CEER Benchmarking Report on Meter Data Management Case Studies
Due to the ongoing and future technological improvements and as a result of the foreseen full deployment of smart grids and smart meters – depending on the results of the economical assessment – the meter data management (MDM) model(s) and consequent regulatory developments become fundamental. The Council of European Energy Regulators (CEER) does not consider smart grids and smart meters to be goals in themselves, but rather tools to fulfil the provisions of the 3rd Internal Energy Market Package − achieving a well-functioning and competitive energy market − and to help reach the EU energy and
climate targets for the year 2020.
Within the framework of the 3rd Package, policy and regulatory measures are being developed for the deployment of smart meters. The European Commission recently adopted a Communication on „Smart Grids: from innovation to deployment‟ (April 2011) and developed „Recommendations on preparations for the roll-out of smart metering systems‟ (March 2012).
The European Commission‟s Smart Grids Task Force has an Expert Group, EG 3, devoted to looking at the possible development of retail market models within the scope of a smart grid environment.
The use of smart meters and demand response create a need to communicate large volumes of metering data to an increasing number of stakeholders. Customers will have to be able to access the information they need to understand and manage their energy use in order to save money on bills and to reduce carbon emissions. Smart metering energy consumption data will also enable the industry to operate more efficiently. These changes are not without challenges for consumers, and Member States as well as regulators need to ensure that the appropriate protection and support are in place.
This Benchmarking Report provides an overview of meter data management in nine countries: Austria, Belgium, Denmark, Germany, Italy, Norway, Spain, the Netherlands and the United Kingdom.
In most countries the responsibility for metering activities (installation, maintenance, meter reading, data management, etc.) lies solely with the Distribution System Operator (DSO). In two countries (the United Kingdom and Germany), other companies, such as a metering company or/and a supplier and/or a DSO, may also be responsible for metering operations.
The present report illustrates the diversity of approaches to meter data management. There is a variety of different ways to handle with meter data management. The most common approach seems to have centralised access and decentralised storage. This is true in five of the cases; Austria, Belgium, Spain (for gas), the Netherlands and the United Kingdom.
Two of the cases have a strictly centralised approach with centralised access and storage; Denmark (for electricity only, not for gas) and Norway. Italy is moving from a decentralised approach to a strict centralised approach and will join Denmark and Norway in this category.
There is one case where there is a strict decentralised approach, Germany. This is particularly interesting considering the vast number of stakeholders in the German market – about 2,000 stakeholders in electricity market and over 1,500 in the gas market.
Meter data management (MDM) is also an area where many regulatory changes are occurring. In five of the nine case studies new regulation is in place for a new MDM model; Austria, Denmark, Italy, Norway and the United Kingdom.
Many of the participating countries made choices on the MDM model as a result of smart metering roll-outs. The rationale for centralised MDM seems to be strengthened in a smart metering environment because of the increased amount of information exchanged.
The report found that the most important factors for supporting and choosing a particular MDM model are cost efficiency, transparency, data security and efficient processes. Other areas where the countries covered in this report see advantages of the chosen model are greater ability to facilitate the development of smart grid services, governance and proportionality.
There is a clear understanding in all participating countries that the chosen MDM model needs clear rules regarding data access, privacy and security in view of protecting consumers‟ interests while enabling proportionate access to data by authorised parties to ensure that benefits can be delivered.
CEER notes that there are differences in market design and conditions across European markets, such as the number of actors, or the roles of stakeholders involved and thus different MDM models are in place.
CEER considers that efficient and secure information and data access for relevant stakeholders is fundamental for a proper retail market functioning and customer protection and empowerment. At this stage, CEER does not intend to suggest a specific MDM model, whilst bearing in mind that regulation should be output-based and technology-neutral.
Next steps
This Benchmarking Report shows that CEER members are undertaking substantial work in relation to meter data management and in particular regarding issues of access to data, privacy and security.
Some work still remains to be done in order to ensure that smart metering benefits consumers as intended. CEER therefore plans to continue its work on smart metering issues and in 2013, CEER will develop Advice on retail market data management for better retail market functioning.