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| Meeting Obligations is in the Right ApproachBy: Trojan Utilities In April 2009, the Government introduced a new licence condition requiring suppliers to roll- out advanced gas and electricity meters to their larger non-domestic consumers by 6 April 2014. The scheme started in 2009 and provided all suppliers with five years to develop and manage an operational installation strategy that would ensure all energy customers benefitted from a modernised supply to help customers manage and control usage. Last year Ofgem issued an information request to all non-domestic suppliers requiring them to provide an update on progress towards meeting the advanced meter obligation. Ofgem reported that responses across all suppliers indicated that the percentage of advanced meters installed varies between suppliers and responses also showed variation in supplier engagement and installation strategies. The advanced meter obligation is a condition of suppliers’ licences. It requires all larger non-domestic premises to be supplied by advanced meters, unless the supplier was unable to complete installation despite taking all reasonable steps to do so. If a supplier hadn’t met the advanced meter obligation by 6 April 2014 Ofgem will consider whether to take enforcement action against that supplier. A recent high profile enforcement to hit the news was E.ON failing to supply relevant business customers through advanced meters by the April deadline. E.On completed 64.4% of it’s roll-out to 20,000 customers, leaving 7,000 without a modernised supply. The company was fined £7 million, which will be paid to the Carbon Trust, with further conditions that unless their interim target is met Ofgem will consider enforcing a sales ban on the company. Gareth Openshaw, managing director at Trojan Utilities discusses: “In this case the energy supplier failed to demonstrate that it took all reasonable steps to fulfil its required meter roll-out obligations. Operationally they failed to plan and monitor their roll-out effectively. “With any new initiative or technology there is an process of change, systems and processes have to be created and a learning curve overcome. Since 2011 we have installed over 220,000 gas and electricity Smart meters. Our current run-rate stands at 3,000 SMETs-1 compliant gas and electricity meter installations every week. “Installing multiple generations of Smart Meters from multiple manufacturers’ This hasn’t happened overnight for Trojan, as a forward thinking company they embraced the change, invested in the right resources; such as people and technology, coupled with developing advanced field management and operational processes and systems. As the only independent Smart Meter dedicated operator in the UK energy industry, they are the most experienced installer in the UK with over 220,000 Smart Meters installed and now the service provider of choice for second-tier energy suppliers in the UK. Gareth continues: “It is the company’s ability to adapt and change to the challenges Smart brings that has produced results. Understanding that every client is different, and that one-size doesn’t fit all, is a huge part of ensuring Smart is a success and obligations are met. “For many companies this approach simply doesn’t fit into their current processes and systems. In our experience a tailored solution is the only way to meet the goals of the unique requirements of Smart.” As the first meter operator to be Smart from the start, Trojan’s supply chains, logistics, recruitment, training and retention are second to none. This strong base allows for full-scale portfolio migration, reactive works, and installation and de-commissioning services; all supported by a large field workforce and customer service team to create efficiencies for energy suppliers. Gareth adds: “This is a changing market place, the industry requires a different approach to become ‘Smart ready’ and meet its obligations. Our unique approach is driven by operational efficiencies and the smooth transition for both suppliers and their customers.” The lessons to learn are clear, be prepared, look for the right solution, ensure support, operational, and logistic networks are in place and proven, employ only the best trained staff, and ignore the status quo if you want to meet you obligations. End
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