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Attitudes towards smart metering among Norwegian consumers
Moscow, September 7-10, 2009
What attitudes do electricity customers have when it comes to smart metering?
Until now the Norwegians have read the meter themselves and reported the meter level to the
DSO four to six times a year
In a few years the meter readings will be done automatically
and consumers will also be offered other services related to the new technology
How will the customers receive these services?
Will they be confident that the readings will be
accurate?
Are they willing to pay for the new technology?
And will they be interested in using the additional
services on offer?
In 2007 the Norwegian government decided to introduce smart metering
to all Norwegian electricity customers
The DSOs are moving towards a major technological shift
Perhaps one of the most extensive projects in the history of Norwegian grid operation
All meters are assembled inside houses
There has to be made appointments for the changing of each meter
The introduction of smart metering can be seen as a risky project for the Norwegian power industry,
having already faced two major crises of consumer trust and reputation during the last six years
Electricity customers as well as the DSOswill benefit from smart metering
Continuous monitoring of consumption
Simpler invoices
Smart metering will also enable electricity customers to access many new, advanced services
More accurate meter reading
The present situation
More than 80% read the meter and report the measurements every time or almost
every time they are required to
Close to 30% read the meter more often to monitor their own energy consumption
Source: TNS Gallup Energy Barometer
Norway has the highest electricity consumption per capita in the world
This is almost five times the European average
The figure includes the electricity consumption in all sectors, not just the household sector
KWh
Source: www.ssb.no
Online is the most frequently used channel of measurement reporting
45% of the electricity customers report their
readings through the DSOs web pages
While 37% report through an automized
telephone service
Source: TNS Gallup Energy Barometer
Online is the most frequently used channel of measurement reporting
While 37% report through an automized
telephone service
Source: TNS Gallup Energy Barometer
Almost 50% of those over 60 yearsprefer the telephone to report
the measurements
Almost 85% of the Norwegian population has access to the Internet
The share is slightly lower among those who have passed 65 years
Source: TNS Gallup
Most of them (82%) are positive to be spared from reporting meter readings to the DSO
10% of Norwegian households have smart metering
Source: TNS Gallup Energy Barometer
I want contact with and control over the fuse box myself
Norwegian electricity customer”
Attitudes towards smart metering
Source: TNS Gallup Energy Barometer
Proportion with a positive attitude towards smart metering
Percent
Are the consumers willing to pay for smart metering?
The customers’ willingness to pay for smart metering is very low, but it increases over time
In 2006 88% responded that they were not willing to pay to have the technology installed
Today the proportion is reduced to 65%
Source: TNS Gallup Energy Barometer
The arrangement represents considerable savings for the electricity provider and should not cost consumers anything
Norwegian electricity customer”
The electricity provider will benefit the most because everything will be automated
Norwegian electricity customer”
Such services will save both parties a lot of trouble and customers should be saved from paying for it
Norwegian electricity customer”
The confidence in the accuracy of smart metering
The confidence in the accuracy of smart metering is very high
95% of consumers are of the opinion that meter readings will be as good as or better than the current arrangement
Source: TNS Gallup Energy Barometer
It is very important that the technology contributes to strengthening the quality of the readings,
so corrections can be avoided
Will smart metering affect the consumer’s behaviour?
One of the motives for the implementation of smart metering is to make the consumers more aware
of their own power consumption
Mon Tue Wed Thur Fre Sat Sun
Electricity prices, last 8 days
In Norway, electricity prices are generally lower
during the night and during weekends
Source: Nordpool
Few consumers (23%) consider it likely that they will change their consumption patterns
Source: TNS Gallup Energy Barometer
Avtale om målerbytte
Gi kunden anledning til å velge tidspunkt, gjør avtalen
en måned i forveien
Foil - tid
Source: TNS Gallup Energy Barometer
Nearly half of the population will not change consumption to periods when prices are lower
I can’t be bothered to track electricity prices by the hour
Norwegian electricity customer”
To me it is completely silly to change consumption patterns to the time of day when prices are lower
Norwegian electricity customer”
I use electricity when I need it, regardless of what time it is
Norwegian electricity customer”
Is there any interest in buying additional services?
Less than 20% state that they are very interested in services such as viewing electricity consumption in real time, viewing the effect of turning electrical appliances on
and off, making estimation of the next bill or receiving messages directly from the DSO
The majority of respondents are positive towards the services, but very few display significant interest
Conclusion
How will the customers receive these services?
- Nearly 60% of the consumers are positive towards not having to read the meter themselves in the future.
Will they be confident that the readings will be accurate?
- 95% of consumers are of the opinion that meter readings will be as good as or better than the current arrangement.
Are they willing to pay for the new technology?
- The willingness to pay is very low, but it is increasing over time.
And will they be interested in using the additional services on offer?
- The interest is moderate. We believe this is due to an immature market.
• Average system price: 0,04 Euro/kWh• Total production: 142,4 TWh• Out of this 140,3 TWh (98,2%) was hydropower• Total consumption in Norway: 128,6 TWh• Net export: 13,7 TWh• Average consumption per capita approx. 30 000 kWh including
all sectors• Average consumption per household approx. 20 000 kWh
Facts about the Norwegian power market2008
