Government Business

The government’s formal response at the beginning of December about the next steps in the roll-out of smart and advanced metering will give energy and facilities managers in the public sector food for thought. All larger buildings will have advanced metering installed by 2014. However, smaller non-domestic buildings will have the option of choosing either advanced metering before the end of 2014, or waiting for smart metering at some point between now and the end of 2020. ESTA believes that for nearly all public sector non-domestic buildings, there are advantages to be realised from opting for advanced rather than smart meters.

Smart & advanced meters
Both advanced and smart metering should mean an end to estimated billing, clearing the way for all sites to be able to implement effective energy management strategies. The question is how to achieve an integrated strategy across the whole portfolio.

In the government’s response, it sets out a number of features of both types of meter. In practice, there is not a great deal of difference between the two: it is proposed that there will be a facility to disconnect supply on domestic sector smart meters, but this will not be the case for non-domestic meters; the domestic meter is supposed to have two-way communication but it is not clear how this will necessarily benefit the customer; and real time displays are only being mandated for domestic consumer use, not non-domestic customers.

The government sees the main benefit of smart metering in the development of smart grids, but it is not explained why advanced meters cannot interact with these. Indeed, ESTA believes that advanced metering as currently envisaged will be quite capable of supporting the development of smart grids.

ESTA believes that the main difference between smart and advanced meters is the way in which data is supplied to customers. Advanced metering offers users the opportunity of channelling information to control and management systems via internet links – which offers far more flexibility than the ‘direct to display units’ designed for smart metering.

Thresholds
The current thresholds for smart/advanced metering are as follows:

Electricity

• Profile 5 and above (equivalent to an annual expenditure of around £5,000 at current prices) will receive advanced metering before the end of 2014
• Profile 3 and 4 will have the option of advanced or smart up to 2014 (longer if contracts are already in place or there are technical issues)
• Profile 1 or 2 – domestic consumers will have smart metering fitted by 2020.

Gas

• Annual consumption of more than 732MWh (around £18,000 at current prices) – customers will receive advanced metering by 2014
• Non-domestic users below this level have a choice of advanced or smart meters up to 2014 (longer if contracts are already in place or there are technical issues).

So there are a large number of customers with smaller sites that have a choice over the next few years – the advanced or smart route for metering. Our belief is that most, if not all, non-domestic customers will find advanced metering more flexible and gain more benefits from adopting this type.

Choosing advanced metering
For most public sector organisations, the number of sites with significant gas and electricity consumption will mean that they are already committed to the advanced metering route. These larger sites are likely to have some form of coordinated energy management processes, perhaps integrated within a single multi-site system. It therefore makes little sense to have smart meters at other sites which are not linked into the overall network. An integrated strategy involving advanced metering at all consumption levels is likely to be less expensive, less cumbersome to operate and more effective in controlling costs, consumption and emissions.

In terms of communicating with different sites, advanced meters will be able to take advantage of advances in internet communications, reducing hardwiring or dedicated telecoms links. This option is not likely to be available with smart metering, at least in the short term.

Advanced metering is a relatively developed technology, with a competitive market for products and systems – one that is driven by innovation and response to customer demand. We believe that the Central Communications approach which the government prefers for smart metering will not lead to such a flexible, responsive market.

Choosing advanced metering also means that you, as the customer, can select the data collector and negotiate arrangements for data delivery; you therefore have greater control over costs and systems architecture.

Incentivisation
Over the last few years, the government has in fact incentivised the implementation of advanced metering systems such as Automatic Meter Reading (AMR) and automatic Monitoring & Targeting (aM&T). AMR is required under certain circumstances by Part L of the Building Regulations, applying to both new and refurbished buildings. Part L also gives an allowance against the Target Emissions Rating if aM&T has been installed.

Equally, the CRC Energy Efficiency Scheme, which will affect all public sector organisations, gives ‘early adopter’ benefits (specifically in terms of enhanced league table position) for those with aM&T schemes. Also, in connection with this scheme, participants will need to report on gas consumption for all premises with a gas demand of more than 73.2MWh (within the consumption band where there is a choice between smart and advanced metering). Without advanced metering linked into a central energy management system, such properties will have to be accounted for separately.

The new revision to the Energy Performance in Buildings Directive (EPBD) will mean that, in the near future, public bodies will have to produce Display Energy Certificates (DECs) for much smaller buildings. A number of aM&T (advanced) metering systems can produce these automatically.

For all these reasons, public sector organisations should think carefully about opting for advanced metering across their estates. But remember, the option is only there until 2014: equipment must either be in place by then or contracts for installation after that date must already be in place. Advanced metering is the smart option for the public sector – but don’t miss the boat!

About ESTA
The Energy Services and Technology Association (ESTA) represents over 100 major providers of energy management equipment and services across the UK. For more details visit the website at: www.esta.org.uk

The Association organises an annual, free conference on advanced metering (aM&T) for energy and facilities managers in February. More details on the website.