A race is on for dominance of the global electricity meter market. Solid state meters and automatic meter reading (AMR) is the name of the game. The Eur 415 million European electricity meters market is in the midst of a dramatic, structural transformation.
Electronic meters are poised to expand their share of the overall market revenues from the current estimates of 57% to 76% by 2010, further marginalising the established electromechanical meters segment. Applications in the high volume residential sector, the traditional preserve of electromechanical meters, will constitute a key battleground where electronic meters are ultimately expected to prevail.
The metering industry value chain now comprises of a variety of players, ranging from manufacturing companies that produce electricity meters to IT and communication solution companies that integrate metering equipment with utility customer management systems.
The technology shift shall not only provide relief to the consumers but a considerable amount of meter reading expenses will be reduced (around 40% in Pakistan). These expenses coupled with line losses also around 40% (theft included) and much higher than the world standard ie 06 to 09% form a hefty part of consumer bills. Other advantages include budget management, control of energy usage, no cost for disconnection/reconnection and no waiting for reconnection, no deposits.
A simpler infrastructure in AMR will also provide relief to the operators. A timely gain indeed for the opportunists in the wake of sharply rising energy costs and depleting oil reserves.
The need for efficient technology Conservation, "is not about turning off the lights or unplugging the refrigerator. It is a story about better technology." Byrne
Scientists believe that from 2005, conventional oil production shall decline roughly by 3% a year. "Demand, on the other hand is growing at 2% a year. By about 2020, there will be a shortfall of something like 40%.
Energy will soon be a precious commodity yet, its consumption will not be reducing over a considerable time in future, as such the cost of energy consumption would be a major factor affecting competitiveness. Reducing pilferages in electrical supply and keeping the metering costs low would immensely help in lower cost production. Installing solid state meters and implementing AMR would be a major step towards austerity on energy savings from the supply end.
There are a number of reasons why a utility could consider installing a solid state metering system. They include improved cash flow, no need for account posting or additional billing systems (1-2% savings), elimination of bad debts (5-12% average, with up to 40% in some developing countries), elimination of disconnection and reconnection fees, case of installation, no need to access consumers property (particularly for split meter installations) and elimination of inaccurate meter readings.
A gradual integration of the telecom, power, gas and water industries is taking place. Internet and non-Internet based, automated invoicing, rating and pricing, and on-line billing systems are being introduced to the industry. A double-digit growth is projected for select sections of the overall over $2000 billion industry.
THE LOCAL SCENARIO The local production of electricity metres started in the 60s. With nearly fifty years of nurturing and protection, the industry is now well matured and self sustaining in both production and technology of electricity meters and ready for an aggressive push in the export market.
The present demand of electricity meters in Pakistan is around 3 million for single phase and 30,000 for three phase. While there is a gradual shift to electronic meters, no known strategy is in place for Automatic Meter Reading (AMR) by the Electric Monopoly WAPDA.
The Pakistani Meter Manufacturing industry however is lagging in producing high-inch meters, neither it is showing any signs to be part of the global supply chain. This can partly be attributed to the regulation of the electricity meters by WAPDA. The manufacturers are bound to meet the technological parameters set by WAPDA and are dependent on its technological priorities.
WAPDA also needs to change over to the latest metering technologies that would provide comfort to the consumers, and at the same time provide an opportunity for the local manufacturers to be part of the global market.
NEPRA could start by de-regulating the meter industry, taking charge of the technology foresight for this industry and type approvals and allowing the public to choose and buy electric energy meters from the market.
This however, is no excuse for the local manufacturers as they could have targeted the world market much earlier with the latest technologies. In view of the changing technological trends described above, the existing negligible share of the local industry exports is likely to diminish, as it is for the conventional meters only.
Considering China's position as a bulk exporter of industrial products, it has been made to follow in this particular area by Hungary and Czech Republic. Everything is however not lost as the local industry can still share a much larger part of the pie.
Courtesy: Industrial Bulletin
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