1.Smart Metering Implementatio n Programme_ European Utility Week| October 16, 2013 A road to a Smarter Home

2. Introduction_ Smart Home?The first step toward Smart Home is Smart Metering and the use of intelligent meters to Generation and manage energy Distribution measure consumption at home Sub-stations Power PlantRetail Selling Meter Home/ BuildingCTFirst step towards Smart 3. Context_How has consumption being measured up to now?Manual readings or walk / drivebyUser consumption reportsConsumption estimation 4. Which are the main Smart Metering benefits?_Consumers Less and more efficient energy consumption Precise invoice Value added servicesGoverment / Country Better environmental management Less dependencies on external energy resources Competition increaseUtilities Efficient demand planning Less operation costs Investment deferment Regulation compliance Increased customer loyalty 5. Smart Metering is not a question of IF, its a question of WHEN and HOW_ 6. Context_Smart Metering momentum is determined by: Model DefinitionRegulatory Stimulation European Directive: UK Spain First Brazil Legislation Positive Business Case (Feb14) Fraud Incentives / subsidies Avoiding Penalties Operating Savingsx Standardization Interoperability Leadership: Government / utilities Country Conditions Support to energy efficiency Energy dependency on Communications and external metering environment providers development level 7. Success CaseUK_Telefnica is involved in the largest Smart 1, K Metering project in million the world 715Years contra ct42Million manage d meters Million communi cation hubs23 ,4 8. _ success case Telefnica solution_ overview UK Cellular Communications Hub (CH) combined with RF Mesh Low investment in infrastructure: use of deployed cellular networkalready Mature communications technology in continuous evolution Future proofed solution (3G) ready for value added services Secure and scalable solutionBTS 9. SMIP Benefits_ Comply with sustainabil ity Improve policiescustome r Drive service innovatio n to Smart Reduce Home energy consumpt ion 10. Success Case: UK Project summary__UE directive: 80% SM deployment in 2020 UK Mandate: 100% SM deployment in 2020 Meters 53 mill. (electricity and gas)Communication Services Provider30 mill. homes23,4 mill. homesNational Programme for SM implementati on2 of 3 regions (Central and South) 42 mill. Meters (electricity and gas)Managed Connectivity and communication hubs 11. SMIP programme opens the door of the Digital Home to value added services_ Digital Home sustainabili tyIn-home displayDIGITAL HOMEeHealthPreventive Heaters maintenanceSecurityWater Meters 12. Why Telefnica?_ Model based on existing communication networks to assure cost efficiency in long term projects Global Leader company with footprint in 25 countries 314 million accesses Deployed network in continuous evolution (future-proof) Scalability and Security Standardization and interoperability opening doors to innovation and development Telfonica can address transforming projects of e2eenergy smart grids and smart homes_ solutions with industry partners 13. Thanks for your attention_ Emilio Martnez de la Fuente | Telefnica Digital Head of Smart Metering | Global M2M emilio.martinezdelafuente@telefonica.com_13