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Avoiding Utility Bill Shock
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BUSINESS PROTECTION © 2015 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA Avoiding Utility Bill Shock 3rd Annual Revenue Assurance for Utilities - 2015 Dr. Gadi Solotorevsky CTO – cVidya Networks Ambassador, Distinguished Fellow and RA Team Leader – TM Forum
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Transcript of Avoiding Utility Bill Shock
BUSINESS PROTECTION
© 2015 – PROPRIETARY AND CONFIDENTIAL INFORMATION OF CVIDYA
Avoiding Utility Bill Shock
3rd Annual Revenue Assurance for Utilities - 2015
Dr. Gadi Solotorevsky
CTO – cVidya Networks
Ambassador, Distinguished Fellow and RA Team Leader – TM Forum
2
Agenda
Reaction to Smart Meters
Pushback: a risk to smart meter deployments
Concerns about the increase in amounts charged in electricity bills
The role of Revenue Assurance in
− Preventing Bill Shock
− Demand Response Acceptance
Using TM Forum Revenue Assurance best practices
Proactively alerting customers once they deviate from normal consumption
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Loss of investment in smart grid
− Ineffective DR
Customer satisfaction
− Churn
Loss of money
− Bad debt
− Penalties
Why Utilities care about Bill Shock
4
Peak utilization accounts for huge required investments, and causes many of the grid failures
Peak shaving is the holy grail of utility companies
DR and Active DR are key elements in utilization shaping and peak shaving
Customers not paying or paying inaccurately are
− Immune to DR
− Consume more energy than normal customers
RA and FM reduce these customers’ utilization, and make them sensitive to DR
Demand Response (DR)
5
Stop Smart Meters
Source: http://stopsmartmeters.org/why-stop-smart-meters/
6
Take back your power
Source: http://www.takebackyourpower.net/take-action/10-questions-for-your-utility/
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Causes of Bill Shock
Incorrect pricing
Incorrect billing
Back-billing
Problematic transformation projects
Late billing
Incorrect penalties
Meter failures
Clock accuracy
Lack of customer awareness
Fraud
8
Bill Shock cause – Late billing
Source: http://www.thestar.com/business/personal_finance/2014/02/07/why_ hydro_ones_billing_is_under_attack_roseman.html
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Bill Shock cause - Back-billing
Source: http://www.turn.org/consumer-tools/fight-back/inflated-pge-bills.html
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Bill Shock cause – Incorrect billing
Source: http://spectrum.ieee.org/riskfactor/computing/it/duke-energy-wrongly-reports-500000- customers-as-delinquent-bill-payers-since-2010-
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Bill Shock cause - Systematic billing errors
Source: http://www.energychoicematters.com/stories/20141210b.html
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Bill Shock cause – Problematic transformation projects
Source: http://www.theguardian.com/money/2014/nov/14/gas-electricity-consumers-overcharged-uswitch-study
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Bill Shock cause - Clock accuracy
Source: http://www.theguardian.com/money/2014/mar/24/npower-bill-shock-economy-customers
14
Better consumption control (via DR)
Competition
− increased revenues by gaining more profitable customers
Grid Control
Regulation requirements and incentives
Costs cuts
14
BTW – Why utilities care about Smart Meters
15
Opt out statistics – hard to tell
Source: http://www.intelligentutility.com/article/12/09/few-and-fewer-opting-out-smart-meters
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Opt out statistics – hard to tell
Source: http://www.metering.com/smart-meters-canada-hydro-quebec-faces-heat-despite-low-opt-out-rate/
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The cost of opting-out
Source: http://www.greentechmedia.com/articles/read/pges-smart-meter-opt-out-the-ins-and-outs
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The cost of opting-out
Source: http://www.bge.com/smartenergy/smartgrid/commonquestions/pages/can-i-opt-out-or-choose-not-to-have-a-meter-installed.aspx
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The impact of opting-out
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What is your scenario?
Smart Meters
Smart Utilization
Cost cut to utilities
Cost cut to
customers
More opt-in
Smart Meters
Same Utilization
Cost increases to utilities
Cost increases
to customers
More
Opt-out
21
Where RA enters the game
Smart Meters
Smart Utilization
Cost cut to utilities
Cost cut to
customers
More
Opt-in
Customer education
Appropriate DR plans
Correct Billing
On time billing
Fraud mitigation
Correct measurement
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Revenue Assurance and Bill Shock
RA Exists
There are best practices
There is methodology
There are products
Don’t waste time re-inventing it
Adopt and adapt it to your needs
Use of RA Best Practices Documents by TM Forum Members 20 Respondents, 180 Indications less 38 N/A = 142
13% 19% 19% 19% 25% 27% 33%
44% 38% 44% 50% 38% 33%47%
63% 56%44% 44% 38% 31% 38% 40%
20%
6%6%
38%31%
(16) (16) (16) (16) (16) (15)(15)(16)(16)
0%
100%
GB941-B (RAMM) GB941 Guidebook TR131 GB941-E [1] GB941-D GB941-A (RASK) GB941-E [3] GB941-E [2] GB941-C RFX
Not familiar with it and not using it Familiar with it but not using it Familiar with it and using it
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Use of TM Forum Best Practices1
1: Source, TM Forum, Revenue Assurance Survey 2012
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Reactive, Active and Proactive
Proactive
Monitor problems in real time to investigate corrective response before any revenue loss takes place
Identify and resolve the cause of revenue loss that already took place
Reactive
Active
Implement controls and other measures to prevent problems
Revenue Assurance
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TM Forum - Revenue Assurance Maturity Model
Organization Process Measurement Technology
RA strategy
RA objectives, goals & incentives
Organizational fit
Sponsorship, ownership, accountability and responsibility of RA
Skill set of RA team
Business knowledge
Relationship with other departments
Staffing levels
Communications
RA planning & review
Use of risk management techniques
Change management involvement & sign-off
In-life product reviews
Operation of primary controls
Operation of secondary controls
Investigation of discrepancies
Correction of identified issues
RA reporting
Adoption & sharing of industry best practice
Measurement framework
RA control structure
Risk mitigation
RA control coverage & data quality
Leakage & benefits
RA control efficiency
RA control effectiveness
RA productivity metrics
Unmeasured leakage
Technology strategy
Technology acquisition
Functionality of RA tool set
Access to information
Data analysis
Use of RA technology
Ease of use
Degree of automation
Revenue coverage
Supplier management
Provides a method to assess the maturity of business activities that should deliver revenue assurance objectives based on a quantitative maturity model
Maturity Model Assessment Areas: Re
qu
ires So
me
A
dap
tation
to U
tilities
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Product & Offer
Management
Customer Management
Partner Management
Finance Accounting &
Collection
Rating & Billing
Grid & Usage
Management
Order Entry &
Provisioning
Based on the the Business Processes Model
Assess the completeness and efficiency of existing controls
Assess the level of RA coverage in the entire organization
Assess the known and unknown leakage risk areas (per business process)
Map the systems involved and prioritize the data sources
Set priorities for new control implementation and improvements needed
Core Business Processes (Order to Cash Flow)
Risk Model based on 7 Business Processes
Pre-defined risks per Business Process
Risk-based RA Methodology
Catalogue of Metrics - 31
Catalogue of Risks - 52
Catalogue of Sub Risks -246
Catalogue of Measures - 231
Catalogue of Leakage scenarios - 125
Re
qu
ires Sign
ificant
Ad
aptatio
n to
Utilitie
s
27
TM Forum - RA Catalogues
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MoneyMap® Building Blocks
cVidya Platform - Analysis Layer: Leakage Resolution, Discrepancy Analysis, Leakage Reporting
MoneyMap® Configuration
MoneyMap® Usage
MoneyMap® Rating & Billing
Verification
cVidya Platform, ETL
Ad
min
istr
atio
n Collecting &
reconciling configuration information from various data sources such as MDM, CRM, Billing, Accounting
Monitoring and Recovering revenue lost due to missing or incorrect usage data along the Meter-to-bill route
Verifies the rating and billing accuracy based on contract, tariff, meter readings and estimations
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Bill Shock – how to prevent
Incorrect pricing – Price simulation
Incorrect billing – RA Rating and billing controls
Back-billing – RA Billing to CRMs and invoice controls
Late billing – RA Billing to CRMs and invoice controls
Problematic transformation projects – proactive RA
Incorrect penalties – RA Rating and billing controls
Meter failures – RA usage controls
Clock accuracy – RA usage trends analysis
Fraud – both RA and FM techniques adapted to Utilities
Customer unawareness – market education
Stand
ard R
A
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Revenue Leakage Risks
Perform RA Maturity and Risk Assessment
Prioritize key risk areas
Deploy the RA modules that address the key issues
30
Suggested Next Steps
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A leading supplier of Revenue Analytics solutions to communications and digital service providers
Founded: 2001
300 employees in 15 locations worldwide
Deployed at 7 out of the 10 largest operators in the world
150 customers in 64 countries
Processing 2.45 Billion subscribers in deployments globally
Actively and constantly engaged with leading standard bodies and industry forums
Partnering with world leading vendors and trusted ICT/SIs
What you should know about us
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YES, HOT Palestine - PalTel Fiji - Digicel
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