4 Smart meter communications and coverage
Data communication model
46. Smart meters will send and receive energy consumption
and billing data so that energy suppliers will be able to read
meters without having to come to the property and so that customers
will be able to receive information about their energy consumption
and costs in the home.
COMMUNICATION BETWEEN THE SMART
METER AND THE ENERGY SUPPLIER
47. Information will be communicated between smart
meters and energy suppliers, network companies and other authorised
parties via a central communications hub. The hub will be provided
and managed by a new Data Communications Company (DCC) and communication
will be via a wide area communications network (WAN).[104]
A range of technologies have been proposed for the WAN, including
cellular, mesh radio and long-range radio.[105]
DECC has stated that whichever technology is chosen for the WAN,
the relevant provider will be required "to commit to eventual
coverage levels of at least 97.5% of properties across Great Britain."[106]
Baroness Verma told the Committee that "the licence conditions
in the DCC will ask them to work towards 100%" and that by
2015 DECC "would expect all suppliers to be working towards
getting a very high percentage of their coverage out there".[107]
COMMUNICATION BETWEEN THE SMART
METER AND THE CONSUMER
48. Most domestic consumers will be able to see
how much gas and electricity they are using and how much it is
costing them on a small device called an in-home display (IHD),
which they will be offered when their smart meter is installed.[108]
The IHD will communicate with the smart meter via the home area
network (HAN). Currently, suppliers are not obliged to offer non-domestic
consumers an IHD.[109]
Daron Walker of DECC explained that consumers who do not have
an IHD will be able to use a separate consumer access device (CAD),
to access their consumption data.
We are not mandating that everyone has [an IHD].
We are mandating that everyone is offered one. So, if the consumer
decides that they don't want the IHD and they want to opt for...[a]
wizzy device...they can do that. One of the things that we are
defining is the specification for something called a consumer
access device, which will allow consumers to buy other products
that will allow them to extract [consumption] data...[110]
49. The CAD can be connected to the smart metering
system via the HAN and is able to:
- display information directly
to the consumer, like an enhanced IHD;
- act as a conduit to send the data up to the cloud,
like a dongle or router;
- work in conjunction with smart appliances; or,
- act as a home energy 'hub' which uses consumption
and tariff data in combination with non-energy data, such as temperature
or information from motion sensors, and consumer preferences (either
configurable or 'learnt') to manage energy use throughout the
home. [111]
PROCUREMENT
50. DECC has described the procurement process for
the various bodies that will be involved in the smart meter communications
system:
DECC is conducting a competition to put in place
a licensed Data and Communications Company (DCC) [and] is also
undertaking the procurement of a Data Services Provider and up
to three regional Communications Service Providers on behalf of
the DCC that will deliver the data handling system and wide area
communications network…All three of these competitions are
well advanced. The procurements of both the Data Service Provider
and Communication Service Providers are approaching the final
tender stage and will conclude this June. DECC has received initial
proposals from applicants for the DCC Licence and will evaluate
these before negotiating improvements and inviting final proposals
with a view to awarding the licence in July.[112]
CRITICISMS OF THE COMMUNICATIONS
MODEL
51. Several witnesses have criticised the complexity
of the communications model that DECC is adopting, with some highlighting
the fact that other countries have taken a simpler approach.[113]
However, DECC argues that this model will "put in place the
necessary shared infrastructure to deliver the Programme's benefits
in a way that allows consumers to switch energy supplier without
changing meters or communications equipment".[114]
We note the concerns about the centralised DCC model proposed
by DECC. DECC should, in response to this report, set out the
justification and cost implications of the DCC model.
Communications challenges
52. If suppliers are unable to access consumption
data remotely from smart meters over the WAN, they will have difficulty
providing consumers with accurate, up-to-date billing information.
Likewise, if the smart meter in a particular home is unable to
send data to the CAD or IHD over the HAN, that customer's ability
to access up-to-date billing and consumption data will be affected.
There is a risk that if high levels of coverage are not achieved
early on in mass roll-out, many consumers will have a poor experience
with their smart meter and this will have an effect on public
perceptions of smart metering.
PROBLEMS WITH HAN CONNECTIVITY AND
PARTICULAR BUILDING TYPES
53. Daron Walker explained the interaction between
electricity and gas meters, the HAN and the WAN:
The meters will be connected to the comms hub
and then the comms hub will talk to the WAN...The comms hub is
likely to be placed very near the electricity meter. You are then
concerned about how you make sure you get the signal to the gas
meter. So the comms hub will be very closely located.[115]
54. Smart meters with HAN connectivity problems may
have problems connecting to the WAN or communicating data to the
IHD or CAD over the HAN. ScottishPower listed specific property
types that were likely to be affected by communication challenges,
such as homes with thick solid walls, new builds with foil-covered
insulation, and high-rise flats.[116]
Siemens suggested that 60% of multiple dwelling units (MDUs) such
as flats and converted buildings would be affected by HAN connectivity
issues because of:
- The physical distance between
the electricity meter, the gas meter (if dual fuel) and the IHD
- Building fabric limiting radio propagation i.e.
meter rooms in basements
- Physical space limitations preventing the fitting
of the communications hub[117]
Daron Walker agreed that there were "problems
around multi-block buildings", but said that he did not "recognise"
that 60% figure.[118]
Darren Braham of First Utility suggested that problems with HAN
communications "could be more of an acute issue" than
achieving high levels of WAN coverage.[119]
DECC has acknowledged that current HAN solutions will give coverage
of only about 70%, so HAN connectivity problems may affect around
30% of properties.[120]
55. Daron Walker outlined the work currently being
done to get communications solutions for HAN connectivity that
would give 100% coverage:
We are clear that already the solution that we
are putting into the [HAN] standard will cover 70% of homes. We
have also identified solutions that are being developed that will
take that up to 95%...[and we are] working with industry on...wired
HANs. Our aspiration is to get to 100% of coverage. We believe
there are already solutions there or being developed to get us
to 95%, and we are now working on the wired HAN to get us all
the way up to 100%.[121]
Much of this work is being done in relation to the
second version of the Smart Metering Equipment Technical Specifications
(SMETS 2)—the technical specifications that will ultimately
need to be met by smart meters. As we discuss in the next chapter,
SMETS 2 are still being developed and will have particular specifications,
or standards, for the HAN. These specifications are expected to
solve HAN connectivity issues, but SMETS 2-compliant meters are
unlikely to be widely available before 2015.
ACHIEVING CLOSE TO 100% COVERAGE
OVER THE WAN
56. Some suppliers have raised concerns about the
97.5% or higher target outlined by DECC for WAN coverage.[122]
Andrew Ward told us that there had been 98% coverage in a region
where ScottishPower had conducted a trial in the previous year,
but questioned whether this kind of coverage could be replicated
in all areas.[123]
However, Dr Pennington of RWE npower was more confident that high
levels of WAN coverage could be achieved:
We put our requirements in there and everything
that we are getting back [from the Government] is telling us that
they are going to deliver on their promise about the kind of coverage
that we are after from a WAN communications perspective. There
are a number of different technologies in there, everything from
long-range radio to GPRS in the mix. They are running quite a
comprehensive procurement there.[124]
Stuart Rolland of British Gas highlighted concerns
about the length of time it would take to reach the target:
Our concern on the 97.5% is how quickly it can
be got up and running...By the time the DCC goes live, we will
have an engineer population of 2,000 or 3,000 engineers who we
do not want sitting on their hands because they can't commission
a smart meter in that particular region.[125]
Darren Braham of First Utility said that it would
have an adverse effect on smaller suppliers if there were significant
gaps in coverage during mass roll-out:
I think we have a slightly different perspective
insofar as we are bringing on customers. Part of our sales message
is smart and we pick up customers where we can. The point about
technology is critical to us so we want a situation where we can
carry on using GPRS, so if they do use some wireless technology
that does not have the same coverage at the point of launch that
would be a big problem for us because we do not have the luxury
of saying, "Right, we will pick and choose you guys because
we have coverage in that particular area." From a competition
point of view and independent supplier perspective, that is an
issue.[126]
SSE had particular concerns about communications
in the northern reaches of Scotland.[127]
57. ScottishPower, SSE, E.ON and First Utility suggested
that a mix of technologies would need to be deployed to get close
to 100% WAN coverage.[128]
Some witnesses suggested that a powerline carrier solution would
have been better than wireless technology.[129]
First Utility and British Gas agreed that there should be a contingency
plan allowing the continuation of the current system using general
packet radio service (GPRS) in case 97.5% coverage was not available
from the start of mass roll-out.[130]
58. When witnesses' concerns about gaps in coverage
and communications were put to DECC, Jacqui Russell described
how, in the shorter term, some smart meters could be installed
and operated in dumb mode until coverage was available, when they
would "wake up":
If you were an energy supplier, and...you needed
to install a meter in 2015 [but] the coverage is not going to
arrive until 2016, you install a smart meter, you walk away, it
keeps operating in dumb mode and we have designed the system so
that when the coverage arrives the meter wakes up on its own.
You don't need to revisit the property, it becomes a smart meter
and it starts talking to the system. That is a sort of interim
approach while the coverage is rolling out...[131]
However, such an approach would mean that some consumers
with smart meters would not be receiving the main benefits of
smart metering—accurate billing and consumption data—straight
away. It would also leave a gap between the installation process,
when the customer should be shown how to interact with their smart
meter, and the point at which they would be able to start doing
that. We discuss this further in chapter 7.
59. Some suppliers said it was essential that the
DCC should be up and running before mass roll-out began to ensure
that customers got a good experience with their smart meter.[132]
DECC recently acknowledged the validity in this view when it announced
its decision to push back mass roll-out by a year partly for this
reason:
In December 2012, the Government committed to
review the programme plan and timetable during the first half
of 2013, taking into account...learning from energy suppliers
from their early smart meter deployments and from bidders who
wish to provide the common data and communication infrastructure
(the "DCC services")...The consistent message was that
more time was needed if the mass roll-out was to get off to the
best possible start and ensure a quality experience for consumers.
We therefore now expect suppliers to be ready to start their full
scale roll-out by autumn 2015, supported by the DCC services.[133]
60. We are concerned about WAN and HAN coverage
in the short to medium term, and these will affect consumers'
experience of smart meters. Communications issues must be resolved
before installing smart meters in order to ensure that consumers
have a good experience and are able to access the benefits of
smart meters as soon as they are installed. DECC must clarify
how progress towards 97.5% coverage will be achieved.
104 Smart meters: information for industry and other
stakeholders, DECC webpage, 19 July 2013, https://www.gov.uk/smart-meters Back
105
Ev 93 Back
106
Ev 93 Back
107
Q 395 Back
108
IHDs are discussed in more detail in Chapter 6 on consumer savings. Back
109
See chapter 6 for more on this. Back
110
Daron Walker, Q390 Back
111
DECC, Smart Metering Implementation Programme-Government Response
to the Consultation on the second version of the Smart Metering
Equipment Technical Specifications, Part 2, July 2013, para.
167 Back
112
Ev 93 Back
113
Ev w1; Ev 80; Ev 126; Ev w136; Alex Henney and Ross Anderson,
Smart Metering - Ed Milliband's Poisoned Chalice, (2012),
http://www.cl.cam.ac.uk Back
114
Ev 93 Back
115
Qq 405-06 [Daron Walker] Back
116
Q 248 [Andrew Ward] Back
117
Ev w136 Back
118
Qq 406-07 Back
119
Q 279 Back
120
Ev 99; Q 406 [Daron Walker] Back
121
Q 406 [Daron Walker] Back
122
Q 247 [Tony House]; Q 248 [Andrew Ward]; Qq 279-81 [Stuart Rolland
and Darren Braham]; Ev 99 Back
123
Q 248 [Andrew Ward] Back
124
Q 252 Back
125
Q 279 Back
126
Q 281 Back
127
Q 247 [Tony House] Back
128
Q 250 [Andrew Ward]; Q 251 [Tony House]; Q 279 [Don Leiper and
Darren Braham] Back
129
Ev w140; Ev w52; Ev 58; Qq 181-84 [Alex Henney] Back
130
Qq 279-81 [Stuart Rolland and Darren Braham] Back
131
Q 397 Back
132
Q 211 [Paul Spence]; Qq 247-48 [Tony House]; Qq 262-65 [Don Leiper] Back
133
DECC, Written Ministerial Statement by the Rt Hon Edward Davey
MP: Secretary of State for Energy and Climate Change on Smart
Metering, 10 May 2013; Daron Walker, Q341 Back
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