Bastian Fischer

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The second point is to focus on customer awareness and customer adoption and the customer engagement. We have seen that in projects with the availability of a smart grid and the benefits customers can realise that recognition of customers is worth taking up.

The third point is focussed on policies, and it demonstrates that nudge adjustments, in the policies, have helped in the rollout of smart grid and smart meter programs.

The New Economy: So talk us through the economics of smart grids. What are the key things that utilities should know? Bastian Fischer: Smart grids and smart meters are focussed towards two main objectives.

First, making the utility operation more efficient. Second, providing customers means of understanding their consumption and reducing ultimately their consumption.

As it relates to the first point, making utility operation more efficient, the smart grid allows utility to manage the energy flow within their networks more efficiently, to increase the feed in of renewable and low carbon energy to a maximum, and thirdly to dispatch and deploy the internal resources in the network more efficiently.

For customers smart meters and smart grid will give the visibility about the private consumption and will offer more choice to customers as it relates to wind and how much energy they choose to consume.

The New Economy: What do energy suppliers need to do to fully benefit from the smart grid revolution? Bastian Fischer: Energy suppliers will receive for the first time, real time information about their customers.

They will have an almost immediate and real time communication with their customers, which allows them to offer first new products, new services and have a much tighter loyality with their customers.

That allows retailers not only to provide a commodity but added value services to their consumers. In order to achieve that suppliers need to understand customers patterns, customer behaviour, and the smart grid and smart meter infrastructure will provide that insight.

The New Economy: And over what time scale. Are we looking ahead decades or can energy suppliers start benefitting from the smart grids sooner?

Bastian Fischer: The rollout of smart meters and smart grid is a gradual evolution. We have seen in many projects that utilities are rolling out smart meters and smart grid technologies by a business case oriented approach.

We are talking about an timeline which expands over the next five to ten years to have the core technologies deployed. In order to have a full deployment that will take longer, but again the benefits can be achieved by a very targeted rollout first.

What do you think might win the argument at a customer level and what can energy suppliers do in order to better educate consumers?

Bastian Fischer: Often customers are not informed and educated about the new possibilities smart meters are offering. Hoffmann La-Roche AG.

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