From Smart Meter to Smart Bill
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Ferranti Computer Systems presented on using smart metering and billing capabilities to differentiate in the liberalized energy market. They discussed how smart billing allows for customer segmentation, tailored contracts and bills, and creative pricing models. Their MECOMS solution supports meter-to-cash processes and provides the flexibility needed to manage changing market conditions and standards around smart metering. A key focus is using billing as a differentiator through personalized bills, consumption insights, and multiple payment options. Case studies showed how MECOMS implemented smart billing for utility customers to optimize tax rules, offer different contract types, and provide detailed billing and load data.
From Smart Meter to Smart Bill
- 1. 1 From Smart Meter to Smart Bill Geert Janssen Ferranti Computer Systems Bruges Oct 10 2007
- 2. Agenda • About Ferranti • Challenges in the liberalised Energy Market • Smart Bill as a differentiator that can make the difference • Customer Cases 2
- 3. About Ferranti • Operating since 1976 • Part of the Nijkerk Group • Presence – Belgium – The Netherlands – France • Partner Strategy for E-CEE-countries 3
- 4. Core Competenties O U RO U R 4 Flexibility Initiative Quality Expertise Customer oriented
- 5. IT Solution Provider for Energy & Utilities 5 SolutionsPortfolio M arketKnowledge Products Business Know ledge Practices Skils PEOPLE
- 6. 6 The reference ERP CRM Solution to empower Energy, Water And Utility Companies
- 7. MECOMS Solutions for… 7 Empowers companies by supporting meter-to-cash processes for different market parties in liberalised and non-liberalised Energy & Utilities Market
- 8. Value Chain 8 Metering data Invoice SupplierSupplierMetering CompanyMetering Company Balance ResponsibleBalance Responsible ProductionProduction Distribution/Transport Grid OperatorDistribution/Transport Grid Operator
- 9. 9 References Energy & Utilities
- 10. Challenges – changing marketmodels • New regulation • New structures (unbundling) • New players • New information exchange • New niche players 10 Dutch Marketmodel
- 11. Challenges – Smart Metering • What about standards • Ownership - Marketmodel • How to manage Roll-Out • Impact on Asset Management • Granularity of data exchange – Legislation – Additional service to market players 11
- 12. Challenges - Business Process Management 12 5 Juni 2007
- 13. Corporate Performance Management 13 Dashboards KPI’s Process Orientation Timeliness – Conformance Total Quality Management
- 15. Flexibility 15
- 16. Lean Management 16 Cost Pressure High Quality
- 17. Challenge Customer Focus & Differentiation 17
- 18. What makes Customers Move… 18 • Until now, not too many customers have switched in the liberalised market • Satisfiers switch – Price-Leadership – Supplier Image • Dissatisfiers switch (call-center calls) – Unclear bills – Incorrect bills
- 19. How to differentiate 19 • A profitable way to differentiate – Smart Bill – Develop unique value propositions and contracts – Go for real segmentation – Personalisation / presentation bill – Give insight in how bill is calculated and foresee reconciliation – Offer the right payment models that fits the bill
- 20. Customer Case - HVC 20 • HVC is a Dutch waste treatment company that aims at effective waste management from both an economic and environmental point of view. Its main activities are the collection of waste and treatment by composting & recycling, logistics and incineration & energy generation. • The waste treatment plants in Alkmaar and Dordrecht represent a total electricity production capacity of approximately 100 megawatt. • This “green” energy will be offered primarily as a consumer product. HVCenergie was looking for a system to manage all the processes involved with the generation and sale of energy. • Customer profile phase 1 municipalities & related employees
- 21. Customer Requirements 21 • Be ready for Smart Metering • Electronic Bill Presentment • Periodical Billing • Minimize Control effort • 1 Contract partner, multiple debtors • Billing by type, subgroup, department, … • Multiple choice payment methods • Typical legislations (multisite / municipalities) – Tax rules are based on consumption by connection – Tax rates are calculated on volume slices (declining) – Connections can be grouped to optimize tax-ruling
- 22. Debtor : City Lelydrecht, Civil Mgt Dep. Debtor : Foundation Islam education Lelydrecht Debtor : City Lelydrecht, Dep. Education Debtor : Swimming Pool Lelydrecht Debtor : Library Lelydrecht, Piet Janssen Debtor: City Lelydrecht, Finance Dep. Mogelijke structuur van een gemeentefactuur Connection: swimming pool Contract Owner: City Lelydrecht Connection: Townhall Connection: Library Connection: Streetlight 1 Connection: Streetlight 2 Connection: Streetlight 3 Connection: Sewage pump 1 Connection: Sewage pump 2 Connection: Sewage pump 3 Connection: Neighboring House Connection: School 1 Connection: School 2 Connection: School 3 Connection: School 4 1 fiscal object 1 fiscal object Billing Adres : Gemeente Lelydrecht Postbus 1 1234 AA Lelydrecht Billing Adres: p/a Administr.kantoor Hoofdweg 320 1236 AC Lelydrecht Billing Adres : Bibliotheek Dorpsplein 10 1235 AB Lelydrecht Billing Adres : SIOL Koranlaan 2 1237 AD Lelydrecht Automatic settlement On 1 Bill Just an example…
- 23. Customer Case - RWE Nederland - B2B Billing 23 RWE is a German gas and electricity supplier. The company bought two existing energy companies in the Netherlands and supplies major consumers with energy under its own brand since the beginning of 2007. • RWE Nederland uses MECOMS to gather metering data and to bill its B2B customers. • “Real Load Profiles” is a standard functionality in MECOMS. It processes all 15 min values that enter the system via EDI-messages from the metering company. As such, RWE disposes of 96 metering values a day for each customer. Based on the contract these values are linked in MECOMS to the most recent electricity prices generated from the APX-energy exchange. Accordingly, RWE is able to very accurately bill its customers. Obviously other forms of contracts are also supported.
- 24. Project Objectives – Clear & Correct Bill 24 • Structured Layout based on individual contract • All Source Data available for the customer • Graphical Display – AMR • Near-time Billing based on counter values of Real Load Profiles • Validation controls and other mechanisms to prevent mistakes before sending bill to customer • Automatic settlement based on Validated consumptions • Separation of duties • Multiple correction mechanisms - flexible choice creditnote and re-bill, bill the difference, corrections on next invoice)
- 25. Customer Case – Creative Billing part of Value Proposition 25 Yearly Profile
- 26. 26 Yearly Profile Deal Profile Customer Case – Creative Billing part of Value Proposition
- 27. 27 Yearly Profile Deal Profile Price Differentiation Customer Case – Creative Billing part of Value Proposition
- 28. 28 • Creative Billing • Deal and subdeal model with the customer based on yearly profile • Price difference due to deviation of forecasted consumption based on multiple indices – APX pricing – Unbalance pricing • Digital invoicing and data communication • Electronic Bill Presentment • Reconciliation Real Load Profile - Forecast • Detailed information for Trading & Forecasting Customer Case – Creative Billing part of Value Proposition
- 29. Challenges to ICT Infrastructures and Systems 29 • Customer Focus • Flexibility at acceptable cost • Empowerment of users • Designed to operate in heterogeneous environments - Middleware Linking together previously fragmented data • Provide customised intelligence to gain better and faster insight to support better business decisions • Automatically sense and respond to potential bottlenecks • Functional breath and depth
- 30. 30 Smart Metering Communication Bus (AMI) Meter Mecoms Smart Metering Communication Bus Meter Meter MeterMeter User Data Mgmt Asset Mgmt Data Warehouse 3rd Party System
- 31. MECOMS Supported processes 31 Market Model, Workflow, SOA, BI, Extranets/Portals, (EDI) communication
- 32. MECOMS - Business Blue Prints Business Process Management 32
- 33. Improving organizations byImproving organizations by providing business insights toproviding business insights to allall employees leading to better,employees leading to better, faster, more relevantfaster, more relevant decisionsdecisions Integrated platform and applications Secure and personalized Collaborative Cost effective and comprehensive Deliver insight to support better business decisions 33
- 34. 34 Delivering Value Through Innovation
- 35. Familiar & easyFamiliar & easy to useto use Widely used andWidely used and supportedsupported Innovative andInnovative and continuallycontinually evolves to meetevolves to meet your needsyour needs Easier to integrateEasier to integrate and connect withand connect with what you havewhat you have 35 Leverage on Microsoft Dynamics/AX
- 36. Summary • Supplier point of view Smart Metering enables – Customer segmentation with tailored value propositions – Individual contract management and smart billing – Creative business models and offerings – Customer win & retention strategies • Requires flexible process-driven backoffice systems to support meter-to-cash processes and to react to changing market conditions with required agility 36