Scottish and Southern Energy plc - Metering and Energy Reduction

SSE (Scottish and Southern Energy plc) has completed the in-sourcing of its meter reading and electricity meter operation services throughout Great Britain, a year ahead of schedule.

It has also completed the first community-wide energy reduction trials in the UK, featuring ‘smart' meters, and through this has helped two partner communities achieve a 10% reduction in their energy consumption.

In-sourcing
In line with its general preference for services and operations to be carried out ‘in-house', SSE decided to in-source metering services in a programme which started in 2007. This programme has now been completed, creating 750 new jobs within SSE as a result. SSE's metering team now comprises 1,500 directly-employed people working in all parts of Great Britain.

In addition to securing annual cost savings of at least £5m, the in-house metering team delivers more reliable metering services, allows more effective management of customer data and creates face-to-face contact between SSE and its customers.

Before the metering in-sourcing was completed, SSE relied on a combination of its own employees in central southern England and the north of Scotland and up to nine external agencies elsewhere in the country to read electricity and gas meters and install and repair electricity meters.

Energy reduction
Longer-term, SSE's Great Britain-wide metering team will be able to support the transition to ‘smart' meters which will take place over the next 10 years and will help SSE deploy other energy-related services and products during that time.

SSE has been one of the largest participants in the UK Government's Energy Demand Research Project (EDRP), since it began in July 2007.  SSE's projects have involved the long-term trial of over 10,000 smart meters in several locations across the UK and community-wide energy reduction trials involving three communities in Wales, Scotland and England.

SSE has been the only energy supplier in the EDRP to hold trials involving engagement with entire communities. These trials were held in North Leigh in Oxfordshire, Alyth in Perthshire and St Athan in South Wales.

SSE has today announced the communities of North Leigh and Alyth have successfully achieved their target of a community-wide 10% reduction in energy consumption. The trial in St Athan started later, and is therefore not due to be completed until later this year. The community is, however, working hard to achieve their target, and good progress is being made.

A range of measures was available to each community including smart meters, real-time display devices (which show energy use in monetary value), energy efficiency advice and insulation offers. As well as the support provided by SSE,  the communities arranged various events locally, designed to involve the whole community.

The EDRP trials, which were announced in July 2007 and started later that year,  have been managed by industry regulator, Ofgem, on behalf of the Department of Energy and Climate Change (DECC), and aim to gain an understanding of how consumers react to improved information about their energy consumption. The trials consist of different elements using different methods to provide feedback on energy consumption.

Natalie Bruce, Head of Metering at SSE, said:

"The key independent surveys confirm that SSE already sets the benchmark for good customer service in the energy supply sector, but we want to build on that.  Metering is the foundation of good customer service in energy supply, and I am very pleased that SSE now has its own nation-wide team.  This will stand us in very good stead as we prepare for the installation of smart meters and other new services and products that energy customers will rightly expect over the next decade."

Richard Westoby, SSE's Director of Energy Demand, said:

"The information that we have obtained during our smart metering trials will be extremely useful in helping to shape the future of the energy industry. The primary purpose of our trials was to understand how people use energy and how savings can be made when more control is given to individuals and communities.

"We firmly believe that there must be radical changes in the way that energy is produced and consumed and the results of these trials, which have used a number of innovative technologies, will help us assist all customers in reducing their energy consumption in the future."

Energy minister, Lord Hunt, said:

"Smart meters will help people manage their energy better and the energy demand research project is an important part of understanding how consumers respond to them. Every home will have one of the meters by the end of 2020 under our plans. It's great to see the success that these communities have had in cutting energy use as part of these trials."