energy
made
better
Presentation to RSS Local
Group at University of Reading
12th November 2007
Dr Richard Westoby (SSE)
Background
Scottish and Southern Energy plc
Supply:
8 million customers
gas, electricity, telephone
Distribution: electricity and gas
Generation:
2nd largest generation business in UK
Largest generator of renewable energy
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 0845 777 6633
Background
Government Policy
“..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
Trial Overview
Programme Scope 1
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 2
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
Involved Parties
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
Vodafone
Orange
Metering Data Management and Web Hosting
Accenture
Pay As You Go
Ampy / Logica / Paypoint
Trial Overview
Perth and
Alyth
(Community)
Newport and
St Athan
(Community)
Basingstoke
and
North Leigh
(Community)
energy
made
better
Surveys, Sample Groups
&
Experimental Design
SCALE OF THE PROJECT
 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
CUSTOMER GROUPS
 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
energy
made
better
Smart Meters
Smart
Meters
Smart
Meters
Smart
Meters
Smart
Meters
Smart
Meters
energy
made
better
Real Time Display Pilot
Real Time Display Pilot
Real Time Display Pilot
energy
made
better
Additional
Information
energy
made
better
Time of Use Tariffs and Efficiency
Incentives
Tariff Incentives in General
 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 the SSE Pilot
 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.
energy
made Community Trials
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
energy
made
better
ANY QUESTIONS
?