Presentation to RSS Local Group at University of Reading 12th November 2007 Dr Richard Westoby (SSE)...
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![Page 1: Presentation to RSS Local Group at University of Reading 12th November 2007 Dr Richard Westoby (SSE) energy made better.](https://reader035.fdocuments.net/reader035/viewer/2022081518/5515f8ca550346d46f8b5790/html5/thumbnails/1.jpg)
Presentation to RSS LocalGroup at University of Reading12th November 2007
Dr Richard Westoby (SSE)
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Supply:8 million customersgas, electricity, telephone
Distribution: electricity and gas
Generation:2nd largest generation business in UKLargest generator of renewable energy
BackgroundScottish and Southern Energy plc
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BackgroundScottish 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
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“..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
BackgroundGovernment Policy
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InformationAdditional 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 OverviewProgramme Scope 1
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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
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Government AgenciesBERR - project sponsors Ofgem - project administrator
External AdvisersCentre for Sustainable Energy - Ofgem AdvisersSSC at Reading University - SSE Statistical AdvisersCARBs 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 TelecomCurrent Cost Vodafone Orange
Metering Data Management and Web Hosting Accenture
Pay As You GoAmpy / Logica / Paypoint
Trial Overview Involved Parties
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Trial Overview
Perth andAlyth (Community)
Newport andSt Athan (Community)
Basingstoke andNorth Leigh (Community)
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Surveys, Sample Groups&Experimental Design
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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
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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
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Smart Metersenergymadebetter
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Smart Meters
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Smart Meters
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Smart Meters
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Smart Meters
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Smart Meters
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Real Time Display Pilotenergymadebetter
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Real Time Display Pilot
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Real Time Display Pilot
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Additional Information
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Time of Use Tariffs and Efficiency Incentives
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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
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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
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Community Trialsenergymadebetter
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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
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CONCLUDING COMMENTS
WHAT NEXT ?
Complete delivery of the programme
Collection of survey and usage data
Analysis of data
Policy implications from results
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ANY QUESTIONS ?
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