Smart Meters

1
Smart Meters

• Simon Mackenzie, Group Chief Executive (acting)

2
Vector has created a JV for future metering

• Announced the formation of a 50/50 joint venture
  with Siemens
• Independent metering services business
• Asset ownership in different entity
• Focus is NZ and AU transformation to advanced
  metering
• Rationale is combination of local capability and
  position, with international horsepower
• Siemens Energy Services UK
• Manage 10 million meters
• 2.5 million prepay
• Involved in deployments around the world
• Key characteristic is technology/communications
  agnostic

3
Market activity towards advanced metering

• The decision making relating to transformation
  from dumb to advanced metering is happening now
• Meridian Energy replacement of 100,000 ICPs
  upgraded before 2008
• Retailer RFP - 1,000,000 ICPs upgrade by 2013
• Increased regulatory interest relating to
  advanced metering
• Vector initial deployment of 10,000 advanced
  meters

4
What is the transformation to advanced metering?
FROM
TODAY
Electronic pulse output
Ferraris disc
METERING

Drive-by RF
COMMS
Meter reader

UTILITY FOCUS
Better data Reduced costs
Reliable billing data

END USER EXPERIENCE
Pay the bill
Smoother service
5
What are the market requirements?

• Capable of recording interval data
• Remote two way communications
• Remote tariff change
• Remote reco/disco
• Record and push events outage, tamper, power
  quality
• Take multiple inputs
• Gas (reticulated bottled)
• Water
• Activate load control (hot water and other
  devices)
• Electronic connectivity between utility systems
  and advanced metering systems
• Industry protocols for exchanging data and its
  form

6
Retailers and distributors both want services
7
Do the economics stack up?

• Business case achieved via
• Avoided field services costs
• No estimates or special reads
• TOU pricing (back to distributor)
• Load control
• Reconciliation of unaccounted for energy
• Generation management
• Sharing of benefits is a key consideration
• Consumers
• Retailers
• Distributors
• Meter asset owners
• Communications and other service providers

8
What is the technology available to deliver the
benefits?
9
In home display next generation