Smart metering may not be the answer to utility companies' woes, says Ovum

 
 Smart metering is a not a cure-all for the utilities industry’s woes and there is a strong risk it will not deliver on some of its promises, research analyst Ovum said. In a new report, Ovum said smart meter and smart grid investments help to address a number of issues utilities companies currently face. However it finds there is a possibility smart meters could increase some costs and investment in new technologies is also needed. “The utilities industry is facing some tough challenges and pressure is coming from all sides : concern over CO2 emissions is high, billions need to be invested in infrastructure and resources are becoming scarce”. In addition, the rising cost of fuel forces utilities to drive down operating costs, their workforce is aging rapidly and they are experiencing an increase in payment defaults due to the economic downturn," Stuart Ravens, Ovum principal analyst and author of the report said.   “Smart grid and meter investments will go a long way to address these problems, but to extract the full value of smart energy, utilities will require new technologies such as analytics, billing and CRM systems," he added.
 
Smart grids help to reduce the environmental impact of traditional electricity production by supporting increased volumes of renewable energy and energy storage, with which aging infrastructure was not designed to cope. Smart meters, on the other hand, counter the issue of resource scarcity by influencing customer behaviour through demand-response programs, which take control of appliances and turn them off when demand peaks.