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22 | 16TH - 22ND SEPTEMBER 2016 | UTILITY WEEK Operations & Assets Market view T he energy sector plays a vital role in keeping the nation's businesses up and running, and as such, is one of the most scrutinised industries in the UK. Service charges are frequently dissected by the media, and a company's "shortcomings" are unavoidably visible – if the power goes off, there's no window of opportunity to fix it before customers are made aware. In addi- tion, the environmental crisis creates a huge pressure on energy providers to maintain a service that is cost and energy efficient, while staying ahead of competitors. In a bid to make the UK more energy effi- cient, the government has asked energy sup- pliers to install smart meters into every home and business by the end of 2020. Equating to around 53 million smart meters in 30 million premises, the operation has been deemed "challenging" by the World Energy Council. It is one of the biggest national infrastructure projects of our lifetime and presents huge logistical challenges. Energy providers have to deal with mul- tiple demands simultaneously, spanning a vast geographical area, on a 24/7 basis. How can they implement the smart meter swap- out and maintain a constant service? They provide the life source, but the heart of the operation is found in technology companies offering smart logistics solutions, which source and dispatch the necessary parts to keep the energy network flowing. The most efficient way of completing the smart meter swap-out will be to track the supply chain in real time. This can be achieved using sophisticated technology and soware, which enable energy companies to track, trace and route parts, providing a real- time update on location, saving providers time and therefore money. The benefits to such a comprehensive net- work are bountiful. It can reduce one of the main problems faced by energy suppliers – a lack of visibility – keeping track of the mass migration of smart meters and the tools nec- essary for installation. Such technology will empower businesses with a holistic overview of the supply chain, giving engineers unri- valled clarity as to when they can retrieve the part from a secure smart box delivery location. The second advantage is better manage- ment of energy companies' resources. Not only do they know exactly where stock is in the supply chain, but it enables engineers to optimise their time. Tracking smart meters and the parts needed to install them allows engineers to plan their days around a deliv- ery. The best providers will deliver these parts to smart boxes overnight, enabling engineers to make multiple collections and freeing up time for extra jobs in their day. Slow delivery of parts or labour results in wasted time, which quickly builds up, damaging customer perception and cost- ing money. It makes no sense to maintain a system that limits an engineer's efficiency when a technology partner can map out their time to maximise it, using an agile sup- ply chain and wide distribution network to improve the speed and efficiency of a service. Finally, the most important benefit is that of a happy customer. Whether they are a corporate company or an individual, deliv- ering good customer service is paramount, particularly at a time when goodwill towards the energy sector is lacking. By working with technology companies that provide smart logistics solutions, energy suppliers can efficiently install smart meters into UK busi- nesses and meet the government's target with minimal disruption to customers. Mark Garritt, managing director, ByBox Effective smart meter rollout The smart meter rollout presents a huge logistical challenge for energy providers, but tracking the supply chain in real time can maximise efficiency and minimise disruption, says Mark Garritt. QUARTERLY DOMESTIC INSTALLATION ACTIVITY FOR LARGE ENERGY SUPPLIERS 600 500 400 300 200 100 0 Number of meters installed (000s) Source: Decc Gas smart meters Electricity smart meters All smart meters Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 2015 2016 NUMBER OF SMART AND ADVANCED METERS INSTALLED BY LARGE ENERGY SUPPLIERS IN SMALLER NON-DOMESTIC SITES, BY FUEL TYPE AND QUARTER 48 36 24 12 0 Number of electricity meters installed (000s) Source: Decc Electricity smart meters (left axis) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012 2013 2014 2015 2016 Number of gas meters installed (000s) 12 9 6 3 0 Gas smart meters (right axis) Electricity advanced meters (left axis) Gas advanced meters (right axis)