News

The power sector is currently in the thralls of a global trend of reform. Since this generally entails a shift from regulated state monopolies to greater deregulation with private sector participation, it should not be surprising that the utility's cash register, the meter, plays a critical role in this movement. The reforms aim to reduce the inefficiencies associated with monopolies and to meet the increasing demand arising from electricity-dependent economies of the 21st century. Any country able to successfully implement efficient power sector policies will almost certainly improve the future growth prospects of its economy and with that the well being of its citizens. Every power sector policy will require the use of smart meters to be successful. This paper will present the reasons why.

The AMR business today is concentrated in western countries with deregulated energy markets. And the growth in this business, while quite spectacular (currently in the range of 15-20% per annum) is a reflection of the deployment of AMR systems, not the growth of metering points in these markets. These systems are going into the costly-to-read and profitable-to-read markets, or into those where AMR is dictated by government decree, such as in Sweden where a law was passed recently to provide AMR to all that country’s meters by 2009. 

Utilities are in a bind today. With the global trend towards deregulation continuing apace, the pressure on utilities to differentiate themselves from their competitors is building up. The dilemma that utility executives face is how to accomplish this without putting millions in shareholder capital at risk.

The success of the Web, wireless connectivity, and the commoditization of computing are creating a world in which you can buy a movie ticket at a soft-drink machine or your house can remind you where you left your keys.