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• Ashley Maistry
• Smart Grid Delivery Lead
• Accenture
• South Africa
Accenture Fast Facts
• Global workforce of 319 000 employees.
• Largest and most diversified group of technology and outsourcing
professionals in the world.
• Generated net revenues of US$30.0 billion for the fiscal year ended 31
August 2014.
• Clients include 91 of the Fortune Global 100 and more than three
quarters of the Fortune Global 500.
• 99 of our top 100 clients in fiscal year 2013, based on revenue, have been
clients for at least five years, and 92 have been clients for at least 10
years.
Accenture Utilities Industry Group – at a
glance
• Aging water and electricity supply
infrastructure
• Limited capital investment to address
infrastructure upgrades
• Non-compliance to revenue collection
procedures resulting in:
o Increasing bad debt
o Increased arrears
• Vandalism of supply of water and
electricity infrastructure
• Theft of water and electricity (both water
and electricity)
Typical Utility/Municipality Issues
Revenue Protection – Using AMI
technology as a Silver Bullet?
Meters
Local Area
Network (LAN)
Data Concentrator
Wide Area
Network (WAN)
Master Station
Endpoint Devices
Meters Communications Infrastructure
Billing
Determinants
Generation
CIS
Customer
Interface
Demand
Response
Mgmt
Outage
Mgmt
Distribution
Planning &
Operation Load
Forecast
&
Settlement
Install.
&
Maint.
Revenue
Protection
Load
Forecasting
& Settlement
System
Demand
Response
Mgmt
System
Asset Mgmt
& Install. Planning;
Field Order Mgmt
Systems
GIS;
Field
Order
Mgmt
System
Outage
Mgmt
System
Meter Data
Repository
MDMS & Analytics
Meter Data Management System
Premise Equipment
Back office
Utility Back Office
Applications
Customer Channels
Services
AMI Benefits Case – Typical benefits tree
Cost Reduction
Revenue Enhancement
Reliability Improvement
Customer Relations Enhancement
Customer Insight
Financial
Customer Service
Load Shift Savings (DR, Avoided Peak rate TOU tariffs from Eskom – bulk City supply)
Asset Maint./Ops Savings (Outages/Voltage/Under-frequency)
Meter Reading Savings (Automated Meter Reading)
Process Improvement (Billing Issues Resolution, improved customer service, accurate billing)
Non-Technical Loss Savings (Theft, tampers, etc.)
Load Shift Savings - Enabler of TOU, Critical Peak Pricing, etc.)
Timely and accurate bills
Call & Walk-in centre savings (Maint., Call Center, Billing
Improved Customer Service (Maintenance, Call Center, Billing Issues*)
Strategic Enabler of the future Network
Enabler of the Smart City/Grid
Network
Enabler of the future needs of the City
Network Control/Grid Control
Technical Loss Savings (Efficiencies and self-healing from “self-aware” network; Reduction in Network Leakages)
Enabler for Cust. to import/export energy (PV, Wind, PHEV, etc.)
Regulated Support
Environmental Stewardship
Regulatory Optimized Power Supply and Demand planning
Customer Conservation Enablement through behavioral savings (energy efficiency)
Meet the Electricity Regulatory Acts requirement (#773)
Connect/ Disconnect Savings (from manual to remote)
The business case is difficult to realise for the following
reasons:
• Significant capital commitment
• Procurement and Contract Management
• Technical component complexity
• Human capacity
• Systems Integration complexity
• Meter to Cash operations
Risk Assessment
Required Business Outcomes enabled by AMI/Smart Metering as a Service
Example of typical AMI Benefits mapped to
Business Outcomes
Options – Investment Decision
Municipality
• Utility/Municipality procured
and owned meters
• AMI systems and operations
provided as a service
• Managed through SLA /
Business Outcomes Service
Field Devices
Option 2
AMI systems
Municipality
• Utility procured and
owned meters
• AMI systems procured
and owned by
Utility/Municipality
• Internal SLA / Business
Outcomes Services
Field Devices
Option 1
AMI Systems
• Full AMI as a Service
owned by Service
Provider
• Rollout by Service
Provider
• Full capability provided as
a business service
Field Devices
Option 3
AMI Systems
Options – Investment Decision
Municipality
• Utility/Municipality procured
and owned meters
• AMI systems and operations
provided as a service
• Managed through SLA /
Business Outcomes Service
Field Devices
Option 2
AMI systems
Municipality
• Utility procured and
owned meters
• AMI systems procured
and owned by
Utility/Municipality
• Internal SLA / Business
Outcomes Services
Field Devices
Option 1
AMI Systems
• Full AMI as a Service
owned by Service
Provider
• Rollout by Service
Provider
• Full capability provided as
a business service
Field Devices
Option 3
AMI Systems
Options – Investment Decision
Municipality
• Utility/Municipality procured
and owned meters
• AMI systems and operations
provided as a service
• Managed through SLA /
Business Outcomes Service
Field Devices
Option 2
AMI systems
Municipality
• Utility procured and
owned meters
• AMI systems procured
and owned by
Utility/Municipality
• Internal SLA / Business
Outcomes Services
Field Devices
Option 1
AMI Systems
• Full AMI as a Service
owned by Service
Provider
• Rollout by Service
Provider
• Full capability provided as
a business service
Field Devices
Option 3
AMI Systems
Purchase Model options: Traditional vs. As-a-
Service Traditional (Buy, Own and Manage) As-a-Service (Buy a Service)
• Utility earns all (the total) the benefits amount accrued from the AMI implementation
• Utility acquires capital assets/ AMI solution: Smart meters, telecommunications infrastructure, multi-vendor master station, meter data management system. Provides opportunity to build “best of breed” solution.
• Provides the opportunity to build in-house skills in distribution management (e.g. Smart Metering, Operations Centre, etc.) technologies
• Capital cost avoidance – Utilities can purchase a monthly service to avoid capital outlay.
• Possibly more suitable for smaller utilities as they may not have the capability to undertake the AMI project in-house, in terms of: Finance and Skills as compared to the larger metros.
• Speed to Market: AMI as a Service can be implemented faster than the traditional in-house .
• Provides the ability to negotiate and performance credits into an SLA.
• Technology and procedural upgrades can be easily accomplished while abstracted in terms of risk
• Requires a significant upfront investment in meters and technology
• Difficult to implement and manage KPIs without specialised skills and experience.
• AMI solutions come with inherent risks that traditional or smaller utilities may not have in order to manage as they are not aligned to the utility’s core business: o Resourcing of a Smart Operations Centre (SMOC) o Management of communications network o Automating traditional manual process to support high volumes o Lack of integration or Business Process Management (BPM). o Unclear Information Technology (IT) governance and
standardisation.
• Large utilities unwilling to consider large technology deployments without acquiring capital assets.
• Pre-engineered system with “out of the box” functionality preventing the ability for customisation with respect to internal business processes/requirements.
• Software and hardware pre-selected by the service provider can result in vendor lock-in: Smart meters, telecommunications infrastructure, multi-vendor master station, meter data management system
• Pre-negotiated prices promotes inflexibility to control operation costs.
Pro
s C
on
s
Financial Summary – Buy the Technology
or buy a Service? Financial & Risk Transfer
AMI as a Service Base Case
Financial & Operational Risk Transfer
How do you choose an AMI-as-a-Service
provider?
How do you choose an AMI-as-a-Service
provider?
Mitigating risk and deriving value from
AMI as a Service (1/3) Selecting a single Smart Metering Service Provider who will coordinate
activities of financiers, meter vendors, field installation teams, customer
communication and systems integration:
1. Financial stability – The “AMI as a Service” provider must be able to
support funding for approximately millions to billions, reducing over a 5-10
year period
2. Meter supply – The AMI as a Service provider must be able to source
meters according to local policy (standards and supplier localisation
requirements)
3. The AMI as a Service must have experience of overall Programme
management office including:
– experience of a complex mass rollout campaign of at least 250 000
meters.
– managing multiple work-streams within an integrated programme
management office.
Mitigating risk and deriving value from
AMI as a Service (2/3) 4. Programme management office for the installation teams, including use of
a mobile workforce management solution to improve speed, installation
quality and data quality
5. A significant amount of Process design including time of use tariff
programming (Credit and Prepaid), customer interaction, meter reading
with integration to billing, routing work requests for alarms and event
triggers, second line support for smart metering field devices and
telecommunications, load shift rules, credit management disconnect and
reconnect. The cascading impact of Change management based on the
new processes including training must be provided
6. System integration of the technical components - the network, new
systems operations, data flows, billing rules, middleware, meter data
management system, analytics using “big smart metering data” to enable
savings in maintenance work and to provide insight into electricity and
water balancing at the distribution level to reduce technical and non-
technical losses
Mitigating risk and deriving value from
AMI as a Service (3/3) 7. Customer acceptance based on a communication campaign using previous
experience of understanding the impact of AMI on customer perception,
behaviour and acceptance of the new Smart Metering infrastructure.
8. Political support based on local economic development, including the
AMI as a Service provider of the full service having local presence / office,
SA job creation from meter assembly, field installation, skills development,
marketing, on-going smart meter operations support from a local office
sourced from local citizens or local staff with a skills development plan
Questions and Close