Bosnia and Herzegovina ( BiH) Regulatory and Energy ...

Metering processes in a retail market

Hans Pipke – DNV KEMA

BiH REAP Closing Conference Neum, 23-24 September 2013

Bosnia and Herzegovina (BiH) Regulatory and Energy Assistance Project (REAP) USAID Contract No. EPP-I-00-03-00004-00, Task Order 5

Implemented by Advanced Engineering Associates International, Inc.

This presentation is made possible by support from the American People sponsored by the United States Agency for International Development (USAID). The contents are the sole responsibility of the author/s and

do not necessarily reflect the views of USAID or the United States Government.

Agenda

9/23/2013

1) Project Background

2) Metering today in Europe (requirements and best practice)

3) Metering Process Framework for BiH

4) Next steps

Metering processes in a retail market 2

Project Background

According to legislation • Free choice of supplier for all non-household customers in Republika Srpska

and the Brcko District from 1 January 2008 • Free choice of supplier for all customers connected at 35kV or above in

Federation BiH from 1 June 2013 • Free choice of supplier for all customers (including households) in Bosnia and

Herzegovina from 1 January 2015 Conduct a cost-benefit analysis for a roll-out of smart metering by 1 January 2014 and if assessed positively roll-out of smart metering to at least 80% of customers by 2020 in Bosnia and Herzegovina

9/23/2013 Metering processes in a retail market 3

Project Background

Regulatory Energy Assistance Project (REAP) and Electric Power Sector stakeholders of BiH identified several gaps in legal and regulatory framework of Bosnia and Herzegovina, among them: • Distribution system operator’s (DSO’s) role as the neutral retail market

facilitator • Metering in the electricity retail market

(with focus on customers connected to distribution network)


Agenda

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4) Next steps


European legal and best practices for metering are developed for a unbundled DSO

Grid Operations

incl. Metering

DSO

Supply of Electricity

Supplier

Grid Operations

incl. Metering

Supply of Electricity

DSO

unbundling


Legal requirements for metering issued from EC (I)

• Member States shall ensure that: … “Supplier switch is effected by the operators concerned in 3 weeks; customers entitled to receive all relevant consumption data.” [EU 2009-72-EC, Article 3(5)].

Metered data (consumption) must be available to supplier within this timeframe.

• Customers … receive a final closure account following any change of electricity supplier no later than six weeks after the change of supplier has taken place [EU 2009-72-EC, ANNEX1 (1) j].

Metered data (consumption) must be available to supplier for billing within this timeframe, because metered data is the basis for that,


Legal requirements for metering issued from EC (II)

• Member States shall ensure that: …“Customers are properly informed of actual electricity consumption and costs frequently enough to enable them to regulate their own electricity consumption. No additional costs shall be charged to the consumer for that service” [EU 2009-72-EC, ANNEX1 (1) i].

• Member States shall define a format for the data and a procedure for suppliers and consumers to have access to the data. No additional costs shall be charged to the consumer for that service [EU 2009-72-EC, ANNEX1 (1) h].

It seems to be agreed in the EU, that a “sufficient time frame” is one month for billing. Metered data (consumption) must be available to customer within this timeframe.

It is the obligation of the member states to define formatting processes to solve the request for metered data. It should be cost efficient because the consumer will not pay for it.


Legal requirements regarding smart metering • Member States shall ensure the implementation of “Intelligent metering systems to

assist consumers’ participation in the competitive market shall be implemented, subject to a cost-benefit analysis and a feasible time frame.” Such assessment shall take place by 1 January 2014

• Member States “shall prepare a timetable with a target of up to 10 years for the implementation of intelligent metering systems”, at least 80 % of consumers shall be equipped with intelligent metering systems by 2020. [EU 2009-72-EC, ANNEX I, §2].

(according to DECISION OF THE MINISTERIAL COUNCIL OF THE ENERGY COMMUNITY, Article 6)

• Member States shall ensure that, “So long as technically possible, financially reasonable and proportionate to potential energy savings, final customers are provided with competitively priced individual meters that provide information on actual time of use.” Such a competitively priced individual meter shall always be provided when: (a) an existing meter is replaced, unless this is technically impossible or not cost-effective in relation to the estimated potential savings in the long term; (b) a new connection is made in a new building or a building undergoes major renovations.

[EU 2012-27-EC, Article 9]. 9/23/2013 Metering processes in a retail market 9

Legal requirements for metering wrap up

• A good quality metering data is required to ensure the functioning of the electricity market.

• The member states are obliged to ensure high quality metering in local laws and rules according to local situation and needs.

• The introduction of smart metering increases the amount of data transferred between market partners.

• Properly defined and highly automated processes are crucial for a functioning competitive market.


In the most European states the different roles* in metering are assigned to the DSO

Meter Administrator Meter Operator Metered Data Collector Metered Data Responsible Party Metered Data Aggregator Metering Point Administrator

DSO

*Roles describe external business interactions with other parties in relation to the goal of a given business transaction. ENTSO-E THE HARMONISED ELECTRICITY MARKET ROLE MODEL

Germany (customers choice)

Meter Administrator Third party

Meter Operator Third party

Metered Data Collector Third party

UK

Meter Administrator Supplier

Meter Operator Supplier

Metered Data Collector Supplier


Processes for data exchange are defined and implemented in different ways in Europe (I) • Nordic

– In the Nordic Power Market, the “Nordic Interchange Agreement” defines a framework for the exchange of data based on EDIEL (EDIFACT) Messages.

– In Sweden the detailed processes for data exchange are defined for the whole state in the “Elmarknadshandboken”

– In Norway, details of data exchange are covered in bilateral agreements between supplier and DSO

• Germany – Detailed processes and formats for data exchange (based on EDIFACT) are

described in WiM (change of Meter Operator), GPKE (billing and switch of Supplier) MaBIS (balancing). Those rules are developed from the industry (EDI@Energy) adopted by the German regulator BNetzA.

– These rules are binding for all market players in Germany


Processes for data exchange are defined and implemented in different ways in Europe (II) • Netherlands

– As a centralized solution Energy Data Services Nederland (EDSN) supports the data traffic between parties in the energy market when changing a supplier, when moving in or out of homes and when amending customer data.

– To date, the supplier of a connection is registered by the relevant DSO. The introduction of the Central connection register (C-AR) is planned for 2013.

– For data exchange EDINE messages are obligatory. EDINE Messages are based on EDIFACT standards


Technical Data Exchange in European countries

• Having different models in place for data exchange in Europe, all these models utilize message formats derived from EDIFACT standard – as native EDIFACT or wrapped in XML-Files.

• The most common channel to transfer the messages between market participants is via SMTP-Protocol (Email). Others like HTTPS, FTP or X.400 (synchronous) are available.

• Besides centralized solutions, bilateral (non discriminatory) agreements concerning data transfer are possible.


Reading frequency varies in Europe

• SLC and RAM Customers – In all states in EU we distinguish between Standard Load Curve (SLC)

(residential) and Recording Active Metering (RAM) (larger businesses and industries) customers.

– While the type of meters differ, there is usually no difference in the way meter data is exchanged between market partners.

• Reading frequency – Varies across member states of the EU from yearly to monthly or every

second month for residential (SLC) customers. – Daily or real time reading for industrial customers equipped with RAM,

read remote.


European best practice – Wrap Up • As shown in the previous slides, there is a lot of various best practice

covering all stages of metering from meter reading up to data exchange. • All important roles (Meter Administrator, Meter Operator etc. are

implemented according to different interpretations. • It took much time and money to develop these practices but the different

models are proven and work well – regardless of whether they are centralized or decentralized.

• Clearly defined metering processes ensure that all market players can exchange metering information efficiently and swiftly in a non-discriminatory manner.

• Well defined rules are crucial for an efficient competitive energy market. E.g. in Germany there are about 800 DSOs and 1000 suppliers which have to communicate with each other to ensure competition and security of supply. Newcomers are free to learn from experiences and to adopt the

relevant parts to develop their own models and systems.


Agenda

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3) Metering Process Framework

4) Next steps


For BIH a gap analysis has been developed based on the documents available to us in English translation *

• we checked whether existing legal obligations or agreements are defined in BiH covering the following issues – Roles and Responsibilities – Metering Processes – Metering Assets – Frequency of Meter Reading – Standards for Information Exchange – Formats for Data Exchange – Measuring Accuracy – Smart Metering


As part of the project DNV KEMA developed a draft metering framework

• Based on the international practice and the requirements specified in the European legislation, DNV KEMA has provided draft proposals for processes, rules and role descriptions to be applied by DSOs.

• Each process has been described by a detailed graphical representation as well as by a written explanation of the different steps and responsibilities of the respective market actors.

• Details have particularly been given for the processes of regular meter reading, request for meter reading, change meter at meter point, build a new meter point, metering for balancing.

• Further details have been given for the specification of data to be exchanged and the models and channels for the exchange of meter data.

• Practical details will need to be specified and agreed on by the different stakeholders in Bosnia and Herzegovina

9/23/2013 19 Metering processes in a retail market

Principles for definition of a metering framework for the retail market

• Defining metering framework the following requirements must be taken into account:

– Definition of responsibilities, timeframes, data requirements and formats to ensure all market players can exchange metering data efficiently and swiftly in a non-discriminatory manner

– Practical to implement (accounting for specifics of the electricity sector in Bosnia and Herzegovina) and understandable and transparent to DSO and suppliers as well as customers to enable stakeholders to adequately respond to processes

– Minimize administrative burden for DSO, old and new suppliers and customers metering data to be measured, collected and exchanged must be standardised and amount of data to be exchanged must be limited to necessary information

– Based on publicly available documented and transparent procedures reduces risk for new suppliers to enter the market

– Stable and predictable confidence in procedures enables customers and suppliers to confidently enter the retail market; assurance for DSO that investments in network and metering assets can be recovered


The metering framework for BiH covers following details (I)

• Data and Data Formats: There should be a unique definition of data formats and information exchange all of BiH. We recommend defining these guidelines in a binding agreement for all market participants in BiH covering

– Working processes and main technical, organizational and contractual issues between the parties involved with respect to their market role.

– Unique identification of all market participants with respect to their market role.

– Unique data formats (type and structure) to be used in the process of data exchange.

– Unique channels for the transport of messages between market partners.

– Unique requirements on data security and data privacy.

We strongly recommend to utilize existing formats like the EDIFACT standards UTILMD and MSCONS and to adopt them to BiH requirements.


The metering framework for BiH covers following details (II)

• Business Processes: Business processes should be defined in an agreement between the market participants.

– The definition consists of a diagram of the process and a description of the single tasks, actors, data formats and data.

– The definition should not only describe the “normal” process but should cover all exceptions as well.

We strongly recommend utilizing common European practice business process models and adopting them for BiH. These models are proven in practice and utilizing them will save development costs.


The metering framework for BiH covers following details (III)

• Technical aspects in metering: unique technical specifications, methods for testing meters and certification of meters.

• Frequency of Meter Reading: Facing the EU requirement that the change of supplier is effected by the operator concerned within three weeks and customers are entitled to receive all relevant consumption data, a suitable timeline for meter reading should be defined.

• Measured Values: groups of SLC’s have to be defined reflecting the actual course of consumption for the different customer groups. It also has to be described which method (analytical or Standard Load Profile) a DSO applies to calculate the load curve for a supplier.

• Assets, Roles and Responsibilities: roles and responsibilities should be outlined in the business processes.


Agenda

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4) Next steps


We strongly recommend the establishment of a Task Force to define the metering framework for BiH

• Task Force members should include members from: – Regulatory commissions

– Industry (DSO, supplier, generator, IT-System vendor)

– Transco and ISO

– Ministries (if and when necessary)

• Task Force should: – Define scope of work and time schedule

– Organize workshops to discuss important issues

– Develop guidelines with responsibilities, timeframes, data requirements and formats for all relevant processes in relation to the retail market


Regulators should lead the process

• Task Force deliverables: – Draft rules with process and role descriptions ready for finalization and public hearing

– Guidelines for Measured Values

– Guidelines on Data: – Supplier-ID, DSO-ID, Meter Point ID

– Meter Point Register as the central hub for all data exchange related to metering data.

– Meter data

– Data Exchange – Basics for electronic data exchange (EDI)

– Basic Principles of Organization

– Message Data

– Channels in Data Exchange

• Regulators and stakeholders to finalize and implement


Contact:

Hans Pipke Principal Consultant DNV KEMA Energy & Sustainability

KEMA Consulting GmbH Kurt-Schumacher-Str. 8 53113 Bonn Phone: +49 228 44690-32 Fax: +49 228 4469099 Mobile: +49 173 72 70 760 E-mail: [email protected]

Dr. Daniel Grote Senior Consultant DNV KEMA Energy & Sustainability

KEMA Consulting GmbH Kurt-Schumacher-Str. 8 53113 Bonn Phone: +49 228 44690-49 Fax: +49 228 4469099 Mobile: +49 172 2899162 E-mail: [email protected]

9/23/2013 27

Backup


Smart Metering Timescale


cost benefit analysis

1 January 2014 2020

at least 80 % of consumers shall be equipped with intelligent metering

today

Replacement of existing meters when a new connection is made in a new building or a building undergoes major renovations

Active suppliers in Germany


Source: Bundesnetzagentur Monitoringreport 2012

Change of supply in Germany

• Industrial Customers


• Household

Source: Bundesnetzagentur Monitoringreport 2012

Example: Business Process Meter Reading


Request for Meter Reading

2

Metered Data Collector

Electricity Supplier

1

Metered Data Responsible

Party

4

Metering Point Administrator

3a Request for Meter Reading

Check Assignment

3b Check Availability

5a Meter Reading

5b

Decline Request

Request for Meter Reading 6 Read

Meter

7 Meter Reading

8 Meter Reading

DSO


The Meter Point Register is the central hub for all data exchange related to metering data. The Meter Point Register has a general data structure as shown in the following figure.

Meter Point

DSO

Supplier

Meter

Measured Data

Customer

General Structure (Data Hub)

A meter point identifies a physical or logical point that is used to identify an object where the measurement of energy takes place.

For a data exchange in an open energy market the meter point must have a unique identification. The Meter Point ID could be a licensed number for instance:

– EIC-Object Type = Z (Measurement Point) or a

– Global Location Number (GLN) or a

– certain BiH number for usage inside BiH (a four digit number will be sufficient for all DSO)

Meter Point Register


Customer Data Base

In the Customer Data Base the suppliers store information about their customers.

In the Meter Data Register the DSO stores all data related with the Meter Point.

Meter Point

Supplier

Meter Measured Data

Customer

Implementation at DSO

(includes all meter and measured data for the

meter points)

Customer

Meter Point

Meter Measured Data

DSO

Implementation at supplier

(stores only meter and measured data from

the suppliers customer).

Data Exchange

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