Smart meters are not the panacea for utilities

Ovum discovered that the Smart Meter is not a panacea for utilities, and there is a high risk that it will not honor certain promises.

In a recent report, independent technology analysts pointed out that investments in smart meters and smart grids can help solve some of the current problems facing utilities. However, smart meters may increase some costs, but also need to invest in some new technologies.

According to Stuart Ravens, Ovum's chief analyst and report author, "Utilities face some tough challenges and pressure comes from all sides: The carbon dioxide emissions issue is highly regarded, requires investment of millions of dollars in infrastructure, and there are increasing shortages of resources." In addition to this, the cost of fuel continues to increase, forcing utilities to reduce operating costs; their workforce is aging rapidly and due to the economic downturn they are extending loan terms.

Smart grids and meters will take a long time to solve these problems, but in order to get the full value of smart energy, utilities need more innovative technologies such as analysis, billing and customer relationship management (CRM). .

In addition, customers may find it difficult to understand the benefits of smart meters, and may be plagued by the added complexity of smart meters. This risk is very high, and the added complexity will lead to an increase in customer service costs. “

The growth of smart grids supporting renewable energy and energy storage helps reduce the impact of traditional electricity production methods on the environment. However, the old infrastructure is not designed to deal with these issues. At the same time, smart meters also influence customer behavior through demand-response programmes — they can control home appliances and turn off the appliance at peak demand — to counter the shortage of resources. They also help customers understand more about their energy use and how it affects their bills and the environment.

Ravens added: "Although these benefits are obvious, they should not be overestimated and even treated as an answer to all the problems facing the utility. Although they can exert influence, they may not be able to achieve Utilities expectation."