Smart metering interoperability in the GB market

Interoperability is a key assumption in the development of smart metering in GB to facilitate the competitive energy retail market. There are 2 elements to interoperability: technical and commercial technical interoperability is largely about defining: functionality of the gas and electricity metering systems interfaces in the provision of smart metering services (format and data content) service requirements of those interfaces. This is deliberately focused on service requirements and interface definitions, rather than existing solutions - these can be assessed once an RFI is out for the services. The definition of technical interoperability will depend on the market model and will be driven by the use cases for smart metering. WAN communications interface and local communications interface are explored. Consumer engagement essential to deliver consumer benefits identified in CBA. Use cases will have to be forward-looking to ensure that opportunities such as demand-side management and Smart Grids are not precluded by any solution. Commercial Interoperability is every bit as important, as any framework for the operation of smart metering must work commercially and contractual arrangements must be practical (e.g. for single fuel supplies as well as dual fuel supplies). Implications of different market models are explored. Implementing an operational framework for smart metering is just the beginning. Smart metering itself is just the facilitator - it is what industry does with the smart metering framework that is key to achieving the benefits in the CBA (e.g. flexible tariffs, PAYG offerings, customer behavioural change). There must be a strategic vision for the operation of smart metering. If we need to compromise that vision for day 1 operations, then that is acceptable as long as the long-term vision is not lost and is the target for a series of tactical industry changes to achieve it. We need a Government/Ofgem/industry programme of work to achieve day 1 operation and to set out the strategic target. We must provide a framework for industry efficiencies (see principles and requirements).