meet varying customer preferences and needs Unlocking the potential of these new technologies might
be a huge challenge, but, one thing is clear: to truly get the most out of utility smart meter investments,
we have to go beyond the meter
Demand-side management, customer behavior, appliances
Introduction
Among the key questions in the context of smart grid is: what
are the potential achievable benefits of advanced technology
to the utility, to customers, and to society as a whole? And
more importantly, how can we achieve them?
Smart meter deployments and ongoing pilot projects are
revealing just how much transformation is needed in the
industry, on both the utility and customer side. The early
evidence is that the traditional utility business model alone
isn't going to be sufficient to maximize the full potential of
smart meter investments. Operationally, achieving the
benefits requires dramatic changes in how utilities collect,
store, and process information. Functionally this means that
utility business rules and practices have to evolve as they
become more integrated. While this is certainly a significant
challenge to utility management, it's a relatively small
problem when compared with the challenges on the customer
side of the meter. Customer engagement has traditionally not
been the domain of utilities, and it entails a series of
challenges that are completely new to the industry.
As explained in Chapter 2, since the early days of
electrification, customers have been passive ratepayers
because meters only collect usage information for the utility,
and do not communicate to the customer the real-time cost of
their consumption.
1
Traditional metering only allowed the
utility to bill for monthly consumption, using rates that reflect
the average cost of electricity. Furthermore, utilities were
given regulatory incentives to grow their networks, which
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