English version presentation VREG Round table 2010-10-5 smart meters


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Introductory presentation for the round table on smart metering in Flanders. Survey results for households and small and medium business energy customers.

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English version presentation VREG Round table 2010-10-5 smart meters

  1. 1. ViA Round Table Conference, 5th October 2010 Consumers and the smart energy meter VREG Survey 2010 What is the attitude of Flemish families toward smart energy meters? Dirk Van Evercooren VREG
  2. 2. Table of Contents <ul><li>Presentation on ‘Flanders in Action’ (ViA) - Policy Platform for smart grids </li></ul><ul><li>Survey design </li></ul><ul><li>Survey Results </li></ul><ul><ul><li>Focus on results for families </li></ul></ul><ul><ul><li>Comparison to companies </li></ul></ul><ul><ul><li>Comparison to results for 2008 </li></ul></ul><ul><li>Conclusions of the Survey </li></ul>
  3. 3. Presentation on ‘Flanders in Action’ (ViA) - Policy Platform for smart grids
  4. 4. Framework <ul><li>Action Plan ‘Flanders in Action’ (ViA) </li></ul><ul><li>Pact 2020 </li></ul><ul><li>Government agreement </li></ul><ul><li>Policy Note on Energy 2009-2014 </li></ul><ul><li>European Electricity Directive </li></ul>
  5. 5. Flanders in Action <ul><li>The energy issue is one of the biggest social and economic challenges at the global level. Flanders wants to play a pioneering role in this area. Flanders has to invest in smart energy and position itself as a green network of cities: a “green urban region” </li></ul><ul><li>In the first place, we have to reconstruct the existing electricity infrastructure into an intelligent network or ‘smart grid’ . That means, among other things, that consumers themselves should produce more electricity , for example by using solar panels, wind turbines or via cogeneration. The electricity network will be better equipped to support the two-way traffic , and using an interactive system, we can also optimally match electricity production and demand </li></ul><ul><li>An intelligent electricity network must deliver the following positive results: </li></ul><ul><ul><li>a better price through improved free market operations </li></ul></ul><ul><ul><li>reduces the impact of power generation on the environment to a significant extent </li></ul></ul><ul><ul><li>as a region, we are less dependent on energy supplies from abroad </li></ul></ul>
  6. 6. Pact 2020 <ul><li>Aim: </li></ul><ul><li>The electricity grid shall be transformed by 2020 into an international, well-interconnected network, to which distributed generation units and new applications can be linked </li></ul>
  7. 7. Government agreement <ul><li>We shall modernise energy meters and optimise energy networks (smart meters and smart grids) in an economically viable, phased and controlled manner </li></ul><ul><li>A large-scale pilot project will become operational during this period of government </li></ul><ul><li>The meters should not only enable a smart grid, including the connection of distributed generation installations, but also provide greater comfort and lower energy consumption for energy users </li></ul><ul><li>They should also contribute to a better functioning of the energy market </li></ul>
  8. 8. Energy Policy document <ul><li>Plans of grid operators for smart meters and smart grids will be pursued </li></ul><ul><li>Crucial criteria in the roll out of smart meters: </li></ul><ul><ul><li>interest of the consumer (cost, energy savings made, effect on behavior, usability of information, improvement of service, privacy, social protection) </li></ul></ul><ul><ul><li>promoting distributed generation </li></ul></ul><ul><li>Laws to embody operating principles of the smart meter, the minimum functionality of the same, invoicing frequency, timeline for deployment, etc. </li></ul><ul><li>Wide public consultation </li></ul><ul><li>Cooperation with the Commission for the Protection of Privacy </li></ul>
  9. 9. European Electricity Directive <ul><li>Annex 1, point 2: </li></ul><ul><li>Member States shall ensure that smart metering systems shall be introduced that will support the active participation of consumers in the smart support for electricity supply </li></ul><ul><li>The introduction of such metering systems may be subject to a financial evaluation of the costs and benefits for the market and the individual consumers in the long term, or a study of which form of smart measurement is economically feasible and cost-effective and the feasible deadline for the distribution of the same. An evaluation of this type shall be made no later than the 3rd of September 2012. Subject to this assessment, Member States, or the competent authority designated by them, shall lay down a timeframe of up to 10 years for the introduction of smart metering systems </li></ul><ul><li>If the deployment of smart meters receives a positive assessment, at least 80% of consumers will be provided with these smart metering systems by 2020 </li></ul><ul><li>The Member States or the competent authority they designate shall ensure the i nteroperability vnteroperability of such metering systems are introduced into their territory, and shall take into account the application of adequate standards and best practices and the importance of developing the internal electricity market </li></ul>
  10. 10. Smart grids ViA - role of VREG <ul><li>Establishing a “Smart grids” policy platform in the context of implementing ViA - breakthrough green urban region - intelligent electricity grids campaign </li></ul><ul><li>Give advice to the Flemish Minister of Energy in formulating the necessary legislation </li></ul><ul><li>Acquiring knowledge and drafting of regulations for smart grids and meters required to implement strategic VREG objectives: </li></ul><ul><ul><li>Improving the functioning of the gas and electricity market </li></ul></ul><ul><ul><li>To be the centre of expertise of the liberalised energy market </li></ul></ul>
  11. 11. Smart grids ViA - role of VREG <ul><li>Follow-up to check whether the objectives and concerns of the Flemish Government and Minister for Energy concerning smart meters/grids are respected (among other things, customers issues with regard to privacy, energy conservation, improved market processes, better matching with distributed generation, etc) and taking initiatives to make appropriate adjustments in case of deviations from government goals </li></ul><ul><li>Building-up knowledge about initiatives arising in the domestic and foreign markets </li></ul><ul><li>Consult with the energy sector (grid operators, suppliers, producers) and other stakeholders (customers, Privacy commission, other sectors, etc.) </li></ul>
  12. 12. Steps already taken <ul><li>Acquiring knowledge - including about developments on smart meters and smart grids abroad </li></ul><ul><li>Several years of consultation already with the energy sector (and other stakeholders) </li></ul><ul><li>Study conducted about possible communication media for smart meters (2007) </li></ul><ul><li>Development of cost-benefit model for smart meters (2008) </li></ul><ul><li>Participation in Voka Smart Grids Platform and Linear project under the “Generations” platform </li></ul><ul><li>Discussion started with the Privacy Commission </li></ul><ul><li>Contribution to working of ERGEG/CESR (European Energy Regulators) concerning these topics </li></ul><ul><li>Website www.slimmemeters.be – www.slimmenetten.be </li></ul><ul><li>Operation of Policy Platform Smart Grids </li></ul>
  13. 13. Platform operation Joint workgroup Various types of initiatives (among others, Linear, Voka Smart Grids, etc.) Policy platform smart networks Network Management Workgroup and distributed generation Market Operation Workgroup and consumers sub-workgroups sub-workgroups
  14. 14. Survey design
  15. 15. Survey design <ul><li>Annual telephone survey of families and small professional electricity and gas consumers </li></ul><ul><li>Aim: to determine their behaviour and experiences in the liberalised energy market </li></ul><ul><li>Period: mid-June to mid-July 2010 </li></ul>
  16. 16. Survey design <ul><li>1,000 families and 1,005 companies (5-200 employees) </li></ul><ul><li>Questions about smart meters put to around 50% of families sample (companies: 100%) </li></ul><ul><li>The presentation focuses mainly on families, but wherever useful, comparisons are made with results for companies and results from 2008 (previous survey with results concerning smart meters) </li></ul>
  17. 17. Survey results
  18. 18. Knowledge about smart meters <ul><li>Although no prior information was provided, 36% had already heard of smart meters (This question was not asked as such in 2008) </li></ul><ul><li>More men (42%) than women (28%) </li></ul><ul><li>Better known amongst: </li></ul><ul><ul><li>highly educated (> 45%) </li></ul></ul><ul><ul><li>those who check the invoice thoroughly (44%) </li></ul></ul><ul><ul><li>those who have a general idea or specific knowledge about what VREG does (49%) </li></ul></ul><ul><li>Less known amongst persons: </li></ul><ul><ul><li>who have not signed an electricity contract (28%) </li></ul></ul><ul><li>38% companies have heard about the smart meter </li></ul><ul><li>Better known within larger companies with more than 50 employees (49%) and companies with high energy costs (50%) </li></ul>
  19. 19. Energy-saving potential of families <ul><li>After a brief clarification, 63% of families believe that the smart meter would help reduce energy consumption by providing better information about it. In 2008, 77% felt that they could save electricity if they had more information about their consumption (apart from the smart meter) </li></ul><ul><li>This percentage was 64% for gas </li></ul><ul><li>Mainly families that have switched over from their standard supplier to a different supplier (73%), tenants (73%) and families with children (72%) are positive about smart meters as an instrument for energy savings </li></ul><ul><li>63% of companies believe that the smart meter is helpful to reduce consumption </li></ul><ul><li>Again mainly larger (67%) and energy-intensive companies (66%) </li></ul>
  20. 20. Savings possibilities of the smart meter for families “ What is the % … that you would be able to save per year, using a smart meter?” Basis: Respondents that find the smart meter useful (n=295) % electricity % gas Basis: Respondents that find the smart meter useful and use gas (n=200)
  21. 21. Electricity savings potential for companies <ul><li>31% of the companies believe that they can save up to 5% of electricity each year with the help of the smart meter </li></ul><ul><li>30% expect consumption savings between 5-10% per year </li></ul><ul><li>11% expect consumption savings between 10-20% </li></ul><ul><li>3% even expect to save > 20% </li></ul><ul><li>Only 3% of the companies do not see any potential of savings </li></ul><ul><li>22% has no opinion </li></ul>
  22. 22. Gas savings potential of companies <ul><li>29% of the companies believe that they can save up to 5% of gas each year with the help of the smart meter </li></ul><ul><li>26% expect consumption savings between 5-10% per year </li></ul><ul><li>9% expect consumption savings between 10-20% </li></ul><ul><li>1% even expect to save more than 20% </li></ul><ul><li>Only 12% of the companies do not see any chance of savings </li></ul><ul><li>23% has no opinion </li></ul>
  23. 23. Information about consumption <ul><li>Significant added value of smart meters for the end-user: faster, better and more detailed information about energy consumption, but: </li></ul><ul><ul><li>What information? </li></ul></ul><ul><ul><li>Through what channel? </li></ul></ul>
  24. 24. What information? <ul><li>Feedback in Euros versus kWh: </li></ul><ul><ul><li>63% opted for information about consumption expressed in Euros, in particular, more women: 75% </li></ul></ul><ul><ul><li>Only 22% opted for consumption information in kWh </li></ul></ul><ul><ul><li>12% want the information both in Euros and kWh </li></ul></ul><ul><ul><li>3% do not know </li></ul></ul><ul><li>Families are mainly interested in comparing the current consumption with the same period for the previous year (84%) </li></ul><ul><li>57% also want to know about the environmental impact of consumption </li></ul><ul><li>44% want to be able to make a comparison with the consumption of other similar families (note: according to sociological research, this is the greatest motivator for more energy-saving behaviour!) </li></ul>
  25. 25. Channel through which families wish to receive information about consumption &quot;How would you like to receive the information?&quot; Basis: 50% of the total sample, excluding ‘Respondents who/that are not interested in consumption’ Results for 2010 (n=446)
  26. 26. Comparison to 2008 <ul><li>Significant reduction in preference for hard copies (91% -> 78%) </li></ul><ul><li>Preference for Internet has increased significantly (54% -> 72%) </li></ul><ul><li>Preference for separate screen has reduced (31% -> 24%) in favour of (digital) TV (24% -> 31%) </li></ul><ul><li>Number that prefers mobile channels remains unchanged </li></ul><ul><li>Age is crucial: </li></ul><ul><ul><li>Young persons (18-34 years): 84% Internet </li></ul></ul><ul><ul><li>55+: 86% hard copies </li></ul></ul>
  27. 27. Privacy <ul><li>An important point of discussion in all countries is the possible infringement of privacy via/by smart meters </li></ul><ul><li>“ The energy company will therefore know how much energy you are consuming at almost any time of the day. Would you consider that a violation of your privacy?” </li></ul>
  28. 28. Privacy <ul><li>86% of families have no problem with the fact that the energy provider will know how much energy they are consuming, at almost any time of the day </li></ul><ul><li>Only 12% regard this as an invasion of privacy </li></ul><ul><li>More older persons (15%) are worried about this than younger persons (10%), and more single persons (16%) than families with children (15%) </li></ul><ul><li>It is primarily the lowest and highest educated persons who see a problem </li></ul>
  29. 29. Invoicing <ul><li>“ The smart meter offers the option of a monthly invoice based on actual consumption” </li></ul><ul><li>47% wish to have a monthly invoice based on actual consumption </li></ul><ul><ul><li>this applies more to university graduates (58%) and tenants (60%) </li></ul></ul><ul><li>50% prefer a fixed monthly amount </li></ul><ul><ul><li>55 plussers mostly prefer advance invoices (64%), while only 4 out of 10 young persons do so </li></ul></ul>
  30. 30. Innovative pricing formulae <ul><li>“ Via the smart meter, the provider can set tariff periods, for example to make electricity cheaper between 10 and 11 am” </li></ul><ul><li>Two out of three families (67%) would consider this in order to reduce the energy costs, especially: </li></ul><ul><ul><li>young persons (76%) </li></ul></ul><ul><ul><li>tenants (77%) </li></ul></ul><ul><ul><li>people with a contract with a supplier other than their default supplier (75%) </li></ul></ul><ul><ul><li>people with a green electricity contract (74%) </li></ul></ul>
  31. 31. Permission for temporary power shutdowns “ Would you agree to temporary power shutdowns for example, at times in which electricity consumption is very high, if you received a small compensation in return for the same, in order to better manage the demand for electricity?” Would you say:” Basis: 50% of the total sample - Results for 2010 (n=472)
  32. 32. Power shutdowns during peak hours <ul><li>“ Would you agree to temporary power shutdowns, if you received a small compensation for this, in order to better manage the demand for electricity?” </li></ul><ul><li>71% strongly oppose any shutdown (84% of the least educated) </li></ul><ul><li>26% agreed to a partial shutdown (33% of tenants, 39% of the smallest consumers) </li></ul><ul><li>Only 2% would allow a complete shutdown during peak hours </li></ul><ul><li>Results similar to 2008 Survey </li></ul>
  33. 33. Use of the ‘smart meter’ as a prepaid meter ““ The smart meter can operate as a prepayment meter, similar to a mobile recharge card. When you charge the card and insert it into the meter. consumption can take place. Would you like to use this function in your main place of residence or for example in your holiday home, or in student lodgings, or not at all?&quot; Basis: 50% of the total sample - Results for 2010 (n=472)
  34. 34. Interest in prepaid meters <ul><li>“ The smart meter can operate as a prepaid meter: consumption is paid for through a pre-charged card inserted into the meter, similar to a mobile phone recharge card” </li></ul><ul><li>There is relatively little interest in this: </li></ul><ul><ul><li>78% have no intention to use this feature, either in the main residence, or in the holiday home or in student lodgings (2008: 81%) </li></ul></ul><ul><ul><li>most 55 plussers (85%) and high-income families (84%) have little interest in this </li></ul></ul><ul><ul><li>20% would possibly use this, and amongst those with the lowest monthly income (net <1,500 Euros), this percentage rises to 25% </li></ul></ul><ul><ul><li>this payment method generates more interest among tenants (30%) than amongst owners (17%) </li></ul></ul>
  35. 35. Conclusions
  36. 36. Conclusions <ul><li>1 in 3 households and companies are familiar with the smart meter </li></ul><ul><li>The smart meter is better known amongst active consumers and persons with higher education </li></ul><ul><li>2 in 3 believe in its savings potential </li></ul><ul><li>2 in 3 opt for consumption feedback in € </li></ul><ul><li>3 in 4 would like to receive information via the invoice and/or via the Internet </li></ul><ul><li>86% of households do not see any privacy issue </li></ul>
  37. 37. Conclusion 2 <ul><li>50/50 invoice based on advance versus actual consumption </li></ul><ul><li>2 in 3 wish to shift consumption according to innovative tariff periods </li></ul><ul><li>7 in 10 have problems with temporary, even partial, power shutdowns </li></ul><ul><li>Prepaid consumption arouses little enthusiasm, amongst a number of tenants, more amongst the lowest-income groups </li></ul>
  38. 38. Thank you for your attention www.vreg.be [email_address]