Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve...

32
Lead the Transition – Serve the Customers

Transcript of Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve...

Page 1: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

Lead the Transition – Serve the Customers

Page 2: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

2

41 DSOs, 2 Associations,

24 Countries

Serving > 350 million citizens

Participation in 12 EU-funded research projects

Founded in 2010

11 full-time staff in E.DSO Secretariat

Participation in all EU expert groups in Smart Grids (SGTF, ETIP SNET, TSO/DSO Platform)

€ 27 billion annually for grid investment

+330,000 DSO grid jobs in the EU

7 million km of distribution lines (9 times from Brussels to the moon and back)

35% of all value chain of electricity sector

Industry Figures

Page 3: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

3

E.DSO Lead the Transition – Serve the Customers

10 years E.DSO – the trusted voice of Distribution System Operators in Europe

E.DSO was founded in 2010 as ‘EDSO for smart grids’ by 11 leading electricity distributors gathered around a common goal: to develop and deploy smart power networks across Europe and to facilitate the energy transition. Over the past ten years, E.DSO has grown from a small gathering of DSOs to a firmly established and broadly-recognised association in the EU’s energy scene.

Counting today 41 members, and being assisted by a secretariat of 11 full-time staff members from 8 countries, the association represents an industry that spans the continent – connecting 350 million EU citizens, operating seven million kilometeres of electricity lines, with annual investments amounting to EUR 27 billion and providing jobs to 330,000 people.

Connecting the dots

The last ten years have been quite a journey: from the first InnoGrid conference in 2012, the first participation in EU-funded projects in 2013, the establishment of the three committees (policy, projects and technology) in 2014, the important work on the Clean Energy Package throughout the years 2016-2019, including the recognition of DSOs through the new ‘EU DSO Entity’ that will be launched soon, to the establishment of our Stakeholder and Innovation Council in 2018, that proved to be a valuable asset, having helped us to shape our understanding of ‘innovative resilience’ to tackle the ongoing coronavirus crisis.

The next decade: paving the way for a ‘Green Recovery’ and a customer-centric energy system

We continue in that spirit, facing upcoming challenges including the ‘Green Recovery’ where DSOs have to play their role, making the Green Deal a European success story, and continuing to put customers at the centre of the energy transition.

Page 4: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

4

E.DSO would like to thank the members of the Working Group ‘DSO customer relations’ that prepared this brochure:

Lead: Riikka Hirvisalo-Oja (Caruna, FI)Secretary: Henning Twickler (E.DSO, BE)Paul de Wit (Alliander, NL)Santiago Gallego (i-DE, ES)Joachim Gruber (Netze BW, DE)Marie Picut (Enedis, FR)Liene Lauceniece-Ivaninoka (JSC “Sadales tīkls”, LV)

For any requests, please contact: [email protected]

Additional contributions received from:

Fons Jansen (Enexis, NL)Mindaugas Pranaitis (ESO, LT)

June, 2020

Contents

Foreword 5Introduction 6Key messages 8Regulatory framework set by the Clean Energy Package 9Case studies: DSOs delivering added value to their customers 10

Arranging a grid connection 11

Case n°1: Providing a grid connection (Caruna) 11Case n°2: Connecting prosumers with remote generation (ESO) 12Case n° 3: Automated new connection application – One click story (ESO) 13

Providing relevant data (e.g. consumption data through smart metering), using new digital technologies 15

Case n°4: Client portal and the smart phone app “Enedis à mes côtés” (Enedis) 15Case n°5: Qliente Project (i-DE) 16

DSO-customer communication (e.g. in case of disturbances or outages) 18

Case n° 6: Customer service (JSC “Sadales tīkls”) 18

Facilitating data exchanges with third parties 20

Case n° 7: Automatic data exchange and customer service processes with electricity traders in Latvia – data hub (JSC “Sadales tīkls”) 20Case n°8: Data Connect (Enedis) 21

Enabling new and innovative services and helping customers to become active and reap the benefits of the energy transition 23

Case n°9: Marketplace platform (Caruna) 23Case n° 10: Independent trading platform ENTRNCE (Alliander) 24Case n° 11: Customer interaction field trial “EnergieKoplopers” – Energy front runners (Alliander) 25Case n°12: Smart and fair network tariffs (Enexis) 27

Conclusions 29

Page 5: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

5

Foreword

Distribution system operators are deeply involved in a consumer-centric approach of the energy system and convinced by its necessity. This document reflects our actions and practical solutions we already provide to this end.

As regulated actors, our missions’ framework is particularly supervised. Nevertheless, we are always acting and innovating to improve the quality of our service and build the bridge between customers, the electricity network and the energy transition.

The role of the consumer in the energy system has been considerably increasing for several years, as generator but also as flexibility provider. Developing such solutions also reflects our understanding that the whole system decarbonisation starts at local level, at customer’s level. DSOs pay close attention to consumers’ expectations and are committed to meet their needs. As local operators, we are systematically involved in customers’ projects, whether for connecting their building, accompanying them in energy communities’ implementation, or helping them to manage their electricity consumption.

E.DSO members are at the core of the digital transformation of the energy system too. Technology is one of the best ways to innovate and to constantly improve our engagement with customers. The digitalisation of our networks and services is part of our DNA.

Digital solutions, which are already rolled out, have proven to be effective in maintaining the link between DSOs and their customers all along the coronavirus crisis. The following tools have been critical to regularly inform citizens about our actions and to ensure the effectiveness of our essential services.

The next steps will be to contribute to the Green Deal objectives, which intend to reach climate neutrality by 2050, while keeping the consumers active and at the centre. We will actively take part to it and continue acting for developing solutions to accompany customers in the energy system transformation.

Over the past decades DSOs’ role in the energy system has been constantly changing to a more “active” one. I personally believe that it deeply serves our main mission, which is making the link between all stakeholders of the energy system with a specific attention to consumers.

Christian BuchelChairman E.DSO

“The next steps will be to contribute to the Green Deal objectives, which intend to reach climate neutrality by 2050, while keeping the consumers

active and at the centre.”Christian Buchel

Chairman E.DSO

Page 6: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

6

E.DSO Lead the Transition – Serve the Customers

Introduction

The electricity distribution network is the direct link between energy consumers on the one hand and electricity generation and transmission on the other. It is the ‘backbone’ of our energy system. European DSOs connect 260 million customers of which the vast majority are residential households and small enterprises.

Historically, the energy system was unidirectional – electricity flowing from big generation units, usually conventional thermal power stations, through the transmission and distribution networks, directly to the final consumer. However, this is changing in the course of the energy transition. Flows are increasingly multi-directional, and the energy landscape is becoming more diverse, with various new actors emerging.

The formerly ‘passive’ consumers themselves are undergoing such change. With more people owning small-scale generation units, for example in the form of solar photovoltaic (PV), and feeding self-generated electricity into the network, ‘active’ consumers or electricity ‘prosumers’ are becoming much more commonplace.

However, consumers do not only become more active on the supply side. They are also a valuable source of flexibility for the energy system, adjusting demand patterns to system needs. They can provide ancillary services to system

operators, including DSOs, for instance by participating in demand response schemes, temporarily lowering their demand in peak periods. This is even more needed in the future, anticipating a system that is mainly based on volatile renewable energy sources and that is highly electrified.

It is evident that the energy transition – and along with it, the attainment of our carbon reduction targets and climate ambitions – cannot succeed without having the citizens on board. Their active participation enables an energy system that is organised bottom-up consisting of optimised energy systems of different sizes – from the individual prosumer through energy communities, contracting models, small, medium and large DSOs to the overall system.

DSOs, as the direct link between consumers and the whole energy system, acknowledge this reality. At the same time, DSOs also acknowledge that encouraging citizens to become actively involved in the energy transition must not result in punishing those that (for various reasons) do not or cannot become more active. This is particularly true for vulnerable consumers – and also expressed in the conclusions of the 11th Citizens’ Energy Forum, organised by the European Commission in September 2019, which state that “[c]onsumers should be encouraged to switch to

1 https://ec.europa.eu/info/sites/info/files/11th_citizens_energy_forum_consolidated_final_conclusions.pdf

Page 7: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

7

E.DSO Lead the Transition – Serve the Customers

sustainable energy use, while ensuring that no consumers are left behind irrespective of the source of energy they use.”1 DSOs, as regulated entities, cater to the needs of all their customers and as neutral market facilitators do not discriminate between any parties connecting to their system.

This paper presents a set of key messages on customer-DSO interactions. It looks at the changing regulatory framework following the adoption of the Clean Energy for All Europeans Package and particularly the relevant consumer and DSO provisions. Different use cases on how DSOs interact with their customers are presented. These include: a) Arranging a grid connection, b) Providing relevant data (e.g. consumption data through smart metering), c) DSO-customer communication (e.g. in case of disturbances or outages), d) Facilitating data exchanges with third parties, e) Enabling new and innovative services and helping customers to become active and reap the benefits of the energy transition.

In addition, DSOs are committed to actively encouraging customers to organise themselves. They will facilitate customers initiating Energy Communities or using the services of commercial providers like contractors respecting the genuine interest of their connected customers.

Page 8: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

8

E.DSO Lead the Transition – Serve the Customers

Key messages

Citizens play a central role in the energy transition, proactively facilitated by the DSODSOs are the direct link between our customers and the wider energy system. Furthermore, DSOs connect more than 90% of renewable generation, with a growing number of decentralised renewable energy sources connecting to the grid from DSOs customers’ premises.

DSOs move away from the notion of ‘connection points’, adopting a more customer-centric approachDSOs were long considered mere providers of the physical infrastructure while their interaction with customers was mostly limited to technical or administrative issues. But DSOs can be much more when moving beyond their traditional role of network operators towards being active system managers, providing new and innovative grid services to their customers while at the same time respecting unbundling rules indicating which activities are in the regulated and the commercial sector.

DSOs implement new technologies and offer innovative services to their customers, especially if these services cannot be provided by the commercial sectorSmart meters gather crucial data that form the basis for increased customer engagement. Client portals and apps are also necessary tools to access and visualise the information obtained through smart meters.

Digitalisation of communication between DSOs and customers is keyThis includes new features to be implemented, such as displaying information about outages and scheduled maintenance works but also information on new services and ways for the customer to become more actively involved in the energy system. The services that have been already implemented have obtained excellent acceptance from customers.

A customer-centric energy transition requires a clear regulatory framework that accounts for dynamic developments and innovationFlexibility is needed when planning and implementing regulation. Regulatory sandboxes must allow for testing new customer-DSO interaction models that can benefit consumers and society, and ultimately drive forward the energy transition.

A customer-centric energy transition facilitated by DSOs enables a bottom-up construction through optimised energy systems of different sizes and organisations. It requires the proactive action by electricity DSOs to identify customer needs while limiting complexity and increasing acceptance through participation.

1

3

4

5

6

2

Page 9: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

9

E.DSO Lead the Transition – Serve the Customers

Regulatory framework set by the Clean Energy Package

In November 2016, the European Commission proposed a comprehensive update of its energy policy called the Clean Energy for all Europeans Package (CEP). This package was adopted in 2019 and brings significant benefits for the customer and the environment. It also recognises the increasingly import role of DSOs, especially in integrating renewables into the system. Since more than 90% of the renewables are connected at the distribution level, a good cooperation between customers, market parties and DSOs is essential.

The role of the consumer is strengthened in the CEP:

• Consumers can form a Citizen Energy Community (CEC). The primary purpose of a CEC is to provide environmental, economic or social community benefits for its members or the local areas where it operates rather than financial profits. The consumers in a CEC can jointly invest in small renewable production resources and share the generated energy among each other. DSOs can facilitate the electricity transfers within CEC and the integration of CEC into the distribution network (as a whole system). DSOs encourage Energy Communities, but also insist on a level playing field between actors irrespective of the organisational form.

• Consumers are free to purchase and sell electricity services, other than electricity supply, including aggregation, independently from their supply contract. This enables consumers to participate in more markets. This aggregation is especially relevant on distribution grids.

• The consumer will be able to technically switch their electricity supplier within 24 hours (no later than 2026). DSOs play a very important role in the handling of a supplier switch of the consumer.

• The consumer must be able to choose a dynamic pricing contract. A prerequisite for a dynamic pricing contract is to have a smart meter. In most EU countries, DSOs are responsible for the installation and operation of smart meters. DSOs deploy smart meters ‘that are interoperable,

in particular with consumer energy management systems and smart grids, in accordance with the applicable Union data protection rules’ to help consumers to monitor their energy consumption.

The CEP is also important for market parties:

• DSOs can provide market parties, with the consent of the customer, validated historical consumption data and non-validated near-real time data. This enables market parties to create accurate offers and to create new and innovative services.

• In order to promote competition in the retail market and to avoid excessive administrative costs, Member States shall facilitate the full interoperability of energy services within the union. Since DSOs are the neutral market facilitator this will have a big impact on DSOs.

The role of the DSO is strengthened by the CEP:

• DSOs are allowed and incentivised to procure flexibility services, including congestion management. The energy transition requires that the DSO has more tools at its disposal than only reinforcing the grid. Of course integrating such new services into the daily operation of the grid is not an easy task.

• DSOs shall cooperate with TSOs for the effective participation of market participants connected to their grid to the retail, wholesale and balancing markets.

• On the EU level, a new DSO entity will be created. This entity will play a significant role in developing EU network codes relevant for distribution systems. This puts DSOs on a more equal footing with TSOs.

The new Green Deal and the digitalisation of Europe will be important new priorities of the new European Commision. Now that the position of the DSOs is strengthened at EU level, DSOs are better equipped and are ready to help the EC in achieving these goals. We believe that DSOs can and are willing to play an important role in reaching these new goals of the European Commission.

Page 10: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

10

E.DSO Lead the Transition – Serve the Customers

Case studies: DSOs delivering added value to their customers

DSOs interact with their customers in various ways and interactions are evolving due to new technologies, changing customer preferences and expectations, as well as an updated regulatory framework. Some concrete examples of how DSOs address customer needs in this changing energy system are presented in this section.

These include: � Arranging a grid connection, � Providing relevant data (e.g. consumption data through smart metering), � DSO-customer communication (e.g. in case of disturbances or outages), � Facilitating data exchanges with third parties, � Enabling new and innovative services and helping customers to

become active and reap the benefits of the energy transition.

Page 11: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

11

E.DSO Lead the Transition – Serve the Customers

Arranging a grid connection

Case n°1: Providing a grid connection (Caruna)

The grid connection process is one of the main customer processes in distribution. It also often is the very first contact from the customer to the company. Caruna wants to offer customers quick and easy services through digital channels. Grid connection is one new part in Caruna's online service platform.

Which customer need is addressed? The customer is planning to build a new house and has many different stakeholders to deal with. Grid connection is essential for the construction process and the customer wants an easy way to order a grid connection and follow the building process.

Which solution do we propose?Caruna collects information of granted construction permits from municipalities’ sites and contacts the future customers with a welcoming letter even before their own contact to

Caruna. The welcome package includes information of Caruna's digital services and directs them to the online services including offering a grid connection.

At Caruna's smart online connection ordering service, connection price and delivery time is calculated based on location of the new construction site and needed electricity. The service is fully digitalised; it allows customers to do digital contract signing and payment. The customer can follow the grid connection process online and also receives messages on how the process is proceeding.

ConsiderationsThis new grid connection process is in the pilot phase and is a next step complementing already available online services like contract and invoice handling, fault information service and the new Marketplace platform which is also described in this paper. Caruna.fi online services give effortless service experience to the customer. Online services are still, however, supported by the possibility of a telephone service with a customer service expert.

Figure 1: Customer path in the digital connection process. Source: Caruna.

Page 12: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

12

E.DSO Lead the Transition – Serve the Customers

Case n°2: Connecting prosumers with remote generation (ESO)

The Lithuanian government expanded in October 2019 the definition of prosumers which now consists of

a) regular prosumers who generate and consume strictly within the same premises (i.e. consumers with solar roof systems) and

b) remote consumers who have their generating capabilities in a geographicly different location.

In the case of remote prosumers both the point of consumption and the generating capabilities have to be connected to the same DSO.

Which customer need is addressed? • The customer has several points of consumption with

one of them having excess electricity generation from renewable sources.

• The customer does not have a possibility to install a renewable energy generation system at their premises.

• The customer does not want to fully commit to installing renewable electricity generation at their premises.

Which solution do we propose?Regular prosumers can virtually split their generation capabilities and link them with their other points of consumption. This way all energy supplied to the grid during a month is split proportionally according to a previously attributed generation power in kilowatts to each point of consumption. However, according to the current legislation, a regular prosumer may only link his power generation capacity to other premises which he owns, but it may change in subsequent iterations of the legislative documents. Note that electricity that is produced and consumed simultaneously is not accounted for by the bi-directional electricity meter and only the surplus generated power can be split among several points of consumption. It is possible to attribute all generation capacity to other premises leaving 0 kWp at the regular prosumer’s premises (in this example – the summerhouse). This would mean that all the surplus power

that is not consumed instantly during generation would be attributed to other points of consumption.

The new legislation has also paved the way for a new business model. It is now possible to install a large renewable power plant (usually solar or wind) as a remote generator and sell or rent parts of it to different customers. Installing a larger power plant at once helps reduce its installation costs due to economies of scale and larger bargaining power during the procurement of components and services. What is more, this product is particularly appealing to people with constraints to install a renewable generation system on their own: customers living in apartments, renters who don’t want to invest in the premise or people living in detached / semi-detached houses with small or suboptimal roofs.

Figure 2: Remote generated power splitting among several points of consumption. Source: ESO.

Renting a part of a power plant is much easier for the customer due to the inherent flexibility to cancel the rent and because there is no need for a large up-front payment that in many cases is difficult to afford. On the other hand, renting a part of a power plant is not as financially appealing due to higher administration costs and a larger risk premium.

The proportional energy distribution works the same way as in the example above. Regardless whether a customer

Page 13: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

13

E.DSO Lead the Transition – Serve the Customers

bought or rented a part of a power plant it still has to be maintained and occasionally fixed, which in turn requires the customers to pay periodic administration and maintenance fees to the responsible company. The DSO is not involved in billing and collection of such fees or even in the process of dealing with debtors.

In Lithuania, the very first platform for selling and buying community solar projects is owned by the largest electricity and natural gas provider in the country. This way there are several synergies between their services, such as knowing the customer profile and being able to form a proposal to exactly suit the client’s needs, as well as managing the bills for electricity, gas and the remote generation all together.

Considerations

Even though this model is new in Lithuania and the market still needs time to fully understand it, the model has already caught the attention of consumers, developers, energy providers, lawmakers and the media. Growth of sustainable energy production is one of the priorities for both the lawmakers and the consumers, however, financial benefits obtained via efficient development and the scale of projects in development attract even the less environmentally conscious consumers.

It is, however, important to note that the remote prosumer model is intended to empower consumers to cover their own electricity needs, not to enable them to participate in the electricity market.

Case n° 3: Automated new connection application – One click story (ESO)

One click story is an online application solution developed by ESO for new electricity and gas connections. ESO automated the whole application process – customers can fill in the application by using a map with network data and instantly receive a prepared agreement and pay the connection fee. The application process was reduced from 3-5 days to 1 hour.

Which customer need is addressed?Typically, people apply for new electricity or gas connections once or twice in their lifetime; companies have the same need once every 3-5 years at best. Therefore, they are usually frustrated by the technical nature of the process (you need to understand the terminology, the requirements for the network, be able to clearly define your needs). Moreover, the application still has to be processed by employees to ensure that everything is right and ESO can provide the requested service. Limited online functionality and the need for manual labor led to long application processing times and unsatisfied customers.

Based on the surveys done after providing the service, customers expressed the need for simplicity and clear instant answers. Based on such input from customers, ESO initiated a project to simplify the application process for new connections. The main goal was to enable customers to submit an application and receive application approval, calculated connection fee and connection agreement online, and sign and pay during the same session in a self-service portal.

A more elaborate presentation and live demonstration of the solution can be found here: https://www.youtube.com/watch?v=cv_C3PD-fLU

Which solution do we propose?ESO decided to utilise distribution network data (connection lines, substations, network parameters) and geographical data stored in GIS to simplify the application process. By enabling data exchanges between GIS, the ESO online

Page 14: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

14

E.DSO Lead the Transition – Serve the Customers

portal and four other systems, a complex IT solution was developed.

The following activities have been completed to implement the IT solution:

• Development of hydraulic network analysis system (gas only)

• GIS data cleansing• Development of validation of land parcels and their

ownership• Update of the application forms in self-service portal• Development of automated calculations (dU, tracing,

residual power query, available connection points, distance, existing physical barriers) in GIS

• Development of customer and application data autofill and automated price calculation in customer CRM software

In the end, a transformation of online applications for new connections has been implemented. This transformation allowed customers to:

• Fill in applications online• Choose proposed alternatives for connection parameters• Check connection point on the map• Network tracing is performed in the back-office systems• Calculations are made in GIS• Receive information about price and duration of connection

works• Sign the agreement and pay the fee online during the same

session

ConsiderationsAs the first version of the solution has been launched in July 2018, ESO has identified a number of required improvements. In order to fully fulfill needs of the customers, it is essential to have a high quality of network data. Despite, the still existing minor drawbacks, the feedback from the customers is positive and ESO notes a decrease in application processing duration and increase in customer satisfaction.

Figure 4: Data needed for the solution to work. Source: ESO.

SKIRTA ADRESATUI

The solution required changes in 6 different systems

Electricity and Gas network data

GIS data

GIS (ESRI)

Self-service data and tools

Self-service system

Infrastructure data

Existing clients data

Network infrastructure system

New clients applications data

Connection service agreements data

New clients system

Hydraulic network analysis data

Hydraulic analysis system

Data of real estate owners

Data of boundaries of land parcels

Centre of Registers data

Figure 3: Connection point selection and price calculation section. Source: ESO.

Page 15: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

15

E.DSO Lead the Transition – Serve the Customers

Providing relevant data (e.g. consumption data through smart metering), using new digital technologies

Case n°4: Client portal and the smart phone app “Enedis à mes côtés” (Enedis)

Enedis has been offering a client portal to consumers for a long time. Since the company has been rolling out Linky smart meters, the services have grown to meet the needs of the consumer and to support the energy transition.

Which customer need is addressed?Now, both the client portal and the phone app “Enedis à mes côtés” (Enedis on my side) are means to improve the link between the company and individual clients. It meets four principal consumer needs:

• To be informed about activities of the company• To access personal information in real time • To obtain personalised services• To manage their data

Which solution do we propose?The client portal is accessible online, and the phone app is free and available on Apple store and Google Play. Enedis has developed many new services through these digital solutions:

• To be informed about activities of the company

With or without a user account, any client can access the client portal to obtain information about grid connection and to simulate it. The client can also use the app to follow power cuts on the grid, to be aware of the condition of the network in case of climate crisis and to obtain some security advice. If the client has a user account, he can also access information about the installation of his Linky smart meter.

• To access personal information in real time

Thanks to the smart meter, consumers can access their consumption data with a user account. It is thus possible to monitor the load curve and trend (on a monthly/weekly/daily/hourly basis) and to be aware of energy savings. Clients can also access contractual data.

• To obtain personalised services

The client portal and the app are useful for the meter reading. If the client has a smart meter and a user account, the reading is automatic, and he can follow it. If he’s not equipped with a Linky smart meter, he still has the possibility to indicate the reading on the app or the website, or to schedule an appointment when he is available.

Furthermore, some services are personalised through data. With the app, the client can compare his consumption with similar households and be alerted in case of excessive consumption. To support the energy transition and to save energy, the app suggests to the client some challenges/games to learn “eco-gestures”, for example in decreasing hot water consumption or reducing the heating.

Figure 5: Overview of different services proposed by the app, screenshots of “Enedis à mes côtés” app. Source: Enedis.

Page 16: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

16

E.DSO Lead the Transition – Serve the Customers

In case of power cuts, the app provides information about Linky smart meter functioning to help the customer take first actions. The client is guided through some operations in order to find the most relevant solution.

• To manage their data

Through the app, the consumer can directly make known his position concerning his consumption data, in accordance with the general regulation on data protection: right to access, right to object, right to rectification and right to erasure. This way, the client allows data recording and transfer, notably to third parties. He always has the possibility to revoke. The producer can also make use of the app to get information about connection and to access information about his production and consumption.

ConsiderationsThe client portal and the app are already working. About 1 million of user accounts have been created.

One of the challenges was to ensure GDPR compliance and securing data: Enedis worked on a methodology which guarantees the account user is the contract owner while keeping it simple. Providing reliable information (consumption data) and making data available 24/7 was also challenging. Enedis worked on the content of data provided to the customers to not compete with suppliers.

The phone app and the client portal were a success for the company as they strengthened the legitimacy of the Linky smart meters by demonstrating their usefulness. Demonstrations to policy makers (Ministry, National Regulatory Authority) have provided important reassurance on the use of Linky to achieve the energy transition.

Case n°5: Qliente Project (i-DE)1

The main objective of the “Qliente” project is to improve the overall satisfaction of customers. For this reason, i-DE has a set of measures in progress, some of which have already been successfully implemented, to take advantage of the smart network and meters.

Which customer need is addressed?Two main subsets can be identified in terms of customer needs, both of them based on improving communications:

• Information about customers’ supply characteristics and outages

• A more personalised attention

1 The Qliente project falls equally under category 4.c) DSO-customer communication (e.g. in case of disturbances or outages).

Figure 6: Electricity consumption, customer peak demand; i-DE App. Source: i-DE.

Page 17: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

17

E.DSO Lead the Transition – Serve the Customers

Which solution do we propose?• Information about customers’ supply characteristics

and outages

i-DE has launched a mobile app as a new service for the customers to follow their electricity consumption with the possibility of having instant access to the meter (smart metering data already available for all customers), their grid connection, to contact the customer service and to check their contract data. If requested, customers also receive specific information about network outages affecting their supply service, including the expected time needed to restore power. The information is also available on the Customer Access website.

A more personalised attention

A more proactive approach has been developed when operating the grid. The motto is “From taking care of the network to taking care of the customers connected to the network”. Among the new functionalities that i-DE has implemented internally are:

• All outages in progress are monitored in real time, also taking into account if there are sensitive customers. The interruption and the estimated restoration time are updated as reliably as possible, so that the information is available to customers through the customer service channels (telephone, web, mobile app). In addition, those customers who choose it will receive a free SMS if there is an interruption that affects their supply.

• Data analysis to know the impact of the network operation on customers, with special attention to repetitive incidents, and also to advise customers with special needs in term of quality of supply.

• Power outage maps, with real time information on outage areas in the grid.

• A more personal approach to grid operation, clustering customers with more specific requirements and providing them with the most suitable technical solutions.

ConsiderationsIn summary, the aim of all the previous practices is to create value for the customers and, therefore, to improve their overall satisfaction. The Qliente Project is constantly evolving in order to meet these objectives.

Figure 7: Outage information on the website of i-DE Redes Eléctricas Inteligentes. Source: www.i-de.es/home

Page 18: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

18

E.DSO Lead the Transition – Serve the Customers

DSO-customer communication (e.g. in case of disturbances or outages)

Case n° 6: Customer service (JSC “Sadales tīkls”)

JSC “Sadales tīkls” provides the web service www.e-st.lv for various customer needs, which operates 24/7 and guarantees their clients fast and convenient support:

• apply electronically for services: renew/terminate power supply, incorporation of a new connection point in the contract, various technical works and other services;

• renew or supplement contact information within the contract;

• review consumption charts; • all the necessary actions connected with new connection

or load augmentation can be performed online: applying for services, sending and confirming documentation, following the connection instalment course;

• see all the applications and contracts in one place;• submit consumption (metering) data (for the clients for

whom the smart meter has not been installed).

Which customer need is addressed?Clients expect that the company will provide:

• continuous access to power; • proactive communication;• cooperation and support;• 24/7 service.

Which solution do we propose?To make more efficient the services provided for the clients as well as to offer a wider spectrum of services offered 24/7 and reduce the necessity for the client to address the company in person, new e-platform solutions have been introduced in 2019. Some of them are:

Digital map

The digital map as a substitute for previously used outage maps gives the clients extensive information on grid outages, power line renovation, cleaning of routes and protection zones, etc. If necessary, the customer can obtain

information on where he should turn to regarding questions on coordination of projects and technical works (Figure 5).

Information that can be derived from the map:

• Grid outages – planned as well as unscheduled outages can be seen in the map. Regarding each outage, the following features are displayed: outage number, outage duration, customers and addresses concerned. Data are renewed every 15 minutes. It is possible to search for the outages according to the address involved in a particular case.

• Reconstruction of power lines – works performed in renovation and reconstruction of power lines can be seen on the map. To understand whether a particular address is included in power line reconstruction plans, one must click on the works displayed on the map and the information on the total territory of the selected reconstruction will be available on the map. Together with information on reconstruction works, the number of investment projects, their status (from designing to building), planned accomplishment schedule, responsible person, etc. can be seen. Data are renewed every 24 hours.

• Cleaning of routes and protection zones – the map provides information on all cleaning plans of routes and protection zones. To search for the information, the client may introduce an address, place name or registration number in the search window. Together with the information on route cleaning works, the number of particular works, their status, planned performance time and performer of the works, are shown. Data are renewed every 24 hours.

Coordination of technical works within e-platform (Figure 6)

the customers have actively been using the platform within the first two months after the start of its operation. Customers evaluated advantages and convenience of the e-environment. The target of this year is that 80% from all procedures necessary for the connection process are performed within the e-environment. At this moment the plan is fulfilled.

Page 19: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

19

E.DSO Lead the Transition – Serve the Customers

E-consultations

Starting from 2019, customers and cooperation partners (designers, surveyors etc.) can within the e-platform of JSC “Sadales tīkls” coordinate projects and works electronically, thus saving time. Within the technical platform, customers can coordinate topographic plans, various projects, schemes, and receive technical regulations for construction plans, land survey projects, permissions for excavation works and works within protected areas, etc.

ConsiderationsThe company has developed various possibilities for customers in its e-environment and taken into consideration customer experience to provide each and everyone of them with fast and convenient services 24/7. As the company operates in the regulated domain and large parts of the services provided for customers are not everyday services, a huge challenge is to change customers’ habits and promote the use of the e-environment.

Figure 7: Digital map. Source: https://www.sadalestikls.lv/en/homepage/https://karte.sadalestikls.lv/lv/atslegumi-elektrotikla

Figure 8: E-platform. Source: https://www.sadalestikls.lv/en/e-services/e-pakalpojumi-2/

Page 20: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

20

E.DSO Lead the Transition – Serve the Customers

Facilitating data exchanges with third parties

Case n° 7: Automatic data exchange and customer service processes with electricity traders in Latvia – data hub (JSC “Sadales tīkls”)

Since 2014, JSC “Sadales tīkls” has been developing and using a data exchange platform, which provides automated exchange and storage of electricity market data with electricity traders. The access to this platform is provided for all the parties within the web portal of the company. The customer authorisation process takes place by secured soft solutions (for example smart-id).

Which customer need is addressed?The customers of JSC “Sadales tīkls” have access to all kinds of services and information within the web portal of the company. After the opening of the electricity market to households, the need for clients and electricity traders to exchange information emerged. Therefore, the exchange platform was created.

With the development of the data platform, DSO customers (which in the case of Latvia cover 99 % of the country’s

territory) are provided with a platform where they can easily demand services, and the data are provided through the system to traders, thus releasing the customers from the necessity to perform several actions and facilitating the cooperation process with electricity traders (for example, in the case of change of a trader).

Which solution do we propose?The established system provides the exchange of market messages (exchange of a trader, the change of a user in the connection point, connection implementation, termination of the connection and other messages). It also provides the traders with the information necessary for billing – i.e. consumption data and calculations on the provided services of the system operator as well as the mandatory procurement component. The average rate of 630,000 messages are received each month and each year JSC “Sadales tīkls”, by using the centralised data platform, treats approximately 11,000,000 information requests for provision of market functioning. Before demanding the data from the DSO, each trader obtains an explicit consent from each customer on the treatment of their personal data.

Figure 9: Centralised vs. decentralised system. Source: JSC “Sadales tīkls”.

Page 21: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

21

E.DSO Lead the Transition – Serve the Customers

By using the system, cooperation of customers with the DSO as well as with electricity traders is considerably facilitated. Various actions may be performed online which saves a lot of time for the client who does not have to bother setting up meetings with third parties, etc. Customers can have online access to their consumption data; they can benefit from the services offered by e-solutions.

ConsiderationsE-st.lv online services, the slogan of which is Fast.Easy way, provide an easy access for each customer to their personal consumption data as well as other data regarding connections and services offered. It provides customers with an easy way of calculating tariffs, power loads, information on power faults as well as the possibility to apply for connection implementation. The centralised data exchange involves no additional expenses for market participants, and it allows to minimise the manual actions to be performed in data treatment.

The system is constantly being improved to make it more convenient and accessible for all the parties using it.

In the future, the data hub is planned to be expanded to include customers also from the smaller DSOs operating in Latvia.

Case n°8: Data Connect (Enedis)

Since the end of 2018, Enedis has been developing a digital and secure platform, which fosters innovation and ensures data privacy. The platform collects the consumers’ consent to share their consumption data to the service providers they agree to and Enedis then transfers the data to them.

Which customer need is addressed?Enedis Data Connect allows service providers to propose new innovative services adapted to the households’ needs based on their near-real time data consumption measured by Linky smart meters. The new services could be offer-comparison websites, fine analysis of consumption, energy retrofitting expertise, etc.

Customers can take advantage of these new services while maintaining full control of their personal data. They are also able to withdraw their consent, via the platform whenever they want.

Which solution do we propose?The solution developed by Enedis is a “French Green Button” as assessed by the National Regulatory Authority. It changes the regular process of data sharing:

• Today: to access a customer’s data, the third party must guarantee to Enedis that it has the express consent of the consumer. Collecting the consumer’s consent is the service provider’s responsibility (Enedis proceeds to data sample ex-post verifications).

• Enedis Data Connect: with this “Green Button” the customer consent is directly collected by Enedis which allows then the service provider to access the data.

How does it work?

The service provider has to be first approved: a contract is signed with Enedis. Then the service provider tests the service in a demo with trial data. Once validated, access to the platform is granted to the service provider.

From the customer’s side, when he is on the service provider’s website, the service provider asks his consent for allowing Enedis to transfer the data needed for the service through the “Green Button”.

Page 22: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

22

E.DSO Lead the Transition – Serve the Customers

The customer is then redirected to their Linky client space where Enedis collects the consent. The service provider could then access the customer’s data as long as a consent is given. The consumer can revoke it at any time on the client space.

ConsiderationsThe Enedis Data Connect platform has been launched in November 2018 as a prototype and its industrialisation process is taking some time.

Enedis is continuously discussing with services providers to present its projects on data and collect their needs. In that way, Enedis Data Connect meets third parties’ needs

to collect data and provide them with a simplified means to access customer data through the DSO (they no longer have to collect consents by themselves; Enedis does). A dedicated website datahub.enedis.fr has been created to give the stakeholders technical, operational or contractual information.

Before the launch, the platform was subject to several testing phases. The conception was made in a collaborative way with the project partners. The experimentation was performed first on the basis of false data (consumption data are considered as personal data which need to be highly protected), then on a voluntary basis with customer data in order to improve and develop the experimental solution.

Figure 10: Change in the data sharing process with the Data Connect solution. Source: Enedis internal document.

Figure 11: Enedis Green button. Source: https://datahub-enedis.fr/data-connect/parcours-client/

Without data connect Data connect

Page 23: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

23

E.DSO Lead the Transition – Serve the Customers

Enabling new and innovative services and helping customers to become active and reap the benefits of the energy transition

Case n°9: Marketplace platform (Caruna)

Marketplace is Caruna´s new service platform where customers can get acquainted with different energy services and service providers. The portal offers customers reliable information on energy solutions and will be complemented with new services over time. The main idea of Marketplace is to connect customers with service providers that deliver energy solutions. Caruna enables the platform for customer and service provider interactions but doesn't engage in selling the services.

Which customer need is addressed?Customers are interested in smart home energy solutions and there is an increasing amount of service providers offering those services. Customers would like to have easier access to new services and make comparisons with different service providers. Caruna wants to create a platform for reliable information.

Which solution do we propose?The Marketplace platform enables the customer and the service provider to meet. The first available service is solar panel optimisation and ordering. Based on customer data in Caruna's systems – information of house location, compass

point, type and surface of house roof, etc. – the service calculates optimal solutions for the panels, including number of panels and generation potential as well as earnings potential. The same idea will later be applied to electric vehicle (EV) charging poles that customers can choose for their homes from Marketplace.

Marketplace service offerings will develop and are focused on e.g.:

• Solar production – choosing optimal set of panels• EV charging – choosing right type of charging pole• Electricians’ services – choosing electrician services to home• Electricity contracting service – helping customers to find an

electricity retailer• Cooling and heating solutions, etc. – choosing best solutions

ConsiderationsThe Marketplace platform has been built from scratch during 2019 and is open only to Caruna's customers. It is free of charge both for customers and service providers. Ambition with the platform is to improve customer experience. To ensure the right selection of service providers they are obliged to have an agreement with Caruna where e.g. certain customer service principles are agreed.

Figure 12: Marketplace

services. Source: Caruna

Page 24: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

24

E.DSO Lead the Transition – Serve the Customers

Case n° 10: Independent trading platform ENTRNCE (Alliander)

ENTRNCE is an independent (B2B) transaction platform for electricity that processes, administratively and financially, transactions between generators and consumers, regardless of their location. Transparent and in accordance with the rules and timing of the Dutch energy market, ENTRNCE makes it possible for generators and consumers to trade energy directly and independently. In addition, it offers existing and new energy service providers and suppliers the opportunity to develop Peer2Peer services for the customers they serve.

Which customer need is addressed?In the new sustainable energy system, more and more companies and consumers want to not only use electricity, but also to sell their own generated energy to third parties. Just as they can already choose from whom they purchase their electricity, they naturally also want to be able to determine to whom they sell their energy and at what price. To make this possible, an independent administrator is needed who does not trade in energy themselves. The DSO has this role in the current energy system.

ENTRNCE makes it possible to exchange energy directly between a consumer and a producer. For example, businesses or Citizen Energy Communities that consume (combined) a fair amount of energy now can decide on their own from which generator or installation they buy the energy. For local producers, this could enlarge the acceptance of the installation of wind turbines, etc.

The production and consumption of electricity must always be balanced at any specific moment in time. Energy communities with their own production (solar or wind) produce not always enough to cover their own needs at any specific moment in time. When the energy community produces too much, the surplus could be sold on the electricity market. When the energy community expects to produce not enough electricity, they can buy the electricity upfront at the power exchange.

Typical customers are:

• Citizen Energy Communities • Large producers (e.g. solar or wind farms) • Large customers (e.g. municipalities, greenhouses,

industrial areas, port companies, water companies, store chains)

• Start-up (local) energy suppliers• Energy service companies

Which solution do we propose?ENTRNCE developed a software platform to enable peer-to-peer trading in the complex energy market. This makes trading in electricity easier and cheaper; the electricity goes directly from producer to buyer. The system makes energy transactions possible between all electricity connections (large and small) and energy trading markets in the Netherlands. It can supply electricity from connection to connection via automatic transactions. Participants also have access to the energy markets themselves (EPEX, ENDEX, Intraday, etc.) to sell a surplus of electricity or to buy electricity if they foresee a shortage.

Figure 13: ENTRNCE platform. Source: Alliander.

Page 25: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

25

E.DSO Lead the Transition – Serve the Customers

ENTRNCE processes all transactions fully automated, on a 15-minute basis and from connection to connection. This is handled both financially and technically. This means that the Balance Responsible Program role (BRP) is integrated in the platform and transactions are settled according to the rules of the energy market.

The ENTRNCE platform is a low-barrier, fully automated Peer2Peer platform, which gives businesses, generators and consumers, service providers and energy suppliers access to the market. ENTRNCE is developed by EXE which is a subsidiary company of Alliander.

ConsiderationsThe ENTRNCE platform has been launched in November 2017 with one of the launching customers being the port of Amsterdam. As from 2020, ENTRNCE will outsource the BRP role due to compliancy reasons. Customers appreciate ENTRNCE for removing the financial barriers, handling the complexity of the energy market which makes the entrance of new market parties with innovative propositions easier.

Case n° 11: Customer interaction field trial “EnergieKoplopers” – Energy front runners (Alliander)

EnergieKoplopers is a smart energy field trial in the Netherlands. Together with residents, the project studied how the supply and demand of energy can be more closely aligned.

The energy system in the Netherlands is changing, with more and more people generating energy themselves, for example through the use of solar panels or wind turbines. This is also creating new opportunities. Not just for existing players but also for new parties and new markets that have to ensure that energy supply and demand are more closely aligned.

For two years, the project investigated households in the Dutch municipality of Heerhugowaard to see whether matching supply and demand could work through a flex market. Important outcome: the local flex market for households contributes to the optimisation of the electricity grid and has added value for all parties.

The project is part of the Smart Energy Collective (SEC). The flexible energy system is set up according to the principles of the Universal Smart Energy Framework (USEF).

Which customer need is addressed?How does a smart energy system meet the needs and experiences of households?

Customers will play an important role in the future energy system. The project also studied how the interaction with customers can be best addressed.

In order to facilitate the customer as good as possible, the project investigated how to provide the customer with enough valuable information without burdening them with all the technical details.

Page 26: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

26

E.DSO Lead the Transition – Serve the Customers

If an aggregator wants to trade flexibility on a flexibility market, this flexibility can be unlocked by offering a compelling proposition to prosumers. EnergieKoplopers shows that four basic principles are important for such a proposition. Firstly, the aggregator needs to have a compelling story. The proposition must be easy to understand. Sustainability should be a key component, resonating with consumers’ drive to do good. Secondly, convenience is key. Prosumers do not want to spend any extra time or effort on implementing a flexibility proposition. Automatic controlling contributes to convenience: 72% of participants experienced the automatic control of their smart appliances as extremely positive and convenient. Thirdly, the proposition should not incur any extra costs. Prosumers value financial security. This is why the project participants preferred receiving a fixed flexibility fee over dynamic tariffs. Finally, reliability of the organisation that offers the proposition is very important. Excellent customer service, combined with knowledge of smart appliances, transparency and safeguarding the privacy of the participants are important factors in this regard.

Which solution do we propose?The EnergieKoplopers project is a smart grid project, investigating how decentralised flexibility from households can be used through a flexibility market to ease the energy system.

Decentralised flexibility is seen as a means to cope with the problems associated with the transition to a sustainable energy system. Firstly, the predicted growth of solar panels, electric vehicles and heat pumps leads to higher peaks in the grid. Decentralised flexibility can reduce these peaks. Secondly, it is becoming increasingly difficult to balance the supply and demand of energy, particularly as wind and solar supply become more difficult to predict. Flexibility on the demand side makes it possible to respond quickly to fluctuations in supply and demand.

In the project, the flexibility came from smart appliances that were controlled automatically by a smart energy system. The smart energy system predicted supply and demand of electricity and regulated this using smart appliances. 45 electric boilers, 49 heat pumps, 95 PV-switches and 14 fuel cells (of which 9 were virtual) were installed at participants’ premises. These appliances were controlled automatically: participants did not need to do anything themselves and retained the same level of comfort. Each participant could also gain insight into the system via a user portal, a smart meter and a smart thermostat in the home.

During the project, the flexibility was traded on a flexibility market. The USEF market regulations were applied for this. The aggregator plays a crucial role in such a flexibility market. This new actor collects flexibility amongst prosumers and

Figure 14: the USEF flexibility market unlocks decentralised flexibility. Source: Alliander.

Page 27: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

27

E.DSO Lead the Transition – Serve the Customers

offers this as a service to the balance responsible party (BRP) and distribution system operator (DSO). The BRP uses the flexibility to manage the balance between electricity supply and demand. For the DSO (grid operator), flexibility is valuable in reducing peaks in the grid. In the flexibility market, the amount of flexibility is traded in advance (USEF Plan-Validate phases), based on predictions, and delivered through real-time control of the smart appliances (USEF Operate phase). The calculation of how much flexibility is actually delivered (USEF Settle phase), is done afterwards, using smart meter data.

The project had 203 participants, of which: 183 households with solar panels (with an average generation of 6,7 kWh per day), 95 households with a PV-switch, 49 households with a heat pump, 45 households with an electric boiler and 14 households with a fuel cell.

Because of the application of flexibility: 15 power outages were prevented, and supply and demand of flexibility were balanced 20% of the time. In order to achieve this: around 0,92 kWh of flexibility per day per household was traded, 7% of the time the boilers were automatically switched on, 8% of the time the heat pumps were automatically switched off, 4% of the time the solar panels were automatically switched off, 35% of the time the fuel cells were automatically controlled.

ConsiderationsThe EnergieKoplopers project in Heerhugowaard tested a USEF flexibility market for the first time. To this end, smart appliances were installed at households, which enabled flexible electricity consumption. The smart appliances were automatically controlled by a smart IT system. The project has shown that the USEF flexibility market works: the system helps resolve the future problems in the energy system, and value is created for all parties that play a role in a USEF flexibility market, including consumers.

Case n°12: Smart and fair network tariffs (Enexis)

The energy transition is an important challenge for the distribution grid. Reinforcements are unavoidable, but to postpone investments and workload, customers should be incentivised to use the network more efficiently. Current network tariffs in The Netherlands fail to provide such an incentive. Enexis is running a pilot with a new smart network tariff which does have this incentive.

Which customer need is addressed? Customers want network tariffs that are as low as possible and fair. Furthermore, they want to be able to choose a tariff that fits best their daily needs. On the other hand, they do not want tariffs that limit their freedom to act as they need.

Which solution do we propose?Enexis proposes a future network tariff that is a subscription-based bandwidth model. Within this model the customer subscribes to a symmetrical kW-band, e.g. a band from -4 kW to +4 kW. This example (±4 kW-band) means that the subscription for load is 4 kW and for feed-in is also 4 kW (-4 kW). In principle, the customer can choose any symmetrical bandwidth, the monthly fee being dependent on the bandwidth. The subscription allows the customer to freely use his kW-band for a fixed monthly fee. Consumption (or feed-in) outside the subscribed band is still possible, but will be charged separately. This exceedance fee will be based on how much (power = kW) and how long (time = h) one exceeds. Combining these two dimensions (kW*h) gives the kWh outside the band (grey areas in figure) as carrier for this exceedance fee.

Page 28: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

28

E.DSO Lead the Transition – Serve the Customers

ConsiderationsThe kWh-based exceedance fee has not much relation to the energy consumed in general. It has a relation to the power used by the customer: his own power use and the chance to add this power to the coincident power peak of all customers. The latter having a relation to the duration of the exceedance. Very short exceedances do not play an important role, that is also the reason to work with 15-minute average values for the registered power. All curves in the figure are based on these 15-minute moving averages.

The effect of this tariff is clear from the comparison between the red and the yellow curve. The red one is a modern customer with an EV but without the incentive to efficiently use the network. The car is charged with full power as soon as the driver arrives at home. But with the bandwidth tariff

incentive, the driver will charge his EV at a lower level during the night hours, which is a much more efficient use of the network (the yellow line).

The tariff is fair because a heavy user will have to pay more, either through the exceedance fee or because he needs a wider band. However, even an EV owner can stay within a smaller band if he is willing to change his charging behaviour.

With this network tariff the customer is still able to charge his car at maximum power, when needed. When this would cost a few Euros, it is not a problem, but enough to be an everyday incentive to not do this regularly. Therefore, the customer uses the network more efficiently, driving down costs, which at the end of the day benefits all customers.

Classical customer, without solar panels or electric vehicle (EV)

Modern customer, with solar panels on roof, EV and classical network tariff

Same modern customer, with Subscription-Based Bandwidth Model (SBBM) tariff

Same modern customer, with SBBM tariff and home battery added

kW

-6

-4

-2

0

2

4

6

8

10

12

14

Mon 06.00 Mon 12.00 Mon 18.00 Tue 00.00 Tue 06.00

Free bandwidth withfixed monthly fee for usage within the band.

Exceedance fee for usage outside the band, based on shaded area outside the free band.

Figure 15: Network tariff with subscription-based bandwidth. Source: Enexis.

Classical customer, without solar panels or electric vehicle (EV)Modern customer, with solar panels on roof, EV and classical network tariffSame modern customer, with Subscription-Based Bandwidth Model (SBBM) tariffSame modern customer, with SBBM tariff and home battery added

Page 29: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

29

E.DSO Lead the Transition – Serve the Customers

Conclusions

The energy system is evolving – and along with it the relationship between DSOs and their customers. Part of this evolution stems from new legislation such as the Clean Energy Package, foreseeing a more active role of citizens in the energy space. Even though DSOs are regulated entities, this must not prevent them from providing and enabling innovative and new services to their customers, especially in a changing energy system with updated roles for all actors involved.

In a more digitalised setting and through the development of new uses (service platforms, smart phones, etc.), customers’ expectations have also evolved regarding utilities.

DSOs move away from the notion of ‘connection points’ towards a more customer-centric model. This also requires a clear regulatory framework that accounts for dynamic developments and innovation. Regulatory sandboxes are important in this regard as a level playing field for larger scale pilots with flexible timeframes (2 + years).

As shown in the use cases, DSOs have always fulfilled their essential missions: arranging a grid connection, providing

relevant data while ensuring data privacy, informing customers of disturbances, maintenance works or outages. Increasingly, these tasks are carried out using new digital tools and process innovation, taking onboard the valuable feedback we receive from our customers. With the digitalisation of the energy sector and the development of new services, DSOs have therefore adapted their missions to the emergence of new market parties and new services (facilitating data exchanges with third parties, helping consumers to become more active) while modernising their basic essential missions with new digital tools.

The European Green Deal is expected to deliver additional value for energy consumers. DSOs are committed to this objective, and therefore ask the European Commission for a close stakeholder engagement. DSOs have the capacity and are willing to play an important role to drive the decarbonisation and digitalisation agenda, with the ultimate goal to strengthen customers and deliver the energy transition.

Page 30: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

30

E.DSO Lead the Transition – Serve the Customers

Glossary

DSO – Distribution system operator. It is the operating manager (and sometimes owner) of energy distribution networks, operating at low, medium and, in some member states, high voltage levels.

“Active consumer” or electricity “prosumer” – A final customer or a group of jointly acting final customers, who consume or store electricity generated within their premises located within confined boundaries or, where permitted by a Member State, within other premises, or who sell self-generated electricity or participate in flexibility or energy efficiency schemes, provided that those activities do not constitute their primary commercial or professional activity.

Vulnerable consumer – A consumer who, as a result of socio-demographic characteristics, behavioural characteristics, personal situation, or market environment:• is at higher risk of experiencing negative outcomes in the market;• has limited ability to maximise their well-being;• has difficulty in obtaining or assimilating information;• is less able to buy, choose or access suitable products; or• is more susceptible to certain marketing practices.

Multi-directional electricity flows – electricity flows that operate from the production source into the grid and vice-versa.

Flexibility – The extent to which a power system can modify electricity production or consumption in response to variability, expected or otherwise. Ability to increase or reduce the production of power plants or the consumption of demand processes.

Demand response schemes – A change in the power consumption of an electric utility customer to better match the demand for power with the supply.

Regulated entities – any person that is subject under law to any of the laws, rules or regulations respecting the financial, organisational or rate regulation of electric companies, public utilities or public utility holding companies.

Clean Energy for All Europeans Package – Is made up of eight legislative proposals and several non-legislative initiatives, covering energy efficiency, renewable energy, electricity market design, governance rules for the Energy Union, energy security and risk preparedness, among others.

Green Deal – Roadmap for making the EU’s economy sustainable and turn Europe into the first climate neutral continent by 2050. Inter alia, it gathers the European Climate Law, the Just Transition Fund and the revisions of existing energy legislations. Together, they aim to turn climate and environmental challenges into opportunities across all policy areas, making the transition just and inclusive for all.

CEC – Citizen Energy Communities are legal entities based on voluntary and open participation, effectively controlled by shareholders or members who are natural persons, local authorities, including municipalities, or small enterprises and microenterprises. The primary purpose of a Citizen Energy Community is to provide environmental, economic or social community benefits for its members or the local areas where it operates rather than financial profits. CEC can be engaged in electricity generation, distribution and supply, consumption, aggregation, storage or energy efficiency services, generation of renewable electricity, charging services for electric vehicles or provide other energy services to its shareholders or members.

Smart meters – Intelligent metering systems are an inherent part of the definition of smart grids as they enable some features and functionalities of smart grids. They are linked to an upgraded electricity network to which digital communication tools have been added. Smart meters are devices that allow to accurately measure the final customer’s energy consumption and provide information on actual time of use.

Page 31: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

31

E.DSO Lead the Transition – Serve the Customers

Page 32: Lead the Transition – Serve the Customers · 2020-06-09 · 7 E.DSO Lead the Transition – Serve the Customers sustainable energy use, while ensuring that no consumers are left

Des

ign

inex

trem

is.b

e - P

hoto

s A

dobe

Sto

ck (u

nles

s sp

ecifi

ed)

E.DSO - European Distribution System OperatorsRue de la Loi 82, 1040 Brussels, Belgium+32 (0) 2 737 [email protected]

www.edsoforsmartgrids.euFollow us on:

E.DSO is the key-interface between Europe’s DSOs and the European institutions. Its members ensure the reliability and security of Europe’s electricity supply to consumers while enabling them to take a more active part in our energy system. How? By shaping smarter grids for your future.