[OPINION] Metering Energy Consumption in Times of Crises and Beyond

By Engr. Edward Joseph Maguindayao  -  

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Pressing Need

Last March 16, 2020, President Rodrigo Duterte placed Luzon under Enhanced Community Quarantine (ECQ) to combat the spread of the novel coronavirus (COVID-19). This measure virtually restricted all kinds of movement of people and vehicles in the entire mainland of Luzon and adjacent islands [1]. This effectively placed more than 50 million Filipinos [2] in lockdown allowing only the most essential travel such as for healthcare workers, government officials, workers in the basic sectors and utilities. Those who are going out of their homes were strictly monitored through travel and quarantine passes and checkpoints put into place. 

Since meter reading by distribution utilities (DUs) is still done manually (i.e. physically going by each electricity meter in each household or establishment and recording the consumed real power in the past month) and only the most essential travels were authorized, scheduled meter readings were suspended. In the case of Metro Manila and adjacent provinces such as Rizal, Bulacan, Cavite, parts of Quezon, parts of Laguna, and parts of Batangas (which are all in mainland Luzon), meter readings were suspended by the Manila Electric Company (MERALCO) until April 18 for Corporate and BIZ customers and May 6 for residential customers [3]. Since the lockdown started on March 16, the March and April electricity bills were not read. The Energy Regulatory Commission initially ordered that the March bill be the average of the consumption in the past three months with a directive that the word “ESTIMATE” be written on the consumer bill and that adjustments be done as soon as possible. Furthermore, ERC ordered extension of and deferred payment of bills [4], [5], [6], [7]. 

However, the combined effects of travel restrictions, loss of jobs due to closures, peak of dry season [8], the estimated bill (as that some households have been emptied because of the lockdown hence, no consumption), and delay in meter reading, electricity bill charges were perceived to have spiked. Many household complained of the rise in their electricity bills prompting the ERC to ask an explanation from MERALCO [9].

As the Philippines transitions from varying degrees of community quarantine to the so-called “new normal,” wherein until a vaccine for COVID-19 has yet to be discovered [10], we will have to rethink the way we do business from the simplest and most trivial tasks to those we even barely notice which is in this case, meter reading. 

Smart Grid and Advanced Metering Infrastructure

With the problems presented, a simple yet trivial solution would be to create a system such that meter readers would no longer have to go to each household to record the energy consumption.  

Smart grid technology, though ubiquitous in terms of advancement abroad, has never been more important. Although the basic need of providing electricity to consumers is met, there is now an increasing demand to fill the information infrastructure. The information infrastructure include energy and distribution management systems (monitoring and assessment of the power system), control and operation (management of operating conditions and components), and communication [11]. Furthermore, smart grid systems offer the following benefits: capability to respond to faults, empowerment of consumers to make informed decisions, ability to satisfy customer needs, system protection from cyber and physical attacks, ability to adapt to distributed generation, optimization of assets, and availability of a wide range of cleaner energy sources for consumers [12]. 

In particular, Advanced Metering Infrastructure (AMI) is “the legacy communication architecture enabling data collection and device management.” This infrastructure allows for bidirectional flow of communication for meter reading, billing, and consumption planning [13]. Furthermore, the goal of AMI is the “informed participation of customers” and allows them to know real-time pricing data, grid conditions, and most importantly consumption information. 

In order to realize the goals of AMI, it is essential to start with the smart meter. In contrast with mechanical meters, smart meters can provide real time electricity usage, facilitate remote real time monitoring, and control power consumptions. With these, both the consumers and the distribution utility are informed in order to make better decisions when it comes to delivering and consuming power [14]. 

Unlike in what happened during the latter days of the ECQ wherein thousands of consumers took to social media, and some were even interviewed on newscasts saying their electricity bills have spiked and they are unable to pay their dues because they were shocked by their consumption – even if the reading was accurate. This, in contrast to an informed consumer wherein s/he is informed of his/her consumption in real time, so that s/he may make informed decisions on his/her consumption. Such could include being wary of the use of cooling devices, unplugging unused appliances, or even checking for pilferage. 

Moreover, even after the restrictions are eased, smart meters could help DUs to reduce cost of a rather repetitive task. Instead of manual deployment of personnel, which will also depend on the conditions on ground (such as weather, accessibility), smart metering can provide a better and cost-effective solution. Also, since older meters, even though they are digital, can be obscured because of dirt or other factors, accuracy of reading can be compromised which, in turn, smart metering can eliminate. Also, with AMI, DUs can ensure transparency not only on meter reading but also on the charges. Therefore, there is no accrued charges nor the consumer is paying the suppose charges.

The current AMI technology, though not yet fully utilized in the Philippines, has not always been that way. In the 1970s, the first fully automated and commercially available meter reading and load management systems were developed and are known as Automatic Meter Reading (AMR). Meters then were not replaced and instead, devices obtain reading from the analog meter and convert it to digital format to be transmitted to the utility. These were not only confined to electricity meters but also gas and metering devices with the primary purpose of automatically collecting consumption, diagnostic, and status data to a central database for billing, troubleshooting, and analyzing. One of the benefits is billing can be done using near real-time data instead of estimates on past or previous consumptions. AMR means of communication include both wire and wireless telephony, radio frequency (RF), and power line carriers (PLCs) [14].

The structure of AMR involves a Reading Unit, Communication Unit, Data Receiving and Processing Unit, and the Billing System. In the Reading Unit, sensors such as infrared sensors, RF sensors, and mono pulse sensors are deployed to read the wattmeter. Analog data is then converted to digital and transmitted through the Communication Unit, processed in the Data Receiving and Processing Unit. After which, the bill can now be generated [14].

However with the advent of technology, competition among players, and demand for better services, AMR technology proved to be inadequate. Utilities transitioned to AMI systems which are more than just reading meters but also collecting and analyzing energy usage, and communicating with metering devices. AMI systems use programmable logic to collect data which can be used for billing, demand forecasting and response, rate of flow recording, leak detection, flow monitoring, water and energy conservation, and remote shutoff. Moreover, AMI technology allows two-way communication allowing the consumer to make use of the data of the consumption acquired to make better decisions [14].

In particular, AMI systems for electricity meters can obtain the following information: cumulative and daily kWh usage (energy), peak kW demand, last interval demand, load profile, voltage profile, logs of voltage sag and swell events, phase information, outage counts and logs, power factor, tamper notifications, and more [14]. 

On the side of consumers, AMI and smart meter technologies would engage them actively to be aware of their consumption habits. These in turn would lead to long-term benefits such as 1) reduced generating costs; 2) improved system efficiency; 3) better management of intermittent energy sources; 4) improved demand forecasting; and 5) optimized network investments [14].

AMI systems include software, hardware, communication networks, customer-associated systems and meter data management software (MDMS). Although these are typical of any Information Technology (IT) systems, some are unique to AMI systems. Smart meter is the device deployed to obtain measurements and other energy-related information. Customer gateway acts as the interface between AMI and customer systems and appliances within the customer facilities. AMI Headend handles information exchange between external systems such as MDMS and AMI network. While the MDMS, on the other hand, is the central database that analyses data collected to be used for business decisions. Furthermore, in order to improve services, business solutions aspects such as customer information and human resources can be included. Also, in order to make good use of the data collected, these can be integrated with geographic information system (GIS), customer relationship management (CRM), outage management system (OMS), and other levels of control in the power system [14].

In the Philippines, MERALCO was the first DU to use smart meters in 2015. In a report in the Philippine Star in February, 2019, MERALCO intended to install 3.3 million smart meters by 2024 [15]. In a Rappler report in November 2017, MERALCO said they are eyeing predictive and preventive maintenance by using advanced data analytics. MERALCO added that by combining hourly level with data from appliances, they can provide customers unique energy saving tips [16]. However in 2019, MERALCO has only installed 100,000 meters with a backlog pf 40,000 for that year. This is because of regulatory setback since the ERC is still on the process of crafting rules for the MERALCO’s AMI push [15]. 

But this gradual shift to AMI is not without cost, in a February, 2019, report in the Manila Bulletin, the electricity charges that come with this move was pegged at P0.2309 per kWh. ERC also warned that indeed, there will be added charge for consumers yet it has been reassessing the impact. There is also a difference in added charge depending on whether this would be shared across all customers or confined only to bulk customers. In the same report, Visayan Electric Company of the Aboitiz Group also plans to install smart meters [17]. 

The ERC welcomes these new technologies however, they will still exercise due diligence in the approval of AMI applications. In Resolution No. 16, Series of 2017, the ERC approved and issued the “Rules Governing the Type Approval of SMART Meters to be Used in Advance Metering Infrastructure (AMI) System of Distribution Utilities and ERC-Authorized Entities” in which it defined the terms in the context of the meters used in the Philippines, the approval requirements for smart meters which includes the test (such as stability performance, no load test, starting load test, load performance, effect of variation of power factor, effect of variation of voltage, effect of variation of frequency, and effect of current circuits), and conditions for the issuance and revocation of a Certificate of Approval (CA) and revalidation of approved smart meters [18].

Looking into the Future

The COVID-19 pandemic has brought the world to a virtual halt. The disruption, damage, and negative impact it has brought about cannot be understated. The crisis, not only in the health sector but also in other sectors such as supply chains, education, transport, tourism and travel, and business practices will linger for the medium-term. But while we slowly recover as we transition into a normal, we must also take the opportunity to rethink the way we usually do things. Though it may seem lesser of a problem as compared to a stressed health system, loss of jobs and livelihood, meter reading actually proved to be a gut issue especially to many households reeling from the impact on their income. The disparity between estimated and actual readings proved to be confusing, not to mention that some bills did not clearly state that payment can be made in tranches. 

It becomes imperative that we harness the wave of the Fourth Industrial Revolution. Focusing on the power sector, smart grids may have yet to penetrate our utilities but it sure is a step in the right direction with or without the pandemic. This however is without prejudice to technology at the expense of laying off workers. Workers must be trained in order to be equipped with skills needed to adapt to this major shift. So too are the consumers whose end will benefit the most.

Engr. Maguindayao is a Master of Science in Electrical Engineering Student at the University of the Philippines Diliman.

References:

1. RAPPLER. (2020). Guidelines: Luzon ‘enhanced community quarantine’. Retrieved May 29, 2020   
2. PHILIPPINE STATISTICS AUTHORITY. (2015). Retrieved May 29, 2020
3. MERALCO. (2020). FAQs during COVID-19 times. Retrieved May 29, 2020
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12. KAYASTHA, N., NIYATO, D., WANG, P., & HOSSAIN, E. (2011). Communication networks in smart grid: an architectural view. Smart Grid Communications and Networking. Cambridge University Press, Cambridge, England, United Kingdom
13. MOUFTAH, H., EROL-KANTARCI, M., & REHMANI, M.H. (2019). Communication architectures and technologies for advanced smart grid services. Transportation and power grid in smart cities, (pp. 217-245). Wiley Telecom. doi: 10.1002/9781119360124.ch8
14. HUANG, Q., JING, S., YI, J., & ZHEN, W. (2015). Innovative testing and measurement solutions for smart grid. Measurement of energy, power quality, and efficiency in smart grid, (pp. 147-182). Wiley-IEEE Press. doi: 10.1002/9781118889954.ch4
15. RIVERA, D. (2019). Regulatory lag slows down Meralco’s smart metering system. Retrieved May 31, 2020. From 
16. USMAN, E.K. (2017). Meralco smart meters to enable predictive repairs, rich consumption. Retrieved May 31, 2020
17. VELASCO, M.M. (2019). Meralco deployment of smart meters could raise its power rates. Retrieved May 31, 2020
18. ENERGY REGULATORY COMMISSION. (2017). Advisory. Retrieved May 31, 2020