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Avoiding Utility Bill Shock

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"Avoiding Utility Bill Shock"
A presentation by Gadi Solotorevsky, CTO at cVidya
Presented in the "3rd Annual Revenue Assurance Forum for Utilities" conference in Berlin on April 13-15, 2015

Published in: Business
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Avoiding Utility Bill Shock

  1. 1. BUSINESS PROTECTION © 2015 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA Avoiding Utility Bill Shock 3rd Annual Revenue Assurance for Utilities - 2015 Dr. Gadi Solotorevsky CTO – cVidya Networks Ambassador, Distinguished Fellow and RA Team Leader – TM Forum
  2. 2. 2 Agenda  Reaction to Smart Meters  Pushback: a risk to smart meter deployments  Concerns about the increase in amounts charged in electricity bills  The role of Revenue Assurance in − Preventing Bill Shock − Demand Response Acceptance  Using TM Forum Revenue Assurance best practices  Proactively alerting customers once they deviate from normal consumption
  3. 3. 3  Loss of investment in smart grid − Ineffective DR  Customer satisfaction − Churn  Loss of money − Bad debt − Penalties Why Utilities care about Bill Shock
  4. 4. 4  Peak utilization accounts for huge required investments, and causes many of the grid failures  Peak shaving is the holy grail of utility companies  DR and Active DR are key elements in utilization shaping and peak shaving  Customers not paying or paying inaccurately are − Immune to DR − Consume more energy than normal customers  RA and FM reduce these customers’ utilization, and make them sensitive to DR Demand Response (DR)
  5. 5. 5 Stop Smart Meters Source: http://stopsmartmeters.org/why-stop-smart-meters/
  6. 6. 6 Take back your power Source: http://www.takebackyourpower.net/take-action/10-questions-for-your-utility/
  7. 7. 7 Causes of Bill Shock  Incorrect pricing  Incorrect billing  Back-billing  Problematic transformation projects  Late billing  Incorrect penalties  Meter failures  Clock accuracy  Lack of customer awareness  Fraud
  8. 8. 8 Bill Shock cause – Late billing Source: http://www.thestar.com/business/personal_finance/2014/02/07/why_ hydro_ones_billing_is_under_attack_roseman.html
  9. 9. 9 Bill Shock cause - Back-billing Source: http://www.turn.org/consumer-tools/fight-back/inflated-pge-bills.html
  10. 10. 10 Bill Shock cause – Incorrect billing Source: http://spectrum.ieee.org/riskfactor/computing/it/duke-energy-wrongly-reports-500000- customers-as-delinquent-bill-payers-since-2010-
  11. 11. 11 Bill Shock cause - Systematic billing errors Source: http://www.energychoicematters.com/stories/20141210b.html
  12. 12. 12 Bill Shock cause – Problematic transformation projects Source: http://www.theguardian.com/money/2014/nov/14/gas-electricity-consumers-overcharged-uswitch-study
  13. 13. 13 Bill Shock cause - Clock accuracy Source: http://www.theguardian.com/money/2014/mar/24/npower-bill-shock-economy-customers
  14. 14. 14  Better consumption control (via DR)  Competition − increased revenues by gaining more profitable customers  Grid Control  Regulation requirements and incentives  Costs cuts 14 BTW – Why utilities care about Smart Meters
  15. 15. 15 Opt out statistics – hard to tell Source: http://www.intelligentutility.com/article/12/09/few-and-fewer-opting-out-smart-meters
  16. 16. 16 Opt out statistics – hard to tell Source: http://www.metering.com/smart-meters-canada-hydro-quebec-faces-heat-despite-low-opt-out-rate/
  17. 17. 17 The cost of opting-out Source: http://www.greentechmedia.com/articles/read/pges-smart-meter-opt-out-the-ins-and-outs
  18. 18. 18 The cost of opting-out Source: http://www.bge.com/smartenergy/smartgrid /commonquestions/pages/can-i-opt-out-or- choose-not-to-have-a-meter-installed.aspx
  19. 19. 19 The impact of opting-out
  20. 20. 20 What is your scenario? Smart Meters Smart Utilization Cost cut to utilities Cost cut to customers More opt-in Smart Meters Same Utilization Cost increases to utilities Cost increases to customers More Opt-out
  21. 21. 21 Where RA enters the game Smart Meters Smart Utilization Cost cut to utilities Cost cut to customers More Opt-in Customer education Appropriate DR plans Correct Billing On time billing Fraud mitigation Correct measurement
  22. 22. 22 Revenue Assurance and Bill Shock RA Exists There are best practices There is methodology There are products Don’t waste time re-inventing it Adopt and adapt it to your needs
  23. 23. Use of RA Best Practices Documents by TM Forum Members 20 Respondents, 180 Indications less 38 N/A = 142 13% 19% 19% 19% 25% 27% 33% 44% 38% 44% 50% 38% 33% 47% 63% 56% 44% 44% 38% 31% 38% 40% 20% 6%6% 38%31% (16) (16) (16) (16) (16) (15)(15)(16)(16) 0% 100% GB941-B (RAMM) GB941 Guidebook TR131 GB941-E [1] GB941-D GB941-A(RASK) GB941-E [3] GB941-E [2] GB941-C RFX Not familiar withit and not using it Familiar withit but not using it Familiar withit and using it 23 Use of TM Forum Best Practices1 1: Source, TM Forum, Revenue Assurance Survey 2012
  24. 24. 24 Reactive, Active and Proactive Proactive Monitor problems in real time to investigate corrective response before any revenue loss takes place Identify and resolve the cause of revenue loss that already took place Reactive Active Implement controls and other measures to prevent problems Revenue Assurance
  25. 25. 25 TM Forum - Revenue Assurance Maturity Model Organization Process Measurement Technology RA strategy RA objectives, goals & incentives Organizational fit Sponsorship, ownership, accountability and responsibility of RA Skill set of RA team Business knowledge Relationship with other departments Staffing levels Communications RA planning & review Use of risk management techniques Change management involvement & sign-off In-life product reviews Operation of primary controls Operation of secondary controls Investigation of discrepancies Correction of identified issues RA reporting Adoption & sharing of industry best practice Measurement framework RA control structure Risk mitigation RA control coverage & data quality Leakage & benefits RA control efficiency RA control effectiveness RA productivity metrics Unmeasured leakage Technology strategy Technology acquisition Functionality of RA tool set Access to information Data analysis Use of RA technology Ease of use Degree of automation Revenue coverage Supplier management Provides a method to assess the maturity of business activities that should deliver revenue assurance objectives based on a quantitative maturity model Maturity Model Assessment Areas: RequiresSome AdaptationtoUtilities
  26. 26. 26 Product & Offer Management Customer Management Partner Management Finance Accounting & Collection Rating & Billing Grid & Usage Management Order Entry & Provisioning Based on the the Business Processes Model Assess the completeness and efficiency of existing controls Assess the level of RA coverage in the entire organization Assess the known and unknown leakage risk areas (per business process) Map the systems involved and prioritize the data sources Set priorities for new control implementation and improvements needed Core Business Processes (Order to Cash Flow)  Risk Model based on 7 Business Processes  Pre-defined risks per Business Process Risk-based RA Methodology
  27. 27.  Catalogue of Metrics - 31  Catalogue of Risks - 52  Catalogue of Sub Risks -246  Catalogue of Measures - 231  Catalogue of Leakage scenarios - 125 RequiresSignificant AdaptationtoUtilities27 TM Forum - RA Catalogues
  28. 28. 28 MoneyMap® Building Blocks cVidya Platform - Analysis Layer: Leakage Resolution, Discrepancy Analysis, Leakage Reporting MoneyMap® Configuration MoneyMap® Usage MoneyMap® Rating & Billing Verification cVidya Platform, ETL Administration Collecting & reconciling configuration information from various data sources such as MDM, CRM, Billing, Accounting Monitoring and Recovering revenue lost due to missing or incorrect usage data along the Meter-to-bill route Verifies the rating and billing accuracy based on contract, tariff, meter readings and estimations
  29. 29. 2929 Bill Shock – how to prevent  Incorrect pricing – Price simulation  Incorrect billing – RA Rating and billing controls  Back-billing – RA Billing to CRMs and invoice controls  Late billing – RA Billing to CRMs and invoice controls  Problematic transformation projects – proactive RA  Incorrect penalties – RA Rating and billing controls  Meter failures – RA usage controls  Clock accuracy – RA usage trends analysis  Fraud – both RA and FM techniques adapted to Utilities  Customer unawareness – market education StandardRA
  30. 30. 30 Revenue Leakage Risks  Perform RA Maturity and Risk Assessment  Prioritize key risk areas  Deploy the RA modules that address the key issues 30 Suggested Next Steps
  31. 31. 31 A leading supplier of Revenue Analytics solutions to communications and digital service providers Founded: 2001 300 employees in 15 locations worldwide Deployed at 7 out of the 10 largest operators in the world 150 customers in 64 countries Processing 2.45 Billion subscribers in deployments globally Actively and constantly engaged with leading standard bodies and industry forums Partnering with world leading vendors and trusted ICT/SIs What you should know about us
  32. 32. Africa Asia CALA North America East & Central EuropeWest Europe 64 Countries70 Countries 165 Customers Worldwide 32 USA AT&T, Sprint, Alaska Telecom, Sovernet, ATN, Commnet, Islandcom, CellularOne, Choice Canada Bell Canada, Rogers South Africa - MTN, Vodacom Uganda - Uganda Telecom Zimbabwe - TelOne Ivory Cost - MTN Namibia - MTC, Telecom Namibia Angola - Angola Telecom UK - BT, O2, Orange, T-Mobile, Colt, Three, Sky, VirginMedia, Cable & Wireless, EE Germany - DT, Vodafone, E-Plus, 1und1 France - France Telecom, Orange Spain - Telefonica, Telefonica Moviles, JazzTel Italy - Telecom Italia , TeleTu Switzerland - Swisscom Austria - A1 (Telecom Austria Group) Sweden - Tele2, Telia, Telenor Denmark – Telia, Telenor Netherlands - KPN, Telfort, Orange, Vodafone Ireland - O2 Lithuania - TEO, Omnitel Finland - DNA Portugal - PT, ZON Liechtenstein - Mobilkom Belgium - BICS Brazil - Vivo, TeleSP, TIM, Embratel, Algar Mexico - Movistar/Telefonica, Iusacell Argentina - Movistar/Telefonica, Telecom Argentina Peru - Movistar/Telefonica Chile - Movistar/Telefonica Ecuador - Movistar/Telefonica, CNT Colombia - Movistar/Telefonica Venezuela - CANTV, Digitel, Movistar/Telefonica Guatemala - Movistar/Telefonica, Telgua El Salvador - Movistar/Telefonica, Claro Panama - Movistar/Telefonica, Cable & Wireless Nicaragua - Movistar/Telefonica, Claro Costa Rica - ICE Caribbean’s - Cable & Wireless, Digicel Puerto Rico - PRTC Guyana - GT&T Uruguay – Antel Jamaica - Lime India - Vodafone, Airtel Vietnam - MobiFone Philippines - Bayan, Globe Australia - Three (H3G), Optus Thailand - CAT Singapore - MobileOne Macau - CTM Israel - Bezeq, Bezeq International, Cellcom, Orange, Pelephone, YES, HOT Palestine - PalTel Fiji - Digicel Papua New Guinea - Digicel Sri Lanka - Mobitel Russia - RosTelecom, Uralsvyazinform Ukraine - Kyivstar Belarus - BelTelecom Georgia - Magticom Kazakhstan - KazakhTelecom Turkey - Vodafone Greece - Cosmote, HOL (Hellas Online), Forthnet Albania - AMC (Cosmote), Plus Romania - Cosmote Serbia - Telekom Serbia, Vip mobile Slovakia - Orange Slovakia Bosnia Herzegovina - Telecom Srpske Croatia - Croatian Telecom T-HT Bulgaria - Mobiltel Poland - T-Mobile Macedonia - Vip operator Slovenia – Simobil Hungary - Telenor
  33. 33. 33 Questions? Gadi@cVidya.com
  34. 34. THANK YOU! www.cvidya.com

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