Presentation to RSS Local Group at University of Reading 12th November 2007 Dr Richard Westoby (SSE) energy made better

Supply: 8 million customers gas, electricity, telephone Distribution: electricity and gas Generation: 2 nd largest generation business in UK Largest generator of renewable energy Background Scottish and Southern Energy plc

Background Scottish and Southern Energy plc Range of green products for customers including RSPB Energy Energy efficiency measures saving customers 7.1GWh 220,000 homes insulated with grants from SSE 560,000 low energy lamps subsidised Energy Efficiency advice line

..put the UK on a path to cut CO2 emissions by at least 60% by 2050 EU Members have signed up for a 20% cut by 2020 (on 1990 levels) Energy conservation plays an important role Energy Efficiency Commitment & Carbon Emission Reduction Target European Directive 2006/32/EC More understanding is required of behavioural impacts Advice and billing information Tariffs Metering Background Government Policy

Information Additional information on bills including graphs Energy efficiency information Monthly energy usage statements Metering data provided over the web Price Incentives A Time of Use Tariff which will offer price incentives to shift energy usage away from peak periods An Incentive to reduce energy consumption Trial Overview Programme Scope 1

Metering Smart Metering - with and without Customer Display Units Remote reading from gas meters via the electric meter Current Cost customer feedback devices Token free Pay as You Go for electricity prepayment customers A range of remote meter communication systems Trial Overview Programme Scope 2

Government Agencies BERR - project sponsors Ofgem - project administrator External Advisers Centre for Sustainable Energy - Ofgem Advisers SSC at Reading University - SSE Statistical Advisers CARBs Team at Reading University IBM – SSE Project Management Questionnaires (Face to Face) Natcen Meter and Display Manufacturers / Comms providers Ampy Horstmann / Technolog GE Energy / Nuri Telecom Current Cost VodafoneOrange Metering Data Management and Web Hosting Accenture Pay As You Go Ampy / Logica / Paypoint Trial Overview Involved Parties

Trial Overview Perth and Alyth (Community) Newport and St Athan (Community) Basingstoke and North Leigh (Community)

Surveys, Sample Groups & Experimental Design energy made better

Total number of customers involved in the project = 28,000 The project is split between 79 trial groups An energy advice leaflet and three versions of additional energy advice tariff variations available for over 4,000 customers 400 in depth face to face surveys (before intervention and after one year) Over 4,000 self-completion surveys (before intervention and after one year) Control groups comprise 5,500 customers approximately 8,000 to get smart meter installation approximately 5,000 to receive real time Current Cost display 1,430 in community trials SCALE OF THE PROJECT

Sub-divisions within each intervention High, Medium & Low Usage Mosaic Classifications (11 Groups) Payment Methods (Direct Debit, Cash/Cheque, Pay-as-you-go) Fuel type (Electricity only or Electricity & Gas) Different levels of trial awareness & commitment CUSTOMER GROUPS

Smart Meters energy made better

Smart Meters

Real Time Display Pilot energy made better

Real Time Display Pilot

Additional Information energy made better

Time of Use Tariffs and Efficiency Incentives energy made better

Customer response to more sophisticated price messages are a key economic benefit. International experience in customer trials is encouraging. Technology allows very complex tariff structures but customers require simplicity. Time of use tariffs should shift demand patterns reducing costs (particularly network costs). Time of use tariffs may also help reduce the overall level of demand. A separate efficiency incentive to reduce overall demand will also be tested. Tariff Incentives in General

Alternative tariff is designed to be revenue neutral for typical usage pattern. Customer will get benefit of savings but will not be required to pay more on alternative bill. Weekday and Weekend rates will vary. Charges will be set at a higher rate in Winter (Nov, Dec, Jan & Feb). Charges will be highest in the hours around tea time and lowest at night A sample of customers will be able to claim a refund for a reduction in consumption. The impact of the different types of tariff intervention will be decomposed. Tariff Incentives in the SSE Pilot

Community Trials energy made better

The communities Three communities One in each of our areas North Leigh - Witney Oxfordshire North Leigh Energy Efficiency Project Alyth – Perthshire Climate Action Town Project St Athan - Welsh community

CONCLUDING COMMENTS WHAT NEXT ? Complete delivery of the programme Collection of survey and usage data Analysis of data Policy implications from results

ANY QUESTIONS ? energy made better