellings Short term letters, often available only outside of business hours and rarely with resident landlords The 1966 census found that 15% of Londoners moved that year, compared to 11% nationally Nearly 200,000 students in the city used temporary accommodation and were difficult to contact and work with Page 24

25 London: Challenge of a large city Access to Premises In nearly all other regions that conversion had occurred in up until London, access to premises posed little problem Creation of Key Officer Tasked with receiving and safeguarding customer s copied home keys Locksmith to enter premises in extreme cases Page 25

26 London: Challenge of a large city Public Relations There was, an atmosphere of mounting indifference on the part of the customer in London (Rhodes et al. 1974) Diverse population that was rather mobile between residences Most Londoners were not committed to any local organisations Most Londoners were subjected to much negative media commentary about conversion experiences over many years Nearly no Londoners were interested in visiting exhibits or showrooms about natural gas and conversion Difficult to sell a unified story of conversion effectively and before C-Day. Pre-conversion PR was fundamentally a failure in London as nearly no customers cared enough about the programme Page 26

27 London: Lessons from a large city Lessons 1960/70 s London is more similar to the rest of the UK today House wives less prominent; change in society means access to premises likely to be more difficult London PR experience highlights major issues of indifference particularly in consideration of today s media saturation Dealing with diverse populations poses a hurdle in providing PR and customer contact to nearly the whole British population Page 27

28 Conclusion Provisional Findings Lessons are applicable to smart meter rollout However, there are significant differences as well Lessons are broad and indicative rather than prescriptive Conversion exemplifies issues faced by a large scale change within a utility Benefit from highlighting unusual issues not typically consider Page 28

29 Provisional Findings Further research Further analyze the differences between the effect of public gas ownership during conversion versus private energy companies during smart meter rollout Research conversion experiences in other countries (USA, Hungary, Netherlands) Page 29