Utility Week

8 | 28TH JUNE - 4TH JULY 2019 | UTILITY WEEK Interview While some critics have been quick to pass judgement, Flett argues that some- times people "underestimate the scale" of what the DCC and its customers are doing. "The SMETS1 programme is arguably one of the largest systems integration programmes running in the UK. We will take millions of meters in millions of homes and upgrade that functionality, cut that over into the DCC and unlock interoperability." He adds: "The number of variations in terms of meter types and so…ware is huge – well over 500-plus – and you have got to test each one, upli… each one and make sure each version works with each other. It's like taking every variant of smart phone and making sure each so…- ware variant works and they can all talk to each other, so it's a big scale." Flett also stresses that in the UK we have a "habit" of being overly focused on the negative. "I think as a collective ecosystem people are doing really well." The latest figures from the DCC (as of 25 June) show that a total of 1,269,609 second-generation (SMETS2) meters are now on the network. "Next year when we're well into the migration of SMETS1 there won't be SMETS1 or SMETS2 – it will just be SMETS. "All of my customers are busting a gut to get con- sumers to take smart meters – we work incredibly col- laboratively with each other, but again it's a big scale operation," he says. So, with some examples of customers losing smart functionality when they switch supplier and a host of other issues, did we get it wrong going down the SMETS1 route in the first place? "Hindsight is a wonderful thing," Flett replies. "To me, it doesn't matter. At the end of the day I want every- one in the UK to have a smart meter… We are where we are and what's really important is, we all get one. Every country in the world is doing this." That may be the case, but the UK faces unique chal- lenges in terms of reaching certain customers due to its housing stock. "In China they don't have dual fuel – it's just electric- ity. If you go to Spain or France – again very low percent- ages of dual fuel homes – hardly any. And most of the meters sit outside the home. In the UK most of our meters sit inside our homes, under the stairs or whatever, and a high percentage are dual fuel." Flett has met with several of his counterparts and other smart metering professionals around the world and is keen to learn lessons and drive more of the messaging about the wider benefits of smart meters. "It was very interesting in Denmark," he says. "They went distribution-led and at the end of it built a DCC because they said we want this central body to do inno- vation. It doesn't matter where you start, it's where you end." A…er attending a select committee in Denmark and having been "lucky enough" to meet the energy minis- ter – "she is an amazing character" – Flett says he was amazed and impressed to see how passionate they were. "There wasn't a single bit of disagreement around how smart metering is a critical element in the low- carbon economy. There were just lots of deeper conversations about renewables and how to improve things." Shortly a…er the one million SMETS2 milestone had been reached, a critic described the rate as a "trickle". Is Flett happy with how the rollout of the second- generation devices is progress- ing? The proud owner of a SMETS2 device, Flett says he loves having one. "When we had ten, I wanted 100,000, when we had 100,000, I wanted a million, now we've got a million I want 10 million. When we get to 10 million, I'll want 30 million and so on. "It's irrelevant. We are geared up to be able to operate at scale and we are geared up to do 30 million-plus. I am pleased at the growth rate, but we are constantly focused on being able to maintain and oper- ate at scale and focused on how we can improve. "And once we've done 30 million, we'll be looking at what else we can do – how we can reuse this technology, how we can help smart cities and electric vehicles." He adds: "Within our network there is a huge oppor- tunity for reuse and the regulatory model is brilliant. If we can facilitate innovation and make money from that, we can give that back to my customers. So, my vision would be – ultimately this can be an amazingly self- funded network and a great power for good." The DCC has faced some criticism about the technical issues encountered in certain areas of northern England and Scotland, which prevented suppliers connecting meters to the network. Flett insists all the early technical issues have been fixed and growth rates are now comparable with the south. "There is always going to be what we call 'no' spots," he explains, highlighting that even in the capital there are challenges – one of the biggest challenges is metal- lised glass in new buildings. Will we get to the Holy Grail of 100 per cent of homes? "There are rural places where there is no power, no telecoms, so you could probably question whether you really need a smart meter. But if you have got a telephone copper line into your home, then what I hope is that we will be able to deliver you a smart meter." Discussing if there could have been a more joined- up approach to the UK's transition to smart networks by including telecoms and broadband, Flett describes how the DCC is reusing cellular architecture and rides on the back of 2G. "But it's important to remember we are uber-secure. You can't have the bad people taking down power and that's why we can't go anywhere near internet architec- ture, which is inherently insecure. "Security is a core element for us. Everything we do has to be very secure, but we do use existing infrastruc- ture where possible." And what are some of the challenges being encoun- tered by the DCC's customers? "I have the distribution network operators, I have the retailers. I think the challenge for all my customers is the volume of work they will have to do and the scale of what they have to do – depending on who they are. "When you transform a whole industry, you have to think about what's going on in the whole collective eco- system. There are profound changes going on all over the energy market. All of this is really about taking us into that next generation of energy management and utilisa- tion. That puts pressure on the whole industry." And Flett isn't afraid to admit there are areas the DCC itself will need to improve on. "We've got to get much better at cost transparency and customer engagement. "If you are the only shop in town, it's so important that customers get transparency and can see we are spending their money wisely." "Next year when we're well into the migration of SMETS1 there won't be SMETS1 or SMETS2 – it will just be SMETS."

• Cover