Common use of Options Analysis Clause in Contracts

Options Analysis. The infrastructure for existing SMETS1 meters has developed organically without a unified communications standard and often independently, to meet energy suppliers’ own requirements, according to their own business needs. As such, meters installed by one supplier are not always compatible with another suppliers’ system and could lose functionality or require replacement when consumers switch supplier. The Government believes that there are important shared benefits for industry and consumers from the enrolment of SMETS1 meters into the DCC. In particular, the enablement of more efficient and effective switching for customers, as a gaining supplier will be able to access the smart meter functionality should a consumer switch suppliers. Consequently this should reduce the risk of SMETS1 meters being replaced before the end of their operating lives. In order to achieve the objective of maximising the benefits of smart metering, the Government has requested the DCC to carry out a study of feasible options for the enrolment of SMETS1 meters. Section N of the SEC required the DCC to produce an IEPFR relating to the enrolment of SMETS1 meters and to consult parties on the content of the draft report. In identifying feasible options for the provision by the DCC of a SMETS1 service, the DCC took as its starting point the existing multiple technical solutions and systems that have developed to support SMETS1 meters, and considered how technical and commercial arrangements could be structured to enable the provision of a DCC SMETS1 service. The DCC’s objective is to identify feasible options that whilst technically effective, commercially efficient and secure, are delivered for a reasonable cost and within reasonable timeframes. Integration path covers the means by which the DCC can communicate with SMETS1 meters to enable it to first enrol the meters and then send commands to and receive messages from enrolled SMETS1 meters. A range of potential integration path options have been considered as part of consultation with the industry (see Appendix 2 of this Schedule 2). In order to provide a DCC SMETS1 Service, the DCC needs to establish communication with SMETS1 meters such that (on an on-going basis) the DCC can provide the SMETS1 communication services in respect of the SMETS1 meter. There are a number of options for how the DCC might technically communicate (via integration) with a SMETS1 meter, which are set out and evaluated below. ‘Integration path’ is the term that is used to describe how such communications might take place. This initial analysis resulted in five possible integration path options, with a conclusion that two options were feasible. Through the consultation process three options were indeed discounted resulting in two identified options:- • establish communications between a new SMETS1 service (procured by the DCC) which integrates via existing SMETS1 CSPs to the meter (i.e. ‘integrate to meter’) – Option 4 ; and • establish communications with the existing SMETS1 data services capability (known as the Smart Meter Systems Operator ("SMSO")), which integrates, via existing SMETS1 CSPs, with the meter (i.e. ‘integrate to SMSO’) – Option 5. Option 5 uses existing SMETS1 meters, communications hubs and SMETS1 CSPs but also uses existing SMETS1 SMSOs (together with their existing ▇▇▇▇). This option involves the service request sent to the DCC by a user, ‘a user service request’, being converted into an ‘SMSO service request’ (in the format of the current SMSO-user interface/language). As with the current arrangements, the SMSO would then convert the SMSO service request into a command to be sent to the meter.