Electricity Social Dialogue Committee meeting Automated Meter Management Roll-out Enel Distribuzione’s experience

Bruxelles - June 23th, 2010

Riccardo LamaHead ofGrid Planning & SupportEnel Distribuzione spa

2Source: McKinsey Power Distribution Benchmarking Initiative 2009

1st Q UK

Player A

Player B

Player D

Enel

Player N

Player O

€/customer

Customers (Mln) km Network (x 1.000)44,0

64,5

93,0

112,8

47,2

68,0

86,5

Ø 74

OPEX 2007

PositioningEnel Distribuzione in the Electricity Sector

3

OPEX(€/customer)

2001 (128 min; 80 €/Customer)80

60

30

2008 (50 min; 49 €/Customer)40

80130

2002

20042003

20052006

2007

Quality of service(minutes interruption/year)

Network remote control and automation

Investment and network development optimization

Automated Meter Management

Process reengineering

Automated Work Force Management

Enel Operational ExcellenceResults achieved

4Riferimento ai dati di bilancio 2001 delle 10 maggiori imprese esercenti

Actual cost

Allowed revenuesPrice-cap: (CPI-X)

1997 2000 2004 2008 2012

50% of outperformance given back to the customers through a tariff reduction

4% 3,5%

Step*6,4%

2,2%

Step*4%

X-factor

CPI Consumer Price IndexX-factor: productivity improvement

– Profit sharing: If the operator outperforms (red line) the efficiency required (blue line) during a regulatory period, the benefits are equally shared between customers and operators;

– Price cap: tariff component related to operating cost is reduced accordingly in real term, the decrease is partially compensated by volumes increase;

What Regulation asked Network OperatorsOperational Excellence and Regulation

5

Telegestore is fully operational on > 32 Mln Customers

• Leading Technology• Excellence in operation

Benefits are targeting Enel and the Italian Electricity System

Italian Authority AEEG has published the resolution 292/06: all Italian electricity customers will be equipped with AMMS (Automatic Meter Management System) by 2011

Telegestore at a glanceEnel AMM System: the Telegestore

6

Improving the efficiency of customer

relationship processes

Innovating the customer relationship

Laying the foundation of Smart Grids

DriversAMM Roll-Out

7

Completed Measures ManagementRemote Management of Commercial and Technical Work OrderMeasures Pre-billing Sub-System implementation

1999 200119991999 20012001 200220022002 200320032003 200420042004 200520052005 2006…20062006……

Remote Management of Commercial Work OrderRemote Management of Technical Work OrderPDA application for commercial and technical Work OrderRemote Meter Reading

Periodic (bi-monthly) Meter Reading and advanced Billing Tariff schemesRemote Management of fraudulent Customers

Evolution to Meter Data Management System, monthly Remote Reading Consumption ProfilesStart deployment of New Generation Meters and LVC with ST PLC chipset

Advanced Management of Distribution NetworkDemand and Energy ProcurementMulti meteringBidirectional Meter for Micro Generation ManagementIntegration with WFM System for Real-time Work Orders Assignment and OptimizationMeter & LVC Problem Manager Sub-SystemMass installation completed

…2008……20082008

Resi

den

tial

an

d S

mall

Bu

sin

ess

Cu

sto

mers

Commercial and Technical Agreements with Meters Manufacturers to support AMR System development

Trial start with Actaris MetersFirst release of Measures Management Module: acquisition, validation, storage, …

Med

ium

an

d L

arg

eB

usi

ness

Cu

sto

mers

Start Installation Plan of Multiphase Digital MetersLV concentrators CommissioningMassive installation (700.000/month)

Kick-off (1999)Prototype (2000-2001)Industrial pre-series (2000-2001)Strategic Agreements Stipulation Trial start with new MetersStart Installation plan of single phase digital meters and LV concentrators

>30 Millions meters replaced and put in operation in 5 years

>30 Millions meters replaced and put in operation in 5 years

……to be continuedto be continued……

Road mapTelegestore Deployment plan

8

> 3.500 third-party installers

500 Enel.si agencies

120 ICT Project technicians

8.500 Palmtops

127 Enel Distribuzione Zones

One High Availability

System

Main FiguresTelegestore Project

9

Load profile 46.000.000

Total 209.700.000

Montly-bimontly 204.700.000

Spot readings 5.000.000

Activations 845.000

Contract management 15.263.000

Contract termination 759.000

Bad payers management 2.958.000

Total 19.825.000

Final ‘09

READINGSREADINGS

600.000/day

50.000/day

PEAKS of 300.000

OPERATIONSOPERATIONS

Successful remote readings 99.9%*

Successful remote operations 98%*

*Yearly Data

Remote management readings and operations Operating Telegestore

10

Assignment ↓ and Feedbacks ↑

Connect:Direct / Tibco

MobileMobile

GME

CBT / CE

SIAG/AMM/BLSIAG/AMM/BL

Data storage Data

storage

Backup SIAG

Backup SIAGDLNSDLNS

PDA/Tablet

PPNSPPNS

Batch

DBlink

BatchOnline

Backup

Online

Online

Online

Online

Online

Online

Online

Batch

AttuatoreBatch

BatchBatch

SGMSGM

Network Management Systems Commercial Systems

Field force and Control Room (http://tgs.enel)

Analysis service and

Reporting

Dashboards

SMILE

…to a fully integrated system

Public Communication

Network

Intranet

PLC 2,5 Kbps

MV/LVSubstation

Commercial System (CRM)Centralised Remote Management System

Interface Communication Software

ConcentratorConcentrator

Meters

Data Communication

Centre

Control Centres

Total: 30 Millions

Total: 350,000

From a front end system…

S.Mi.L.E.: Integrating AMM in Enel’s existing systems

11

Functionalities:• Navigation on standard Route

Maps and on SiGraf Maps (Enel MV-LV Cartography)

• SiGraf Map consultation• E-meters Management• Customers Transactions• Bad Payers Management• Remote control equipmen t

Management• Technical diaries (Time and

Materials spent)• MV mobile maintenance plans• HV mobile maintenance plans

• LV Fault Ticketing

• E-mail via LAN or GPRS

• SAP HR Diaries

• Safety Tips

• Work-plans

• Documentation availability

• Microsoft Office Suite (Excel, Word, Acrobat Reader)

• Access to Enel Intranet

Telegestore and Its EvolutionWork Force Management (WFM)

12

Failed Accesses

Saving Areas

Purchasing and Logistics

Field OperationsCustomer Service

Revenue Protection

Readings

Replacement Activation Deactivation

Installation and Recovery

Interventions on Failures

Bad Payers Invoicing

Customer Service

Collection

Self Consumption

Warehouses Internal Transportation

Purchasing Revision

R&D COSTS

PRODUCTION AND INSTALLATION OF

ELECTRONIC METERS

PRODUCTION AND INSTALLATION OF CONCENTRATORS

IT SYSTEM DEVELOPMENT

INVESTMENTS AREAS

Thefts and Failures

Checks on Meters

Investment and savings areasIncrease Cost Efficiency: Telegestore Business Case

13

INVOICES ON REAL CONSUMPTION

REMOTE CONTRACT MANAGEMENT

TAILORED TARIFFS

SAVINGS IN BILLING

PRE-PAYMENT

EASIER FREE MARKET DEVELOPMENT AND MANAGEMENT

INVOICES ON REAL CONSUMPTION

REMOTE CONTRACT MANAGEMENT

TAILORED TARIFFS

SAVINGS IN BILLING

PRE-PAYMENT

EASIER FREE MARKET DEVELOPMENT AND MANAGEMENT

FOR CUSTOMERS and other electrical system

operators

FOR CUSTOMERS and other electrical system

operatorsFOR DSOsFOR DSOsFOR ELECTRIC SYSTEM

& SOCIETY as a WHOLE FOR ELECTRIC SYSTEM & SOCIETY as a WHOLE

PEAK SHAVING

ENERGY EFFICIENCY AND CO2 REDUCTION

REDUCTION OF COMMERCIAL AND TECHNICAL LOSSES

PEAK SHAVING

ENERGY EFFICIENCY AND CO2 REDUCTION

REDUCTION OF COMMERCIAL AND TECHNICAL LOSSES

CUSTOMER SATISFACTION

EXCELLENCE IN COMMERCIAL AND TECHNICAL QUALITY

OPERATING COST SAVINGS

LEADERSHIP IN INNOVATION

CUSTOMER SATISFACTION

EXCELLENCE IN COMMERCIAL AND TECHNICAL QUALITY

OPERATING COST SAVINGS

LEADERSHIP IN INNOVATION

BenefitsImprove Customer Satisfaction

14

Tailored tariffs

Switching(ml)

+15%

Y2007 Y2008

1,3 1,5

Energy Balance

Efficient and competitive

market

Success rate of meter verification

from from 5%5% to to 60%60%

~ 150 retailers

Shared BenefitsSupport the Market and Promote Energy Efficiency

15

Thanks for your attention !