Enexis - Vodafone

Vodafone Global M2MEnexisCase StudyVodafone helps Enexispower ahead with smartmeter roll-outm2m.vodafone.com

Vodafone Global M2MVodafone helps Enexis powerahead with smart meter roll-outEnexis is one of the largest energy network operatorsin the Netherlands, managing around 4.5 millioncustomer connections. As part of a European Uniondirective that 80% of homes must be able to monitorelectricity consumption by 2020, it needed to roll-out asecure smart metering solution. Vodafone provides theM2M infrastructure to support the roll-out, and offersconsultancy on best practice and strategic planning,particularly from its experience in the global energy sector.2

EnexisThe needEnexis is an independent grid operator andone of the largest energy distributors in theNetherlands. Working with energy suppliers,it manages 2 million gas and 2.6 millionelectricity connections to customers in sevenprovinces, representing approximately onethird of the Dutch market.In 2008, a European Union (EU) directivestipulated that 80% of energy customersmust be able to monitor energy consumptionby 2020. The Dutch government respondedby making a legal requirement for energyoperators to install smart metering technologyin homes. To meet these targets, Enexiswill need to deploy approximately 5 millionsmart meters, each transmitting energyconsumption data once a day, every day.Since 2011, Enexis no longer installsconventional meters, every new meterinstalled in the grid is a smart meter.This means that during the first few yearsof roll-out, smart meters are installed acrossthe grid.To achieve this, Enexis had several options.Routing data via Power Line Connections(PLC) was impractical because, to workeffectively, entire districts would have toinstall smart meters simultaneously.With the initial roll-out limited to replacingfaulty meters and new installations, this wasnot viable. Transmitting data via WiFi, anotheroption, would mean home owners needing aguaranteed connection.“Because we install smart meters that arescattered across our distribution network, themost effective solution was GPRS over M2MSIMs,” says Lonneke Driessen-Mutters, SmartMetering Operations Manager at Enexis.M2M SIMs installed in smart meters wouldbe able to transmit data via Vodafone’scomprehensive mobile coverage inthe Netherlands, with no homeownerinvolvement and minimum installation effort.Enexis invited a number of mobilecommunications suppliers in the Netherlandsto tender. After careful consideration,Vodafone was selected based on cost andservice commitments. In addition, Enexisalready had a relationship with Vodafone,as they provide approximately 3,000 of thecompany’s voice and data connections, sothey knew the service they could expect.“We’re owned by local government, so ourmoney is public money. The solution had tobe cost effective as we have to be careful whatwe spend,” says Driessen-Mutters.3

Vodafone Global M2M“The solution has beenreally well received byhomeowners, they appreciatebeing able to see their energyconsumption in real-time.”Lonneke Driessen-Mutters,Smart Metering Operations Manager,EnexisThe solutionA Vodafone SIM is integrated into the smart meter and transmits energy consumption data toand from Enexis’ data centres. An SMS ‘activates’ the smart meter each day, measuring energyconsumption data from the home. The smart meter then transmits the data via GPRS and thenswitches off. This reduces power consumption and keeps transmission costs to a minimum.The SIM installation is supported by Vodafone’s ordering and activation system, using web-basedtools to ensure high volumes of SIMs are delivered and managed. Real-time information on everydevice, including data usage, is integrated into the Enexis back-end systems. Vodafone’s M2Mplatform manages the SIM throughout its lifecycle including solution design and optimisation,logistics, installation, customer care and customised billing.The initial roll-out covered 3,000 smart meters, but has since been extended to approximately100,000 locations, with plans for a further 150,000 installations in the near future. This will be thenatural replacements of conventional meters, added to requests from individual customers whocan receive a priority installation of a smart electricity and gas meter for €60.“However, if we only install smart meters as a natural replacement and at the request of a customer,this rate of growth will not be enough to meet the EU targets,” says Driessen-Mutters. “We thereforeat some point will expand the roll-out by going door to door installing smart meters.”4

EnexisThe benefitThe roll-out has not been without its challenges. At one point,Driessen-Mutters suspended the roll-out. The smart meter solutionhad not reached the required level of service, and needed reviewing.Vodafone’s response was to initiate a three-month, cross party ServiceImprovement Plan (SIP) led by the Vodafone Global M2M service deliveryteam. The intervention resulted in an immediate improvement in end toend service availability and the roll-out schedule resumed.“All new business comes with start-up problems. Smart metering isnew to everybody; to customers, to energy networks, to meter vendorsand to IT system providers. It’s a complex ecosystem and we’veexperienced teething problems with every partner we’ve dealt with,that’s understandable. I will say that we’re really pleased with howVodafone has responded. They’re listening, responding and improvingthe cross party service really quickly,” says Driessen-Mutters.Vodafone’s SIP has been so successful that it is now being used asa template for other Enexis suppliers. The SIP also helped balancethe mix of local response and global outlook. Enexis has sufficientresources to address challenges locally while being able to accessVodafone’s global M2M insight to provide strategy and best practice.“If there’s something we realise we need, Vodafone is able to put it onthe roadmap,” confirms Driessen-Mutters.For example, while the roll-out has attracted little media scrutiny,privacy concerns have been raised in the Netherlands. The smart meterprogramme was delayed by Parliament until assurances on privacywere in place. In response, Vodafone encrypts all data and Enexisimplemented a policy where consumers must opt-in for their datato be scrutinised by energy experts.5

Vodafone Global M2M“We’re really pleasedwith how Vodafone hasresponded. They’relistening, responding andimproving the cross partyservice really quickly.”Lonneke Driessen-Mutters,Smart Metering Operations Manager,EnexisThe impactThe benefits of smart metering for Enexis, the energy suppliers and consumers have been easyto recognise.Compared to manually collecting meter readings, smart meters are a far more accurate andefficient way for energy suppliers to collect data. By not having to chase consumers or dispatchstaff to read meters, costs are also reduced. Energy suppliers are also able to monitor usagepatterns more effectively, thereby anticipating spikes and planning supply. Previously, suppliersoperated at a maximum demand which encouraged oversupply, the data from smart meters nowenables more accurate forecasting.Part of the EU’s justification for smart meters was that consumers will lower their energyconsumption once they are able to see their usage: If you can measure it, you can manage it.This is supported by early trials, although Driessen-Mutters is cautious about predicting long-termbehavioural change. At the very least consumers will be able to identify high-price periods andmake adjustments accordingly.With smart metering, estimated bills are no longer appropriate and consumers can see real-timedata on spend. Suppliers are able to tailor tariffs and advise customers of alternative products whichsave them money and increase customer satisfaction.“The solution has been really well received by homeowners, they appreciate being able to see theirenergy consumption in real-time,” concludes Driessen-Mutters.6

EnexisExecutive summaryNeed:Following a European Union directivestipulating that at least 80% of homes mustbe equipped with smart metering systems tomonitor electricity consumption, Enexis, oneof the largest energy network operators in theNetherlands, needed a reliable and securecommunications infrastructure to supportsmart metering.Solution:A Vodafone Machine to Machine (M2M) SIM isintegrated into the smart meter and transmitsenergy consumption data to and from Enexis’data centres. Vodafone’s GPRS networkprovides a reliable and scalable solution tosupport this large, country-wide roll-out.Business Benefits:• Vodafone’s M2M capabilities provide Enexiswith the scalability to help Enexis to meetthe legislation targets• Comprehensive national network coverageensures smart metering technology can beimplemented throughout the Netherlands• Vodafone’s dedicated M2M business unitoffers best practice and strategic planning,particularly from its experience in the globalenergy sector• A dedicated Account Manager, providesa single point of contact to address anychallenges and review and improveservice levels“We’re really pleased with how Vodafone has responded.They’re listening, responding and improving the crossparty service really quickly.”Lonneke Driessen-Mutters,Smart Metering Operations Manager,Enexis7

With a standardised platform across the largest global 3G network, Vodafone Global M2M enables company systemsto communicate across borders and empowers organisations to transform their operations and business potential.This provides freedom to explore new market opportunities, the information and insight to make business processand practice simpler and more cost efficient, and with access to real time data, more control to better manage costs.m2m.vodafone.com0249/07.12_8/ISMVodafone Group 2012. This document is issued by Vodafone in confidence and is not to be reproduced inwhole or in part without the prior written permission of Vodafone. Vodafone and the Vodafone logos aretrademarks of the Vodafone Group. Other product and company names mentioned herein may be thetrademarks of their respective owners. The information contained in this publication is correct at time ofgoing to print. Such information may be subject to change, and services may be modified supplementedor withdrawn by Vodafone without prior notice. All services are subject to terms and conditions, copies ofwhich may be obtained on request.