1. Smart metering update Andrew Neves 4 August 2011 1 | Energy Networks Association - DCMF

2. Overview 4 August 2011 2 | Energy Networks Association – DCMF Government is pushing smart metering as a key part of its climate change policy Department of Environment and Climate Change (DECC) is leading, and has established large team in Whitehall Many work groups and sub-groups have been established, including a ‘hot house’ to finalise meter specifications Both Energy Retail Association (ERA) and Energy Networks Association (ENA) are very active Roll out by 2014 for profile class 5-8 customers, and 2020 for remaining non half-hourly customers 50 million meters to be replaced (gas and electricity)

3. Smart Meters Programme: Stakeholder & Industry Advisory & Working Groups SRO Design AuthorityPMOProgramme Director DECC Smart Meters Projects Implementation Co-ordination Group Smart Meters Design Group (Alan Claxton ENA) Business Requirements & Process Re-design Privacy Advisory Group Security Technical Expert Group Consumer Advisory Group DCC Group Roll-out & Consumer Engagement Group Overall Design Advisory Group (ODAG) Ministerial Implementation Co-ordination Group DECC Smart Meters Advisory Groups DECC Smart Meters Working Groups ESoDR* Tarriffs Pre Payment Meters PPM Elec Meter Varianrts HAN Home Area Network Installation & Maintenance Difficult Property Types Gas Meter Variants Access to Data IHD In Home Display Micro- generation Normative references Gas meter battery life Architecture Application Layer Use Cases Data modelling Inter- operability User Requirements Specification DCC Licensing & obligations DCC Cost Recovery / Incentives/ charging DCC Licence Applications Regulations DCC Procurement Strategy DCC Cost adoption criteria & values WAN User Requirement s Planning Delivery and Operations Group (PDOG) DCC Smart Energy Code DCC Roles & at customer premises DCC Non- Domestic issues Consequenti al changes – codes & licences Roll-out operational issues Consumer Engageme nt Benefits Realisation Privacy & Data Access *ESoDR = extended Statement of design Requirements

4. Data from smart meters 4 August 2011 4 | Energy Networks Association – DCMF Data Communications Company (DCC) will be established to communicate with all domestic smart meters on behalf of industry parties DCC will not have a monopoly for non-domestic meters Smart meters will measure and hold ‘period consumption’ Significant privacy issues around which parties see what granularity of consumption data Smart meters will provide many types of alerts (e.g. power lost, terminal cover open, maximum demand exceeded, etc.) Strict rules (as yet unspecified) will govern which parties can program meters or receive alerts and data

5. Implications for DUoS charges 4 August 2011 5 | Energy Networks Association – DCMF Supplier tariffs likely to become more diverse and dynamic This may make ‘de-linking’ increasingly attractive? Profile class 5-8 customers will be early movers to smart metering – see ‘P272’ and ‘DCP103’ Move from profiled NHH data to ‘real’ profiles brings potential for more focused DUoS price signals Site-level billing of all DUoS may be feasible – but very significant issues surround this Tony McEntee floated some ideas at the last meeting DCMF should build on these and start debating options