Many European states are investing in smart metering in the drive to meet EU's energy targets to be achieved by 2020. Earlier this month, the European Commission released an Energy Efficiency Directive aiming to achieve the 2020 target of a 20 percent energy saving, with smart metering and billing set to play a key role. The Directive, which presents the legislative framework for putting into place binding measures on energy efficiency, expects that major energy savings for consumers will result from easy and free-of-charge access to data on real-time and historical energy consumption through more accurate individual metering and billing, hopefully to empower consumers to better manage their energy consumption. The Directive is driving member states for 80 percent smart meter penetration by that date.
However, according to Frost & Sullivan, a "a global growth consulting company," region-wise disparity exists due to the different regulatory challenges faced by each country, thus having a direct impact on implementation. The firm's study forecasts 26% growth in Europe, with the UK holding the highest growth potential amongst all the European countries. The British Government has in fact announced plans to install 53 million electricity and gas smart meters in homes and businesses by 2019, while the French energy regulator CRE (Commission de régulation de l'énergie) has set out guidelines with an objective for mandatory implementation requiring all electricity consumers to have smart meters by 2016. Meanwhile, Sweden attained 100% smart meter penetration in 2010 while Italy’s deployment is almost complete with 33.5 million smart meters installed till 2010. On the other hand, no mandatory roll out has been planned in Germany.
Frost & Sullivan predicts that the three hotspots in Europe will be France, UK and Spain, countries that the consulting firm expects to witness high level of growth in smart meter installations in the next 2-3 years. In particular, ‘’[w]ith the UK Government publishing its plans for a mass rollout in 2014, the UK smart metering market holds the highest growth potential amongst all the European countries. According to our research, the UK is expected to witness a 109% growth in smart electricity meter unit shipments from 2010 to 2017.’’
Saturday, July 23, 2011
Saturday, June 18, 2011
Post # 73 - New White House Report Identifies "Key Actions" to Empower Consumers in a Smart Grid World
The National Science and Technology Council, a cabinet-level council within the White House tasked with coordinating science and technology policy across the federal government, last week released a new series of smart grid recommendations.
The report, A Policy Framework for the 21st Century Grid: Enabling Our Secure Energy Future, outlines what the NSTC calls “four essential pillars that will enable the United States to transition to a smarter grid”:
With respect to no. 3, empowering consumers, the NSTC report identifies a number of “key actions.” The report says that state and federal policymakers and regulators should evaluate the best means of ensuring that consumers receive meaningful information and education about smart grid technologies and options. “Ideally, these efforts will create a track record of transparency and responsiveness, address consumer concerns including data privacy, and clearly explain the opportunities and safeguards that characterize smart grid projects to help consumers make informed decisions.” State policymakers also should continue to consider how to develop policies and strategies “to ensure that consumers receive timely access to, and have control over, machine-readable information about their energy consumption in a standard format.”
Where a utility deploys the relevant infrastructure, the report says that state and federal regulators should consider means of ensuring that “consumer facing devices and applications make it easier for users to manage their energy consumption.” The NSTC notes that types of information and options that smart grid technologies can offer may not be familiar to all consumers, meaning that a simple and usable design may well be crucial to helping consumers realize the promised benefits.
The NSTC states that state and federal regulators should consider, as a starting point, methods to ensure that consumers’ detailed energy usage data are protected and develop, as appropriate, approaches to address particular issues unique to energy usage. The report argues that “consumer trust is essential to the success of smart grid technologies, and protecting the privacy of smart grid related data is one crucial component of strengthening this trust.”
Finally, the NSTC recommends that state and federal policymakers and regulators should consider appropriately updating and enhancing consumer protections for smart grid technologies. “Concerns about data-sharing, new rate structures, and involuntary remote disconnection—namely the impact on privacy, fairness, due process, and costs—raise policy challenges that consumer protection laws and policies may need to address.”
The report itself, of course, does not establish any policy, even for the federal government – and many of its prescriptions in the consumer area are in the regulatory domain of the states and their public service commissions. But it does reflect the thinking within the current administration and follows up on prior Obama administration initiatives designed to promote smart grid development.
The report, A Policy Framework for the 21st Century Grid: Enabling Our Secure Energy Future, outlines what the NSTC calls “four essential pillars that will enable the United States to transition to a smarter grid”:
1. Enable Cost-Effective Smart Grid Investments: Smart grid technology can drive improvements in system efficiency, resiliency, and reliability, and help enable a clean energy economy through cost-effective grid investments Many of these technologies promise to pay for them- selves in operational improvements, and energy savings The Federal Government’s research, development and demonstration projects, technical assistance, information sharing on technologies and programs, and evaluations provide valuable guidance for utilities, consumers, and regulators about what approaches are the most cost-effective, thereby paving the way for the effective, ongoing upgrade of the grid
2. Unlock the Potential of Innovation in the Electricity Sector: A modernized electric grid promises to be a powerful platform for new products and services that improve grid operations and deliver comfort, convenience, and savings to energy customers
3. Empower Consumers and Enable Informed Decision Making: The success of smart grid technologies and applications depends on engaging and empowering both residential and small business consumers New tools and programs promise to provide consumers personalized information and equip them to make informed energy choices, while ensuring their energy consumption data is accorded privacy protections
4. Secure the Grid: Protecting the electric system from cyber attacks and ensuring it can recover when attacked is vital to national security and prosperity Developing and maintaining threat awareness and rigorous cybersecurity guidelines and standards are keys to a more secure grid.
With respect to no. 3, empowering consumers, the NSTC report identifies a number of “key actions.” The report says that state and federal policymakers and regulators should evaluate the best means of ensuring that consumers receive meaningful information and education about smart grid technologies and options. “Ideally, these efforts will create a track record of transparency and responsiveness, address consumer concerns including data privacy, and clearly explain the opportunities and safeguards that characterize smart grid projects to help consumers make informed decisions.” State policymakers also should continue to consider how to develop policies and strategies “to ensure that consumers receive timely access to, and have control over, machine-readable information about their energy consumption in a standard format.”
Where a utility deploys the relevant infrastructure, the report says that state and federal regulators should consider means of ensuring that “consumer facing devices and applications make it easier for users to manage their energy consumption.” The NSTC notes that types of information and options that smart grid technologies can offer may not be familiar to all consumers, meaning that a simple and usable design may well be crucial to helping consumers realize the promised benefits.
The NSTC states that state and federal regulators should consider, as a starting point, methods to ensure that consumers’ detailed energy usage data are protected and develop, as appropriate, approaches to address particular issues unique to energy usage. The report argues that “consumer trust is essential to the success of smart grid technologies, and protecting the privacy of smart grid related data is one crucial component of strengthening this trust.”
Finally, the NSTC recommends that state and federal policymakers and regulators should consider appropriately updating and enhancing consumer protections for smart grid technologies. “Concerns about data-sharing, new rate structures, and involuntary remote disconnection—namely the impact on privacy, fairness, due process, and costs—raise policy challenges that consumer protection laws and policies may need to address.”
The report itself, of course, does not establish any policy, even for the federal government – and many of its prescriptions in the consumer area are in the regulatory domain of the states and their public service commissions. But it does reflect the thinking within the current administration and follows up on prior Obama administration initiatives designed to promote smart grid development.
Saturday, June 11, 2011
Post # 72 - EDF's Smart Grid Framework
Last June, the California Public Utilities Commission (CPUC) issued an order outlining the requirements for "Smart Grid Deployment Plans" to be filed by July 1, 2011 by California’s three investor‐owned utilities: Pacific Gas & Electric, San Diego Gas & Electric and Southern California Edison.
The CPUC directed that, in preparing their Smart Grid Deployment Plans, the utilities follow a common outline, addressing eight specific topics:
In anticipation of the submissions, the Environmental Defense Fund (EDF), which has played an active role in CPUC smart grid proceedings, last week issued its Evaluation Framework for Smart Grid Deployment Plans, intended (in the words of the EDF's release) "to critically evaluate how effective California public utilities' plans to upgrade the state's outdated electricity network into a digital smart grid will be at delivering environmental and consumer benefits."
EDF recognizes that as PG&E, SDG&E and SoCalEdison develop plans to deploy the smart grid in their service territories, "site‐specific circumstances and considerations must be taken into account." For that reason, EDF states that its evaluation framework does not require that every utility plan engage in every listed strategy or pursue every identified metric. "To a large extent," the documents states, "deployment strategies must flow from individualized smart grid visions that are calibrated to respond to both existing and future conditions." But, with that caveat, the EDF proposes the following evaluation framework, based on five principles:
EDF states that it will use the framework to score how well the public utilities' plans will enable the integration of clean energy technologies, empower customers, create a platform for innovative technologies and services, enable demand-side resources to be made available for wholesale energy markets and meet environmental targets set forth in federal and state laws.
The CPUC directed that, in preparing their Smart Grid Deployment Plans, the utilities follow a common outline, addressing eight specific topics:
1. Smart Grid Vision Statement;
2. Deployment Baseline;
3. Smart Grid Strategy;
4. Grid Security and Cyber Security Strategy;
5. Smart Grid Roadmap;
6. Cost Estimates;
7. Benefits Estimates; and
8. Metrics
In anticipation of the submissions, the Environmental Defense Fund (EDF), which has played an active role in CPUC smart grid proceedings, last week issued its Evaluation Framework for Smart Grid Deployment Plans, intended (in the words of the EDF's release) "to critically evaluate how effective California public utilities' plans to upgrade the state's outdated electricity network into a digital smart grid will be at delivering environmental and consumer benefits."
EDF recognizes that as PG&E, SDG&E and SoCalEdison develop plans to deploy the smart grid in their service territories, "site‐specific circumstances and considerations must be taken into account." For that reason, EDF states that its evaluation framework does not require that every utility plan engage in every listed strategy or pursue every identified metric. "To a large extent," the documents states, "deployment strategies must flow from individualized smart grid visions that are calibrated to respond to both existing and future conditions." But, with that caveat, the EDF proposes the following evaluation framework, based on five principles:
1. Smart grid deployments should seek to share costs between utilities and consumers, and deliver benefits to consumers commensurate with investments. Smart grid deployment plans should share the investment and technology risk between utilities and their customers, while making sure customers get the full value from the investment, including reduced whole‐system costs and improved reliability, environment quality and public health.
2. The smart grid should empower customers to make choices about their energy use, both to save money and to support clean energy. In general, consumer empowerment is achieved through providing customers with the information, tools and incentives needed to effectively manage on‐site energy production, storage and use. At the same time, consumer empowerment is also supported through maintaining or improving customer equity, protecting consumers from unnecessary financial risks and loss of electrical service, and protecting against loss of privacy.
3. The smart grid should create a platform for a wide range of innovative energy technologies and management services. This platform should enable new technologies and markets without compromising information security.
4. The smart grid should enable and support the sale of demand‐side resources into wholesale energy markets, on equal footing with traditional generation resources. Such demand‐side resources should include energy efficiency, demand response, distributed generation, and storage.
5. The smart grid should deliver environmental and public health benefits. Smart grid cost‐benefit analyses should take into consideration the full range of benefits of deployment, including reduced use of high‐polluting peak power plants and reduced air, water, land and wildlife impacts, for example by avoiding the construction of power plants and transmission lines.
EDF states that it will use the framework to score how well the public utilities' plans will enable the integration of clean energy technologies, empower customers, create a platform for innovative technologies and services, enable demand-side resources to be made available for wholesale energy markets and meet environmental targets set forth in federal and state laws.
Tuesday, June 7, 2011
Post # 71 -- UK Smart Meter Pilot Shows Promising Reductions in Consumer Energy Consumption
General Electric last announced the results of a three month test of smart meters in the English village of North Leigh, stating that the meters allowed the community to reduce its energy consumption by 10% over three months.
The United Kingdom has committed to the European Union’s goal of reducing primary energy consumption of primary by 20% by 2020—the EU's so-called 20/20/20 initiative. Part of the effort to to provide the UK government and British utilities with information to gauge effective methods of influencing consumer behavior to reduce energy usage, the "Challenge North Leigh!” pilot was part of the government-sponsored Energy Demand Research Project (EDRP), a suite of large scale trials across Great Britain. It seeks to better understand how consumers react to improved information about their energy consumption over the long term.
The EDRP is testing a range of methods of providing customers with improved feedback on their energy consumption, including:
For “Challenge North Leigh!,” Scottish and Southern Energy (SSE)—a Scottish-based utility providing electric service both north and south of the England/Scotland border—provided GE smart meters to the 800-home Oxfordshire community, making the 2,000 villagers some of the first in the United Kingdom to have smart meters installed in their homes. The smart meters gathered data in real-time and communicated that information back to the energy supplier. SSE was then able to present gas and electricity usage information to individual customers. This information was made available to individuals on a website, allowing them to view their energy usage and enabling them to make informed choices to reduce their electricity demand—again, according to G.E., by about 10% over three months.
The full project results have not yet been posted, but “Challenge North Leigh!” points to the potentially positive role smart meters can play in consumers' energy conservation practices.
The United Kingdom has committed to the European Union’s goal of reducing primary energy consumption of primary by 20% by 2020—the EU's so-called 20/20/20 initiative. Part of the effort to to provide the UK government and British utilities with information to gauge effective methods of influencing consumer behavior to reduce energy usage, the "Challenge North Leigh!” pilot was part of the government-sponsored Energy Demand Research Project (EDRP), a suite of large scale trials across Great Britain. It seeks to better understand how consumers react to improved information about their energy consumption over the long term.
The EDRP is testing a range of methods of providing customers with improved feedback on their energy consumption, including:
-smart electricity and gas meters;
-real-time display devices, which show energy use in pounds and pence;
-more accurate and more frequent bills;
-energy efficiency information; and
-community engagement.
For “Challenge North Leigh!,” Scottish and Southern Energy (SSE)—a Scottish-based utility providing electric service both north and south of the England/Scotland border—provided GE smart meters to the 800-home Oxfordshire community, making the 2,000 villagers some of the first in the United Kingdom to have smart meters installed in their homes. The smart meters gathered data in real-time and communicated that information back to the energy supplier. SSE was then able to present gas and electricity usage information to individual customers. This information was made available to individuals on a website, allowing them to view their energy usage and enabling them to make informed choices to reduce their electricity demand—again, according to G.E., by about 10% over three months.
The full project results have not yet been posted, but “Challenge North Leigh!” points to the potentially positive role smart meters can play in consumers' energy conservation practices.
Saturday, May 28, 2011
Post # 70 - Study: For Many Consumers, Smart Grid Remains an "Empty Vessel"
Last year, EcoAlign, a strategic marketing agency, released a study finding that approximately 70 percent of Americans are not familiar with the term "smart grid."
Now, one year later, EcoAlign has released a follow-up study, Consumer Cents for Smart Grid, that finds that "customer awareness has barely budged over the past year."
EcoAlign conducted 1,000 online interviews in April 2011, with the sample (in the company's words) "balanced to match the U.S. population by age, gender, region and ethnicity." The primary objective was to test consumer perceptions and attitudes in regard to smart grid.
Extrapolating from the online interviews, EcoAlign concludes that only 35 percent of Americans are aware of the phrase “smart grid” in 2011 (compared to 31 percent in its 2010 study).
Moreover, when asked for the first word that came to mind when thinking about “smart grid”, consumers generally had a "largely functional (non- emotional) response." The most commonly mentioned word -- "by far," according to EcoAlign -- was “electricity." Other words and ideas were mentioned at much lower levels, and include “resource management,” “intelligent,” “efficient,” “energy,” “computer,” “energy efficient,” “tracks usage,” “technology,” and “green.”
Based on these responses, EcoAlign concludes that "Smart grid, for many Americans, remains an empty vessel that is yet to be filled with any value or significance."
At the same time, the study suggests that consumers could be sold on those elements of smart grid technology that could lead to lower energy costs.
EcoAlign finds that its respondents were extremely concerned or very concerned about the potential for rising utility bills -- 78 percent in 2011 as compared to 74 percent in 2010. In terms of attitudes towards their personal energy consumption, the most frequently chosen statement was "I am most concerned with saving money on my utility bill" (43 percent).
Among those who would like to receive suggestions from their utility company in terms of how to reduce their bill, they felt that in the short term "smart grid" would be most likely to help improve their utility's service by providing better billing and energy consumption information (34 percent) and more energy management options (30 percent).
Eight out of ten thought it would be extremely or very valuable to find out how smart grid would impact their bill, new pricing options that would give them the opportunity to save money, and what smart grid technology would cost.
While one fourth of consumers would allow the utility to control their high-use appliances automatically, another quarter would like notifications so they can make the adjustments themselves. An additional one third expressed willingness if the price paid was sufficient, while only 16 percent said they would never allow this.
At the same time, when respondents were asked to use one word to describe their biggest concern relative to smart grid, they indicated their top concerns included "privacy," "control/loss of control," "security," and even fear of "big brother." Moreover, when asked who should have access to their detailed energy consumption data, 65 percent responded "only the customer."
Beyond these specific findings, EcoAlign notes that, to date in the smart grid area, the utility industry largely has focused on "deployment and realizing benefits on the utility side of the meter." Going forward, however, EcoAlign concludes that the benefits of "leveraging real-time energy consumption data" can only be achieved if utilities and energy suppliers embrace consumer engagement.
Now, one year later, EcoAlign has released a follow-up study, Consumer Cents for Smart Grid, that finds that "customer awareness has barely budged over the past year."
EcoAlign conducted 1,000 online interviews in April 2011, with the sample (in the company's words) "balanced to match the U.S. population by age, gender, region and ethnicity." The primary objective was to test consumer perceptions and attitudes in regard to smart grid.
Extrapolating from the online interviews, EcoAlign concludes that only 35 percent of Americans are aware of the phrase “smart grid” in 2011 (compared to 31 percent in its 2010 study).
Moreover, when asked for the first word that came to mind when thinking about “smart grid”, consumers generally had a "largely functional (non- emotional) response." The most commonly mentioned word -- "by far," according to EcoAlign -- was “electricity." Other words and ideas were mentioned at much lower levels, and include “resource management,” “intelligent,” “efficient,” “energy,” “computer,” “energy efficient,” “tracks usage,” “technology,” and “green.”
Based on these responses, EcoAlign concludes that "Smart grid, for many Americans, remains an empty vessel that is yet to be filled with any value or significance."
At the same time, the study suggests that consumers could be sold on those elements of smart grid technology that could lead to lower energy costs.
EcoAlign finds that its respondents were extremely concerned or very concerned about the potential for rising utility bills -- 78 percent in 2011 as compared to 74 percent in 2010. In terms of attitudes towards their personal energy consumption, the most frequently chosen statement was "I am most concerned with saving money on my utility bill" (43 percent).
Among those who would like to receive suggestions from their utility company in terms of how to reduce their bill, they felt that in the short term "smart grid" would be most likely to help improve their utility's service by providing better billing and energy consumption information (34 percent) and more energy management options (30 percent).
Eight out of ten thought it would be extremely or very valuable to find out how smart grid would impact their bill, new pricing options that would give them the opportunity to save money, and what smart grid technology would cost.
While one fourth of consumers would allow the utility to control their high-use appliances automatically, another quarter would like notifications so they can make the adjustments themselves. An additional one third expressed willingness if the price paid was sufficient, while only 16 percent said they would never allow this.
At the same time, when respondents were asked to use one word to describe their biggest concern relative to smart grid, they indicated their top concerns included "privacy," "control/loss of control," "security," and even fear of "big brother." Moreover, when asked who should have access to their detailed energy consumption data, 65 percent responded "only the customer."
Beyond these specific findings, EcoAlign notes that, to date in the smart grid area, the utility industry largely has focused on "deployment and realizing benefits on the utility side of the meter." Going forward, however, EcoAlign concludes that the benefits of "leveraging real-time energy consumption data" can only be achieved if utilities and energy suppliers embrace consumer engagement.
Sunday, May 22, 2011
Post # 69 - Maine PUC Allows Consumers to "Opt Out" from Smart Meters
The Maine Public Utilities Commission last week voted to require Central Maine Power to offer an opt-out program for customers who choose not to have a standard smart meter installed as part of CMP’s smart meter program.
Under the Maine PUC decision, Customers in CMP service territory will have two new opt-out options: the availability of the smart meter with its transmitter turned off and the ability to retain the existing (or analog) meter.
The customer who chooses an opt-out option will pay the associated costs of that option: a) smart meter with transmitter off will carry an initial charge of $20.00 and a monthly charge of $10.50; b) existing analog meter option will carry the initial charge of $40.00 and a monthly charge of $12.00. In order to address concerns of low-income customers, those who are eligible for Low Income Heating Assistance (LIHEAP), will be charged only 50% of the cost of their chosen opt-out option. CMP is required to develop and implement a smart meter opt-out communication plan intended to inform customers about the program during the company’s deployment of their smart meter program.
CMP started installing the advanced meters in the fall of 2010 and about a third of the utility's customers now have them, according to a news report from Maine Public Broadcasting Network. But it didn't take long after the installations began for some CMP customers to loudly protest the meter deployment – in a scenario very much like the backlash against Pacific Gas & Electric in California in and led to a similar state commission-mandated opt out program.
CMP had strongly objected to offering any options, saying they would be costly and dilute the effectiveness of the technology for the vast majority of customers who want smart meters. In the end, the company chose not to appeal the decision and deferred to the PUC, saying it was up to regulators to set the policy for smart meters.
Under the Maine PUC decision, Customers in CMP service territory will have two new opt-out options: the availability of the smart meter with its transmitter turned off and the ability to retain the existing (or analog) meter.
The customer who chooses an opt-out option will pay the associated costs of that option: a) smart meter with transmitter off will carry an initial charge of $20.00 and a monthly charge of $10.50; b) existing analog meter option will carry the initial charge of $40.00 and a monthly charge of $12.00. In order to address concerns of low-income customers, those who are eligible for Low Income Heating Assistance (LIHEAP), will be charged only 50% of the cost of their chosen opt-out option. CMP is required to develop and implement a smart meter opt-out communication plan intended to inform customers about the program during the company’s deployment of their smart meter program.
CMP started installing the advanced meters in the fall of 2010 and about a third of the utility's customers now have them, according to a news report from Maine Public Broadcasting Network. But it didn't take long after the installations began for some CMP customers to loudly protest the meter deployment – in a scenario very much like the backlash against Pacific Gas & Electric in California in and led to a similar state commission-mandated opt out program.
CMP had strongly objected to offering any options, saying they would be costly and dilute the effectiveness of the technology for the vast majority of customers who want smart meters. In the end, the company chose not to appeal the decision and deferred to the PUC, saying it was up to regulators to set the policy for smart meters.
Monday, May 16, 2011
Post # 68 - New CPUC Smart Meter Privacy Rules
In late 2009. the California Public Utilities Commission ruled that the big three investor-owned utilities in California -- Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric -- would have to provide their customers with real-time residential usage data through smart meters by the end of 2011 (to see the order, click here). In addition, the CPUC directed PG&E, SCE and SDG&E to also provide that usage data on a “near real time basis” to companies that those consumers choose to work with.
In a new draft decision, he CPUC has now taken the process a step further by outlining the privacy rules for how that data can be shared and stored between the utilities and other companies that customers choose to work with.
The information they have to hand out includes bill-to-date, bill forecast data, projected month-end tiered rate, a rate calculator, and notifications to customers as they cross rate tiers.
Because the CPUC can’t directly control the third party companies that consumers may contract with, the CPUC created rules for devices that will access the data from the smart meter.
For consumers who want to share their information with an outside company, a utility tariff will require that any home area network device that is “locked” to a certain third party, which will start transferring information from the smart meter, must be in compliance with the CPUC requirements. The utilities have six months to create those tariffs. They also must start a pilot study within six months to provide real-time or near-real-time pricing information to their customers.
For devices that aren’t locked into a particular third party, the utility will be charged with making consumers aware of “the potential uses and abuses of usage data should the customer forward or otherwise provide the data to another entity.”
Although companies such as demand response giant EnerNOC would like data access as soon as possible and argue that existing California legislation provides adequate privacy protection, see here, consumer advocates and others, such as the Electronic Frontier Foundation, are calling for even more stringent measures.
The decision by the CPUC also leaves some ambiguity over what to do if customers pick a device that bypasses the smart meter. However, the easiest (and cheapest) way to get the information will be to go through the meter, so at the end of the day, startups and consumer giants alike will probably choose to take the data straight from the horse’s mouth -- even if it means playing by the CPUC's rules.
In a new draft decision, he CPUC has now taken the process a step further by outlining the privacy rules for how that data can be shared and stored between the utilities and other companies that customers choose to work with.
The information they have to hand out includes bill-to-date, bill forecast data, projected month-end tiered rate, a rate calculator, and notifications to customers as they cross rate tiers.
Because the CPUC can’t directly control the third party companies that consumers may contract with, the CPUC created rules for devices that will access the data from the smart meter.
For consumers who want to share their information with an outside company, a utility tariff will require that any home area network device that is “locked” to a certain third party, which will start transferring information from the smart meter, must be in compliance with the CPUC requirements. The utilities have six months to create those tariffs. They also must start a pilot study within six months to provide real-time or near-real-time pricing information to their customers.
For devices that aren’t locked into a particular third party, the utility will be charged with making consumers aware of “the potential uses and abuses of usage data should the customer forward or otherwise provide the data to another entity.”
Although companies such as demand response giant EnerNOC would like data access as soon as possible and argue that existing California legislation provides adequate privacy protection, see here, consumer advocates and others, such as the Electronic Frontier Foundation, are calling for even more stringent measures.
The decision by the CPUC also leaves some ambiguity over what to do if customers pick a device that bypasses the smart meter. However, the easiest (and cheapest) way to get the information will be to go through the meter, so at the end of the day, startups and consumer giants alike will probably choose to take the data straight from the horse’s mouth -- even if it means playing by the CPUC's rules.
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