Attitudes towards smart metering among Norwegian consumers Moscow, September 7-10, 2009

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Presentation transcript:

Attitudes towards smart metering among Norwegian consumers Moscow, September 7-10, 2009

What attitudes do electricity customers have when it comes to smart metering?

Until now the Norwegians have read the meter themselves and reported the meter level to the DSO four to six times a year

In a few years the meter readings will be done automatically and consumers will also be offered other services related to the new technology

How will the customers receive these services?

Will they be confident that the readings will be accurate?

Are they willing to pay for the new technology?

And will they be interested in using the additional services on offer?

In 2007 the Norwegian government decided to introduce smart metering to all Norwegian electricity customers

The DSOs are moving towards a major technological shift Perhaps one of the most extensive projects in the history of Norwegian grid operation

All meters are assembled inside houses There has to be made appointments for the changing of each meter

The introduction of smart metering can be seen as a risky project for the Norwegian power industry, having already faced two major crises of consumer trust and reputation during the last six years

Electricity customers as well as the DSOs will benefit from smart metering Continuous monitoring of consumption Simpler invoices Smart metering will also enable electricity customers to access many new, advanced services More accurate meter reading

The present situation

More than 80% read the meter and report the measurements every time or almost every time they are required to Close to 30% read the meter more often to monitor their own energy consumption Source: TNS Gallup Energy Barometer

Norway has the highest electricity consumption per capita in the world This is almost five times the European average The figure includes the electricity consumption in all sectors, not just the household sector KWh Source:

Online is the most frequently used channel of measurement reporting 45% of the electricity customers report their readings through the DSOs web pages While 37% report through an automized telephone service Source: TNS Gallup Energy Barometer

Online is the most frequently used channel of measurement reporting While 37% report through an automized telephone service Source: TNS Gallup Energy Barometer Almost 50% of those over 60 years prefer the telephone to report the measurements

Almost 85% of the Norwegian population has access to the Internet The share is slightly lower among those who have passed 65 years Source: TNS Gallup

Most of them (82%) are positive to be spared from reporting meter readings to the DSO 10% of Norwegian households have smart metering Source: TNS Gallup Energy Barometer

I want contact with and control over the fuse box myself Norwegian electricity customer

Attitudes towards smart metering

Source: TNS Gallup Energy Barometer Proportion with a positive attitude towards smart metering Percent

Are the consumers willing to pay for smart metering?

The customers’ willingness to pay for smart metering is very low, but it increases over time In % responded that they were not willing to pay to have the technology installed Today the proportion is reduced to 65% Source: TNS Gallup Energy Barometer

The arrangement represents considerable savings for the electricity provider and should not cost consumers anything Norwegian electricity customer

The electricity provider will benefit the most because everything will be automated Norwegian electricity customer

Such services will save both parties a lot of trouble and customers should be saved from paying for it Norwegian electricity customer

The confidence in the accuracy of smart metering

The confidence in the accuracy of smart metering is very high 95% of consumers are of the opinion that meter readings will be as good as or better than the current arrangement Source: TNS Gallup Energy Barometer

It is very important that the technology contributes to strengthening the quality of the readings, so corrections can be avoided

Will smart metering affect the consumer’s behaviour?

One of the motives for the implementation of smart metering is to make the consumers more aware of their own power consumption

Mon Tue Wed Thur Fre Sat Sun Electricity prices, last 8 days In Norway, electricity prices are generally lower during the night and during weekends Source: Nordpool

Few consumers (23%) consider it likely that they will change their consumption patterns Source: TNS Gallup Energy Barometer

Avtale om målerbytte Gi kunden anledning til å velge tidspunkt, gjør avtalen en måned i forveien Foil - tid Source: TNS Gallup Energy Barometer Nearly half of the population will not change consumption to periods when prices are lower

I can’t be bothered to track electricity prices by the hour Norwegian electricity customer

To me it is completely silly to change consumption patterns to the time of day when prices are lower Norwegian electricity customer

I use electricity when I need it, regardless of what time it is Norwegian electricity customer

Is there any interest in buying additional services?

Less than 20% state that they are very interested in services such as viewing electricity consumption in real time, viewing the effect of turning electrical appliances on and off, making estimation of the next bill or receiving messages directly from the DSO The majority of respondents are positive towards the services, but very few display significant interest

Conclusion

How will the customers receive these services? - Nearly 60% of the consumers are positive towards not having to read the meter themselves in the future.

Will they be confident that the readings will be accurate? - 95% of consumers are of the opinion that meter readings will be as good as or better than the current arrangement.

Are they willing to pay for the new technology? - The willingness to pay is very low, but it is increasing over time.

And will they be interested in using the additional services on offer? - The interest is moderate. We believe this is due to an immature market.

Thank you for your attention!

Average system price: 0,04 Euro/kWh Total production: 142,4 TWh Out of this 140,3 TWh (98,2%) was hydropower Total consumption in Norway: 128,6 TWh Net export: 13,7 TWh Average consumption per capita approx kWh including all sectors Average consumption per household approx kWh Facts about the Norwegian power market 2008