Automatic Meter Reading, or AMR, is the technology for automatically collecting data from energy metering devices (gas or electric) and transferring that data to a central database for billing and/or analyzing. This means that billing can be based on actual consumption rather than on an estimate based on previous consumption. It also eliminates the need for each meter to be visually read by a technician, thereby cutting personnel costs.
Advanced Metering Infrastructure, or AMI, is technology to capture additional data. This can include detection of technical events such as leaks, or reverse flow (reducing the chance of power emergencies and blackouts), but AMI is also used to collect time of use data that can be used for energy use profiling, time of use billing, demand forecasting, rate of flow recording, flow monitoring, etc.
EnergyAustralia call this PowerSmart which they (and others) are progressively implementing throughout their electricity networks. With traditional "flat" pricing, the price you pay for electricity is the same, no matter what time of day or night you use it (with the exception of customers who have special off peak meters and rates, usually for hot water). With PowerSmart, your electricity rates are broken down into three different time periods - Peak, Shoulder and Off Peak. This means you pay for how much electricity you use, based on when you use it. A higher rate is charged during the Peak period, than the Shoulder and Off Peak periods. So your rate is less when the demand for electricity is lower, and more when it is higher. This means you have greater control over your electricity bill. AMI makes it easier for you to keep track of your energy usage which can help you reduce your energy costs and you are provided with an incentive to reduce your energy usage.
Apart from the consumer benefits, AMR and AMI technology is also a completely new source of data for energy retailers to analyse. They could gain unprecedented insight into demand and usage patterns, which could in turn provide enormous business benefits.
For example, the wholesale electricity market is typically characterised by relatively tight supply with huge discrepancies between pre-purchased and real-time prices and the absence of a predictable short-term (e.g., hour-ahead or day-ahead) forward market. With the benefit of AMR and AMI analytics, markets will mature and get more competitive, the level of discrepancy between pre-purchased and real-time prices will narrow and become more sophisticated.
Large wholesale customers, who are also retail suppliers therefore have the best opportunity to exploit and respond to short-term demand. With their new found AMR and AMI analytics, their ability to respond within one hour, or even five minutes with favourable prices highlights the significant opportunity for large, sophisticated customers that will support wholesale market timing and pricing.
These benefits however are only available to those who can overcome the enormous data management and analytics challenges.
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