Towards being a smart energy enabler - meeting customers expectations on the energy market. Annika Viklund, CEO Vattenfall Eldistribution, Sweden
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1 Towards being a smart energy enabler - meeting customers expectations on the energy market Annika Viklund, CEO Vattenfall Eldistribution, Sweden
2 The European energy market is undergoing major changes Currently challenging conditions on European energy markets - The energy sector is under pressure from low prices, low demand for electricity as a result of the economic recession, and a surplus of production capacity. - Significant increasing share of renewable energy in the market mainly wind power and solar energy has contributed to lower prices. - Fukushima has resulted in a phase of out of the German nuclear power plants until 2022 which is being replaced by renewable energy - Need for transmission capacity and development of Smart Grids to facilitate a larger share of intermittent renewable energy production This is what we believe will be The new normal
3 Drivers for change in the energy landscape European 20/20/20* targets European goals for security of supply Aging assets Customer empowerment More renewables (wind, PV) Less predictable investments Changed generation pattern Changed consumption pattern Production and consumption must be sustainable New requirements on the grids handle intermittent power production New grid investments will be necessary Stricter regulation Business is changing * 20% reduced CO2 emissions, 20% increased energy efficiency, 20% more renewable generation in 2020
4 Vattenfall - From a Swedish to a European energy company Articles of association from the owner The object for the Company s activities is to generate a market rate of return by operating a commercial energy business that enables the company to be among the leaders in developing environmentally sustainable energy production. Vattenfall 1999 Vattenfall 2012 Net sales: MSEK Operating profit: MSEK Electricity generation: 86.9 TWh Net sales: MSEK Operating profit: MSEK Electricity generation: TWh
5 The Swedish state owned company Vattenfall in brief Key facts Production locations Electricity generation 2012 Net sales 2012: 167 billion SEK (19 billion ) Total of 179 TWh 7.8 million electricity customers 4,2 million grid customers 2.1 million gas customers 33,000 employees Sweden, Germany and Holland are core markets Other renewable energy Hydro power Nuclear power Fossil-based power Deregulated markets with significant unbundling
6 Sweden at a glance from a distribution perspective Sweden - one of the largest electricity consumers in the world per capita (~ 15 kwh). The electricity network is km (60% cable/ 40% overhead lines) and availability is 99,98% Population is 9,5 millions and the area is 449,964 km2 = 21 persons per km2. 85% live in urban areas. The temperature varies in between +38C to -52,6C. Internet penetration is 92,8%, 87% has broadband home connection. 60% use smartphone to connect Internet. What does this mean? High price awareness, interest for energy prices and energy efficiency Significant interest for being prosumers High expectations on quality of supply and availability 24/7/365 everywhere! High maturity for social media and internet for information and services. Vattenfall Distribution Sweden Revenues ~1 000 MEUR EBIT ~320 MEUR Investments ~370 MEUR Transferred volume GWh Regional network customers ~215 Local network customers ~ Employees ~700
7 The customer has an important role in developing the electricity market to the Smart future The customer demands for improved availability, leads to development of new working methods and automation Growth of e-mobility drives development and connections of load stations. These new products requiring technical optimization Customers desire to become a prosumer drive development of metering services and methods for production compensation The opportunity for electricity distribution companies to become smart energy enablers is here - customers expectations will lead the way
8 What has been done and what can we continue to develop Smart Meter roll-out: 100% Smart Meter roll-out in Sweden Weather proofing the network: Automation and isolation of middle voltage network 3 4 Fault isolation and restoration: Automatically isolates faults using network automation Restore supply to customers through assisted switching Web consumption reports: Hourly or daily values depending on availability Necessary tool for energy efficiency Part of network service Low voltage monitoring & control: Instant knowledge of customer supply status Improved and optimized outage management Customer outage information: Real time outage info through web/app or SMS Integrated with control centre & single source for info Improved reliability and availability (SAIDI) Estimated time for restoration
9 Customers expectations on the distribution company Trustworthy, maintaining and investing in a safe and stable energy supply 24/7/365 Easy access to information for being energy efficient meter values, prices and outage information Easy access through channels of choice for invoicing information, order new connections, and outage information The customer should not have to spend their time on our business, just enjoying the delivery of demanded service!
10 Customer promises for improving service and building trust - Vattenfall was first in the market 1 New connection Are you a new customer and we are late with you connection you get 10% of the connection fee in compensation. 2 Long outages If you have an outage for more than six hours, we will automatically compensate you with 300 SEK. 3 Repeated outages If you have more than five outages during a 30-day period, you do not pay the subscription fee for that period. 4 Voltage quality You should have the right voltage. If it is flawed and we cannot fix it within 6 months, you do not pay subscription fee from month seven and onwards. 5 Outage information You will quickly get up to date information about outages and interruptions via mobile, web, Interactive voice recording, SMS or . 6 Billing Have we missed to charge you fees that are older than one year, you do not have to pay these. 7 Supplier switches You will get quick help from us if you want to change electricity supplier. If we are delayed you for will our get 300 delivery SEK in compensation. of service 8 Product damage due to electricity If your electrical equipment is damaged by us, we will compensate you better than the general terms. 9 Customer errands You can easily manage your customer errands 24 hours at our website, by logging in to My pages. 10 Environmental commitment Customer promises were developed and launched to our customers to set their expectations We invest in modern technology and develop the network in an environmental effective way to meet the electricity market demand today and in the future.
11 The customer can learn about the consumption by access to their hourly consumption / meter values The customer can view: electricity consumption per year, month, day, hour Contract information and invoice information Compare consumption (compare with others) Information about outside temperature in the surrounding area Add comments on specific days Export meter data to Excel spreadsheet My pages My pages App A service on
12 Outage information via the customer s mobile app The mobile app for Android and IOS offer the customers several services Shows current outages over Sweden Create surveillance of a premise via postal number or map Receive push notices about customers surveillance areas and view status of current outages Report a new outage Receive advise about what the customer can do if experiencing an outage Outage compensation information
13 We continously strive to meet our customers expectations by being a Smart Energy Enabler We are trying out new communication channels such as Youtube We will continue to develop our apps and services on the web We will improve our customer promises to continue to challenge ourselves to develop better service To be a Smart Energy Enabler and a forerunner in serving our customers better - we need to attract the right workforce!
14 A key challenge is to attract competent workforce There is a shortage of qualified workforce all over Europe, in particular engineers Electrical engineers with IT/automation/communication skills are vital to the energy industry in order to be successful in developing Smart Grid technology Many experienced engineers are leaving for retirement coming years We need to attract the available workforce men and women
15 Women diversity is prioritized on our agenda The Swedish government strives for gender equality in the board of state owned companies (currently 49%) In another Scandinavian country, Norway, there has been a law since 2006 for quotation of a minimum representation of 40% of each gender on boards of listed firms Societies and employers are offering possibilities to be able to combine family with children with a professional career (daycare, parental leave, flexible work hours, remote working) In Vattenfall Distribution, we believe that by representing the society structure better and embrace diversity, we are also able to capture all our customer needs and develop our services better
16 We have been working in various ways to increase the number of women in our company All job vacancies are advertised in our company everyone can apply, no direct appointments to management positions We participate in women networks, mentoring programs and women career development programs We strive to create an inclusive culture where everyone feel valued and competence is recognized Today, 27% of our employees, and 50% of our managers are women In the end of the day we cannot afford to recruit among only 50% of the population considering our interesting challenges ahead of us!
17 Thank you!
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