World Electricity Meter Report 2009

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WWoorrlldd EElleeccttrriicciittyy MMeetteerr RReeppoorrtt

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Table of Contents 1.0 Executive Summary ................................................................................... 18

Overview........................................................................................................................................ 18 Overview ................................................................................................................................... 18 The Future................................................................................................................................. 19 AMR - AMI................................................................................................................................. 20 Manufacturers and company consolidations............................................................................. 21 Outlook ...................................................................................................................................... 23

2.0 Meter population and demand .................................................................. 25 2.0 Meter population and demand................................................................................................. 25

Overview ................................................................................................................................... 25 Timetable for advanced metering deployments up to 2015 (current information) .................... 26 Deployments ............................................................................................................................. 26 Demand..................................................................................................................................... 28

3.0 Outlook and demand drivers..................................................................... 35 3.0 Outlook and demand drivers ................................................................................................... 35

Outlook ...................................................................................................................................... 35 Positive and negative factors .................................................................................................... 35 Drivers ....................................................................................................................................... 36 New household connections ..................................................................................................... 37 New commercial and industrial connections............................................................................. 39 Replacement of aging meters ................................................................................................... 39 Prepayment meters................................................................................................................... 39

4.0 Terminology of meters............................................................................... 40 4.0 Terminology of meters............................................................................................................. 40

Overview ................................................................................................................................... 40 Electromechanical induction meters, also called mechanical or Ferraris meters ..................... 40 Solid state, also called static, or electronic ............................................................................... 40 Digital meters ............................................................................................................................ 40 Time of use meters (TOU) ........................................................................................................ 40 Demand meters......................................................................................................................... 41 Demand Response ................................................................................................................... 41 Automatic Meter Reading (AMR) .............................................................................................. 41 Advanced meters ...................................................................................................................... 41 Advanced Metering Infrastructure (AMI) ................................................................................... 41 ‘Smart’ meters ........................................................................................................................... 42 Ripple Control ........................................................................................................................... 42 Meter Data Management (MDM) .............................................................................................. 43 Communication modules........................................................................................................... 43

5.0 Meter companies – ‘Big players and rising stars’................................... 44 5.0 Meter companies – ‘Big players and rising stars’.................................................................... 44

Overview ................................................................................................................................... 44 The origins of the metering industry - electricity, gas and water............................................... 44 The metering industry in 2009................................................................................................... 46 Market shares ........................................................................................................................... 47 Company shares in meter sales by value 2008........................................................................ 47 Rising stars................................................................................................................................ 47

6.0 Country Profiles.......................................................................................... 50 Contents .................................................................................................................................... 50

6.1 Country Profiles Europe .................................................................................51 Contents .................................................................................................................................... 51

6.1.1 Austria .................................................................................................................................. 52 Population, household and meter base .................................................................................... 52 Annual demand for all meters ................................................................................................... 52 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 52


Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................... 53 Meter technology....................................................................................................................... 53 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)53 Market shares in value 2008..................................................................................................... 54 Type approval and verification .................................................................................................. 54 Utility background...................................................................................................................... 54

6.1.2 Belgium................................................................................................................................. 56 Population, household and meter base .................................................................................... 56 Annual demand for all meters ................................................................................................... 56 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 56 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................... 57 Meter technology....................................................................................................................... 57 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) 57 Market shares in value 2008..................................................................................................... 58 Type approval and verification .................................................................................................. 58 Utility background...................................................................................................................... 58

6.1.3 Bulgaria ................................................................................................................................ 60 Population, household and meter base .................................................................................... 60 Annual demand for all meters ................................................................................................... 60 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 60 Meter technology....................................................................................................................... 61 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) 61 Market shares in value 2008..................................................................................................... 62 Type approval and verification .................................................................................................. 62 Utility Background ..................................................................................................................... 62

6.1.4 Czech Republic .................................................................................................................... 64 Population, household and meter base .................................................................................... 64 Annual demand for all meters ................................................................................................... 64 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 64 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................... 65 Meter technology....................................................................................................................... 65 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) 65 Market shares in value 2008..................................................................................................... 66 Type approval and verification .................................................................................................. 66 Utility background...................................................................................................................... 66

6.1.5 Denmark ............................................................................................................................... 68 Population, household and meter base .................................................................................... 68 Annual demand for all meters ................................................................................................... 68 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 68 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................... 68 Meter technology....................................................................................................................... 69 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) 69 Utility background...................................................................................................................... 69

6.1.6 Estonia.................................................................................................................................. 71 Population, household and meter base .................................................................................... 71 Annual demand for all meters ................................................................................................... 71 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 71 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................... 71 Meter technology....................................................................................................................... 72 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) 72 Market shares in value 2008..................................................................................................... 72 Type approval and verification .................................................................................................. 72 Utility background...................................................................................................................... 73

6.1.7 Finland.................................................................................................................................. 74


Population, household and meter base .................................................................................... 74 Annual demand for all meters ................................................................................................... 74 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 74 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................... 75 Meter technology....................................................................................................................... 75 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) 75 Utility background...................................................................................................................... 75

6.1.8 France .................................................................................................................................. 77 Population, household and meter base .................................................................................... 77 Annual demand for all meters ................................................................................................... 77 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 77 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................... 78 Meter technology....................................................................................................................... 78 History of AMR/AMI in France................................................................................................... 78 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) 79 Tariff system.............................................................................................................................. 80 Type approval and verification .................................................................................................. 80 Market shares in value 2008..................................................................................................... 81 Utility background...................................................................................................................... 81

6.1.9 Germany............................................................................................................................... 83 Population, household and meter base .................................................................................... 83 Annual demand for all meters ................................................................................................... 83 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 83 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................... 83 Meter technology....................................................................................................................... 84 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) 84 Market shares in value 2008..................................................................................................... 85 Type approval and verification .................................................................................................. 85 Utility background and market characteristics .......................................................................... 85

6.1.10 Greece................................................................................................................................ 87 Population, household and meter base .................................................................................... 87 Annual demand for all meters ................................................................................................... 87 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 87 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................... 87 Meter technology....................................................................................................................... 88 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) 88 Market shares in value 2008..................................................................................................... 88 Type approval and verification .................................................................................................. 88 Utility background...................................................................................................................... 89

6.1.11 Hungary .............................................................................................................................. 90 Population, household and meter base .................................................................................... 90 Annual demand for all meters ................................................................................................... 90 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 90 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................... 91 Meter technology....................................................................................................................... 91 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) 91 Market shares in value 2008..................................................................................................... 91 Type approval and verification .................................................................................................. 92 Utility background...................................................................................................................... 92

6.1.12 Ireland................................................................................................................................. 94 Population, household and meter base .................................................................................... 94 Annual demand for all meters ................................................................................................... 94 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 94


Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................... 94 Meter technology....................................................................................................................... 95 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) 95 Market shares in value 2008..................................................................................................... 95 Type approval and verification .................................................................................................. 95 Utility background...................................................................................................................... 95

6.1.13 Italy ..................................................................................................................................... 97 Population, household and meter base .................................................................................... 97 Annual demand for all meters ................................................................................................... 97 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€).................................................................................................................................................. 97 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................... 98 Meter technology....................................................................................................................... 98 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 100 Market shares in value 2008................................................................................................... 100 Type approval and verification ................................................................................................ 100 Utility background.................................................................................................................... 101

6.1.14 Latvia ................................................................................................................................ 102 Population, household and meter base .................................................................................. 102 Annual demand for all meters ................................................................................................. 102 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 102 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 102 Meter technology..................................................................................................................... 103 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 103 Market shares in value 2008................................................................................................... 103 Type approval and verification ................................................................................................ 104 Utility background.................................................................................................................... 104

6.1.15 Lithuania ........................................................................................................................... 105 Population, household and meter base .................................................................................. 105 Annual demand for all meters ................................................................................................. 105 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 105 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 105 Meter technology..................................................................................................................... 106 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 106 Market shares in value 2008................................................................................................... 106 Type approval and verification ................................................................................................ 106 Utility background.................................................................................................................... 107

6.1.16 Netherlands ...................................................................................................................... 108 Population, household and meter base .................................................................................. 108 Annual demand for all meters ................................................................................................. 108 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 108 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 109 Meter technology..................................................................................................................... 109 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 110 Market shares in value 2008................................................................................................... 110 Type approval and verification ................................................................................................ 110 Utility background.................................................................................................................... 111

6.1.17 Norway ............................................................................................................................. 112 Population, household and meter base .................................................................................. 112 Annual demand for all meters ................................................................................................. 112 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 112


Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 112 Meter technology..................................................................................................................... 113 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 113 Utility background.................................................................................................................... 113

6.1.18 Poland .............................................................................................................................. 114 Population, household and meter base .................................................................................. 114 Annual demand for all meters ................................................................................................. 114 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 114 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 114 Meter technology..................................................................................................................... 115 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 115 Market shares in value 2008................................................................................................... 115 Type approval and verification ................................................................................................ 116 Utility background.................................................................................................................... 116

6.1.19 Portugal ............................................................................................................................ 117 Population, household and meter base .................................................................................. 117 Annual demand for all meters ................................................................................................. 117 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 117 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 117 Meter technology..................................................................................................................... 118 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 118 Market shares in value 2008................................................................................................... 118 Type approval and verification ................................................................................................ 119 Utility background.................................................................................................................... 119

6.1.20 Romania ........................................................................................................................... 120 Population, household and meter base .................................................................................. 120 Annual demand for all meters ................................................................................................. 120 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 120 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 121 Meter technology..................................................................................................................... 121 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 122 Market shares in value 2008................................................................................................... 122 Type approval and verification ................................................................................................ 123 Utility background.................................................................................................................... 123

6.1.21 Slovak Republic................................................................................................................ 125 Population, household and meter base .................................................................................. 125 Annual demand for all meters ................................................................................................. 125 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 125 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 126 Meter technology..................................................................................................................... 126 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 126 Market shares in value 2008................................................................................................... 127 Type approval and verification ................................................................................................ 127 Utility background.................................................................................................................... 127

6.1.22 Slovenia............................................................................................................................ 129 Population, household and meter base .................................................................................. 129 Annual demand for all meters ................................................................................................. 129 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 129


Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 130 Meter technology..................................................................................................................... 130 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 130 Market shares in value 2008................................................................................................... 130 Type approval and verification ................................................................................................ 131 Utility background.................................................................................................................... 131

6.1.23 Russia............................................................................................................................... 132 Population, household and meter base .................................................................................. 132 Annual demand for all meters ................................................................................................. 132 Russian meter production in units, 2000 to 2008.................................................................... 133 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 133 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 133 Meter technology..................................................................................................................... 134 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 134 Market shares in value 2008................................................................................................... 134 Type approval and verification ................................................................................................ 135 Utility background.................................................................................................................... 136

6.1.24 Spain ................................................................................................................................ 138 Population, household and meter base .................................................................................. 138 Annual demand for all meters ................................................................................................. 138 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 138 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 139 Meter technology..................................................................................................................... 139 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 139 Market shares in value 2008................................................................................................... 140 Type approval and verification ................................................................................................ 140 Utility background.................................................................................................................... 140

6.1.25 Sweden............................................................................................................................. 141 Population, household and meter base .................................................................................. 141 Annual demand for all meters ................................................................................................. 141 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 141 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 142 Meter technology..................................................................................................................... 142 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 143 Market participants.................................................................................................................. 143 Market shares in value 2008................................................................................................... 144 Utility background.................................................................................................................... 144

6.1.26 Switzerland....................................................................................................................... 145 Population, household and meter base .................................................................................. 145 Annual demand for all meters ................................................................................................. 145 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 145 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 146 Meter technology..................................................................................................................... 146 Market shares in value 2008................................................................................................... 147 Type approval and verification ................................................................................................ 147 Utility background.................................................................................................................... 148

6.1.27 Turkey............................................................................................................................... 150 Population, household and meter base .................................................................................. 150 Annual demand for all meters ................................................................................................. 150 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 150


Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 150 Meter technology..................................................................................................................... 151 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 151 Market shares in value 2008................................................................................................... 151 Type approval ......................................................................................................................... 152 Inspection and verification....................................................................................................... 152 Utility background.................................................................................................................... 152

6.1.28 Ukraine ............................................................................................................................. 154 Population, household and meter base .................................................................................. 154 Annual demand for all meters ................................................................................................. 154 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 154 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 154 Meter technology..................................................................................................................... 155 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 155 Market shares in value 2008................................................................................................... 155 Type approval and verification ................................................................................................ 156 Utility background.................................................................................................................... 156

6.1.29 United Kingdom................................................................................................................ 157 Population, household and meter base .................................................................................. 157 Annual demand for all meters ................................................................................................. 157 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 157 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 158 Meter technology..................................................................................................................... 158 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 159 Market shares in value 2008................................................................................................... 160 Type approval and verification ................................................................................................ 160 Utility background.................................................................................................................... 160

6.2 Country Profiles The Americas.....................................................................162 Contents .................................................................................................................................. 162

South America – Overview.......................................................................................................... 163 Population, household and meter base .................................................................................. 163 Annual demand for all meters ................................................................................................. 163 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 163 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 164 Meter technology..................................................................................................................... 164 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 164

6.2.1 Argentina ............................................................................................................................ 165 Population, household and meter base .................................................................................. 165 Annual demand for all meters ................................................................................................. 165 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 165 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 166 Meter technology..................................................................................................................... 166 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 166 Market shares in value 2008................................................................................................... 166 Type approval and verification ................................................................................................ 167 Utility background.................................................................................................................... 167

6.2.2 Brazil................................................................................................................................... 169 Population, household and meter base .................................................................................. 169 Annual demand for all meters ................................................................................................. 169


Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 169 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 170 Meter technology..................................................................................................................... 170 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 171 Market shares in value 2008................................................................................................... 171 Market access ......................................................................................................................... 171 Type approval ......................................................................................................................... 172 Utility background.................................................................................................................... 173

6.2.3 Chile ................................................................................................................................... 174 Population, household and meter base .................................................................................. 174 Annual demand for all meters ................................................................................................. 174 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 174 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 175 Meter technology..................................................................................................................... 175 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 175 Type approval and verification ................................................................................................ 176 Utility background.................................................................................................................... 176

6.2.4 Canada ............................................................................................................................... 177 Population, household and meter base .................................................................................. 177 Annual demand for all meters ................................................................................................. 177 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value, $ and € ....................................................................................................................................... 177 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value ($)................................................................................................................................................ 177 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 178 Meter technology..................................................................................................................... 178 Market trend ............................................................................................................................ 178 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 179 Market shares by value 2008.................................................................................................. 179 Electricity standards ................................................................................................................ 180 Type approval and verification ................................................................................................ 180 Utility background.................................................................................................................... 181

6.2.5 Mexico ................................................................................................................................ 183 Population, household and meter base .................................................................................. 183 Annual demand for all meters ................................................................................................. 183 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value ($)................................................................................................................................................ 183 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 183 Meter technology..................................................................................................................... 184 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value ($)................................................................................................................................................ 184 Market shares by value 2008.................................................................................................. 185 Electricity standards ................................................................................................................ 185 Type approval and verification ................................................................................................ 185 Utility background.................................................................................................................... 186

6.2.6 United States of America.................................................................................................... 187 Population, household and meter base .................................................................................. 187 Annual demand for all meters ................................................................................................. 187 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value ($)................................................................................................................................................ 187 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 187 Meter technology..................................................................................................................... 188 Market trend ............................................................................................................................ 188


Annual demand for meters by technology, forecast from 2008 to 2012, volume and value ($)................................................................................................................................................ 188 Market shares value by 2008.................................................................................................. 189 Electricity meter market shares in the USA, by value 2008.................................................... 189 Market shares of principal suppliers of AMR to electrical utilities in the USA by value, 2008 190 Electricity standards ................................................................................................................ 190 Type approval and verification ................................................................................................ 191 Utility background.................................................................................................................... 192

6.3 Asia Pacific ...................................................................................................194 Contents .................................................................................................................................. 194

6.3.1 Australia.............................................................................................................................. 195 Population, household and meter base .................................................................................. 195 Annual demand for all meters ................................................................................................. 195 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 195 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 196 Meter technology..................................................................................................................... 196 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 196 Market shares in value 2008................................................................................................... 197 Type approval ......................................................................................................................... 197 Initial verification...................................................................................................................... 198 Meter regulations .................................................................................................................... 198 Utility background.................................................................................................................... 199

6.3.2 China .................................................................................................................................. 201 Population, household and meter base .................................................................................. 201 Annual demand for all meters ................................................................................................. 201 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 201 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 202 Meter technology..................................................................................................................... 202 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 202 Historical development............................................................................................................ 203 Prices ...................................................................................................................................... 204 Tariffs ...................................................................................................................................... 204 Prepayment meters................................................................................................................. 204 Electricity meter market shares in China, by value 2008........................................................ 204 Standards................................................................................................................................ 205 Type approval ......................................................................................................................... 206 Market participants.................................................................................................................. 207 Utility background.................................................................................................................... 207

6.3.3 India.................................................................................................................................... 210 Population, household and meter base .................................................................................. 210 Annual demand for all meters ................................................................................................. 210 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 210 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 211 Market trend ............................................................................................................................ 211 Meter technology..................................................................................................................... 211 Prices ...................................................................................................................................... 212 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 212 Market shares in value 2008................................................................................................... 212 Metering regulations................................................................................................................ 213 Type approval ......................................................................................................................... 213 Standards................................................................................................................................ 214 Market participants.................................................................................................................. 215 Utility background.................................................................................................................... 215

6.3.4 Indonesia ............................................................................................................................ 217


Population, household and meter base .................................................................................. 217 Annual demand for all meters ................................................................................................. 217 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 217 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 218 Meter technology..................................................................................................................... 218 Prepayment meters................................................................................................................. 218 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 218 Market shares in value 2008................................................................................................... 219 Type approval and verification ................................................................................................ 219 Utility background.................................................................................................................... 219

6.3.5 Japan.................................................................................................................................. 221 Population, household and meter base .................................................................................. 221 Annual demand for all meters ................................................................................................. 221 Installed capacity of watt-hour meters in Japan...................................................................... 221 Customers (2001) ................................................................................................................... 222 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 222 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 222 Meter technology..................................................................................................................... 223 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 223 Tokyo Electric Power Company (TEPCO) .............................................................................. 224 Shikoku Electric Power Company in Japan ............................................................................ 224 Type approval and verification ................................................................................................ 224 Market shares in value 2008................................................................................................... 225 Utility background.................................................................................................................... 226

6.3.6 Korea, South....................................................................................................................... 227 Population, household and meter base .................................................................................. 227 Annual demand for all meters ................................................................................................. 227 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 227 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 228 Meter technology..................................................................................................................... 228 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 229 Utility background.................................................................................................................... 229

6.3.7 Malaysia ............................................................................................................................. 230 Population, household and meter base .................................................................................. 230 Annual demand for all meters ................................................................................................. 230 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 230 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 231 Meter technology..................................................................................................................... 231 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 232 Market shares in value 2008................................................................................................... 232 Type approval ......................................................................................................................... 233 Utility background.................................................................................................................... 234

6.3.8 New Zealand ...................................................................................................................... 235 Population, household and meter base .................................................................................. 235 Annual demand for all meters ................................................................................................. 235 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 235 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 236 Meter technology..................................................................................................................... 236 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 236


Type approval and verification ................................................................................................ 237 Utility background.................................................................................................................... 237

6.3.9 Philippines .......................................................................................................................... 239 Population, household and meter base .................................................................................. 239 Annual demand for all meters ................................................................................................. 239 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 239 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 239 Meter technology..................................................................................................................... 240 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 240 Market shares in value 2008................................................................................................... 240 Type approval and verification ................................................................................................ 240 Utility background.................................................................................................................... 240

6.3.10 Taiwan .............................................................................................................................. 242 Population, household and meter base .................................................................................. 242 Annual demand for all meters ................................................................................................. 242 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 242 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 243 Meter technology..................................................................................................................... 243 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 243 Market shares in value 2008................................................................................................... 244 Type approval ......................................................................................................................... 244 Utility background.................................................................................................................... 244

6.3.11 Thailand............................................................................................................................ 245 Population, household and meter base .................................................................................. 245 Annual demand for all meters ................................................................................................. 245 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 245 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 246 Meter technology..................................................................................................................... 246 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 246 Market shares in value 2008................................................................................................... 247 Type approval ......................................................................................................................... 247 Utility background.................................................................................................................... 247

6.3.12 Vietnam ............................................................................................................................ 249 Population, household and meter base .................................................................................. 249 Annual demand for all meters ................................................................................................. 249 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 249 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 249 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 250 Meter technology..................................................................................................................... 250 The installed base of electricity meters in Vietnam, 2004 to 2006.......................................... 250 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 251 Market shares in value 2008................................................................................................... 251 Type approval ......................................................................................................................... 251 Utility background.................................................................................................................... 252

6.4 Middle East...................................................................................................253 Contents .................................................................................................................................. 253

Middle East - Overview................................................................................................................ 253 Population, household and meter base .................................................................................. 253 Annual demand for all meters ................................................................................................. 253


Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 254 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 254 Meter technology..................................................................................................................... 254 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 254

6.4.1 Iran ..................................................................................................................................... 255 Population, household and meter base .................................................................................. 255 Annual demand for all meters ................................................................................................. 255 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 255 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 256 Meter technology..................................................................................................................... 256 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 256 Major participants.................................................................................................................... 257 Standards and type approval .................................................................................................. 257 Type approval and verification ................................................................................................ 258 Utility background.................................................................................................................... 259

6.5 Africa.............................................................................................................260 Contents .................................................................................................................................. 260

Africa - Overview ......................................................................................................................... 260 Population, household and meter base .................................................................................. 260 Annual demand for all meters ................................................................................................. 260 Meter demand in Africa by geographic region ........................................................................ 261 Meter production in Africa ....................................................................................................... 261

6.5.1 Egypt .................................................................................................................................. 262 Population, household and meter base .................................................................................. 262 Annual demand for all meters ................................................................................................. 262 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 262 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 263 Meter technology..................................................................................................................... 263 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 263 Market shares in value 2008................................................................................................... 263 Market shares in value 2008 (continued)................................................................................ 264 Type approval and verification ................................................................................................ 264 Utility background.................................................................................................................... 265

6.5.2 South Africa ........................................................................................................................ 266 Population, household and meter base .................................................................................. 266 Annual demand for all meters ................................................................................................. 266 Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)................................................................................................................................................ 266 Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $) ................................................................................................................. 267 Meter technology..................................................................................................................... 267 Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)................................................................................................................................................ 268 Market shares by value 2008.................................................................................................. 268 Type approval and verification ................................................................................................ 269 Utility background.................................................................................................................... 269

7.0 Metrology, standards, type approval and verification.......................... 272 7.0 Metrology, standards, type approval and verification............................................................ 272

Legislation for measuring instruments .................................................................................... 272 Enforcement of measuring instrument legislation - legal control ............................................ 272 National metrology institutes ................................................................................................... 272 Global metrology infrastructure............................................................................................... 273 Regional metrology infrastructures ......................................................................................... 274


Europe..................................................................................................................................... 275 Americas Infrastructure ........................................................................................................... 278 Asia Pacific Infrastructure ....................................................................................................... 278 CIS, Central Asia Infrastructure .............................................................................................. 279 African Infrastructure............................................................................................................... 279

8.0 Standards .................................................................................................. 280 8.0 Standards .............................................................................................................................. 280

International Standards ........................................................................................................... 280 Terminology............................................................................................................................. 280 International Electrotechni-cal Commission (IEC) .................................................................. 281 American National Standards Institute (ANSI)........................................................................ 281 National Standards.................................................................................................................. 282

9.0 Methodology and technical notes .......................................................... 283 Overview...................................................................................................................................... 283

Overview ................................................................................................................................. 283 Contents .................................................................................................................................. 283

9.1 ABS Metering Database of statistics and market commentary............................................. 284 Overview ................................................................................................................................. 284 Literature search ..................................................................................................................... 284 Regulators ............................................................................................................................... 284 National energy projections and demand forecasts................................................................ 284 Government enquiries............................................................................................................. 284 Competition authorities ........................................................................................................... 284 Parliamentary questions and enquiries................................................................................... 285 SEC Filings.............................................................................................................................. 285 Metrological Bureaux .............................................................................................................. 285 Trade Associations.................................................................................................................. 285 Socio / economic studies ........................................................................................................ 285 Sub-metering........................................................................................................................... 285 Company reports and presentations....................................................................................... 285 Press ....................................................................................................................................... 285 Electricity ................................................................................................................................. 286 Gas.......................................................................................................................................... 286 Water....................................................................................................................................... 287

9.2 Compilation an analysis of official statistics for creation of the installed base and to define the metrics of annual demand and projections.................................................................................. 288

Overview ................................................................................................................................. 288 Households’ population of each country ................................................................................. 288 Economic data ........................................................................................................................ 288 Electricity customers ............................................................................................................... 288 Meter production statistics ...................................................................................................... 288 Import / export statistics .......................................................................................................... 288

9.3 Market estimation and projections using official statistics and the metrics of annual demand and projections in four stages ..................................................................................................... 289

Overview ................................................................................................................................. 289 The installed base of electricity meters in 2008 recorded historically where available........... 289 Theoretical calculation of annual demand for new meters in 2008......................................... 290 Theoretical calculation of annual demand for new meters in 2008 (continued) ..................... 292 Theoretical calculation of annual demand for new meters in 2008 (continued) ..................... 293 Specific reports of annual meter demand ............................................................................... 294 Forecasting for 2008 to 2012 .................................................................................................. 294


Table of Tables

Table 2.1: Countries deploying large advanced metering projects ............................................................ 27 Table 2.2: Composition of demand in 27 leading European countries ...................................................... 28 Table 2.3: Composition of demand in 10 leading Asian meter markets..................................................... 29 Table 2.4: The customer base of electricity consumers and annual demand, 2008.................................. 30 Table 6.1: ESI characteristics Austria ........................................................................................................ 55 Table 6.2: ESI characteristics Belgium....................................................................................................... 59 Table 6.3: ESI characteristics Bulgaria ...................................................................................................... 63 Table 6.4: ESI characteristics Czech Republic .......................................................................................... 67 Table 6.5: ESI characteristics Denmark ..................................................................................................... 70 Table 6.6: ESI characteristics Estonia........................................................................................................ 73 Table 6.7: ESI characteristics Finland........................................................................................................ 76 Table 6.8: ESI characteristics France ........................................................................................................ 82 Table 6.9: ESI characteristics Germany..................................................................................................... 86 Table 6.10: ESI characteristics Greece...................................................................................................... 89 Table 6.11: ESI characteristics Hungary .................................................................................................... 93 Table 6.12: ESI characteristics Ireland....................................................................................................... 96 Table 6.13: ESI characteristics Italy ......................................................................................................... 101 Table 6.14: ESI characteristics Latvia ...................................................................................................... 104 Table 6.15: ESI characteristics Lithuania ................................................................................................. 107 Table 6.16: ESI characteristics Netherlands ............................................................................................ 111 Table 6.17: ESI characteristics Norway ................................................................................................... 113 Table 6.18: ESI characteristics Poland .................................................................................................... 116 Table 6.19: ESI characteristics Portugal .................................................................................................. 119 Table 6.20: ESI characteristics Romania ................................................................................................. 124 Table 6.21: ESI characteristics Slovak Republic...................................................................................... 128 Table 6.22: ESI characteristics Slovenia.................................................................................................. 131 Table 6.23: ESI characteristics Russia..................................................................................................... 136 Table 6.24: ESI characteristics Spain ...................................................................................................... 140 Table 6.25: ESI characteristics Sweden................................................................................................... 144 Table 6.26: ESI characteristics Switzerland ............................................................................................. 149 Table 6.27: ESI characteristics Turkey..................................................................................................... 153 Table 6.28: ESI characteristics Ukraine ................................................................................................... 156 Table 6.29: ESI characteristics United Kingdom...................................................................................... 161 Table 6.30: ESI characteristics Argentina ................................................................................................ 168 Table 6.31: ESI characteristics Brazil....................................................................................................... 173 Table 6.32: ESI characteristics Chile ....................................................................................................... 176 Table 6.33: ESI characteristics Canada ................................................................................................... 182 Table 6.34: ESI characteristics Mexico .................................................................................................... 186 Table 6.35: ESI characteristics United States .......................................................................................... 193 Table 6.36: ESI characteristics Australia.................................................................................................. 200 Table 6.37: ESI characteristics China ...................................................................................................... 209 Table 6.38: ESI characteristics India........................................................................................................ 216 Table 6.39: ESI characteristics Indonesia ................................................................................................ 220 Table 6.40: ESI characteristics Japan...................................................................................................... 226 Table 6.41: ESI characteristics Korea, South........................................................................................... 229 Table 6.42: ESI characteristics Malaysia ................................................................................................. 234 Table 6.43: ESI characteristics New Zealand .......................................................................................... 238 Table 6.44: ESI characteristics Philippines .............................................................................................. 241 Table 6.45: ESI characteristics Taiwan .................................................................................................... 244 Table 6.46: ESI characteristics Thailand.................................................................................................. 248 Table 6.47: ESI characteristics Vietnam .................................................................................................. 252 Table 6.48: ESI characteristics Iran ......................................................................................................... 259 Table 6.49: ESI characteristics Egypt ...................................................................................................... 265 Table 6.50: ESI characteristics South Africa ............................................................................................ 271 Table 8.1: Four main bodies which determine standards ........................................................................ 280 Table 8.2: IEC Standards for Watt-hour Meters ....................................................................................... 281 Table 8.3: ANSI Standards for Watt-hour Meters..................................................................................... 281 Table 9.1: Sources for installed base of electricity meters....................................................................... 290


Table of Figures

Figure 3.1: Population growth and household size in the developed and developing world, 1985 to 2030.................................................................................................................................................................... 38 Figure 3.2: Numbers of households by region, 1985 to 2030 .................................................................... 38 Figure 7.1: Regional metrology organisations.......................................................................................... 274 Figure 7.2: Member countries of EURAMET e.V., 2007 .......................................................................... 275 Figure 9.1: New and replacement installations of meters in the United Kingdom.................................... 291 Figure 9.2: New and replacement installations of meters in the Brazil .................................................... 292 Figure 9.3: New and replacement installations of meters in the Bangladesh .......................................... 292


1.0 Executive Summary Overview

Overview The next five to ten years will see extraordinary growth and change in the world

metering market. The meter industry has launched into the most important technological development since the introduction of the Ferraris induction meter over a century ago. This development has been brewing for several years but in the last 12 to 18 months has taken off in a spectacular way with a number of governments, mainly in Europe and Asia mandating the establishment of ‘smart’ meter networks. These national metering systems will have two-way fixed network meters and advanced network systems, some offering a multitude of functionalities.

In 2008, there were 1,698 million electricity meters installed in the world, and annual demand in 2008 was 129 million meters. This will rise at an unprecedented annual rate of 8.1% to 176 million meters in 2012.

The value of the market will rise even faster, from €3.4 billion ($5.0 billion) in 2008, at an annual rate of 18.0% (euro) to €6.6 billion ($8.4 billion) in 2012.

61% of this demand (in units) is in Asia, and out of that 40% is in China.

The rate of growth (in units) will be highest in Europe at an average of 15.6% a year, (meter units) followed by Asia at 8.7%. In value European growth will reach 25.8% (euro) and Asia 24.7%.

The reason for this extraordinary growth is the surge of decisions by governments and utilities to invest in advanced metering, mostly nationally or in some cases in large cities.

This is an acceleration beyond expectations, of conversion from electromechanical meters, to basic electronic and now to AMI.

A study conducted by FERC in the United States has measured the penetration of advanced metering in the USA at 6% of endpoints in October 2006. This survey is one of the few sources of data on real experience of advanced metering. It must be remembered that it is a studyc conducted in the US, which is a market with different characteristics from a country such as India. (See comments below.)

In Europe demand for electromechanical meters will fall from 19% of all meters sold in 2008 to 3% in 2012 and in Asia from 32% to 9%. Demand for basic electronic meters will decline from 43% to 11% in Europe and from 48% to 22% in Asia. In contrast residential AMI meters will escalate from 20% to 79% in Europe and in Asia from zero to 55% by 2012, mainly in four countries; China, Korea, Japan and Taiwan.

ABS has identified 32 countries making large investments in advanced metering, not including existing AMR installations, mainly in the USA, some of which are bordering on AMI.18 of them in Europe. The installed base of AMI units in these 32 countries will increase from 16.6 million in 2009 to 416 million of these completed in 2015, and 448 million by 2020. In the intervening period there will be many more projects. Some of these projects extend beyond 2015. This count includes national or large city-wide schemes and does not include smaller local schemes and C&I AMI metering.

The impetus for these massive installations comes from both governments and utilities. 15 of the projects have been initiated by utilities and will account for 130 million end points by 2015 and 17 have been initiated by governments, accounting for 286 million endpoints in 2015.

Continued on next page


Overview, Continued

Overview (continued)

The first national scheme was in Italy, for which the moving force was ENEL, not the Italian government and this was decided before the current fears about security of supply and energy efficiency had assumed their present importance. In quick sequence, the Swedish government demanded monthly meter readings by 2009, then the provincial government of Ontario, the state governments of California in the US and Victoria in Australia.

ERDF of France will deploy of 32 million, Spain will deploy 27 million, the UK 29 million, Netherlands 7.5 million. The UK deployment will also measure gas, with a total of 49 million meters for both electricity and gas.

The Future The sudden decisions to install advanced metering merit further examination,

because while it is very exiting and on the face of it a large opportunity for meter vendors, there are limitations to what the international meter manufacturers should plan for and all may not be as it seems. Meter companies should evaluate what is their addressable market.

We also recommend that companies look beyond the AMI installations in time, to assess what will come after that. This is akin to military planning. There is a tremendous burst of interest and an explosion of energy during the war, but afterwards an entirely different situation pertains.

We consider five countries plus the CIS to be restricted; China, Japan, Korea, Taiwan and Iran. Other markets are ‘open’ but with varying dergrees of accessibility.

There are 1.7 billion end points in the world and 446 million are in countries which have taken the decision to deploy advanced meters. This looks like large market for the meter companies but of this 446 million, a big slice, 247 million are in countries which we have classified as restricted. There may be some sales of technology and systems but probably limited, leaving potential of only 199 million. In most of these contacts have not yet been awarded.

What about the rest? We have analysed the prospects in three regions which already are taking up advanced metering and which we believe will continue to do so aggressively in the next ten years, North America, Europe and Asia Pacific. The prospects in these regions are quite different and are described in detail in the body of the report.

The international meter companies have always prioritised the markets. However, some of the markets which are not addressable are very large and the size of the global addressable market is reduced accordingly. We have classified the makets into open market, which are addressable, and restricted markets, which are either difficult or impossible to penetrate.



Overview, Continued

AMR - AMI The definition of AMI has attracted much discussion and there are many different

views as to what it is and where the boundaries are between AMR and AMI. Different companies have different views and we are even told that different people within the same company have different views. The issue is complicated by the fact that there are installations of meters which have AMI capabilities but which are only used for AMR one-way communication to read meters.

The earliest AMR systems involved suppliers retrofitting electromechanical meters with an ERT Encoder / Receiver / Transmitter), which is a device enabling communication from the meter to a meter reader. Retrofitting existing meters with an AMR attachment is the fastest, lowest-cost way to implement an AMR service. These retrofits are available for as little as US$10 per device. Alternatively, for around US$100, traditional meters can be replaced entirely by an AMR meter.

Communication can be via a walk-by or drive-by meter reader using a emote device, or via a fixed network, which can use radio frequency, cell phones, telephone lines or power line carriers. With mobile AMR a radio transceiver in a vehicle broadcasts a radio wake-up signal to all ERT-equipped meters within range and receives meter reading, tamper information, and other information back from the ERTs.

A point has now been reached where the distinction between AMR and AMI is blurred between AMI, which has two-way fixed network communication and AMR with one-way drive-by communication. There are many AMR installations in existence, notably in the US, which have only one-way communication but also many which have two-way communication capabiolity which is not used. Most large AMR schemes now being installed use hybrids somewhere along the spectrum of AMR / AMI and generally represent a more advanced form of AMR. Once a utility undertakes the cost of installing AMR, it is a natural step to leverage the AMR for more sophisticated AMI applications. Conversely, it was thought that this could also retard the growth of AMI in the US since there is already such a large stranded investment in one-way AMR technology. However, we are told that utilities are now considering the benefits of AMI sufficient to accept these stranded costs of legacy AMR, although this may be modified by the financial crisis.

There is disagreement about the definition of AMI, both in the industry and even, we are told, within meter companies.

In October 2006 FERC (US Federal Energy Regulatory Commission) completed a survey of utilities in the USA to assess the penetration of AMI in the USA and its applications. This is a valuable study because AMI is so new that it is only in the USA and Italy that there is enough real experience of AMI to measure and evaluate it on a reasonably broad base.

The study found penetration of advanced metering in the USA to be low, at 6% of end points.

Most usefully, the survey measured the extent to which AMI provides multiple benefits beyond meter reading savings.

In the USA the most important single use for advanced metering by utilities was to enhance customer service, mentioned by 71%.

The second most important was to address tampering, 44%. This is important in considering the advantages of AMI in countries where there is a high incidence of energy theft, such as India and several countries in South America.



Overview, Continued

AMR - AMI (continued)

It is interesting that some of the most frequently mentioned uses of advanced metering when discussing it in the industry are at the lowest end of the scale of usefulness in this survey; remote connect/disconnect, pricing advice, water and gas meter reads, and last of all, pre-payment metering.

Manufacturers and company consolidations

As pointed out in the last edition of this report, recent years have seen a consolidation of meter companies, as has been the case in many industrial sectors. These consolidations started first to address over capacity of production in the meter industry and then to grasp the opportunities offered by new technologies. These new technologies do not simply consist of technically better meters but of more advanced systems within which the meters operate. The years 2006 and 2007 saw this development coalescing. 2008 has seen the industry take up this capability, in a wave of decisions by governments and utilities to move to the next generation energy measurement, advanced metering systems.

The global market has been dominated by three companies; Landis+Gyr, Actaris and Elster. Actaris is now ItronActaris after being acquired by the dominant US electricity metering and AMR/AMI company, Itron. In the same way that Elster and Landis+Gyr have each absorbed a number of other meter and technology companies under the one mark, Elster or Landis+Gyr, it is expected that Actaris will become Itron International.

The industry has seen that its future lies in providing the technology for two way communications and ‘smart’ capabilities, far beyond traditional metering. In some markets this is moving beyond energy metering and management to other services. The three globally dominant groups have now emerged as global leaders not only in metering but in energy measurement technology. They own the traditional big three meter companies, but also a whole range of companies offering other technologies.

Landis+Gyr had revenue of €913.2 million in 2007, mostly in electricity metering and systems. The group owns Enermet, Ampy+Email and Hunt+Cellnet.

ItronActaris had revenue of $1,910 million in 2008. In 2007 Actaris was sold to Itron of the United States and the new company ItronActaris emerged. Itron brought with it the leading position in electricity metering and AMI/AMR in the USA, and Actaris contributed strong positions globally in all utility sectors.

Overall, in 2006 Elster was the largest of the three in value, with total revenue of $1,784 million (€1.4 billion). (We do not have a more recent figure.) In electricity metering Elster is third in volume after ItronActaris and Landis+Gyr. Elster Group has acquired Coronis Systems, French developer of ultra-low-power wireless solutions founded in 2000, with the objective of expanding its AMI capability.

The United States, China, and India are markets in a category different from others in that they are so large and either have or are developing such strong meter industries that they are to a degree self-contained. As previously mentioned, the largest supplier of electricity meters in the United States is Itron. The second most important supplier of electricity meters in the US is General Electric (GE). As is often the case with US companies, the domestic market is so large that GE has failed to make significant inroads into export meter markets outside South and Central America. In China the large Chinese meter companies as mentioned above, dominate their own domestic market as well as being significant exporters. However, the bulk of Chinese exports are of cheap low quality meters. India has a strong local meter manufacturing capability, like China split between high and poor quality products, lead by Genus, Secure Meters, India Meters Ltd and Larsen & Toubro.



Overview, Continued

Manufacturers and company consolidations (continued)

The Japanese meter market is sizeable and is dominated by the Osaki Meter Company, which has a 40% share of the domestic market. Japan has about twenty meter manufacturers.

ABS monitors the metering industry and in each report we identify the rising stars, companies which are rising through the field and successfully penetrating first, regional markets and then the international market. Many of these companies are dominant in their own countries.

These have two characteristics in common. Firstly, it goes without saying that they are ambitious. But we can take a lesson from history. All of the global big three originate from countries with small or medium sized markets; France, Germany, Switzerland. The first two were considered large markets until China and India appeared on the world stage. It is interesting that GE and Osaki have not made global impacts in the metering markets, nor have the Chinese and Indian companies in quality markets. The last four categories of companies all have one thing in common, they have huge home markets. Is that the dis-incentive to expansion overseas?

We have identified six companies which are already making their mark outside their own countries and with one exception they are located in countries without giant markets, indeed some of their home markets are rather small.

El Sewedy is in our view the rising metering company which is making the largest impact internationally. It has arrived on the international scene very recently and is now the equal fifth largest meter company in the world in sales value.

El Sewedy has emerged very quickly in the last two or three years to become a major competitor in the international meter industry. As the dominant meter company in Egypt, with a 50% share, El Sewedy may also diversify into gas and water metering. The company has ambitious plans for international expansion in several regions and is poised to move into the top ranks of meter suppliers.

El Sewedy sells meters to 70% of African countries, supplying them from its factories in Egypt, Ghana, and Ethiopia and Zambia. The company is also expanding its presence in the Middle East with a factory in the UAE and is exporting pre-payment meters to India, where it is also building a factory.

El Sewedy first attracted international attention with its acquisition of Iskra of Slovenia in 2006. Iskra had financial difficulties running up to 2006 and with a 2% - 3% share of the global electricity meter market was seeking a partner. Iskra has a significant share of the European market with a presence in almost all countries and a 20% market share in Germany, 37% in the Netherlands, 13% in Switzerland, 12% in Austria and 5% in France.

Energomera is the leading company in the Russian market with a 38% share in 2008. Energomera has increased its market share each year for the last five years and is now the dominant supplier in Russia and also in the Ukraine. The company is a significant meter producer by international standards, among the top 10 in the world in value of meter sales. If the large Chinese companies are not included in the ranking, because they do not compete in the international market as opposed to regional markets in the developing countries, Energomera ranks as tenth in sales value.



Overview, Continued

Manufacturers and company consolidations (continued)

Apator SA owns Pafal SA, Metrix SA, the leading supplier of gas meters in Poland and Powogaz, the leading water meter supplier. Grupa Apator is a Polish capital group operating in the switchgear and metering markets, making both electromechanical and solid state meters. It consists of 8 entities, 6 domestic and 2 foreign ones. Grupa Apator is actively seeking to expand in foreign markets and ahs been active in neighbouring countries, including the CIS.

ZPA is a Czech company and has the leading share in the Czech Market with 45%. Initially, the company focused on ripple control receivers, and ZPA is one of the leading producers of these systems today. In the late 1990s, production was expanded to include solid state meters, initially under a Swiss license but today ZPA develops and produces these systems independently.

The leading player in the Romanian meter market is AEM SA with a share by value over 81%, which is successor to Luxten Lighting Company AEM Timisoara (LLC AEM), a state-owned company which was privatised in 1998. AEM is Romania’s market leader in metering. The company manufactures electricity, gas, water and heat meters, meter calibrating equipment and automatic meter-reading systems, as well as lighting equipment and maintenance products. AEM is active in neighbouring countries in south-eastern Europe.

Outlook It is not necessary to describe the financial and economic problems which are

affecting most of the world at present, but we cannot ignore them.

In recent months ABS has discussed the outlook for the meter industry with a number of executives in the meter industry. There are both positive and negative factors to the situation, which we discuss below. However, one thing was common to all the discussions, and we would add, to similar conversations we have had with companies in other sectors of the electrotechnical industry. After talking about the various factors affecting the industry everyone admitted they simply do not know what is going to happen.

We propose to outline some factors which we believe to be important but not to make a judgement on the outcome. We are presenting the analysis in this report on a BAU (business as usual) basis.

There are some factors specific to the energy sector and specific to electrical supply.

Positive and negative factors

Positive

Most companies in the transmission and distribution, and metering industries reported good results for the last quarter of 2008. Revenue was satisfactory. This is largely a result of the escalation of orders in 2007 and 2008 throughout the industry. Already long lead times in the business have been stretched out further. These have been extended in the last two years because of shortages of raw materials on the supply side and many contracts have been drawn out. This has acted to the advantage of the metering industry in the present economic situation and it will carry on into 2009.



Overview, Continued

Outlook (continued) Positive

The most important driver in the meter industry at present is the rush to install advanced metering systems in whole countries and cities. Many of these have been decided on in 2007 and 2008, for launch in 2010 and 2011, after about two years planning and system design. Thus the need for finance will not come for another two years, when hopefully there will a recovery under way.

Positive

Many metering companies are encouraged by the US fiscal stimulus and similar schemes in other countries. A caution we must add here, is that it is not by any means assured that all countries will be able to finance these ambitious plans. Germany and Britain have already suffered failed gilt auctions. Successful bond issues may become increasingly difficult for governments to achieve.

Positive

The metering business is more than ever concerned with conserving energy. In the current economic climate that is a very good place to be.

Positive

ABS is building a database of national or city level AMI projects in the pipeline and so far we have identified just 32 projects covering 416 million endpoints by 2015. Of these 69% have been mandated by government and 31% by utilities. Some of the government mandated projects involve financial support but a government mandate can include other financial measures to aid the project. Although it is very possible that in the current situation some governments will run out of money, they are more likely to be able to support these large investments than utilities which are dependent on revenues.

Negative

A negative and worrying side of this is that many companies, while they still have a plentiful backlog of orders to fulfil, reported a slow down in larger new orders. In the normal course of business this suggests a possible slow down in about 12 months. This has been reported especially in the US.

Negative

Pressure on credit is extremely tight, but easing.

Negative

The crisis is now well into its second stage, having moved beyond the initial financial collapse into a manufacturing meltdown. We hear many reports of crisis in the manufacturing sectors of export–driven economies like Germany, Japan, Korea and Taiwan and the meltdown of the freight business with Capsize vessels laid up in many ports. Every reader of this report knows this, but what is relevant to the electricity and metering industry is that this has already led to shrinkage of revenue in the electricity utilities. In most industrial countries about one third of revenue from power sales is from the industrial sector. In China it is a staggering 75%, and in Russia 50%. China has recently announced the largest advanced metering project roll-out in the world, in the next five years.and this is to be financed with governemtn money, so it will hopefully not be adversely affected.


2.0 Meter population and demand 2.0 Meter population and demand Overview In 2008, there were 1,698 million electricity meters installed in the world. Annual

demand in 2008 was 129 million meters. This will rise at an unprecedented annual rate of 8.1% to 176 million meters in 2012.

The value of the market will rise even faster, from €3.4 billion ($5.0 billion) in 2008, at an annual rate of 18.0% to €6.6 billion ($8.4 billion) in 2012.

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$ 4,993,418,164 5,327,948,715 6,233,811,708 7,036,348,323 8,357,991,433euro 3,396,883,124 4,194,909,611 4,908,181,125 5,540,093,158 6,580,750,328Units 129,000,402 137,589,467 147,936,873 158,904,348 176,038,489

2008 2009 2010 2011 2012

Overview (continued)

61% of this demand (units) is in Asia, and out of that 40% is in China.

The rate of growth (in units) will be highest in Europe at an average of 15.6% a year, followed by Asia at 8.7%.

The lowest growth will be in the CIS with only 0.5% a year. The entire meter stock of Russia will be replaced by 2011/12 so we do not anticipate the market speeding up.

The reason for this extraordinary growth is the surge of decisions by government and utilities to invest in advanced metering, mostly nationally or in some case in large cities. ABS has identified 32 countries making large investments in advanced metering, 18 of them in Europe.

The installed base of AMI units in these 32 countries alone will increase from 16.6 million in 2009 to 416 million in 2015. In the intervening period there will be many more projects. Some of these projects extend beyond 2015 and the total will reach 373 million.

The impetus for these massive installations comes from governments and utilities. 15 of the projects have been initiated by utilities and will account for 130 million end points by 2015 and 17 have been initiated by governments, accounting for 286 million endpoints in 2015.



2.0 Meter population and demand, Continued

Timetable for advanced metering deployments up to 2015 (current information)

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AMR AMI Deployments The first national scheme was in Italy, for which the moving force was ENEL, not the

Italian government and this was decided before the current fears about security of supply and energy efficiency had assumed their present importance. In quick sequence, the Swedish government demanded monthly meter readings, then the provincial government of Ontario, the state governments of California in the US and Victoria in Australia. In Scandinavia the utilities in the other countries in the region started to follow the example of Sweden on their own initiative and now Denmark and Finland are already well on their way to having national AMI coverage. Norway is lagging behind its neighbours but the Norwegian Energy Authority has advised the government that it should mandate advanced metering in Norway.

These schemes vary in their objectives. All cater for electricity, but some also include gas, water and heat. The largest planned is in China, which will cover 170 million consumers. This amounts to about half the customer base in China and it has not been announced what will be done with the remaining consumers.

The most inclusive is a relatively small scheme in Greenland, which covers electricity, gas, water and heat and covers the entire population of 43,000 households.

In Europe Italy has already established its national AMI network covering 36 million consumers, the first of its kind in the world. France has announced a deployment of 32 million, Spain of 27 million, the UK 29 million, Netherlands 7.5 million. The UK deployment will also measure gas, with a total of 49 million meters for both electricity and gas.

In Asia, the Korean government has announced a decision to establish a Homenet, incorporating many home services with energy measurement and management in 22 million households.




Table 2.1: Countries deploying large advanced metering projects

Country Utility Endpoints

China EL 170,000,000

Italy EL 37,000,000

United Kingdom EL, G 29,000,000

France EL 32,000,000

Spain EL 27,000,000

Korea, South Homenet, EL 22,000,000

United States EL, G, W 20,100,000

Taiwan EL 12,400,000

Japan EL >20,000,000

Netherlands EL, G 7,500,000

Germany EL 7,148,113

Portugal EL 6,500,000

Canada EL, G 4,300,000

Sweden EL 4,300,000

New Zealand EL 4,000,000

Finland EL 3,200,000

Ireland EL 3,000,000

Chile EL 3,000,000

Denmark EL 2,900,000

Norway EL 2,600,000

Indonesia EL 1,500,000

Russia EL 550,000

South Africa EL 420,000

Austria EL, G 400,000

Australia EL, G 400,000

Greece EL 325,000

United Arab Emirates EL 200,000

Poland EL 160,000

Malta EL 159,000

Estonia EL 150,000

Greenland EL, G, W, H 43,000

Belgium EL, G ni




Demand The following table compares the annual meter demand in 2008 with the total

number of customers in each country.

The following tables for Europe and Asia show a consolidation of the meter sales from 2008 to 2012 by category. These are derived from the combined totals of 27 European countries out of a total of 35, contributing 93% of demand in Europe. These countries were surveyed in detail.

In Europe, demand for electromechanical meters will fall from 19% of all meters sold in 2008 to 3% in 2012 and basic electronic meter will decline from 43% to 11%. In contrast residential AMI meters will escalate from 20% to 79%.

Table 2.2: Composition of demand in 27 leading European countries

2008 2009 2010 2011 2012

Units 14,038,952 13,104,708 14,664,246 17,017,010 25,658,855 Euro 606,995,630 568,442,881 706,951,124 914,883,090 1,536,436,440 Residential

Units 2,633,745 2,212,303 1,690,260 1,089,260 739,000 Electromechanical

Euro 67,039,030 55,344,906 42,634,580 25,375,580 16,327,000

Units 7,203,500 6,830,300 5,858,750 4,612,550 3,951,300 Electronic

Euro 154,164,500 131,247,200 125,791,500 96,504,000 83,874,500

Units 36,000 36,000 36,000 36,000 36,000 Ripple control

Euro 2,230,000 2,230,000 2,230,000 2,230,000 2,230,000

Units 37,500 47,500 45,500 32,500 30,500 AMR

Euro 2,565,000 3,465,000 3,100,000 2,260,000 2,080,000

Units 2,782,660 2,851,400 6,051,900 10,420,700 20,221,000 AMI

Euro 211,921,400 231,852,300 403,575,500 669,107,500 1,324,663,000

Units 684,030 467,300 426,400 284,300 167,300 Prepayment

Euro 49,223,420 31,995,200 28,750,200 19,467,140 11,904,140

Units 655,590 655,325 551,416 537,710 509,800 C&I AMI

Euro 111,099,860 104,571,375 93,982,844 93,123,070 88,568,000

Units 5,927 4,580 4,020 3,990 3,955 Grid AMI

Euro 8,752,420 7,736,900 6,886,500 6,815,800 6,789,800

In Asia the consolidation is of the 10 major countries contributing 96% of demand.

In Asia, demand for electromechanical meters will decline from 32% of all meters sold in 2008 to 9% in 2012 and basic electronic meter will decline from 48% to 22%. In contrast residential AMI meters will escalate from zero to 55% by 2012. This is mainly in three countries, China, Korea and Taiwan.




Table 2.3: Composition of demand in 10 leading Asian meter markets

2008 2009 2010 2011 2012 Units 23,245,000 14,734,750 9,506,086 7,729,049 7,653,684

Electromechanical Euro 221,720,000 164,171,700 122,042,297 104,732,246 101,842,016


Euro 347,850,000 255,490,000 269,148,000 264,166,500 265,522,500

Units 0 0 0 0 0 Ripple control

Euro 0 0 0 0 0

Units 6,521,500 4,527,000 4,530,000 4,530,000 4,530,000 AMR

Euro 86,270,000 60,710,000 60,925,000 60,925,000 60,925,000

Units 220,000 32,317,001 43,545,002 54,280,003 60,600,004 AMI

Euro 17,600,000 737,520,000 1,163,650,000 1,411,125,000 1,633,125,000

Units 2,540,000 2,563,000 2,700,000 2,870,000 3,130,000

Residential

Prepayment Euro 52,060,000 53,900,000 63,060,000 74,110,000 91,010,000

Units 4,263,000 4,975,000 5,447,000 5,664,000 6,026,001 C&I C&I AMI

Euro 383,065,000 441,585,000 484,045,000 501,145,000 530,249,205

Units 29,875 35,165 35,865 36,365 37,365 Grid Grid AMI

Euro 46,081,000 51,758,000 52,220,000 52,550,000 53,210,000

Some countries are convernig from electromechanical meters to basic electronic

meters. India has legislated for a total conversion from electromechanical to basic electronic meters over a period of years to conform to State and Energy Authority programmes, and Indian meter production is now converting to solid state products. Iran has announced a conversion to residential solid state meters over a period of twenty years, and has formed a partnership between the main state-owned meter manufacturer in Iran and Actaris to jump-start its relatively small production of solid state meters.

There remains a large base of electromechanical meters in the world but it is being whittled down steadily, and sooner than expected in view of the stranded cost involved.




Table 2.4: The customer base of electricity consumers and annual demand, 2008

Country Total Consumers Sales in 2008 United States 147,419,565 10,042,000

Canada 13,000,000 1,896,500

Mexico 33,631,061 1,885,800

North America 194,050,626 13,824,300 Albania 830,002 63,643

Austria 5,368,537 133,770

Belgium 5,059,000 231,500

Bosnia and Herzegovina 1,280,002 54,803

Bulgaria 5,313,879 621,100

Croatia 2,250,002 142,145

Cyprus 448,738 29,409

Czech Republic 5,675,689 357,640

Denmark 2,922,053 275,200

Estonia 500,002 23,950

Finland 3,248,724 337,200

France 33,451,604 936,300

Germany 44,956,943 1,470,650

Greece 7,450,000 323,460

Hungary 5,521,273 633,550

Iceland 130,002 7,972

Ireland 2,298,815 38,060

Italy 37,275,981 1,455,610

Latvia 1,100,001 50,890

Lithuania 1,390,091 168,400

Luxembourg 163,942 7,091

Macedonia 650,000 36,983

Malta 246,000 14,088

Netherlands 7,528,191 301,161

Norway 2,634,751 168,700

Poland 16,332,790 662,620

Portugal 6,591,597 237,040

Romania 8,726,004 579,816

Serbia and Montenegro 3,300,000 297,100

Slovakia 2,250,000 52,960

Slovenia 876,683 36,005

Spain 27,360,580 1,399,500

Sweden 5,263,131 297,100

Switzerland 4,000,000 205,250

Turkey 29,874,620 1,171,500

United Kingdom 28,500,002 1,870,020

Europe 310,769,627 14,692,185




Table 2.4: The customer base of electricity consumers and annual demand, 2008 (continued)

Country Total Consumers Sales in 2008 Armenia 700,000 51,552

Azerbaijan 1,300,000 128,776

Belarus 3,700,000 185,992

Georgia 1,700,000 84,083

Kazakhstan 5,200,000 346,710

Kyrgyzstan 1,055,437 49,824

Moldova 1,400,000 63,225

Russia 66,000,000 5,838,000

Tajikistan 900,000 48,201

Turkmenistan 800,000 47,559

Ukraine 18,500,000 776,250

Uzbekistan 4,800,000 261,901

CIS 106,055,437 7,882,073 Bahrain 235,000 9,151

Iran 20,000,000 1,338,050

Iraq 2,912,000 414,635

Israel 2,519,976 196,553

Jordan 1,372,483 65,466

Kuwait 385,000 29,963

Lebanon 1,205,576 87,322

Oman 632,064 37,598

Palestine 1,440,532 18,542

Qatar 150,000 11,573

Saudi Arabia 5,567,394 537,692

Syria 5,063,721 300,066

United Arab Emirates 1,324,003 94,346

Yemen 1,475,805 218,043

Middle East 44,283,553 3,359,000 Afghanistan 234,000 34,804

Australia 10,134,048 395,550

report water meters 10,947,964 423,595

Bhutan 22,364 3,036

Brunei 57,333 3,283

Cambodia 393,824 19,938

China 385,000,000 52,025,000

Fiji 135,040 5,975

Hong Kong 2,750,000 121,949

India 144,000,000 13,604,500

Indonesia 40,502,776 1,528,030

Japan 88,051,445 3,300,100

Korea, North 5,500,000 227,475

Korea, South 22,217,471 300,050

Laos 649,625 59,073

Macau 10,054

Malaysia 7,355,000 412,040





Country Total Consumers Sales in 2008 Maldives 41,000 3,588

Mongolia 220,000 24,161

Myanmar 1,000,000 46,402

Nepal 1,684,200 152,219

New Zealand 1,484,510 290,520

Pakistan 18,996,355 1,192,242

Papua New Guinea 224,000 11,886

Philippines 14,580,000 625,540

Singapore 1,132,000 62,128

Sri Lanka 4,352,550 271,136

Taiwan 12,387,370 427,025

Thailand 18,352,498 932,040

Vietnam 66,016,891 1,525,050

Asia Pacific 858,422,263 78,038,391 Algeria 6,547,480 330,000

Egypt 24,439,112 1,316,040

Libya 1,214,428 66,212

Mauritania 75,000 7,412

Morocco 6,979,973 348,000

Sudan 1,280,625 84,000

Tunisia 3,144,315 158,000

Mahgreb 43,680,934 2,309,665 Angola 17,494

Benin 254,545 19,583

Botswana 110,000 6,531

Burkina Faso 320,451 17,793

Burundi 25,000 1,876

Cameroon 545,500 30,000

Cape Verde 58,000 4,300

Central African Republic 15,000 1,041

Chad 32,000 2,049

Comoros 40,000 3,047

Congo Republic 109,000 12,193

Congo DR 360,000 28,889

Cote d'Ivoire (IvoryCoast) 520,000 24,724

Djibouti 700,050 29,082

Equatorial Guinea 10,600 863

Ethiopia 1,396,000 196,000

Gabon 180,000 12,279

Gambia, The 75,000 3,982

Ghana 1,580,000 149,971

Guinea 166,000 11,193

Guinea-Bissau 8,000 517

Kenya 650,000 57,191





Country Total Consumers Sales in 2008 Lesotho 45,000 2,867

Liberia 30,000 3,426

Madagascar 218,000 17,000

Malawi 160,000 10,672

Mali 260,000 22,020

Mauritius 357,000 28,000

Mozambique 255,000 57,000

Namibia 2,455 444

Niger 90,000 5,902

Nigeria 4,500,000 240,000

Rwanda 25,000 4,541

Sao Tome and Principe 25,000 1,271

Senegal 698,000 61,530

Seychelles 127,000 10,500

Sierra Leone 47,000 2,307

Somalia 85,000 6,808

South Africa 7,431,440 564,120

Swaziland 47,000 2,738

Tanzania 593,220 46,633

Togo 80,000 16,785

Uganda 301,000 22,021

Zambia 260,000 21,000

Zimbabwe 585,000 37,911

Sub-Saharan Africa 23,377,261 1,816,094 Argentina 10,125,800 508,235

Bolivia 2,079,360 101,830

Brazil 55,842,150 3,601,800

Chile 4,742,867 259,100

Colombia 9,394,706 591,039

Ecuador 3,983,677 258,180

Guyana 134,000 8,715

Paraguay 1,125,714 63,738

Peru 4,761,632 305,582

Suriname 78,000 5,004

Uruguay 1,373,520 84,610

Venezuela 8,515,435 303,516

South America 102,156,862 6,091,348 Bahamas, The 65,000 3,600

Barbados 116,000 6,062

Belize 70,000 3,791

Bermuda 35,000 4,287

Virgin Islands, British 12,645 646

Cayman Islands 20,000 1,019

Costa Rica 1,152,930 69,893

Cuba 4,270,000 217,079





Country Total Consumers Sales in 2008 Dominican Republic 935,000 74,349

El Salvador 1,507,298 112,022

Grenada 35,000 2,544

Guadaloupe 140,000 8,149

Guatemala 1,798,610 147,629

Haiti 475,000 22,416

Honduras 909,060 94,114

Jamaica 564,000 27,390

Netherlands Antilles 65,000 3,931

Nicaragua 611,402 60,743

Panama 709,214 49,067

Puerto Rico 1,388,478 56,599

Saint Lucia 50,000 2,138

Trinidad and Tobago 364,000 19,876

Central America & Carribean 15,293,637 987,346 World 1,698,090,200 129,000,402


3.0 Outlook and demand drivers 3.0 Outlook and demand drivers

Outlook It is not necessary to describe the financial and economic problems which are affecting most of the world at present, but we cannot ignore them.

In recent months ABS has discussed the outlook for the meter industry with executives in the meter industry, as well as in the broader electrotechnicala industry. There are both positive and negative factors to the situation, which we discuss below. However, one thing was common to all the discussions. After talking about the various factors affecting the industry everyone admitted they simply do not know what is going to happen.

We propose to outline some factors which we believe to be important but not to make a judgement on the outcome. We are presenting the analysis in this report on a BAU (business as usual) basis.

There are some factors specific to the energy sector and specific to electrical supply.

Positive and negative factors

Positive

Most companies in the transmission and distribution, and metering industries reported good results for the last quarter of 2008. Revenue was satisfactory. This is largely a result of the escalation of orders in 2007 and 2008 throughout the industry. Lead times which were already long have been stretched out. These have been extended in the last two years because of shortages of raw materials on the supply side and many contracts have been drawn out. This has acted to the advantage of the metering industry and will extend further into 2009.

Positive

The most important driver in the meter industry at present is the rush to install advanced metering systems in whole countries and cities. Many decisions have been taken in 2007 and 2008, for launch in 2010 and 2011, after about two eyars for planning nad design. Thus the need for finance will not come for another two years, when hopefully there will a recovery under way. (See below under a new Driver – Advanced Metering’.)

Positive

Many metering companies are encouraged by the US fiscal stimulus and similar schemes in other countries. However, this may not be as straightforward as it seems. It is not by any means assured that all countries will be able to finance these ambitious plans and in some countries there is political opposition to such expenditure. Germany and Britain have already suffered failed gilt auctions. Successful bond issues may become increasingly difficult for governments to achieve.

Positive

The metering business is more than ever concerned with conserving energy. In the current economic climate that is a very good place to be.



3.0 Outlook and demand drivers, Continued

Positive and negative factors (continued)

Positive

ABS is building a database of national or city level AMI projects in the pipeline and so far we have identified just under 32 projects covering 416 million endpoints by 2015. Of these 69% have been mandated by government and 31% by utilities. Some of the government mandated projects involve financial support but a government mandate can include other types of financial measures to aid the project. Although it is very possible that in the current situation some governments will run out of money, they are more likely to be able to support these large investments.

Negative

A negative and worrying side of this is that many companies, while they still have plenty of orders to fulfil, reported a slow down in new orders in the last quarter of 2008. In the normal course of business this suggests a possible slow down in about 12 months.

Negative

Pressure on credit is extremely tight, but easing.

Negative

The crisis is now well into its second stage, having moved beyond the initial financial collapse into a manufacturing meltdown. This has specific implications for the energy bbusiness. We hear many reports of crisis in the manufacturing sectors of export–driven economies like Germany, Japan, Korea and Taiwan and the meltdown of the freight business with Capsize vessels being laid up in many ports. Every reader of this report knows this, but what is relevant to this industry is that this has already led to a shrinkage of revenue in the electricity utilities. In most industrial countries about one third of revenue from power sales is from the industrial sector. In China it is a staggering 75%, and in Russia 50%. China has recently announced the largest advanced metering project roll-out in the world, in the next five years. We understand this will be funded by the government.

Drivers Traditionally demand for meters has been driven by different factors in the developed

and the developing world. In the developed countries the drivers were new construction and the replacement of aging meters as they reach the end of their design lives. In the developing countries, where the advent of electricity is much more recent, the drivers have been economic development and increasing electrification. In many such countries there is still relatively little replacement.

Two other drivers existed to varying degrees. In both developed and developing countries there has been a trend to substitute electronic meters for electromechanical meters, more so in developed countries.

The technology of meters has also been up-graded, mainly in developed countries, the principal example being AMR. Other technology up-grades such as ripple control, time-of-use metering, have also been introduced in some countries or cities.

One important driver for AMR has determined the pattern of its geographical expansion, the frequency of meter reads. In the USA meters have traditionally been read with a high frequency so there has been a good business case for AMR. In most European countries reading is much less frequent so the business case loses much of its attraction. Many utilities are quite happy to bill in advance on estimated bills, with a yearly or two yearly reconciliation. The result of this has been that the US has lead the world in deploying 1-way drive-by AMR, with which the utility reads the user’s meter but cannot communicate with the user.




Drivers (continued) A new driver - Advanced Metering

All of this has changed with 2-way fixed network advanced metering. The utility can communicate with the user and vice versa, opening up a host of new functionalities. This, of course, cost more money.

Quite a lot of regulators and utilities have conducted cost benefit analysis studies of AMR and AMI and their results have been broadly in agreement. Three conclusions stand out.

Cost savings have been measured to the utility ranging from 0% - 15%.

More cost benefits accrue to the customer than to the utility, if externalities are included.

Consumers do learn to save energy, probably up to about 15%. This may not sound much but in 2007 the total revenue of all utilities was $347.8 billion. A saving of 15% would amount to $52 billion.

Initially the reaction of the industry was rather lukewarm. But then several things happened which may have tipped the balance in favour of advanced metering.

Enel installed a national AMI system in all households in Italy and announced after trials that it was delivering annual savings of €500 million for an investment of €2.1 billion.

Secondly, security of energy supply became a compelling issue when Russia started to cut off gas supplies and oil price escalated.

Thirdly, the environmental argument reached a new pitch of intensity.

In the light of these developments, the arguments for the increased investment in AMI had to be reassessed.

The result has been that some governments started to review advanced metering investments and started to legislate for them. This started in 2007 and moved ahead in earnest in 2008.

By 2006 there were 114 million electricity AMR endpoints in the world, 55 million of them in the USA. According to FERC, about 6% of homes and businesses had AMI, which gives a total of about 9 million endpoints. We have counted the existing and planned AMI projects and these will amount to about 370 million by 2015. This demonstrates very clearly the level of activity in the last two years to move the technology ahead.

However, the traditional drivers remain important for the part of the market not yet touched by advanced metering.

New household connections

The increase in the number of households is driven by two demographic factors, the growth in the population, and the reduction in household size. The population of the developed world has reached a plateau, where increases in some countries are being off-set by countries with declining populations. Populations in the developing world are increasing and are predicted to surge ahead. There is a world-wide trend towards smaller households. Today the range of household size across the world is wide, from the largest at over 6 members in Africa to the smallest nuclear households averaging 1.9 in Sweden. In the developed world the average has dropped from 2.9 members in 1985 to 2.4 in 2007 and in the developing countries it has fallen from 5.1 to 4.2.




Figure 3.1: Population growth and household size in the developed and developing world, 1985 to 2030

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Less developed regions 5.1 4.4 3.8 3.3

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Source: UN World Population Prospects

Figure 3.2: Numbers of households by region, 1985 to 2030

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New commercial and industrial connections

Commercial and industrial growth is fuelled by economic development.

Replacement of aging meters

The rate of replacement depends on two factors; the size of the installed base and the design life of the meters. This is a complex equation because at any one time it is the installed base in the year of installation which determines whether a meter is to be replaced. Additionally, the replacement lives differ for different types of meter. Electromechanical meters commonly have lives of 20-25 years, whereas solid state meters can have lives as short as 10 years for particular types, more commonly for 15 years.

Conversion from electromechanical to basic solid state meters.

The progression from electromechanical to solid state meters come s at two levels of technology. For some years, utilities have been replacing electromechanical meters with ‘basic’ or ‘dumb’ solid state meters. These do not have two-way communications capability. They offer the same functions with some technical advantages over electromechanical meters.

Prepayment meters

The use of prepayment meters is increasing and they are increasingly popular among both utilities and customers will grow much further. These can be electromechanical and in the past they were, but today are solid state.


4.0 Terminology of meters 4.0 Terminology of meters Overview Metering is undergoing a sea change. It used to be simply a means to measure the

amount of electricity used by consumers so that they could be billed. It is becoming far more than this.

Over the last century two basic types of meter evolved, each called by a number of different names.

Electromechanical induction meters, also called mechanical or Ferraris meters

The electromechanical, or induction, meter was invented over a hundred years ago and has been the principal meter used around the world for revenue metering. This meter is also referred to as an induction or Ferraris meter, after its inventor. It is essentially a motor in which the speed is related to both the current passing through the motor and the applied voltage, which is why it is described as mechanical. In revenue metering, the meter must be accurate to better than ± 2% or ±1% (depending upon regulatory requirements) over a specified load range. Electromechanical meters are reliable, but exhibit a tendency to run slower over time due to the build-up of friction in the mechanical elements. They typically last for 20 to 30 years with an average of around 25 years. There are electromechanical meters aged 40 to 50 years still in operation, mostly in countries with strong engineering traditions such as Germany, Sweden and the USA. Electromechanical meters have difficulty metering very low loads with accuracy. The meters are more susceptible to tampering than the solid state meters that are succeeding them, and this is an important factor in the developing markets, where revenue theft is a significant factor.

Solid state, also called static, or electronic

The term “solid state” refers to an item that performs its function without moving parts. The solid state electricity meter has no mechanical parts and uses electronic circuits to measure power.

Solid state meters have greater functionality than electromechanical meters and are the platform for advanced metering. The electricity marketplace has already transitioned from electromechanical to solid-state meters for more complex applications such as metering for commercial and industrial customers and transmission and distribution metering. Solid-state electricity metering at the residential level is only now beginning to gain some significant penetration.

Digital meters A digital meter is a solid state meter which displays this usage on a liquid crystal

display (LCD).

A dial meter has on its face a revolving disk and a series of dials and pointers. Electromechanical meters traditionally use revolving dials.

These two basic types have evolved with a number of refinements in recent years.

Time of use meters (TOU)

Time of Usage (TOU) metering involves dividing the day, month and year into tariff slots and with higher rates at peak load periods and low tariff rates at off-peak load periods. While this can be used to automatically control usage on the part of the customer (resulting in automatic load control), it is often simply the customers responsibility to control his own usage, or pay accordingly (voluntary load control). This also allows the utilities to plan their transmission infrastructure appropriately.



4.0 Terminology of meters, Continued

Demand meters The cost of supplying electric service not only depends on the amount of energy

(kWh) consumed, but also on the power requirement of a facility, known as electric demand. Electric demand is the maximum amount of electricity used at any single point in time by a facility. Demand is measured in kilowatts (kW) by an electric demand meter. The highest level of electric demand during a billing month is called the peak demand.

Demand charges recover a portion of the cost of providing the generating capacity and equipment needed to supply a customer's peak electrical demand and the monthly bill includes a charge for kWh of energy and kW of demand. The demand portion of the charge is based on the peak demand recorded in kW during the billing month.

Demand Response

Demand response is the reaction (usually a reduction of energy use) by a consumer at times of peak energy usage in response to a price signal or contract term. Demand response is a market based solution to address system pricing, supply or reliability conditions.

Automatic Meter Reading (AMR)

This term broadly encompasses any form of automation of the meter reading process, including drive-by and hand-held meter reading systems.

Historically, meters were read by a human that visually read the meter dials and wrote the digits on a paper pad for later manual data entry.

A form of remote meter reading was developed in the 1980s that uses low power, unlicensed radio transmitters (communication modules), embedded in the meter. These modules periodically transmit a message that corresponds to total energy accumulation. There have been many developments in AMR technology and they range from hybrids when humans are involved in drive-by and walk-by systems and completely automated systems using rain, telephone lines, power lines and WIF technology.

The sea change which is now happening comes with the advent of advanced meters, loosely termed, ‘smart’ meters. AMR is not necessarily ‘smart’ metering because it only requires data to be sent one way.

Advanced meters

Advanced meters are those that have the capability to measure and record interval data (at least hourly for electricity), and communicate the data to a remote location in a format that can be easily integrated into an advanced metering system.

An advanced metering system has the capability to accept data from one or more advanced meters, and process the data into information on energy use, which can be used to develop appropriate management action.

Advanced Metering Infrastructure (AMI)

The term Advanced Metering Infrastructure applies only to fixed network systems and requires two-way communication. Fixed network systems dramatically reduce or eliminate the need to have personnel in the field for meter reading. A “fixed network” is any communication network that is in place all the time (is not moving) and reaches the meters. The meters are equipped with communication capabilities, usually by radio or power line.




Advanced Metering Infrastructure (AMI) (continued)

Most fixed network systems can read any meter any time, and support a wide variety of complex rates. These systems have proven to have value that extends far beyond simple meter data acquisition.

The capabilities of a fixed network system are far greater than those of a drive-by system, but a drive-by system is simpler and has a lower initial acquisition cost. To avoid the confusion that arises when drive-by systems are referred to as automatic meter reading (AMR), a new term was coined to describe fixed network systems. That term, Advanced Metering Infrastructure (AMI), is rapidly gaining acceptance. It applies only to fixed network systems capable of supporting complex rates.

‘Smart’ meters ‘Smart’ metering means different things to different people. Broadly, it is a concept

embracing two distinct elements; meters that use new technology to capture complex energy use information, and communication systems that can capture and transmit energy use information as it happens, or almost as it happens.

Competition in the energy market first drove the need for better meters. For large industrial consumers, it became cost effective both to install sophisticated metering that measured consumption over specific times of day; and to access the resulting data over a telephone line. Such capability was out of reach for residential customers who continue, largely, to rely on manual readings with profiling to estimate consumption at different times of day. This is beginning to change. ‘Smart’ meters are being introduced even at a residential level, due to a mix of technological improvements, political pressure and innovative commercial approaches. The term ‘smart’ meter covers a mix of capabilities.

As opposed to ‘dumb’ meters, ‘smart’ meters have one over-riding characteristic; two-way communications, which give service providers more information whilst at the same time enabling them to transmit commands back to the meter, for example, to cut off or restrict supply. Dumb meters only have one-way communication.

‘Smart’ meters may have other capabilities, such as the ability to interact with consumption and tariff, enabling the meter to display consumption in terms of money as well as energy

They may have routing capabilities enabling the meters to act as communications hubs, routing traffic to other devices, enabling communication over longer distances that would be impossible otherwise, or connecting gas and water meters, where power requirements restrict communications capability.

‘Smart’ metering, however, is more than installing some new, though undoubtedly clever, meters. By using the rich, real-time data and the command capability provided by ‘smart’ meters across the business, utilities can achieve a host of benefits. These include more accurate bills, better grid management, more accurate forecasting and lower operational costs. There is no single successful approach to ‘smart’ metering. The appropriate blend of business processes and technology employed will depend, amongst other things, on the objectives that have been set, the structure of the business and the nature of the customer base.

Ripple Control Utilities can partially control peak demand by installing a ripple control receiver and

device which enables the utility to switch down power or to switch it for specified appliances off when it wishes. It cannot single out individual end points but sends a message to all ripple control receivers or meters attached to that type of appliance within its area of control. In this report wee have included ripple control meters in the meter tables, but not ripple control receivers.




Ripple Control (continued)

Typically water heaters and night storage heaters are controlled this way. Because they are storage appliances ripple control can be used without affecting the consumer, and usually the consumer will not even be aware of it. Ripple control involves communication one way from utility to a class of appliances, not to or from individual users, as in AMR, so it is not classified as either 1-way or 2-way communication capable.

Meter Data Management (MDM)

Advanced meters provide a lot of data and it is a separate task to manage this. MDM software enables the full use of all the data in varying functions.

Communication modules

It is sometimes assumed that AMR can only be operated with solid state meters. This is not the case. Electromechanical meters can be retrofitted with a communication module to provide AMR capability. The standard electric meter has no communication capability. It must be added. Electromechanical meters are not densely packaged, and typically contain enough empty space to allow a half-moon shaped communication retrofit module to be added. The retrofit module usually contains optical sensors that detect the revolutions of the rotating disk in the induction meter, and the module periodically (or upon request) transmits the accumulated total of disk revolutions, from which consumption is readily calculated. Modules are available from many vendors to fit most induction meters manufactured since the mid 1970s. Today most utilities find it cheaper to buy new solid state meters suitable for AMR and to substitute them.


5.0 Meter companies – ‘Big players and rising stars’ 5.0 Meter companies – ‘Big players and rising stars’

Overview As pointed out in the last edition of this report, recent years have seen a

consolidation of meter companies, as has been the case in many industrial sectors. These consolidations started first to address over capacity of production in the meter industry and then to grasp the opportunities offered by new technologies. These new technologies do not simply consist of technically better meters but of more advanced systems within which the meters operate. The years 2006 and 2007 saw this development coalescing. 2008 has seen the industry take up this capability, in a wave of decisions by governments and utilities to move to the next generation energy measurement, advanced metering systems.

The origins of the metering industry - electricity, gas and water

For the last hundred years the meter industry has been dominated by half a dozen large manufacturers, producing ‘classical’ products with technologies refined but essentially unaltered since the early 1900s. The global market was dominated by three companies; Landis+Gyr, Actaris and Elster. Actaris is now ItronActaris after being acquired by the dominant US electricity metering and AMR/AMI Company, Itron. In the same way that Elster and Landis+Gyr have each absorbed a number of other meter and technology companies under the one mark, Elster or Landis+Gyr, it is expected that Actaris will become Itron International.

These three companies have changed hands and have been through many permutations but they still remain core players in the global meter industry, albeit with a very different complexion and can claim with some justification to be central to the history of the industry to date. ItronActaris is involved in electricity, gas, water and heat metering. Elster is strong in gas and water, to a lesser but still significant extent in electricity, and not in heat metering. Landis+Gyr is primarily involved in electricity metering, with a small involvement in gas and heat. All three companies have extensive systems and technology resources:

Landis+Gyr

The company has revenue of €913.2 million in 2007, mostly in electricity metering and systems. Landis+Gyr was founded in Switzerland in 1896. The company was bought by Siemens in 1998 who sold it to KKR in 2002. It was bought by its present owner, Bayard Group of Australia in 2004.

In 2004, Bayard acquired Landis+Gyr of Switzerland, followed by Ampy+Email of Australia.

In 2005, Bayard bought Hunt Technologies, the US-based AMR Company. In 1994, Hunt Technologies launched the first power line carrier-based AMR system to be broadly deployed by electric utilities. Since then, the company has added a radio frequency-based mobile AMR system and a multi-utility system that reads electric, water and gas meters.

In 2006, Bayard bought Enermet of Finland. Enermet is leader in providing AMR and AMI Systems in Scandinavia which is a leader in advanced metering technology and had a 10% share of the European market.



5.0 Meter companies – ‘Big players and rising stars’, Continued

The origins of the metering industry - electricity, gas and water (continued)

Cellnet, a leading provider of utility advanced metering and communications solutions, was acquired in 2007 and is Bayard’s largest acquisition to date. Cellnet provides intelligent communication and automation solutions to energy and water businesses worldwide. The company's offerings include AMI, in-premise networks, AMR, SCADA and distribution automation. Cellnet's has over 14 million endpoints under contract and contracted revenue of over $2.2 billion over the next 15 years.

In June 2007 meter2cash was acquired.

In 2009 Bayard Group changed its name to Landis+Gyr Holdings.

ItronActaris

ItronActaris had revenue of $1,910 million in 2008.

Actaris owes its origins to a partnership founded in France in 1872 making gas meters. This became the Compagnie de Compteurs in 19000, and was taken over by Schlumberger in 1970. The company acquired many smaller meter companies. In 2001 Schlumberger ceased its meter activities and Actaris came into existence in a leveraged buy-out.

In 2007, Actaris was sold to Itron of the United States and the new company ItornActaris emerged. Itron brought with the leading position in electricity metering and AMI/AMR in the USA, and Actaris contributed strong positions globally in all utility sectors.

Itron has provided handheld computer meter data collection systems used by meter readers since the company’s foundation in 1977 and automatic meter reading (AMR) since 1986. In July 2004, Iron acquired Schlumberger's electricity metering business (SEM), founded in 1899, which included electricity meter manufacturing and sales operations in the US) and the electricity meter operations of certain foreign affiliates of Schlumberger in Canada, Mexico, Taiwan and France. As a result of this acquisition, Itron became the largest supplier of electricity meters in the US. In 2006 acquired Flow Metrix, a developer and manufacturer of advanced leak detection systems for underground pipelines. Its MLOG™ leak detection system uses acoustic sensors to detect water loss from water distribution systems, which combined with AMR technology enables the monitoring of water pipelines. Also acquired in 2006 were Quantum Consulting, a Berkeley-based consulting group, particularly in the area of efficiency and demand-response planning, and ELO Tecnologica, a leading distributor (and now manufacturer) of meters and AMR equipment in Brazil and elsewhere in South America. In 2007 Itron purchased Actaris, one of the top three meter manufacturers in the world, taking the company into number two position globally.

Elster Group

Overall, in 2006 Elster was the largest of the three in value, with total revenue of $1,784 million (€1.4 billion). (We do not have a more recent figure.) In electricity metering Elster is third in volume after ItronActaris and Landis+Gyr.

Elster has the most complex genealogy of the big three meter companies. It originates from the merging of some of the oldest companies in the metering industry. American Meter Company (AMCO) was founded in Pennsylvania in 1836, Elster Meters was founded in Berlin in 1848, G. Kromschroeder AG was established in Osnabruck in 1865, Kent Water Meters was founded in London 1885 and Westinghouse Electricity Metering Company founded in Raleigh, North Carolina in 1894. In 1985 Ruhrgas acquired Elster Gas Metering and AMCO in 1988 and Instromet in 2001.




The origins of the metering industry - electricity, gas and water (continued)

In 1990 ABB began operations in 1988 following a merger of Asea and Brown Boveri. ABB purchased majority shareholding in the Kent Group in 1990. In 1996 ABB-UK acquired GEC Meters Ltd in the UK and the company was renamed ABB Metering Systems Ltd. Westinghouse Electricity Metering Company was bought in 1997. In 2002 ABB Electric and Water Metering was sold to Ruhrgas to create Ruhrgas Industries. Ruhrgas Industries was sold to CVC Capital in 2003 and the Elster Group was formed.

Elster Group has acquired Coronis Systems, French developer of ultra-low-power wireless solutions founded in 2000, with the objective of expanding its AMI capability with Coronis' radio frequency-based AMI technology that applies to water and gas utility networks. Coronis' Wavenis technology also augments Elster Integrated Solutions’ (EIS) existing EnergyAxis AMI solutions.

The metering industry in 2009

In 2009, the global metering industry is still dominated by these three groups, but in a different configuration from the past. The first steps in this progression started several years ago as the leading traditional meter manufacturers, described above, changed hands and re-invented themselves. Following their strategic policies to move on from ‘classical’ products, ABB and Siemens withdrew from the meter business. It was a situation similar to that of cables, both industries suffering from over-capacity and declining prices, and facing competition from new directions.

The industry has seen that its future lies in providing the technology for two way communications and ‘smart’ capabilities, far beyond traditional metering. In some markets this is moving beyond energy metering and management to other services. For example, Japanese utilities are offering services which are not directly related, such as burglar alarm warnings when occupants of homes are absent and energy is used by intruders; a watch service for elderly people and students, remote control of household appliances. Korea will set up a comprehensive home net in the next five years offering functionality far beyond energy measurement.

Meters are, of course, an essential constituent of this service but advanced products are now engineered far beyond the limitations of ‘classical’ meters. The industry has bifurcated into two types of supplier; the large companies which offer all aspects of energy management and measurement and small suppliers of meters only. Large utilities are tending to buy from the large, all-embracing suppliers because they need more than simply to purchase meters and also require a higher level of financial backing from contractors. The smaller suppliers are still selling to smaller, regional and local utilities. They are also being acquired by larger meter companies and they are seeking to move up technology chain, either as part of a larger group or independently.

Three globally dominant groups have now emerged as global leaders not only in metering but in energy measurement technology. They own the traditional big three meter companies, but also a whole range of companies offering other technologies. With these groups it is not always possible to split revenues between the three utility sectors and they are each involved in all three. This is compounded by the trend, albeit slower than originally envisaged toward multi metering.




Market shares When combined, ItronActaris had the largest share in meter sales by value at 17% of

the global total, followed by Landis+Gyr with 13%.

When revenue from systems and technology is added the position reverses and Landis+Gyr had 19.5% and ItronActaris 16%.

Third and fourth in meter sales are Sanzing and Holley of China with 6% and 5% respectively.

The surprise is the new arrival El Sewedy of Egypt, which in 2008 we estimate ranked equal fifth in sales value with Elster, both at 4%. Elster rose to 5.5% if technology and systems are added.

Company shares in meter sales by value 2008

Shares of national markets are shown in the individual country chapters.

0.3%

0.6%

0.5%

0.5%

0.4%

1%

0.5%

0.5%

1.0%

1.3%

1.0%

0.50%

1.5%

0.3%

0.5%

3%

6%

3%

5%

4%

4%

13%

17%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Meters

Inkotex

EDMI

PRI

AEM Timosoara

ZPA

Sherkat Kontorsazi

Sagem

PRI

Elektromed

Energomera

MZEP

Conlog Schneider

Shenzhen Star

Genus

Grupa Apator Pafal

Llondian

Sanzing

Jiangsu Linyang Electronics

Holley

Elster

El Sewedy (Iskra)

Landis+Gyr

Itron/Actaris

Rising stars ABS monitors the metering industry and in each report we identify the companies which are rising through the field and successfully penetrating first, regional markets and then the international market. Many of these companies are dominant in heir own countries.

They have two characteristics in common. Firstly, it goes without saying that they are ambitious. No business can succeed without that. Secondly, we can learn from history. All of the global big three originate from countries with small or medium sized markets; France, Germany, Switzerland. The first two were considered large markets until China and India appeared on the world stage. In comparison, why have GE and Osaki not made global impacts in the metering markets? Why have the Chinese and Indian companies not become global players, at least in quality markets? The last four companies all have one thing in common, they have huge home markets. Is that the barrier to expansion overseas?




Rising stars (continued)

We have identified five companies which are already making their mark outside their own countries and with one exception they are located in countries without giant markets, some of them are rather small.

El Sewedy

El Sewedy is now the equal fifth largest meter company in the world in sales value. El Sewedy has emerged very quickly in the last two or three years to become a major competitor in the international meter industry. As the dominant meter company in Egypt, with a 50% share, El Sewedy may also diversify into gas and water metering. The company has ambitious plans for international expansion in several regions and is poised to move into the top ranks of meter suppliers.

El Sewedy sells meters to 70% of African countries, supplying them from its factories in Egypt, Ghana, and Ethiopia. The company is also expanding its presence in the Middle East and is exporting pre-payment meters to India.

In the Americas El Sewedy has two major developments. It has established a factory in Brazil to supply the South American market, and another in Mexico to supply ANSI standard electromechanical and electronic meters to North America.

El Sewedy first attracted international attention with its acquisition of Iskra of Slovenia in 2006. Iskra had financial difficulties running up to 2006 and with a 2% - 3% share of the global electricity meter market was seeking a partner. Iskra has a significant share of the European market with a presence in almost all countries and a 20% market share in Germany, 37% in the Netherlands, 13% in Switzerland, 12% in Austria and 5% in France. If the big Chinese meter companies are excluded this takes El Sewedy into the top 5 companies in the world.

Energomera

Energomera is the leading company in the Russian market with a 38% share in 2008. Energomera has increased its market share each year for the last five years and is now the dominant supplier in Russia and also in the Ukraine. The company is a significant meter producer by international standards, among the top 10 in the world in value of meter sales. If the large Chinese companies are not included in the ranking, because they do not compete in the international market as opposed to regional markets in the developing countries, Energomera ranks as tenth in sales value.

Apator

Apator SA owns Pafal SA, Metrix SA, the leading supplier of gas meters in Poland and Powogaz, the leading water meter supplier. Grupa Apator is a Polish capital group operating in the switchgear and metering markets, making both electromechanical and solid state meters. It consists of 8 entities, 6 domestic and 2 foreign ones. Grupa Apator is actively seeking to expand in foreign markets and has been active in neighbouring countries, including the CIS.

Pafal was established in 1897 as a branch of a factory in Berlin H. Aron Elektrizitätszähler-Fabrik. In 1999, when the America company Polycorp was making a bid for Pafal it was reported to have an 83% share of the electricity meters market in Poland. The company is supplying meters to RWE in Germany and E.ON in Germany and Hungary.




Rising stars (continued) ZPA

ZPA is a Czech company and has the leading share in the Czech Market with 45%.

ZPA was established in the 1950s as a state-owned enterprise. The company was privatised in 1994. Initially, the company focused on ripple control receivers, and ZPA is one of the leading producers of these systems today. In the late 1990s, production was expanded to include solid state meters, initially under a Swiss license but today ZPA develops and produces these systems independently. The company now focuses on solid state meters and also AMR systems. In 2006, Kilcullen Kapital Partners invested in ZPA and the company has been rebranded as ZPA ‘Smart’ Energy. ZPA now has wider ambitions outside the Czech Republic and has so far exported to Bulgaria, Poland, Slovakia, Serbia and the Netherlands. The company supplies meters to CEZ, the main utility in Czech Republic and to its distribution subsidiary in Bulgaria. ZPA is the main supplier to Prazska energetika, the distributor in Prague.

AEM

The leading player in the Romanian meter market is AEM SA with a share by value over 81%, which is successor to Luxten Lighting Company AEM Timisoara (LLC AEM), a state-owned company which was privatised in 1998. AEM is Romania’s market leader in metering. The company manufactures electricity, gas, water and heat meters, meter calibrating equipment and automatic meter-reading systems, as well as lighting equipment and maintenance products.

AEM is active in neighbouring countries sin south-eastern Europe.

Established global

player Annual meter demand in

home country Large national player Annual meter demand in home country

Actaris 900,000 Osaki 4,825,000

Landis+Gyr 205,000 GE 10,042,000

Elster 1,470,000 Chinese companies 52,000,000

El Sewedy 1,316,000 Indian companies 15,504,000

Energomera 5,800,000

Apator 662,000

ZPA 358,000

AEM 580,000


6.0 Country Profiles

Contents This chapter contains the following topics:

Topic

6.1 Europe

6.2 Americas

6.3 Asia Pacific

6.4 Middle East

6.5 Africa


6.1 Country Profiles Europe


6.1.1 Austria 6.1.16 Netherlands 6.1.2 Belgium 6.1.17 Norway 6.1.3 Bulgaria 6.1.18 Poland 6.1.4 Czech Republic 6.1.19 Portugal 6.1.5 Denmark 6.1.20 Romania 6.1.6 Estonia 6.1.21 Slovak Republic 6.1.7 Finland 6.1.22 Slovenia 6.1.8 France 6.1.23 Russia 6.1.9 Germany 6.1.24 Spain 6.1.10 Greece 6.1.25 Sweden 6.1.11 Hungary 6.1.26 Switzerland 6.1.12 Ireland 6.1.27 Turkey 6.1.13 Italy 6.1.28 Ukraine 6.1.14 Latvia 6.1.29 United Kingdom 6.1.15 Lithuania


6.1.1 Austria

Population, household and meter base

Population Number of households Installed electricity meter base 2008 2008 2008

8,205,533 3,755,000 5,368,537

Annual demand for all meters

Annual demand was 134,000 meters (units) in 2008 rising to 585,000 in 2011 and dropping to 546,000 in 2012. The value will increase in this period from €5.8 million ($8.6 million) to €33.5 million ($42.5 million). The growth will be particularly strong in 2011 and 2101 as the AMI roll-out gathers pace.

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

Valu

e $

and

euro

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Met

er u

nits

$ 8,582,742 11,929,110 24,494,744 45,772,248 42,514,063euro 5,838,600 9,393,000 19,287,200 36,041,140 33,475,640Meter units 133,770 165,270 294,500 585,200 545,700

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The composition of the market will is changing rapidly in terms of value, as

expensive AMI meters are installed, with the roll-out starting in 2009 and intensifying in 2010 and 2010. The contribution of the IGC segment will decline from 23% in 2008 to 2% in 2012.

2008 2009 2010 2011 2012

Units 94% 95% 97% 98% 98% Residential

€ 75% 83% 92% 96% 96%

Units 5% 5% 3% 1% 2% Industrial, grid, commercial

€ 22% 15% 7% 4% 4%



6.1.1 Austria, Continued

Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $)

2008 2009 2010 2011 2012 Units 126,700 157,200 285,900 576,600 536,600

€ 4,559,000 8,020,000 17,864,700 34,618,640 31,998,640 Residential

$ 6,701,730 10,185,400 22,688,169 43,965,673 40,638,273

Units 7,070 8,070 8,600 8,600 9,100

€ 1,279,600 1,373,000 1,422,500 1,422,500 1,477,000 Industrial, grid, commercial

$ 1,881,012 1,806,575 1,806,575 1,875,790

Units 133,770 165,270 294,500 585,200 545,700

€ 5,838,600 9,393,000 19,287,200 36,041,140 33,475,640 Total meters

$ 8,582,742 11,929,110 24,494,744 45,772,248 42,514,063

Meter technology

Advanced meters are now being tested in Austria. Energie AG, based in Linz, has equipped 1,000 households with Siemens meters, AMIS (Automated Metering and Information System). The results have been successful and 100,000 households will have been fitted with the AMIS meters by 2009, increasing by a further 400,000 by 2014.

Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€)

2008 2009 2010 2011 2012

Units 115,000 100,000 74,000 45,000 35,000 Electromechanical

Euro 2,875,000 2,400,000 1,702,000 1,035,000 805,000

Units 1,000 500 500 300 300 Electronic

Euro 55,000 25,000 22,500 13,500 13,500

Units AMR

Euro

Units 9,000 55,000 210,000 530,000 500,000 AMI

Euro 819,000 4,785,000 15,960,000 33,390,000 31,000,000

Units 700 700 400 300 300

Residential

Prepayment Euro 630,000 630,000 200 140 140

Units 7,000 8,000 8,500 8,500 9,000 C&I C&I AMI

Euro 1,155,000 1,240,000 1,232,500 1,232,500 1,287,000

Units 70 70 100 100 100 Grid Grid AMI

Euro 124,600 133,000 190,000 190,000 190,000




Market shares in value 2008

Landis+Gyr were the market leader in Austria in 2008, with a 57% share, followed by Actaris and Iskra with 12% each.

12%

57%

1%

12%

7%

11%

0%

10%

20%

30%

40%

50%

60%

Actaris Landis+Gyr Elster Iskra EMH Others

Type approval and verification

The European Measuring Instruments Directive (MID) applies.

Electricity meters are verified between 8 to 20 years; depending on physical condition. The mandatory verification and re-verification system is supplemented by random inspection.

Utility background

The Austrian electricity grid is structured in hierarchical order. The Verbundgesellschaft owns and operates more than 90% of the 220 kV (102 km) and 380 kV (1,145 km) transmission lines, so-called supra-regional networks. More than 80% of the 110 kV level (6,385 km) transmission lines are owned by the provincial utilities, the rest by Verbundgesellschaft and other utilities. The supra-regional network is connected to neighbouring countries.

Verbund–Austrian Power Grid GmbH (APG) owns and operates the 110 kV, 220 kV and 380 kV high voltage transmission network and owns subsidiaries which together generate 45% of Austrian electricity. The main tasks of Verbundgesellschaft are to balance production and demand in the high-voltage grid through construction and operation of large power plants via its subsidiaries, and to import and export electricity.

There are three control areas with independent TSOs, the Verbund-Austrian Power Grid and two regional grid owners; Powergrid-Tiroler Wasserkraftwerke and Voralberger Kraftwerke. The EHV grid is subdivided into four areas supplying 23 sub-grids of the provincial electricity companies.

There are 137 local distribution companies, mostly municipally owned.




Table 6.1: ESI characteristics Austria

Largest generator by capacity - 45% Top 3 producers by capacity - 75% VEG, Verbund Elektrizitat-serzeugungs GmbH – 45% EVN Energie Versorgung Niederosterreichische – 13% STEWEAG-STEG, EAG OÖ, KELAG, TIWAG, Vorarlberger Kraftwerke AG, BEWAG and Linz AG Large numbers of cross-holdings are a feature of the Austrian electricity industry. The generation sector is (from a national point of view) highly concentrated

Large companies present in market Largest – Verbund Other significant - RWE, E.ON, EdF

TSOs – 3 Legally unbundled Verbund-Austrian Power Grid GmbH (APG) – 220/380 kV TIRAG, Powergrid-Tiroler Wasserkraftwerke AG VKW – Netz and TIRAG are in the German not the Austrian control block

Number of DNOs - 137 Legally unbundled

Source: ABS ESI 2008 Edition 14


6.1.2 Belgium



10,403,951 4,592,000 5,059,000


Annual demand was 232,000 meters (units) in 2008 falling to 206,000 in 2012. The value will increase in this period from €101 million ($148 million) to €125 million ($159 million).

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

190,000

195,000

200,000

205,000

210,000

215,000

220,000

225,000

230,000

235,000

$ 14,920,500 12,585,700 13,652,500 17,538,700 16,865,600euro 10,150,000 9,910,000 10,750,000 13,810,000 13,280,000Meter units 231,500 228,500 211,500 215,500 205,500

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The share of the C&I sector will decline slightly in terms of value from 21% to 16%.

2008 2009 2010 2011 2012


€ 79% 82% 85% 85% 84%


€ 21% 18% 15% 15% 16%



6.1.2 Belgium, Continued


2008 2009 2010 2011 2012 Units 226,000 224,000 207,000 210,000 200,000

Euro 8,050,000 8,160,000 9,000,000 11,710,000 11,180,000 Residential

$ 11,833,500 10,363,200 11,430,000 14,871,700 14,198,600

Units 5,500 4,500 4,500 5,500 5,500

Euro 2,100,000 1,750,000 1,750,000 1,750,000 2,100,000 Industrial, grid, commercial

$ 3,087,000 2,222,500 2,222,500 2,667,000 2,667,000

Units 231,500 228,500 211,500 215,500 205,500

Euro 10,150,000 9,910,000 10,750,000 13,810,000 13,280,000 Total meters

$ 14,920,500 12,585,700 13,652,500 17,538,700 16,865,600

Meter technology

Belgium is developing plans to introduce ‘smart’ metering funded by an increase in distribution tariffs.


2008 2009 2010 2011 2012 Units 200,000 190,000 160,000 140,000 130,000


Units 9,000 9,000 7,000 5,000 5,000 Electronic

Euro 360,000 360,000 280,000 200,000 200,000

Units AMR

Euro

Units 2,000 5,000 20,000 50,000 50,000 AMI

Euro 260,000 650,000 2,600,000 6,500,000 6,500,000

Units 15,000 20,000 20,000 15,000 15,000

Residential

Prepayment Euro 1,230,000 1,640,000 1,640,000 1,230,000 1,230,000

Units 5,000 4,000 4,000 5,000 5,000 C&I C&I AMI

Euro 1,750,000 1,400,000 1,400,000 1,750,000 1,750,000


Euro 350,000 350,000 350,000 350,000 350,000





Actaris was the leader in 2008 with 62% followed by Landis+Gyr with 33%.

62%

33%

1%2%

0%

10%

20%

30%

40%

50%

60%

70%

Actaris Landis+Gyr Elster Iskra



Electricity meters are verified between 8 to 20 years; depending on physical condition. The mandatory verification and re-verification system is supplemented by random inspection.

Electricity and gas meters initial verification period is from 10 to 20 years.

Cold water meters, the initial verification period is 16 years (8 years if > 10 m3 /h).

Warm water meters 8 years.

Utility background

The existing power system in Belgium was, and still is, dominated by the private company Electrabel. Next to Electrabel, there is a smaller public utility, SPE (Samenwerkende vennootschap voor de Productie van Elektriciteit/Societé Cooperative de Production d'Electricité).

The high-voltage network is operated by ELIA, an independent public limited company founded in June 2001, in order to comply with the federal requirements of independency. ELIA’s former shareholders (Electrabel and SPE) have reached an agreement with the federal government on the future shareholder structure. Electrabel and SPE have reduced their participation from 70% to 30% of the shares, while Publi-T (a cooperative company representing the Belgian municipalities) has taken a 30% stake, and 40% of the shares will be listed in principle on the stock exchange.




Utility background (continued)

Within the old structure, which is now changing, electricity was distributed by a number of municipal and inter-municipal companies, some of which have Electrabel as a shareholder. The financial participation of Electrabel in these companies will be reduced to a maximum of 30%. The present inter-municipal electricity companies (inter-communales) will be nominated as distribution system operators (DNO) for their respective territory.

The DNO can only supply electricity to captive customers. Once all customers become eligible, the only activity of the DNO will be the distribution of network operations.

Table 6.2: ESI characteristics Belgium

Largest generator by capacity – 85% Top 3 producers by capacity – 93% Electrabel - 84% SPE – 8% (EdF and Centrica (50%), municipalities (50%) Large companies present: Largest – Electrabel Other significant – EdF, Essent, Nuon, Centrica TSO – 1 Legally unbundled ELIA Systems Operator, 40% free float, 30% municipalities, 27.45% Electrabel and 2.55% SPE ELIA owns 100% of EHV network 150-380 kV and 90% of HV network 30-70 kV Sells to distributors and large customers DNOs – 27 Electrabel possesses shares in about 80% of the DNOs These DNOs are legally unbundled. The other DNOs are directly controlled by the municipalities



6.1.3 Bulgaria



7,262,675 3,224,000 5,313,879


Annual demand was 621,000 meters (units) in 2008 falling to 132,000 in 2012 because the new owners of the privatised Bulgarian distribution companies will complete a replacement programme of all meters. The value will drop in this period from €13 million ($19 million) to €4 million ($5 million).

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Valu

e $

and

euro

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Met

er u

nits

$ 19,369,308 9,251,950 6,616,700 6,489,700 5,055,235euro 13,176,400 7,285,000 5,210,000 5,110,000 3,980,500Meter units 621,100 254,450 174,200 164,200 132,150

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The share of the C&I sector will decline slightly in terms of value from 21% to 15%.

2008 2009 2010 2011 2012


€ 72% 38% 36% 53% 62%


€ 21% 38% 38% 26% 15%



6.1.3 Bulgaria, Continued


2008 2009 2010 2011 2012 Units 592,000 224,000 149,000 147,000 125,000


$ 15,229,200 5,765,800 4,127,500 4,819,650 4,286,250

Units 29,100 30,450 25,200 17,200 7,150

Euro 2,816,400 2,745,000 1,960,000 1,315,000 605,500 Industrial, grid, commercial

$ 4,140,108 3,486,150 2,489,200 1,670,050 768,985

Units 621,100 254,450 174,200 164,200 132,150


$ 19,369,308 9,251,950 6,616,700 6,489,700 5,055,235

Meter technology

With the privatisation of the distribution utilities and their acquisition by E.ON, CEZ and EVN all electromechanical meters have been changed for basic electronic meters and this has now been completed. This means that the replacement rate for meters will be very low for some years and the market will decline.

10% of all meters are three-phase meters.

There will be some limited AMI meters in the C&I sector. Having just completed a complete change of the metre stock it is unlikely that the new owners will wish to incur the stranded costs of a second change in the immediate future.


2008 2009 2010 2011 2012

Units Electromechanical

Euro


Euro 9,280,000 2,400,000 1,560,000 1,440,000 1,200,000

Units 10,000 20,000 15,000 12,000 10,000 AMR

Euro 900,000 1,800,000 1,350,000 1,080,000 900,000

Units 2,000 4,000 4,000 15,000 15,000 AMI

Euro 180,000 340,000 340,000 1,275,000 1,275,000

Units

Residential

Prepayment Euro

Units 28,600 30,000 25,000 17,000 7,000 C&I C&I AMI

Euro 2,116,400 2,160,000 1,750,000 1,105,000 448,000


Euro 700,000 585,000 210,000 210,000 157,500





Actaris was the leader in 2008 with a 29% share, followed by Carat with 19%.

29%

6%

12%13%

19%

11%

8%

2%

0%

5%

10%

15%

20%

25%

30%

35%

Actaris Landis+Gyr Iskra EMH Carat MPS ZPA Others



Utility Background

The Bulgarian energy sector was reorganised in 2000. Six independent power generators, thermal power plants including Kozloduy nuclear power plant, a transformed NEK, and seven distribution companies were established from the former NEK. The new NEK is now the grid operator, the single buyer of electricity from the independent power generators, and the only supplier of electricity to the distribution companies.

Restructuring is planned for two phases. The first was planned up to 2001 and the second from 2001 to 2010. NEK will privatise its electric generation facilities but the national utility will remain state controlled.

Bulgaria's electric power transmission network consists of transmission lines of 750 kV, 400 kV, 220 kV and 110 kV; step-down substations; medium and low voltage distribution networks that supply the industrial, public and residential customers; transformer stations and nodal substations, and installed medium voltage transformer capacity. The system of 400, 220 and 110 kV lines, which have a total length of about 12,269 km, operates in a ring mode.

Three distribution groups, E.ON, CEZ and EVN have consolidated the distribution sector. Seven distribution companies in three regions operate the distribution networks; these were successfully privatised in 2004. CEZ of the Czech Republic won the competitive bidding procedure for the privatisation of the Sofia City, Sofia Region and Pleven electricity distribution companies. The Plovdiv and Stara Zagora electricity distribution companies went to EVN of Austria, and the Varna and Gorna Oryahovitsa utilities to E.ON of Germany.




Table 6.3: ESI characteristics Bulgaria

Generators > 5% - 7 NEK EAD, Natsionalna Elektricheska Kompania EAD, 100% state-owned, owning the greatest part of hydro-capacity NPP in Kozloduy, 100% state-owned 6 thermal generators (privatised or in course of privatisation), several CHP producers (mainly DHCs, in course of privatisation), Bulgaria is a significant electricity exporter TSO – 1 NEK Natsionalna Transmission Company JSC 100% state-owned Accounting separation DNOs – 9 companies in three groups West Bulgaria Sofia Oblast Stolichno Pleven Southeast Bulgaria Plovdiv Stara Zagora North-eastern Bulgaria Varna Gorna Oryahovitza Accounting separation, 67% privatised, sold to E.ON, CEZ and EVN in 2004



6.1.4 Czech Republic



10,220,911 5,213,000 5,675,689


Annual demand was 358,000 meters (units) in 2008 hardly rising to 362,000 in 2012. The value will remain static this period at €12 million ($18 million) although the dollar value has declined due to depreciation.

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

Valu

e $

and

euro

350,000

352,000

354,000

356,000

358,000

360,000

362,000

364,000

366,000

368,000

Met

er u

nits

$ 17,809,344 15,104,491 15,318,105 15,735,300 15,208,250euro 12,115,200 11,893,300 12,061,500 12,390,000 11,975,000Meter units 357,640 358,740 355,540 366,440 362,040

2008 2009 2010 2011 2012

++

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The value of the C&I sector will remain constant at around 16% to 18%.

2008 2009 2010 2011 2012


€ 70% 69% 67% 68% 67%


€ 16% 16% 18% 18% 18%



6.1.4 Czech Republic, Continued


2008 2009 2010 2011 2012

Units 351,600 352,700 348,500 359,400 355,000


$ 15,045,744 12,716,891 12,549,505 12,966,700 12,439,650

Units 6,040 6,040 7,040 7,040 7,040

Euro 1,880,000 1,880,000 2,180,000 2,180,000 2,180,000 C&I

$ 2,763,600 2,387,600 2,768,600 2,768,600 2,768,600

Units 357,640 358,740 355,540 366,440 362,040


$ 17,809,344 15,104,491 15,318,105 15,735,300 15,208,250

Meter technology

In the last five years electronic meters have been deployed and no electromechanical meters are manufactured or installed. Electromechanical meters are no longer produced in the Czech Republic. The installed base of residential meters is still 65% - 70% electromechanical meters but this proportion is being reduced.

The energy supplier E.ON Tschechien has placed a contract for metering technology with GÖRLITZ Austria for ‘smart’ metering, to enable remote reading of 1,800 residential meters. The order was the culmination of a successful pilot project. In August 2006, E.ON Tschechien commenced AMR tests jointly with Görlitz of Austria. The metering technology in an entire village was converted; 65 standard electricity meters were replaced with ‘smart meters and the substation which supplied the locality were adapted accordingly. GPRS wireless communication technology has been employed.

No widespread introduction of AMI is expected. One obstacle is that there is no legal basis for disconnecting meters in the Czech Republic, although there are other reasons for introducing ‘smart’ technology. All payments for residential use are based on advance calculations and the utilities are happy to have the money up-front.


2008 2009 2010 2011 2012 Units

Electromechanical Euro


Euro 8,320,000 8,000,000 7,875,000 7,440,000 7,015,000

Units AMR

Euro

Units 1,600 2,700 3,500 19,400 20,000 AMI

Euro 115,200 213,300 206,500 970,000 980,000

Units

Residential

Prepayment Euro

Units 6,000 6,000 7,000 7,000 7,000 C&I C&I AMI

Euro 1,800,000 1,800,000 2,100,000 2,100,000 2,100,000


Euro 80,000 80,000 80,000 80,000 80,000





ZPA, a Czech company has the leading share with 45%, followed by Actaris with 26% and Landis+Gyr with 25%.

ZPA was established in the 1950s as a state-owned enterprise. The company was privatised in 1994. Initially, the company focused on ripple control receivers, and ZPA is one of the leading producers of these systems today. In the late 1990s, production was expanded to include solid state meters, initially under a Swiss license but today ZPA develops and produces these systems independently. The company now focuses on solid state meters and also AMR systems. In 2006, Kilcullen Kapital Partners invested in ZPA and the company has been rebranded as ZPA ‘Smart’ Energy. ZPA now has wider ambitions outside the Czech Republic and has so far exported to Bulgaria, Poland, Slovakia, Serbia and the Netherlands. The company supplies meters to CEZ, the main utility in Czech Republic and to its distribution subsidiary in Bulgaria. ZPA is the main supplier to Prazska energetika, the distributor in Prague.



A mandatory re-verification system is in place involving CMI and AMCs as verification authorities with a similar subdivision of work as in the case of initial verification. Repairers are not permitted to re-verify instruments. The re-verification interval for electricity meters is 16 years.

Utility background

CEZ is the dominant utility. There have been several unsuccessful attempts to privatise the company but it remains state-controlled with one third in private ownership. CEZ produced 75% of the electricity in 2004, with 65% of the installed capacity. 15 large generating companies are registered.

On 1 January 2001, a new energy regulatory authority began operating in the Czech Republic. This authority determines electricity prices.


26% 25%

45%

3%2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Actaris Landis+Gyr ZPA Iskra EMH




The electricity market was totally opened by 2006.

The electricity transmission system in the Czech Republic includes an extensive array of transmission lines and substations. It consists of approximately 2,800 km of 400 kV lines and approximately 1,560 km of 220 kV lines. Additionally, approximately 130 km of 110 kV lines supply electricity to a well-developed 110 kV network.

Distribution is now carried out by two consolidated regional distribution companies and one sales company, plus a distribution company for the city of Prague. On 1 January 2005, E.On Distribuce took over the business of the former JCE Jihoceská energetika, a.s. and the former JME Jihomoravská energetika, a.s. The business of the other five distribution companies, majority owned by CEZ, was transferred to two new companies, CEZ Distribuce (distribution) and CEZ Prodej (sales) on 1 January 2006. Until 2006, distribution was carried out by 8 regional companies:

The distribution companies are responsible for the purchase and sale of electricity in their areas, operation and maintenance of the low voltage network, and generation of electricity from small hydro sources, with JCE and ZCE also involved in heat generation. JME has the largest customer base and supplies the biggest area while JCE has the smallest customer base and PRE supplies the smallest area.

Table 6.4: ESI characteristics Czech Republic

Largest generator by capacity – 65% Top 3 producers by capacity – 75% Installed capacity 2005 – 16,009 MW CEZ a.s produced 75% of the electricity in 2004, with 65% of the installed capacity. CEZ is ⅔ state-owned 15 large generating companies are registered. The largest of has 2.6% of the country’s capacity. Dalkia Ceske republika - 417 MW (2.6%) Elektrany Opatovice – 363 MW (2.3%) Energotrans – 352 MW (2.25) Chempetrol 298 MW (1.9%) ISPAT - 254 MW (1.6%) United Energy - 236 MW (1.5%) Sokolovska uhelna – 220 MW (1.4%) TSO – 1 state-owned company, legally unbundled CEPS a.s., Ceská energetická prenosová spolecnost state-owned Electricity market operator responsible for balancing, OTE Operátor trhu s elektřinou DNOs – 360 Formerly 8, 7 since January 2005. In January two companies owned by E.ON were merged. Legal unbundling from supply mandatory in 2006 for major DNOs. E.ON Distribuce a.s. (consisted of 2 former regional distribution companies) and CEZ Distribuce a.s. (consisted of 5 former regional distribution companies) are the legally unbundled entities created by E.ON-controlled and CEZ-controlled formerly-integrated regional electricity distribution companies PRE Distribuce a.s. (majority owned by Pražská energetika Holding a.s. which is controlled by the City of Prague). Several dozen operators of local distribution systems are not subject to unbundling obligations.



6.1.5 Denmark Population, household and meter base


5,484,723 2,793,000 2,922,053 Annual demand for all meters

Annual demand was 275,000 meters (units) in 2008 falling to 247,000 in 2012. The value will fall in this period from €35 million ($51 million) to €22 million ($28 million).

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Valu

e $

and

euro

0

50,000

100,000

150,000

200,000

250,000

300,000

Met

er u

nits

$ 51,106,314 36,053,014 41,554,654 31,597,854 28,001,214euro 34,766,200 28,388,200 32,720,200 24,880,200 22,048,200Meter units 275,200 273,200 221,200 256,200 247,200

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€)

The value contribution of the C&I sector will remain fairly constant at 5% to 7%.

2008 2009 2010 2011 2012


Euro 95% 93% 94% 93% 93%


Euro 5% 7% 6% 7% 7% Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $)

2008 2009 2010 2011 2012

Units 264,000 262,000 210,000 245,000 238,000


$ 48,386,520 33,703,260 39,204,900 29,248,100 25,994,360

Units 11,200 11,200 11,200 11,200 9,200

Euro 1,850,200 1,850,200 1,850,200 1,850,200 1,580,200 C&I

$ 2,719,794 2,349,754 2,349,754 2,349,754 2,006,854

Units 275,200 273,200 221,200 256,200 247,200


$ 51,106,314 36,053,014 41,554,654 31,597,854 28,001,214



6.1.5 Denmark, Continued

Meter technology

AMI technology is also being introduced on a large scale in Denmark.

In 2004, two of the five leading utilities in Denmark, Sydvest Energi and NESA, announced plans to introduce AMR across their network of over 700,000 customers between 2005 and 2010. The Sydvest project is the largest single AMR system Enermet has delivered in the Nordic market to date, covering 156,000 customers.

A decision ahs just been announced for 43,000 households in Greenland to be connected wit advanced metering for electricity, gas and water. Although it is small, it is the first national multi-utility scheme in the world and will be watched with interest.


2008 2009 2010 2011 2012


Euro

Units 4,000 2,000 Electronic

Euro 156,000 78,000

Units AMR

Euro

Units 260,000 260,000 210,000 245,000 238,000 AMI

Euro 32,760,000 26,460,000 30,870,000 23,030,000 20,468,000

Units

Residential

Prepayment Euro

Units 11,000 11,000 11,000 11,000 9,000 C&I C&I AMI

Euro 1,485,000 1,485,000 1,485,000 1,485,000 1,215,000


Euro 365,200 365,200 365,200 365,200 365,200

Utility background

The structure of the energy sector in Denmark is changing rapidly, and that of the electricity supply industry is complex and has many participants. There are over 100 undertakings ranging from municipal companies, to co-operatives, private companies and even joint stock companies. All organisations are members of Danske Elvaerkers Forening (the Danish Association of Electricity Supply Undertakings).

Historically, there were two separate transmission systems operators in Denmark. ELKRAFT covered Eastern Denmark including the islands of Zealand and Lolland-Falster separated from mainland Denmark by the Great Belt water channel. ELTRA served Mainland Western Denmark. The two systems are not linked, but a link is planned for 2010. In 2006 the two companies, ELKRAFT and ELTRA were merged, creating one national TSO, Energinet.dk, which is responsible for the security of electricity supply.

Distribution is carried out by 125 small local distribution companies.



6.1.5 Denmark, Continued

Table 6.5: ESI characteristics Denmark

DONG Energy and Swedish Vattenfall (owned by the Swedish state) – 2 major generators Large number of smaller generating companies/plants (each with less than 100 MW of capacity) are owned by municipalities, cooperatives or manufacturing industry

Large companies present: Largest – ELSAM, Other significant – E2, VF, E.ON

TSO – 1 Energinet.dk owns the 400 kV transmission lines and international interconnectors Created in 2006 with the merger of Eltra, Elkraft System, Elkraft Transmission, and Gastra. Legally unbundled A number of regional transmission companies of 132/150 kV and to some extent 60 kV are owned by the distribution network companies

DNOs – 125 Around 110 distribution network companies (50 of these very small) own and operate low-voltage networks. The sector has mixed ownership: State ownership for those owned by DONG Energy, municipal ownership or cooperatives consisting of the local network users, mostly suppliers as well NESA is the largest distributor, serving Copenhagen Legally unbundled



6.1.6 Estonia



1,307,605 560,000 500,002


Annual demand was 24,000 meters (units) in 2008 rising to 122,000 in 2010 and falling to 51,000 units in 2012. The value will increase in this period from €875,000 million ($1.3 million) to €4.5 million ($5.7 million).

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Valu

e $

and

euro

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Mat

er u

nits

$ 1,286,544 4,219,131 16,555,022 6,790,144 5,676,900euro 875,200 3,322,150 13,035,450 5,346,570 4,470,000Meter units 23,950 28,850 121,850 61,210 51,000

2008 2009 2010 2011 2012


2008 2009 2010 2011 2012 Units 93% 79% 93% 96% 96%

Residential € 72% 79% 92% 95% 95%


€ 28% 21% 8% 5% 5%


2008 2009 2010 2011 2012 Units 22,250 22,900 113,000 59,000 49,000

Euro 627,000 2,626,000 12,000,000 5,088,000 4,236,000 Residential

$ 921,690 3,335,020 15,240,000 6,461,760 5,379,720

Units 1,700 5,950 8,850 2,210 2,000

Euro 248,200 696,150 1,035,450 258,570 234,000 Industrial, grid, commercial

$ 364,854 1,023,341 1,315,022 328,384 297,180

Units 23,950 28,850 121,850 61,210 51,000

Euro 875,200 3,322,150 13,035,450 5,346,570 4,470,000 Total meters

$ 1,286,544 4,219,131 16,555,022 6,790,144 5,676,900



6.1.6 Estonia, Continued

Meter technology

Estonia no longed installs electromechanical meters and will have peak of residential AMI installations in 2010.


2008 2009 2010 2011 2012 Units



Euro 516,000 120,000 120,000 120,000 96,000

Units AMR

Euro

Units 750 17,900 108,000 54,000 45,000 AMI

Euro 111,000 2,506,000 11,880,000 4,968,000 4,140,000

Units

Residential

Prepayment Euro

Units 1,700 5,950 8,850 2,210 2,000 C&I C&I AMI

Euro 248,200 696,150 1,035,450 258,570 234,000

Units Grid Grid AMI

Euro


Actaris had the largest market share in 2008 with 59%.

59%

4%

38%

0%

10%

20%

30%

40%

50%

60%

70%

Actaris Landis+Gyr Others





6.1.6 Estonia, Continued

Utility background

The electricity market is dominated by a single state-owned vertically integrated company (Eesti Energia, the largest Baltic energy utility), which controls 97% of the production capacity and an 88% retail market share, while it also controls all of the transmission and 85% of the distribution networks. The government is committed to maintaining its vertically integrated structure.

Eesti Energia owns two-thirds of the Estonian distribution network.

The remaining networks are owned by Fortum Elekter, Narva Elektrivõrgud, and over 60 other small municipal utilities.

Under the new Electricity Market Act, large distribution networks will be legally unbundled from Eesti Energia.

Supply and distribution are not separated.

Table 6.6: ESI characteristics Estonia

Largest generator by capacity – 90% Top 3 producers by capacity – 100% Narva Elektrijaamad (90%), owns 2 oil shale plants, Eesti Elektrijaam and Balti Elektrijaam, Eesti Energia State-owned, vertically integrated JSC Kohtla-Järve Soojus

Large companies present: Largest – Eesti Energia

TSO – 1 Legally unbundled Eesti Energia Pohivork

DNOs – 3 major, 60 small municipals Eesti Energia (66%), Fortum Elekter, Narva Elektrivorgud Legally unbundled



6.1.7 Finland



5,244,749 2,936,000 3,248,724


Annual demand was 337,000 meters (units) in 2008 falling to 268,000 in 2012. The value will fall in this period from € 36million ($52 million) to €28 million ($36 million).

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Valu

e $

and

euro

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Met

er u

nits

$ 52,288,194 45,174,154 44,716,954 53,384,704 36,049,204euro 35,570,200 35,570,200 35,210,200 42,035,200 28,385,200Meter units 337,200 337,200 333,200 398,200 268,200

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) There will be no change in the small value contribution of the C&I sector.

2008 2009 2010 2011 2012


Euro 96% 96% 97% 97% 96%


Euro 4% 4% 3% 3% 4%



6.1.7 Finland, Continued


2008 2009 2010 2011 2012

Units 325,000 325,000 325,000 390,000 260,000


$ 50,163,750 43,338,750 43,338,750 52,006,500 34,671,000

Units 12,200 12,200 8,200 8,200 8,200

Euro 1,445,200 1,445,200 1,085,200 1,085,200 1,085,200 C&I

$ 2,124,444 1,835,404 1,378,204 1,378,204 1,378,204

Units 337,200 337,200 333,200 398,200 268,200


$ 52,288,194 45,174,154 44,716,954 53,384,704 36,049,204

Meter technology

AMI technology is also being introduced on a large scale in Finland. Vattenfall, E.ON and Fortuma have all decided to deploy ‘smart’ technology in Finland as well as in Sweden.


2008 2009 2010 2011 2012


Euro

Units Electronic

Euro

Units AMR

Euro

Units 325,000 325,000 325,000 390,000 260,000 AMI

Euro 34,125,000 34,125,000 34,125,000 40,950,000 27,300,000

Units

Residential

Prepayment Euro

Units 12,000 12,000 8,000 8,000 8,000 C&I C&I AMI

Euro 1,080,000 1,080,000 720,000 720,000 720,000


Euro 365,200 365,200 365,200 365,200 365,200

Utility background

There are many players in the Finnish electricity generation sector, but it is dominated by a small number of companies. The share of the three largest companies (including Fortum and PVO) of the total installed capacity is estimated to be in the range of 45% - 50%.

The power transmission network comprises the national grid, separate regional networks and distribution networks controlled mainly by local supply companies. The companies selling network services are called grid operators, regional network operators and distribution network operators, according to the network they operate. Fingrid Plc is the national grid company which is responsible for the technical operation of the Finnish power system. The company sells grid services to all parties in the electricity market on equal and non-discriminating terms. The company attends to these tasks through its three subsidiaries.



6.1.7 Finland, Continued


Fortum's local subsidiaries distribute electricity for small customers in their distribution network areas in the Nordic countries. Fortum accounts for about 5% of the small customer electricity distribution market. In 1998, the company’s subsidiaries distributed 6.9 TWh of electricity in Finland, and 13.9 TWh in Sweden.

Distribution is carried out by 104 small local distribution companies with three regional companies. The major regional distributors are Hämeen Sähkö Oy, Lounais-Suomen Sähkö-Osakeyhtiö and Savon Voima Oy. The number of distribution network operators has been reduced during the past 20 years, from nearly 200 companies to the present figure.

Table 6.7: ESI characteristics Finland

Generators > 5% - 2 with 83% of total, largest has 61% Fortum 61% Pohjolan Oima 22%

Large companies present: Largest – FORTUM Other significant – VF, E.ON

TSO – 1 Fingrid Oyj Ownership

DNOs – 104 Accounts



6.1.8 France


Population Number of households Installed electricity meter base

2008 2008 2008

64,057,792 30,687,000 33,451,604


Annual demand was 936,000 meters (units) in 2008, increasing steadily to 1,036,000 in 2010 and then jumping to 7,156,000 in 2012 as the national ‘smart’ meter roll-out commences. The value will increase in this period from €28 million ($41 million) to €500 million ($636 million).

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

Valu

e $

and

euro

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Met

er u

nits

$ 41,285,832 35,610,808 61,963,300 15,989,300 636,054,100euro 28,085,600 28,040,006 48,790,000 12,590,000 500,830,000Units 936,300 935,503 1,035,500 235,500 7,155,500

2008 2009 2010 2011 2012

The trial for the national ‘smart’ meter installation which will be complete in 2010 will double the market in 2010, to €46 million in 2010 from €21 million in the previous year. It will increase again in 2011 and will leap to €359 million with the start of the roll-out in 2012.


The composition of the market will change in terms of value after 2010 with the trial ‘smart’ meter installation and the full roll-out. The contribution of the IGC segment will decline from 23% in 2008 to 2% in 2012.

2008 2009 2010 2011 2012


Euro 71% 71% 83% 35% 98%


Euro 29% 29% 17% 65% 2%



6.1.8 France, Continued


2008 2009 2010 2011 2012

Units 900,800 900,003 1,000,000 200,000 7,120,000


$ 29,173,032 25,146,008 51,562,000 5,588,000 625,652,800

Units 35,500 35,500 35,500 35,500 35,500

Euro 8,240,000 8,240,000 8,190,000 8,190,000 8,190,000 C&I

$ 12,112,800 10,464,800 10,401,300 10,401,300 10,401,300

Units 936,300 935,503 1,035,500 235,500 7,155,500


$ 41,285,832 35,610,808 61,963,300 15,989,300 636,054,100 Meter technology

France is following Italy, with one of the largest national ‘smart’ meter schemes in the world. France has always been a leader in metering development. The Electricité de France (EDF) strategy has varied, depending on the type of customer and France has the most complex tariff system in the world.

In January 2008 EDRF announced a plan to replace 35 million meters in France with ‘smart’ meters. The project has already started with the award of a pilot contract running 300,000 ‘smart’ meters to ATOS Origin. ATOS won the contract late in 2008, against three rival bidders (Capgemini, Logica and IBM). Each bidder was architect of the proposed system and led a consortium of companies delivering MDM data management, WAN, data concentrators, LAN and the meters. The meter companies in the ATOS consortium are Actaris, Landis+Gyr and Iskra. The same meter companies were involved in the Capgemini and Logica consortia. The IBM consortium partnered with Sagem, Elster and Iskra.

The entire ‘smart’ meter project is scheduled to become operational in 2017, after a five year roll-out starting in 2012.

France is a major user of ripple control. In our tables we only include meters, but if ripple control receivers were included the market share would be different.

History of AMR/AMI in France

In France ‘smart’ meters with limited functionality have already been installed under the EURIDIS programme. By 2001 just under 20% of all meters were ‘smart’ by this definition, and this has risen to bout 30%.

EURIDIS technology was introduced in the early 1990s. It is not as automated as AMR, but it is a pragmatic method of remote reading. By using a magnetic coupler and a handheld terminal, meters connected to the EURIDIS bus can be read at an easily accessible location. The EURIDIS local bus consists of a two-wire cable connected to a magnetic coupler, generally installed at the boundary of the clients’ installations. The operator connects a hand-held unit to the magnetic coupling socket, through which the unit emits signals to contact each meter (or other remote terminal) on the network in turn and access its data. For security, each data transmission is preceded by an authentication based on an exchange of random numbers, ciphered using a secret key specific to each meter. The EURIDIS protocol also complies with the IEC 62056-31 standard, which guarantees openness and inter-operability between the equipment of different manufacturers.




History of AMR/AMI in France (continued)

By using a magnetic coupler and a handheld terminal, meters connected to the EURIDIS bus can be read at an easily accessible location. Such a solution offers considerable time savings; 100 meters can be read in five minutes.

EDF was the first electricity company to use EURIDIS automatic meter reading; the company started with small business customers in 1990 and expanding to include residential customers in 1993. Over the years, EDF has systematically moved from electromechanical to solid state meters, integrating the EURIDIS communication software for remote reading and programming. All these solid state meters are connected to a EURIDIS bus for the setting of parameters. 54% of them are read monthly by the EURIDIS tele-report system; the remainder are directly read using the customers’ own phone lines. The EURIDIS system is always used in new housing developments, both residential complexes and individual homes, because installation of the EURIDIS bus is both low-cost and easy.

Electricité de Strasbourg (ES), the second largest distribution, with 430,000 customers in a region in the east of France has been using EURIDIS meter reading since 1995.


2008 2009 2010 2011 2012

Units 0 3 0 0 0

Unit price 0 2 0 0 0 Electromechanical

Euro 0 6 0 0 0

Units 900,000 900,000 700,000 200,000 120,000

Unit price 22 22 22 22 22 Electronic

Euro 19,800,000 19,800,000 15,400,000 4,400,000 2,640,000

Units 0 0 0 0 0

Unit price 0 0 0 0 0 Ripple control

Euro 0 0 0 0 0

Units 0 0 0 0 0

Unit price 0 0 0 0 0 AMR

Euro 0 0 0 0 0

Units 600 0 300,000 0 7,000,000

Unit price 51 0 84 0 70 AMI

Euro 30,600 0 25,200,000 0 490,000,000

Units 200 0 0 0 0

Unit price 75 0 0 0 0

Residential

Prepayment

Euro 15,000 0 0 0 0

Units 35,000 35,000 35,000 35,000 35,000

Unit price 214 214 214 214 214 C&I C&I AMI

Euro 7,490,000 7,490,000 7,490,000 7,490,000 7,490,000

Units 500 500 500 500 500

Unit price 1,500 1,500 1,400 1,400 1,400 Grid Grid AMI

Euro 750,000 750,000 700,000 700,000 700,000




Tariff system France has the most complex tariff system in the world; this is due to the fact that

they have always charged customers the actual cost of the electricity at the time it is used. In addition, the customer is supposed to pay for the investment needed to supply him with electrical power. Bills for all customers thus always include two items, one for the charge of the contracted demand and one for the actual kilowatt-hour usage.

The tariff policy divides customers into three groups: residential customers, small commercial and industrial customers / large industrial customers.

The residential customers are billed according to the "Blue Tariff". They have several options available to them: single-rate, two-rate (usually day and night), and seasonal rate, called "Tempo". In the case of Tempo, the year is divided into 300 cheap "blue days," 43 average "white days," and 22 expensive "red days." Each day is then divided into two periods (day and night).

An interesting feature of this option is that the blue, white, and red days occur randomly. A signal is sent to the customer by means of the ripple control system the day before the change is due to take place. The Tempo tariff may prove to be economical for relatively large residential customers who watch their consumption carefully, but it requires quite a complex installation, which is why it has not been successful so far.

The "Yellow Tariff" applies to the small commercial and industrial customers whose contracted demand lies between 36 and 250 kVA. There are four tariff periods with two seasons: winter (November to March) and summer. In addition, each 24-hour period is divided into night (8 hours) and day. When a customer exceeds the contractual demand, he is penalised in proportion to the time he exceeded this value. The Yellow Tariff population is about 200,000 customers and is currently increasing by 5,000 per year.

The "Green Tariff" deals with large industrial customers whose contractual demand is above 250 kVA and who are usually supplied from the medium and high voltage networks. There are several options available, the simplest and most common being a division of the year into two seasons (winter and summer). The winter days are then divided into three periods (peak, day, and night) while the summer days have two periods (day and night). Sundays are always charged at the lower rate. A more complex option works on the same principle except that an intermediate period between summer and winter is added to make three seasons.

Even more complex options exist for larger customers with random conditions concerning specific weeks or specific days. For these, AMR and telephone communications are mandatory tools.


Responsibility for legal metrology is at the central government level. The Sous-Direction de la Métrologie (SDM) is part of the Ministry of Economy, Finance, and Industry. Fundamental metrology in France is the responsibility of the Bureau National de Métrologie (BNM). The BNM is an agency under the authority of the Ministry.

Fundamental metrology in France is the responsibility of the Bureau National de Métrologie (BNM). The BNM is an agency under the authority of the Ministry.




Type approval and verification (continued)

Greater use is now being made of external non-governmental organisations to perform type approval and certification work, inspections, and re-verifications. Evidence of accreditation by COFRAC, the national accreditation body for testing laboratories, or equivalent accreditations, is also generally sought.

Type approval is carried out by LNE (Laboratoire National d'Essai- département Certification des Instruments de Mesure).

Initial verification

Verification and inspection is administered through 24 Regional Directorates for Industry, Research and the Environment (DRIRE) who are accountable to the Ministry through the Regional Action and SMI Directorate (DAR-PMI). DRIRE inspectors perform initial verification although approved external laboratories or manufacturers verify some types of instrument.

For many categories owners of instruments are required by law to maintain a Metrological Information booklet and keep it available for DRIRE inspection. The booklet retains details of verifications and repairs and any qualified company carrying out statutory periodic verification.

Inspection and re-verification

A comprehensive self-verification system exists for manufacturers for initial verification of new instruments and re-verification of repaired instruments, allowing them to self-declare conformity of their instruments with legal and type approval requirements.

Electricity meters are subject to verification, but there is no specified re-verification period.


The French market is very changeable because of the dominance of one utility and a small number of tenders. Actaris, Landis+Gyr and Sagem Communications are the three leading companies.

Utility background

France is the second-largest electricity market in Europe after Germany. The electricity sector is dominated by the 85% state-owned monopoly, Electricité de France (EDF), which produces, transports, and distributes the bulk of electricity in France. In November 2005, the French Government sold 15% of the shares in EDF to the public.

In November 2000, Compagne National du Rhone, teamed up with Belgium's Electrabel to create a joint venture to challenge EDFs monopoly. The new company, Energie du Rhone, markets energy generated at Compagnie Nationale du Rhone's 19 hydropower stations, which currently supply 3% of French electricity consumption.

Societé Nationale d'Electricité et de Thermique (SNET) is France's second-largest electricity company in terms of installed capacity, with several coal plants, and is more than 80% owned by the state coal company, Charbonage de France (CDF), with EDF owning the remaining shares. The company produces less than 3% of French electricity and has 140 customers.





In another step toward liberalisation, the Electricity Transmission Network (Gestionnaire du Réseau de Transport d’Electricité) (RTE) has been created and owns the country's high tension transmission network. RTEs mission is to assure all clients fair access to the network.

In January 2008, Eléctricité Réseau Distribution France (ERDF) was created as network operator for all the distribution networks in France, including those operating under concession agreements with local municipalities. EDRF is a wholly-owned subsidiary of EDF.

Table 6.8: ESI characteristics France

Largest generator by capacity – 85% Top 3 producers by capacity – 95% Electricité de France (85%, state-owned) CNR SNET

TSO – 1 Legally unbundled RTE Gestionnaire du Réseau de Transport d’Electricité State-owned

DNOs – There are over 150 municipal distribution concessions in operation. EDRF, a wholly–owned subsidiary of EDF, is responsible for operation of the distribution networks in France.



6.1.9 Germany



82,369,552 42,002,000 44,956,943


Annual demand was 1,471,000 meters (units) in 2008 rising to 3,051,000 in 2012. The value will increase in this period from €56 million ($83 million) to €259 million ($329 million).

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

Valu

ed $

and

eur

o

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

Met

er u

nits

$ 82,588,275 93,456,125 118,865,650 219,078,175 329,060,175euro 56,182,500 73,587,500 93,595,000 172,502,500 259,102,500Meter units 1,470,650 1,540,750 1,500,700 2,250,650 3,050,650

2008 2009 2010 2011 2012


2008 2009 2010 2011 2012 Units 97% 97% 97% 98% 98%

Residential € 81% 86% 87% 93% 96%


€ 19% 14% 13% 7% 4%


2008 2009 2010 2011 2012 Units 1,430,000 1,500,000 1,450,000 2,200,000 3,000,000


$ 67,002,600 80,518,000 103,251,000 204,216,000 315,468,000

Units 40,650 40,750 50,700 50,650 50,650


$ 15,585,675 12,938,125 15,614,650 14,862,175 13,592,175

Units 1,470,650 1,540,750 1,500,700 2,250,650 3,050,650


$ 82,588,275 93,456,125 118,865,650 219,078,175 329,060,175



6.1.9 Germany, Continued

Meter technology

95% of the residential sector in Germany use electromechanical meters. 80% are three-phase meters with 3/230/400 kV and a maximum current of 40/60 amps. The balance consists of three-phase 100 amp meters and single-phase 40/60 amp maximum current meters.

Residential meters are read once per year, either by the DNO reader or the customer who fills out a self completion postcard or reports via the Internet. Meters are increasingly being fitted by meter installers rather than DNOs. Electromechanical meters continue to perform well in Germany, and they deliver speed, reliability, and economy. They reportedly have high reliability and long lives.

However, electromechanical meter swill be phased out and a roll-out of AMI meters will start in 2011 although not on the scale of the national installations of France, UK or Italy.

Industrial customers use solid state meters to support AMR and AMI systems. Customers with minimum consumption of 100 MWh are equipped with load profile meters. Solid state meters are installed only in about 5% of households.

Several ‘smart’ meter trials are underway in Germany, including those in Linz and Dortmund. The DISPOWER virtual power plant set up in Stutensee provides intelligent power to 100 apartments and houses. In 2008 RE Power announced a plan to install 100,000 ‘smart’ meters, the first take-up in Germany.


2008 2009 2010 2011 2012 Units 1,080,000 900,000 550,000 300,000 100,000



Euro 10,500,000 14,000,000 12,000,000 12,000,000 10,800,000

Units AMR

Euro

Units 50,000 200,000 500,000 1,500,000 2,500,000 AMI

Euro 7,000,000 26,000,000 55,000,000 141,000,000 235,000,000

Units

Residential

Prepayment Euro

Units 40,000 40,000 50,000 50,000 50,000 C&I C&I AMI

Euro 9,400,000 8,800,000 11,000,000 10,500,000 9,500,000


Euro 1,202,500 1,387,500 1,295,000 1,202,500 1,202,500





In 2008 Iskra had the largest share with 28%, followed by Actaris with 25% and Landis+Gyr with 23%

25%

23%

5%

28%

10%

3%

6%

0%

5%

10%

15%

20%

25%

30%

Actaris Landis+Gyr Elster Iskra EMH Pafal Others



Meters are calibrated at one of 140 meter calibration centres. After calibration, electromechanical meters can stay in service for 16 years and electronic meters for 8 years.

Utility background and market characteristics

The utility market is highly fragmented in Germany, with 4 large utility groups each having a control area in Germany: RWE Energie, E.On, Vattenfall, and EnBW. 70 regional utilities and 800 municipal utilities together account for about 20% of power generation and about two-thirds of distribution. These numbers are constantly decreasing as further mergers take place.

Major mergers have reshaped the industry. RWE, the largest energy company in Germany, acquired VEW, the country's sixth largest electricity producer. Veba, Germany's second-largest power company, merged in June 2000 with Viag, the third-Iargest, to create E.On. The newly merged companies will be Europe's third (RWE) and fourth-largest (E.On) electricity companies behind the French state company EDF and Italy's ENEL. In 2003, Vattenfall Europe, owned by Vattenfall of Sweden, became the third largest player in Germany with the acquisition and consolidation of shares in Bewag, VEAG, and HEW. Vattenfall owns 73.8% of HEW, 4.8% of Bewag, and 81.3% of VEAG. The fourth-largest electricity company is EnBW. Mergers and acquisitions continue at all levels.




Utility background and market characteristics (continued)

Because the utility system in Germany is so fragmented, the meter market is serviced with many contracts. The four large national companies and the larger regional companies issue relatively large meter tenders to be fulfilled over several years. Additionally, there are many small orders by the smaller stadtwerke, the small regional and municipal distribution companies. The meter suppliers therefore need either to service a market consisting of a relatively large number of potential customers or to work through regional distributors or agents.

Table 6.9: ESI characteristics Germany

Largest generator by capacity – 30% Top 3 producers by capacity – 75% E.ON 30% RWE 27% Vattenfall Europe 18% EnBW 7% TSOs – 4 Legally unbundled EnBW Transportnetze Ag RWE Net AG E.ON Netz GmbH Vattenfall Europe Transmission GmbH DNOs – 950 Accounts



6.1.10 Greece



10,722,816 4,814,000 7,150,000


Annual demand was 323,000 meters (units) in 2008 fluctuating to 320,000 in 2012. The value will increase in this period from €16 million ($23 million) to €23 million ($29 million). The peak in 2010 is a large installation of electromechanical meters.

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Valu

e $

and

euro

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Mer

ter u

nits

$ 23,104,872 12,111,990 18,097,500 15,240,000 29,400,500euro 15,717,600 9,537,000 14,250,000 12,000,000 23,150,000Meter units 323,460 191,000 274,000 195,000 320,000

2008 2009 2010 2011 2012


2008 2009 2010 2011 2012 Units 94% 91% 93% 90% 91%

Residential € 76% 74% 79% 75% 87%


€ 24% 26% 21% 25% 13% Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $)

2008 2009 2010 2011 2012 Units 305,010 174,500 254,000 175,000 300,000


$ 17,486,532 8,968,740 14,287,500 11,430,000 25,590,500

Units 18,450 16,500 20,000 20,000 20,000


$ 5,618,340 3,143,250 3,810,000 3,810,000 3,810,000

Units 323,460 191,000 274,000 195,000 320,000


$ 23,104,872 12,111,990 18,097,500 15,240,000 29,400,500



6.1.10 Greece, Continued

Meter technology

Greece will start to install AMI meters in 2011 and will increase the rate in 2012.


2008 2009 2010 2011 2012 Units 305,000 170,000 220,000 100,000 50,000


Units Electronic

Euro

Units AMR

Euro

Units 10 4,500 34,000 75,000 250,000 AMI

Euro 600 432,000 2,890,000 6,000,000 18,750,000

Units

Residential

Prepayment Euro

Units 18,300 16,500 20,000 20,000 20,000 C&I C&I AMI

Euro 3,477,000 2,475,000 3,000,000 3,000,000 3,000,000

Units 150 Grid Grid AMI

Euro 345,000


Landis+Gyr had the largest market share with 61% in 2008 followed by Actaris with 37%

37%

61%

2%

0%

10%

20%

30%

40%

50%

60%

70%

Actaris Landis+Gyr Other





6.1.10 Greece, Continued

Utility background

The vertically integrated, majority state-owned Public Power Corporation (PPC) dominates the Greek electricity industry. In 2005, PPC generated and supplied 96% of electricity consumed. PPC owns the transmission network, and owns and operates the distribution network and supply. Independent generation consists of two gas fired power plants and some renewable generation. Independent retail supply is negligible.

In the past, the Public Power Corporation or DESMIE (Diachiristis Elinmou Sistimatos Metaforas Iliktrikis Energias) was solely responsible for transmission. However, new electricity producers and customers will require access to the network therefore, a new body, known as the Hellenic Transmission System Operator (HTSO) has been established. HTSO is an S.A. company, 51% of which belongs to the Public Sector, and 49% to the electricity production companies existing in Greece. HTSO S.A. is a company with a double role.

The distribution system consists of medium and low voltage lines. The medium voltage system includes overhead lines and underground cables at 20 kV, 15 kV and a small number of 22kV and 6.6 kV in the district of Attiki, while the low voltage lines are at the range of 380/220 kV. The total length of the distribution system exceeds 200,000 km.

Table 6.10: ESI characteristics Greece

Largest generator by capacity – 96% Top 3 producers by capacity – 97% DEH (PPC), Public Power Corporation, 100% state-owned IPPs, Terna Energy SA 150 MW, Hellenic Petroeum 400 MW, Mytilineos Group's 722 MW Large companies present: Largest – PPC Other significant – None TSO – 1 HTSO Hellenic Transmission System Operator Responsible operation, maintenance and development of the electric power transmission system, balancing and settlement Legally unbundled, 51% government, 49% DEH/ other Generators DNO – 1. Owned by PPC Legally unbundled July 2007 None



6.1.11 Hungary



9,930,915 4,229,000 5,521,273


Annual demand was 634,000 meters (units) in 2008 rising slightly in 2009 and then declining to 472,000 in 2012. The value will fall in this period from €14 million ($21million) to €12 million ($16 million).

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Valu

e $

and

euro

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Met

er u

nits

$ 20,889,817 19,069,939 17,371,060 16,752,062 15,831,947euro 14,210,760 15,015,700 13,678,000 13,190,600 12,466,100Meter units 633,550 648,125 564,530 524,240 472,245

2008 2009 2010 2011 2012


The largest proportion of expenditure in Hungary will continue with electromechanical meters.

2008 2009 2010 2011 2012


€ 93% 93% 93% 93% 93%


€ 7% 7% 7% 7% 7%



6.1.11 Hungary, Continued


2008 2009 2010 2011 2012

Units 626,530 641,100 558,000 518,000 466,000


$ 19,395,797 17,789,144 16,167,100 15,579,090 14,648,180

Units 7,020 7,025 6,530 6,240 6,245

Euro 1,016,340 1,008,500 948,000 923,600 932,100 C&I

$ 1,494,020 1,280,795 1,203,960 1,172,972 1,183,767

Units 633,550 648,125 564,530 524,240 472,245


$ 20,889,817 19,069,939 17,371,060 16,752,062 15,831,947

Meter technology

Residential meters are electromechanical.

The large commercial and industrial sectors use solid state meters.

Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) $

2008 2009 2010 2011 2012 Units 560,000 560,000 470,000 420,000 380,000



Euro 1,820,000 1,872,000 1,610,000 1,610,000 1,150,000

Units AMR

Euro

Units 3,500 8,000 15,000 20,000 AMI

Euro 420,000 920,000 1,650,000 1,900,000

Units 1,530 5,600 10,000 13,000 16,000

Residential

Prepayment Euro 174,420 515,200 800,000 1,027,000 1,264,000

Units 7,000 7,000 6,500 6,200 6,200 C&I C&I AMI

Euro 987,000 966,000 897,000 855,600 855,600


Euro 29,340 42,500 51,000 68,000 76,500


Actaris has the largest market share with 53%, followed by Apator of Poland with 26% and Elster with 10%.

Actaris has a factory in Godollo, which was opened in 1999 with a production capacity for 600,000 meters a year to supply Hungarian utilities and neighbouring countries. Capacity has been expanded to 1.5 million electromechanical and solid state meters. Actaris in Godollo is active in Romania and Bulgaria. At the time of opening the Hungarian factory, Actaris claimed a 65% share of the market for electricity meters in Hungary and this is estimated between 45% - 55% in 2006. In 2001 Actaris acquired Ganz Meter Company.

Iskra supplies meters from Slovenia. Iskra has a partner office in Hungary. We do not know how many of the meters imported are used in Hungary or resold. The numbers of units imported are large in relation to the size of the Hungarian market, especially when Hungary has the large Actaris facility producing in the country.




53%

2%

10%

3%

26%

1%0%

10%

20%

30%

40%

50%

60%

Actaris Landis+Gyr Elster Iskra Apator Other



A mandatory re-verification system operates in Hungary, supplemented by random inspection. These procedures are conducted by OMH and its verification offices. The verification interval for electricity meters is 15 years.

Utility background

There are eight power plant companies, six distribution companies and the Magyar Villamos Muvek Rt. (MVM Rt Hungarian Power Companies Ltd.) providing power in Hungary.

As a key stage within the liberalisation process, the National Control Centre ("OVT"), the division of MVM Rt. responsible for operation control of the Hungarian power system, has been transformed into a company limited by shares called MAVIR Magyar Villamosenergia-ipari Rendszerirányító Részvénytársaság (MAVIR Hungarian Power System Operator Company, “MAVIR Rt.”).

Since 1 January 2001, MAVIR has been functioning as an Independent System Operator whereas the ownership of the national grid has been kept by MVM Rt. The ownership of MAVIR Rt. was transferred from MVM Rt. to the Ministry of Economic Affairs on 1 February 2002.

MVM Rt is responsible for the co-ordination of the industry. The company owns and operates the national HV grid and buys energy in bulk from the generation companies (98% of electricity is produced in MVM Rt-owned generation companies) and sells to various distribution companies. There are in addition, nine industrial auto-producers that sell excess power to MVM Rt, which it then sells to the distribution companies.




Table 6.11: ESI characteristics Hungary

Largest generator by capacity – 30% Top 3 producers by capacity – 65% Installed capacity – 7,770 MW - 40 Generators 12 generation companies; 10 of which privately-owned (Tractebel, RWE, AES, ATEL, EdF, Croesus, EON). Magyar Villamos Muvek Rt (MVM) had a ”technical” 40% share of production in 2004. The top 3 have 65% and 6 companies each have at lea\st 5%. Magyar Villamos Művek Rt. (MVM Zrt.) controls about 80% to 85% of power plant capacity on a long-term basis, including Paks NPP. TSO – 1 state-owned company providing transmission and public wholesale MAVIR Magyar Villamosenergia-ipari Reendszeriranyito Rt Legally unbundled DNOs – 6 regional distribution / supply companies owned by RWE, E.ON, EDF



6.1.12 Ireland



4,156,119 1,910,000 2,298,815


Annual demand was 38,000 meters (units) in 2008 rising sharply to 68,000 in 2012. The value will increase in this period from €1.5 million ($2.2 million) to €5.3 million ($6.7 million).

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Valu

e $

and

euro

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Met

er u

nits

$ 2,176,335 3,362,960 3,721,100 3,911,600 6,718,300euro 1,480,500 2,648,000 2,930,000 3,080,000 5,290,000Meter units 38,060 53,010 57,005 37,005 68,005

2008 2009 2010 2011 2012


2008 2009 2010 2011 2012 Units 95% 96% 96% 95% 97%

Residential € 74% 86% 88% 89% 94%


€ 26% 14% 12% 11% 6%


2008 2009 2010 2011 2012 Units 36,050 51,000 55,000 35,000 66,000


$ 1,617,735 2,880,360 3,276,600 3,467,100 6,286,500

Units 2,010 2,010 2,005 2,005 2,005

Euro 380,000 380,000 350,000 350,000 340,000 Industrial, grid, commercial

$ 558,600 482,600 444,500 444,500 431,800

Units 38,060 53,010 57,005 37,005 68,005


$ 2,176,335 3,362,960 3,721,100 3,911,600 6,718,300



6.1.12 Ireland, Continued

Meter technology

Ireland has announced support for ‘smart’ metering and ESB is working on a roll-out to start in 2011/2012. The first pilots of 6,000 AMI meters were installed in 2008. This pilot was originally going to be for 25,000 trial households but has been reduced. The final decision has not yet been taken but it is almost certain to be approved and the government is highly supportive, despite Ireland’s dire economic situation.


2008 2009 2010 2011 2012 Units 50

Electromechanical Euro 2,500 Units 30,000 30,000 30,000

Electronic Euro 630,000 630,000 630,000 Units

AMR Euro Units 6,000 21,000 25,000 35,000 66,000

AMI Euro 468,000 1,638,000 1,950,000 2,730,000 4,950,000 Units

Residential

Prepayment Euro Units 2,000 2,000 2,000 2,000 2,000 C&I

C&I AMI Euro 360,000 360,000 340,000 340,000 340,000 Units 10 10 5 5 5 Grid

Grid AMI Euro 20,000 20,000 10,000 10,000 10,000


Market data is not available for Ireland.



Utility background

The Electricity Supply Board (ESB) is the national body responsible for electricity supplies and was established under the Electricity Supply Act in 1927. At that time there were over 300 suppliers, today ESB is the sole utility.

EirGrid Plc has taken over the operation of Ireland's electricity transmission system from ESB National Grid (ESBNG). The Irish national grid was originally established as a 110 kV network but as the demand for electricity grew, 220 k and 400 kV lines were built. The 400 kV lines are used to carry power to Dublin from the large Moneypoint coal-fired generation station in the Shannon Estuary.

The distribution network operates at 110, 38, 20 and 10/5 kV. There were 105,666 substations and the total capacity of these was 15,440 MVA. Low voltage is at 10/5 kV.



6.1.12 Ireland, Continued

Table 6.12: ESI characteristics Ireland

Largest generator by capacity – 85% Top 3 producers by capacity – 90%

Large companies present: Largest – ESB Other significant – ni

TSO – 1 EirGrid plc

DNOs – 1 ESB Networks Managed



6.1.13 Italy



58,145,320 27,259,000 37,275,981


Annual demand was 1,456,000 meters (units) in 2008 and will decline as the final AMI installations by Enel and the municipal distributors are completed. The value will decrease from €66 million ($97 million) to €23 million ($29 million).

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

Valu

e $

and

euro

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Met

er u

nits

$ 97,436,010 54,461,410 48,380,650 43,370,500 29,419,550euro 66,283,000 42,883,000 38,095,000 34,150,000 23,165,000Meter units 1,455,610 935,610 809,010 711,010 462,010

2008 2009 2010 2011 2012


With the completion of the residential AMI installations the proportion in terms of value of the C&I sector will regain importance.

2008 2009 2010 2011 2012


€ 99% 98% 95% 93% 88%


€ 1% 2% 5% 7% 12%



6.1.13 Italy, Continued


2008 2009 2010 2011 2012 Units 1,453,000 933,000 803,000 703,000 453,000


$ 96,138,000 53,340,000 45,910,500 40,195,500 25,908,000

Units 2,610 2,610 6,010 8,010 9,010

Euro 883,000 883,000 1,945,000 2,500,000 2,765,000 Industrial, grid, commercial

$ 1,298,010 1,121,410 2,470,150 3,175,000 3,511,550

Units 1,455,610 935,610 809,010 711,010 462,010


$ 97,436,010 54,461,410 48,380,650 43,370,500 29,419,550

Meter technology

Italy has the largest park of ‘smart’ meters in the world, although this is about to be overtaken by China and the UK (if gas meter are included). There are now no electromechanical meters. In 2001, Enel began replacing the traditional electromechanical meters with new integrated solid state meters at a rate of 700,000 meters per month; the whole residential customer base of 30 million is now served with solid state meters.

With EU market liberalisation, Enel Distribuzione decided to take a number of major actions involving complete re-engineering of the distribution and commercial processes, the introduction of new technologies like SAP, CRM, billing, and a new credit management system. The major system functionalities are remote meter reading, remote management of customer contracts (e.g. voltage change, tariff change, connection, disconnection), and remote monitoring of the low voltage network (quality of service and energy balance). The system components are the meter, the concentrator, the modem, and the central system. For the metering business, Enel created the Telegestore System in alliance with IBM and completely replaced Enel’s meters that were connected to the low-voltage grid. This system is described as an Automated Meter Management (AMI) system and is not simply a remote meter reading system (AMR).

Since the early 1990s, Enel had been experimenting with systems to manage meters remotely using power line as the means of communication. These trials allowed Enel to test different technologies and at the same time, to acquire knowledge of remote meter reading. More importantly, the trials have proved that using power line communication in low-voltage grids for data exchange is technically feasible. A complete system was implemented in several Italian cities covering nearly 70,000 customers, 40,000 of which were in the Rome area. This installation was successful from a technical point of view, but the project was abandoned when the availability of more competitive technologies emerged.

A completely solid state and integrated meter, instead of a traditional electromechanical meter integrated with an external solid state communication device, was produced.

The public telecommunication network (GSM) has been used for communication between the secondary substation and the central system instead of power line communication in the medium / high- voltage network.




Meter technology (continued)

The lessons learned from this project, in terms of both technology and economics, allowed Enel to prepare a business plan to develop and implement an automatic meter management system capable of managing all the customers in the low-voltage network with a payback period of five years. The project started in June 2000 with the development of a remote metering management system, which used the low-voltage distribution grid as a data carrier in combination with the public telecommunication network.

Enel claims that for an investment of €2.1 billion savings of €500 million are being achieved each year.

The key features of Telegestore are as follows:

• Active and reactive energy measurement

• AMR functions

• Time of use, time of the year contract management functions

• Remote connect / disconnect for load control

• Fraud detection / anti-tampering functions

• Customer information

• Prepayment (without card) enabling

• Demand power management

• Low-voltage grid energy management

• Individual customer service quality level monitoring

• Potential development of value added services for energy market

The logistics of the project were enormous and involved the following:

• 350,000 concentrators

• 30 million meters

• €2 billion investment

• Involvement of more than 15,000 people over 3 continents

• 650 local firms used to replace the meters

• 5 meter assemblers

• More than 50 suppliers of meter components

Enel Distribuzione has almost completed its roll-out of ‘smart’ meters. Among other distributors, ACEA of Rome has contracted to install 1.5 million ‘smart’ meters and has already started. AEM Torino and ASM Brescia have also announced their intention to install ‘smart’ meters.





2008 2009 2010 2011 2012 Units



Euro 150,000 150,000 150,000 150,000 150,000

Units AMR

Euro

Units 1,450,000 930,000 800,000 700,000 450,000 AMI

Euro 65,250,000 41,850,000 36,000,000 31,500,000 20,250,000

Units

Residential

Prepayment Euro

Units 2,600 2,600 6,000 8,000 9,000 C&I C&I AMI

Euro 858,000 858,000 1,920,000 2,480,000 2,745,000


Euro 25,000 25,000 25,000 20,000 20,000


The largest market share is held by Enel with its proprietary meter at 50%, followed by Landis+Gyr with 41%.

The meter was designed by Enel with the help of external designers to ensure system integration. They are produced by international contract manufacturers in Shenzen, China, ensuring high volumes of production with low defect rates. They are all developed according to international standards (CEN 61036, CEN 61268). Enel opened a public worldwide tender procedure for the procurement of the meters.

1%

41%

0% 1%

50%

7%

0%

10%

20%

30%

40%

50%

60%

Actaris Landis+Gyr Elster Iskra ENEL Other






Utility background

Enel is Italy's dominant electricity company, founded in 1962 by the Italian government. The company, which continued under state-ownership until November 1999, produced about 70% of Italy's electricity usage in 2000. In 1999, the Bersani Decree implemented the EU Directive, beginning the liberalisation of the electricity market. The November 1999 Enel privatisation stock sale was Europe's largest IPO. The government floated 32% of the company, which sold for €18 billion on the Milan and New York stock exchanges.

Enel has divested three generation companies with 15,000 MW installed capacity: the 5,438 MW Elettrogen to Endesa in 2001; the 7,009 MW Eurogen in 2002 to Edipower, a consortium led by Edison; and the 2,611 MW Interpower to Electrabel and Energia in 2002.

Enel has sold its distribution networks in Italy's large urban centres. Additionally, it has already sold off many local grids, including the Rome network to ACEA in 2001 and the Turin and Milano networks to AEM. However, local electricity companies have complained that Enel is blocking some of their access. In July 2002, the Italian government issued a bill that would require Enel to reduce its distribution network to less than 10% of market share within three years.

Table 6.13: ESI characteristics Italy

Largest generator by capacity – 55% Top 3 producers by capacity – 75% Enel Produzione Enipower Euroge Edison Elettrogen Tirreno Power

TSO – 1 Terna SpA is the fully independent TSO. Ownership GRTN Gestatore della ete di transmissione nazionale S.p.a.

DNOs – 170 Legally unbundled



6.1.14 Latvia



2,245,423 904,000 1,100,001


Annual demand was 51,000 meters (units) in 2008 falling to under 19,000 in 2012. The value will decline from €1.3 million ($1.9 million) to €0.6 million ($0.8 million).

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Valu

e $

and

euro

0

10,000

20,000

30,000

40,000

50,000

60,000

Met

er u

nits

$ 1,886,716 1,002,602 823,506 791,820 761,238euro 1,283,480 789,450 648,430 623,480 599,400Meter units 50,890 20,250 19,160 19,110 18,600

2008 2009 2010 2011 2012


2008 2009 2010 2011 2012 Units 96% 92% 97% 97% 97%

Residential € 80% 73% 87% 88% 87%


€ 20% 27% 13% 12% 13%


2008 2009 2010 2011 2012 Units 48,990 18,600 18,510 18,510 18,000

Euro 1,028,880 576,600 564,580 564,080 522,000 Residential

$ 1,512,454 732,282 717,017 693,522 662,940

Units 1,900 1,650 650 600 600


$ 374,262 270,320 106,490 98,298 98,298

Units 50,890 20,250 19,160 19,110 18,600

Euro 1,283,480 789,450 648,430 623,480 599,400 Total meters

$ 1,886,716 1,002,602 823,506 791,820 761,238



6.1.14 Latvia, Continued

Meter technology

Latvia has a mixed base of electromechanical and electronic residential meters. There are no reports of any AMI activity.


2008 2009 2010 2011 2012 Units 24,490 9,300 9,260 9,260 9,000

Electromechanical Euro 293,880 306,900 305,580 305,580 297,000


Euro 735,000 269,700 259,000 240,500 225,000

Units AMR

Euro

Units AMI

Euro

Units

Residential

Prepayment Euro

Units 1,900 1,650 650 600 600 C&I C&I AMI

Euro 254,600 212,850 83,850 77,400 77,400

Units Grid Grid AMI

Euro


Actaris had the largest market share in 2008 with 61%, followed by Elgama with 39%.

61%

0%

39%

0%

10%

20%

30%

40%

50%

60%

70%

Actaris Landis+Gyr Elgama



6.1.14 Latvia, Continued



Utility background

Latvia imports all its coal, natural gas, and oil products. The major energy resource is peat which is used in the form of milled peat, peat blocks and peat briquettes. In recent years, peat has constituted about 20% - 25% of Latvia's primary energy supply.

Latvenergo is the state utility responsible for the electricity sector and it has 4 generating subsidiaries, one HV network and 7 regional distribution networks.

Latvenergo, owns the integrated electric system in Latvia, and the regional sales are carried out by seven regional networks; the Eastern, Western, Central, Southern, Northern, North-eastern, and Riga networks. The network has 5,505 km of transmission lines and 112,246 km of distribution lines.

There are seven small local private distribution companies.

Table 6.14: ESI characteristics Latvia

Largest generator by capacity – 95% Top 3 producers by capacity – 100% Latvenergo, 60% of consumption State-owned Private generation (wind, small HPP, CHPP) companies covering 5% of total consumption

Large companies present: Largest – Latvenergo Other significant – None

TSO – 1 Latvenergo's daughter company JSC Augstsprieguma tikls acts as TSO Accounts

DNOs – 7 private distribution and sales companies



6.1.15 Lithuania



3,565,205 1,345,000 1,390,091


Annual demand was 168,000 meters (units) in 2008 falling to 80,000 in 2012. The value will drop in this period from €9 million ($13 million) to €5 million ($7 million).

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

Valu

e $

and

euro

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Met

er u

nits

$ 13,439,181 5,569,585 6,697,726 4,732,020 6,751,320euro 9,142,300 4,385,500 5,273,800 3,726,000 5,316,000Meter units 168,400 116,500 126,700 85,600 80,000

2008 2009 2010 2011 2012


2008 2009 2010 2011 2012 Units 97% 96% 97% 95% 95%

Residential € 92% 86% 89% 85% 90%


€ 8% 14% 11% 15% 10%


2008 2009 2010 2011 2012 Units 163,700 112,000 122,500 81,400 76,000


$ 12,375,195 4,775,200 5,956,300 4,038,600 6,090,092

Units 4,700 4,500 4,200 4,200 4,000


$ 1,063,986 794,385 741,426 693,420 660,400

Units 168,400 116,500 126,700 85,600 80,000


$ 13,439,181 5,569,585 6,697,726 4,732,020 6,751,320



6.1.15 Lithuania, Continued

Meter technology

Lithuania has a mixed base of electromechanical and electronic meters but is converting to electronic. By the end of 2010 all new meters will be electronic.

There will be a relatively small AMI installation by 2012.


2008 2009 2010 2011 2012 Units 80,000 60,000 20,000

Electromechanical Euro 960,000 1,680,000 560,000


Euro 2,660,000 2,080,000 4,080,000 3,040,000 1,520,000

Units AMR

Euro

Units 45,700 500 1,400 36,000 AMI

Euro 4,798,500 50,000 140,000 3,276,000

Units

Residential

Prepayment Euro

Units 4,700 4,500 4,200 4,200 4,000 C&I C&I AMI

Euro 723,800 625,500 583,800 546,000 520,000

Units Grid Grid AMI

Euro


Landis+Gyr had the largest market share in 2008 with 30% followed by Elgama with 11%.

0%

30%

11%

59%

0%

10%

20%

30%

40%

50%

60%

70%

Actaris Landis+Gyr Elgama Others





6.1.15 Lithuania, Continued

Utility background

Lietuvos Energija (Lithuanian Energy), a joint-stock company formed by the reorganisation of the Lithuanian state power system in 1995, is the largest electric power company in Lithuania. The state holds an 86.5% share in the company, with Vattenfall owning an additional 10.1%. Besides transmitting and distributing electricity, Lietuvos Energija also purchases all electricity generated in Lithuania and distributes it to Lithuanian consumers.

Transmission services are undertaken by a single national network company, Lietuvos Energija.

There are two main distribution system operators, Rytu Skirstomieji Tinklai AB and VST AB. These companies are also public suppliers, which mean that they are obliged to supply electricity to all customers requesting supply within their designated territories. In addition to these companies, there are three other businesses active in the supply market including some new entrants. These companies are the largest and retain over 85% of the market.

Privatisation of the distribution companies is expected.

Table 6.15: ESI characteristics Lithuania

Largest generator by capacity – 70% Top 3 producers by capacity – 80% Three main electricity generators (Ignalina NPP, Lithuanian Thermal PP and Vilnius CHP)

TSO – 1 Lietuvos Energija Legally unbundled

DNOs – 2 networks, East and West since 2001 Legally unbundled Rytų Skirstomieji Tinklai AB, VST AB and Visagino Energija VĮ are the main public suppliers, out of 7 licensed. Five supply companies are on the market as independent suppliers for eligible customers, out of 20 licensed.



6.1.16 Netherlands



16,645,313 8,196,000 7,528,191


Annual demand was 301,000 meters (units) in 2008 rising to 492,00 in 2010 and it will escalate to 1,509,000 in 2012 as the AMI roll-out gets under way. The value will increase in this period from €19 million ($28 million) to €123 million ($157 million).

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

Valu

e $

and

euro

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Met

er u

nits

$ 27,769,300 50,850,800 58,775,600 96,608,900 156,571,950euro 18,890,680 40,040,000 46,280,000 76,070,000 123,285,000Meter units 301,161 414,000 492,000 830,000 1,509,000

2008 2009 2010 2011 2012


The proportionate contribution of the C&I sector will decline in terms of value as the AMI roll-out start in 2011/12.

2008 2009 2010 2011 2012


€ 85% 89% 91% 95% 97%


€ 15% 11% 9% 5% 3%



6.1.16 Netherlands, Continued


2008 2009 2010 2011 2012 Units 290,000 400,000 480,000 820,000 1,500,000


$ 23,520,000 45,339,000 53,441,600 92,100,400 152,400,000

Units 9,006 14,000 12,000 10,000 9,000


$ 4,249,300 5,511,800 5,334,000 4,508,500 4,171,950

Units 299,006 414,000 492,000 830,000 1,509,000


$ 27,769,300 50,850,800 58,775,600 96,608,900 156,571,950

Meter technology

In The Netherlands, the government in September 2007 proposed that all households (running to 12 million electricity and gas meters, 7.5 million electricity, and 5 million gas) should have ‘smart’ meters by 2013 as part of a national energy reduction plan. This is running behind the original schedule but the roll-out will start in 2009/10.

A cost benefit analysis was conducted and it concluded that the most important costs would amount to €1,589 million versus most important benefits of €2,289 million. The net benefit was therefore positive but 85% of the benefits will accrue to households who will bear only 5% of the cost, whereas the cost will be borne principally by the metering companies, followed by the energy suppliers and the local networks. It will be most cost effective with a large scale rollout.

The Dutch grid operator Continuon started with a pilot project in 2006. Some 50,000 ‘smart’ meters have been installed with selected customers to build experience with all operational aspects of ‘smart’ meters. The ‘smart’ meter (Metripoint) registers both electricity and gas and communicates through PLC.

A new energy supplier and certified metering company in the Netherlands, Oxxio, started in 2006 to offer ‘smart’ meters to its customers. Customers with a ‘smart’ meter also have entry to a personal website with the actual energy use and energy costs. Oxxio's ‘smart’ meter registers both electricity and gas and communicates through GSM / GPRS. Oxxio engaged IBM Global Business Services to create a new subsidiary business unit, and then outsourced the infrastructure-management and operation of the company to IBM. Oxxio Metering uses a customised Automated Meter Management (AMI) solution developed by ENEL. IBM designed a unique wireless data communication module that gathers data from the ‘smart’ meters and sends it directly to Oxxio's central control facility. Oxxio, the largest supplier in the Netherlands and NUON have both started a 100% replacement with AMI meters.

Delta Comfort and Delat netwerkbedriejf have also conducted pilots.





2008 2009 2010 2011 2012 Units


Units 200,000 100,000 80,000 20,000 Electronic

Euro 5,200,000 2,700,000 2,080,000 520,000

Units AMR

Euro

Units 90,000 300,000 400,000 800,000 1,500,000 AMI

Euro 10,800,000 33,000,000 40,000,000 72,000,000 120,000,000

Units

Residential

Prepayment Euro

Units 9,000 14,000 12,000 10,000 9,000 C&I C&I AMI

Euro 2,880,000 4,340,000 4,200,000 3,550,000 3,285,000

Units 6 Grid Grid AMI

Euro 10,680


In 2008, Iskra had the leading share with 35%, followed by Landis+Gyr with 33% and Actaris with 8%.

8%

33%

35%

24%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Actaris Landis+Gyr Iskra Others






Utility background

Generation, transmission and distribution have been vertically disaggregated into 4 generators, one transmission company and 7 distribution companies. Three suppliers dominate the distribution market in terms of connections; ESSENT, NUON and ENSCO have 85.4% of customer connections.

Opening of the market took place ahead of schedule in 2004 and major consolidation of companies is now taking place. In the face of competition from RWE Energie and E.On from Germany and EdF from France, the Dutch utilities have realised that they are small players in a big market dominated by a number of very large companies and they need to expand their strengths if they are to compete. As yet virtually inactive abroad, they are actively seeking links with internationals.

There is no obligation to privatise the power industry in the Netherlands but many of the regional distribution companies have been sold. The big five distribution companies are at the start of a programme to sell shares traditionally owned by communities and provinces to private investors but the outcome is not certain.

At present there is a measure disagreement between the municipalities which wish to sell their distribution businesses and the public, together with the political establishment, which wish to retain control in public ownership.

Tennet is manager of the ‘highways’ of the Netherlands’ high-voltage grid (380 and 220 kV). As the national grid administrator / TSO, Tennet is responsible for this high-voltage grid which connects all regional electricity grids with each other and with the European grid. It monitors the reliability and continuity of the electricity supply throughout the country. It makes its high-voltage grid available impartially for electricity transmission and ensures the necessary balance between supply and demand. Since October 2001, the state has been the sole shareholder in Tennet.

Table 6.16: ESI characteristics Netherlands

Largest generator by capacity – 27% Top 3 producers by capacity – 74% Essent N.V. (27% of market; publicly owned) Electrabel Nederland N.V. (25% of market, owned by Suez group) Nuon N.V. (22% of market, publicly owned) TSO – 1 Tennet b.v. Ownership DNOs – 20, 4 major groups Legally unbundled



6.1.17 Norway



4,644,457 2,105,000 2,634,751 Annual demand for all meters

Annual demand was 169,000 meters (units) in 2008 rising to 349,000 in 2012 with the AMI roll-out. The value will increase in this period from €15 million ($23 million) to €23 million ($29 million).

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Valu

e $

and

euro

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Met

er u

nits

$ 22,718,409 16,236,569 31,149,544 28,196,794 28,996,894euro 15,454,700 12,784,700 24,527,200 22,202,200 22,832,200Meter units 168,700 178,700 336,200 339,200 349,200

2008 2009 2010 2011 2012


2008 2009 2010 2011 2012


Euro 93% 91% 96% 95% 95%


Euro 7% 9% 4% 5% 5% Market size by segment forecast from 2008 to 2012 by segment, IGC and residential, volume and value (€ and $)

2008 2009 2010 2011 2012

Units 152,500 162,500 332,000 335,000 345,000


$ 21,076,125 14,817,725 29,756,100 26,803,350 27,603,450

Units 16,200 16,200 4,200 4,200 4,200

Euro 1,117,200 1,117,200 1,097,200 1,097,200 1,097,200 C&I

$ 1,642,284 1,418,844 1,393,444 1,393,444 1,393,444

Units 168,700 178,700 336,200 339,200 349,200


$ 22,718,409 16,236,569 31,149,544 28,196,794 28,996,894



6.1.17 Norway, Continued

Meter technology

Norway lags behind the other Scandinavian countries in introducing advanced metering. New legislation is expected to mandate ‘smart’ metering in Norway, where in June 2007 the energy authority NVE recommended legislation requiring ‘smart’ meters to be installed by 2013. The Norwegian network, modelled on that of Sweden, would cost €500 million and affect 2.6 million customers.


2008 2009 2010 2011 2012


Euro

Units 32,500 32,500 2,000 Electronic

Euro 1,137,500 1,267,500

Units AMR

Euro

Units 120,000 130,000 330,000 335,000 345,000 AMI

Euro 13,200,000 10,400,000 23,430,000 21,105,000 21,735,000

Units

Residential

Prepayment Euro

Units 16,000 16,000 4,000 4,000 4,000 C&I C&I AMI

Euro 752,000 752,000 732,000 732,000 732,000


Euro 365,200 365,200 365,200 365,200 365,200

Utility background

The electricity supply industry in Norway has grown from a history of municipal, town, county and national government provision of services. There were, as a result of this structure, a great number of producers and suppliers of electricity.

Statnett is responsible for coordinating supply and demand in the power system in Norway. Stattnet owns more than 75% of the overall grid in Norway, the Main Grid. A further 19 companies own the other installations in the Main Grid system. Statnett also owns the Norwegian share of power lines and sub sea cables to foreign countries.

There are 150 distribution companies in Norway. The distribution companies can purchase power from any of the generating companies.

Table 6.17: ESI characteristics Norway

Generators - 2 with 38% of total Stadtkraft 32.7% Norsk-Hydro 5.7% 177 generating companies

Large companies present: Largest – Stadtkraft

TSO – 1 Stattnett SF Ownership

Network access – Regulated third party access

Monitoring of wholesale/balancing market – TSO

Import capacity as % of installed capacity – 18%

DNOs – 150 Legally unbundled/Accounts



6.1.18 Poland



38,500,696 16,900,000 16,332,790


Annual demand was 662,000 meters (units) in 2008 rising to 892,000 in 2012. The value will increase in this period from €27 million ($40 million) to €36 million ($45 million).

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

Valu

e $

and

euro

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Met

er u

nits

$ 39,567,255 35,627,278 38,550,017 40,725,344 45,271,944euro 26,916,500 28,052,975 30,354,344 32,067,200 35,647,200Meter units 662,620 684,885 740,276 784,070 892,070

2008 2009 2010 2011 2012


2008 2009 2010 2011 2012 Units 96% 96% 96% 96% 97%

Residential € 58% 59% 60% 62% 68%


€ 42% 41% 40% 38% 32%


2008 2009 2010 2011 2012 Units 636,000 657,000 711,000 755,000 865,000


$ 22,924,650 20,850,860 23,040,340 25,311,100 30,911,800

Units 26,620 27,885 29,276 29,070 27,070


$ 16,642,605 14,776,418 15,509,677 15,414,244 14,360,144

Units 662,620 684,885 740,276 784,070 892,070


$ 39,567,255 35,627,278 38,550,017 40,725,344 45,271,944



6.1.18 Poland, Continued

Meter technology

Residential meters are largely electromechanical but these are being replaced with electronic meters.

Poland has ordered and installed a 100 unit pilot test using Synaptech AMR technology.

Vattenfall, which now owns GZE, a leading Polish distribution company, is installing ‘smart’ meters in its distribution companies and will be extending this to Poland. Installations will increase in 2011 and 2012 but not to the level of a national roll-out.


2008 2009 2010 2011 2012 Units 25,000 18,000 12,000

Electromechanical Euro 575,000 378,000 252,000


Euro 13,800,000 14,260,000 51,410,000 16,330,000 17,940,000

Units AMR

Euro

Units 6,000 14,000 24,000 40,000 80,000 AMI

Euro 420,000 980,000 1,680,000 2,800,000 5,600,000

Units 5,000 5,000 5,000 5,000 5,000

Residential

Prepayment Euro 800,000 800,000 800,000 800,000 800,000

Units 26,500 27,825 29,216 29,000 27,000 C&I C&I AMI

Euro 10,997,500 11,547,375 12,124,744 12,035,000 11,205,000


Euro 324,000 87,600 87,600 102,200 102,200

Market shares in value 2008 Major participants

Poland has a long tradition of meter manufacture. The market leader is Pafal a Polish company, with 50% in 2008. Pafal is owned by Apator which also had a 4% share. Landis+Gyr was second with 35%.

Pafal SA, owned by Grupa Apator, which also owns Metrix SA, the leading supplier of gas meters. Grupa Apator is a Polish capital group operating in the switchgear and metering markets, making both electromechanical and solid state meters. It consists of 8 entities, 6 domestic and 2 foreign ones. Grupa Apator is actively seeking to expand in foreign markets. Pafal was established in 1897 as a branch of a factory in Berlin H. Aron Elektrizitätszähler-Fabrik. In 1999, when the America company Polycorp was making a bid for Pafal it was reported to have an 83% share of the electricity meters market in Poland. The company is supplying meters to RWE in Germany and E.ON in Germany and Hungary.



6.1.18 Poland, Continued

2%

35%

2% 3%

50%

4% 4%

0%

10%

20%

30%

40%

50%

60%

Actaris Landis+Gyr Elster Iskra Pafal Apator Others



Utility background

The Polish electricity industry has been reorganised into three layers of companies dedicated to the generation, transmission, and distribution sub-sectors.

The TSO is Polskie Sieci Elektroenergetyczne SA.

After consolidation there are 14 distribution companies. In the distribution segment, two group consolidations have already taken place, creating the Group G-8 (eight distributors in Central and Northern Poland) and the ENEA Energy Group which comprises five merged companies. There are plans to create three additional consolidated power distributors: L-6 Group (six distribution companies from Eastern and South-eastern Poland); the K-7 Group (seven companies in Central and Southern Poland); and W-5 Group (five companies in South-western Poland). The government has privatised only two distributors: STOEN to RWE; and Górnośląskiego Zakładu Elektroenergetycznego (GZE) to Sweden’s Vattenfall.

Table 6.18: ESI characteristics Poland

Largest generator by capacity – 15% Top 3 producers by capacity – 35% 4 major power stations out of 17 have been privatised (20% of total capacity)

TSO – 1 PSE Operator SA Legally unbundled

DNOs – 14 distribution companies in geographical groups Accounts



6.1.19 Portugal Population, household and meter base


10,676,910 4,776,000 6,591,597


Annual demand was 237,000 meters (units) in 2008 rising to 1 million in 2012. The value will increase in this period from €8 million ($12 million) to €46 million ($59 million).

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

Valu

e $

and

euro

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Met

er u

nits

$ 12,103,495 8,480,425 35,861,625 60,674,250 58,610,500euro 8,233,670 6,677,500 28,237,500 47,775,000 46,150,000Meter units 237,040 272,510 592,510 952,010 1,001,010

2008 2009 2010 2011 2012


In the next five years the C&I market is going to be dwarfed by the AMI residential share in value.

2008 2009 2010 2011 2012 Units 97% 99% 100% 100% 100%

Residential € 62% 93% 99% 99% 100%


€ 38% 7% 1% 1% 0%


2008 2009 2010 2011 2012 Units 230,450 269,000 590,000 950,000 1,000,000


$ 7,457,384 7,893,050 35,433,000 60,325,000 58,420,000

Units 6,590 3,510 2,510 2,010 1,010

Euro 3,160,620 462,500 337,500 275,000 150,000 Industrial, grid, commercial

$ 4,646,111 587,375 428,625 349,250 190,500

Units 237,040 272,510 592,510 952,010 1,001,010


$ 12,103,495 8,480,425 35,861,625 60,674,250 58,610,500



6.1.19 Portugal, Continued

Meter technology

Portugal has not taken a final decision whether to establish a ‘smart’ grid but in 2009 EDP Inovacao is leading a consortium to pilot an advanced meter system in small towns and villages. The new ‘smart’ grid will be called the Inovgrid, which will be rolled-out nationally to all 6.5 million Portuguese consumers by 2014 if it goes ahead. There is some political opposition due to the cost. However, EDP Disitrbucuicao supports the Inovgrid and as part of MIBEL, the Iberian Electricity Market there will be pressure to parallel Spain’s ‘smart’ grid. Portugal has one of the most innovative mindsets among European utilities, witnessed by its approach to renewables in which it is a European leader, and ABS believes the decision will be positive. Conversion to AMI meters has been included in the forecasts.


2008 2009 2010 2011 2012 Units 450

Electromechanical Euro 13,050

Units 230,000 260,000 130,000 Electronic

Euro 5,060,000 5,720,000 2,600,000

Units AMR

Euro

Units 9,000 460,000 950,000 1,000,000 AMI

Euro 495,000 25,300,000 47,500,000 46,000,000

Units

Residential

Prepayment Euro

Units 6,500 3,500 2,500 2,000 1,000 C&I C&I AMI

Euro 2,925,000 437,500 312,500 250,000 125,000


Euro 235,620 25,000 25,000 25,000 25,000


The largest market share in 2008 was Bruno Janz with 26%, followed by Landis+gyr with 18% and Sagem Communications with 17%.

10%

18%

26%

17%

29%

0%

5%

10%

15%

20%

25%

30%

35%

Actaris Landis+Gyr Bruno Janz SAGEMCOMMUNICATIONS

Others



6.1.19 Portugal, Continued



Utility background

The electricity industry has changed from a vertically integrated monopoly structure to a dual market structure (regulated and free market running in parallel).

The Portuguese electricity sector has a mixed ownership structure: some companies are fully or partially privatised while others are public-owned.

In late 2003, EDP acquired Hidroelectrica Cantabrico, Spain’s fourth largest electricity utility, in a move to strengthen its position and to ward off Spanish attempts to gain control of the Portuguese market.

REN (Rede Electrica Nacional S.A.) is the TSO. REN left EDP in November 2000 when the European energy market was liberalised, requiring the legal separation of electricity transmission and of electricity distribution and production companies. The Portuguese e state became the major shareholder in REN, holding 70% of the respective capital, while EDP retained an interest of 30%. REN S.A. holds the concession to operate the National Electricity Transmission Network and provides a public utility service in mainland Portugal.

The EDP Group started a far reaching remodelling of the distribution business in 2000, aimed at securing greater efficiency in the use of resources, notably through the rationalisation of controllable costs. The Group’s four distribution companies (EN, CENEL, LTE, SLE) were merged at the beginning of 2000, giving rise to a single business entity, EDP Distribuição – Energia, S.A., high and medium voltage binding distributor and holder of the concession for distribution in low voltage electric power.

EDP Distribuição, and 10 small distributors operate under a regulated TPA regime. EDP Distribuição is the dominant player accounting for almost 98% of total energy distributed in 2006.

Table 6.19: ESI characteristics Portugal

Largest generator by capacity – 65% Top 3 producers by capacity – 80% CPPE, Companhia Portuguesa de Produção de Electricidade, SA - 59% Hidrorumo Enernova Seflor

Large companies present: Largest – EDP Other significant – Endesa

TSO – 1 REN Rede Eléctrica Nacional S.A. Ownership

DNOs – 11Accounts



6.1.20 Romania


Population Number of households Installed electricity meter base

2008 2008 2008

22,246,862 9,200,000 8,726,004


Annual demand was 580,000 meters (units) in 2008 rising to 630,000 in 2009 and falling to 462,000 in 2012. The value will decline in this period from €17 million ($25 million) to €11 million ($15 million) as the stock of meters is replaced by the new owners of the Romanian distribution companies, E.ON, CEZ mad ENEL.

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Valu

e $

and

euro

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

Met

er u

nits

$ 24,647,843 19,079,210 17,254,220 15,482,824 14,568,424euro 16,767,240 15,023,000 13,586,000 12,191,200 11,471,200Units 579,816 630,020 597,020 502,020 462,020

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The composition of the market will change slightly in terms of value, as the stock of

residential meters is replaced and the replacement volume declines, unless more expensive AMI meters are introduced. The contribution of the IGC segment will increase from 27% in 2008 to 37% in 2012.

2008 2009 2010 2011 2012


Euro 73% 73% 74% 65% 63%


Euro 27% 27% 26% 35% 37%



6.1.20 Romania, Continued


2008 2009 2010 2011 2012

Units 558,000 608,000 574,000 474,000 434,000


$ 18,058,950 14,014,450 12,837,160 10,119,360 9,204,960

Units 21,816 22,020 23,020 28,020 28,020

Euro 4,482,240 3,988,000 3,478,000 4,223,200 4,223,200 C&I

$ 6,588,893 5,064,760 4,417,060 5,363,464 5,363,464

Units 579,816 630,020 597,020 502,020 462,020


$ 24,647,843 19,079,210 17,254,220 15,482,824 14,568,424

Meter technology

Prior to privatisation 85% of meters were single-phase induction meters:

• 50% of those are less than 10 years old


The remaining meters were multi-phase induction meters:



ENEL plans to install ‘smart’ meters in its Romanian subsidiary.

The distribution companies are being privatised and the process is almost complete now. E.ON bought the Moldova distribution company, now called E.ON Moldova Furnizara; ENEL bought Dobrogea, now ENEL Energie; CEZ bought Oldenia. CEZ, in line with its policy in the Czech Republic buys only electronic meters in Romania, ENEL installs both electromechanical and electronic meters, and so far E.On has bought only electromechanical meters.

There have been AMR installations in the C&I segment and some small pilots of AMI Meters in the industrial sector. Elster has deployed pilot installations of Synaptech AMR technology with eight regional electrical utilities in Romania. As a result of technical approval and successful pilot programmes, the utilities have begun to increase their deployment, with one site now exceeding 1,100 meters.





2008 2009 2010 2011 2012


Euro 3,800,000 3,240,000 2,700,000 900,000 180,000


Euro 5,865,000 5,175,000 6,640,000 6,300,000 6,300,000


Euro 0 0 0 0 0

Units 2,000 2,000 0 0 0 AMR

Euro 200,000 200,000 0 0 0

Units 10,000 10,000 3,000 3,000 3,000 AMI

Euro 2,360,000 2,360,000 708,000 708,000 708,000

Units 1,000 1,000 1,000 1,000 1,000

Residential

Prepayment Euro 60,000 60,000 60,000 60,000 60,000

Units 21,540 22,000 23,000 28,000 28,000 C&I C&I AMI

Euro 3,963,360 3,960,000 3,450,000 4,200,000 4,200,000


Euro 518,880 28,000 28,000 23,200 23,200


The leading player in the Romanian meter market is AEM SA with a share by value over 81%, which is successor to Luxten Lighting Company AEM Timisoara (LLC AEM), a state-owned company which was privatised in 1998. AEM is Romania’s market leader in metering. The company manufactures electricity, gas, water and heat meters, meter calibrating equipment and automatic meter-reading systems, as well as lighting equipment and maintenance products.

Elster Rometrics S.r.l.is the Elster company in Romania, and has deployed pilot installations with eight regional electrical utilities in Romania.

Elster Rometrics has been appointed Power Line Communications (PLC) specialists for the entire Elster Group. Since the appointment, Elster Rometrics has added India, Norway and Poland to their exclusive agency agreement. India has demonstrated the products to one of their utility customers. Norway has asked for the Emnode with a less expensive three phase meter as requested by a utility. Poland has ordered and installed a 100 unit pilot test for one of their customers. Market share estimated up to 5%.

Actaris and Landis+Gyr supply small quantities of C&I meters in Romania.




4%7%

3%

81%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Actaris Landis+Gyr Elster AEM Electromagnetica



The maximum verification interval for electricity meters is 5 years.

Utility background

The Romanian government recently transformed the vertically integrated electric company Conel into independent companies each responsible for separate components of the electricity industry. CONEL was divided into four companies:

Transelectrica S.A.

A national company for the transport of electrical energy – electric transmission, electric market management, and foreign electric system interconnection. Transelectrica operates the National Power Transmission System. The part of Transelectrica which administers the energy market is Opcom SA, which processes electricity proposals from market participants, analyses the bids, and determines the merit order of power unit loading. Transelectrica eventually plans to become a large regional electricity exporter by targeting neighbouring countries; possible markets include Greece, Turkey, and Italy. However, the Romanian electricity grid must be integrated into the Western Europe grid before any power export can happen.

Termoelectrica S.A.

A Commercial company for the production of electrical and thermal energy – electricity generation from thermal power plants, district heating, and related fuel supplies. Some power plants owned by Termoelectrica will be privatised and independent power producers will be created. This is expected to attract foreign and domestic capital.

Hidroelectrica S.A.

A Commercial company for the production and delivery of hydroelectric power.





Electrica S.A.

A State-run commercial company for the distribution and supply of electrical energy. Electrica was restructured into eight divisions. In early 2003, the Romanian government offered 51% stakes in two of the regional distribution companies, Electrica Banat S.A. in Western Romania and Electrica Dobrogea S.A. in South-eastern Romania. The two companies have a combined total of more than 1.4 million customers. In 2004, ENEL of Italy negotiated the purchase of these two distribution companies.

Table 6.20: ESI characteristics Romania

Generators – 52 Generators > 5% - 9 SC Termoelectrica SA SC Hidroelectrica SA NPP Cernavoda IPPs – TEC Gavora, TEC Drobeta, TEC Galati TSO independence Ownership – Yes Legal form – Yes Organisation – Yes DNOs – Three groups, owned by E.ON, CEZ and ENEL.



6.1.21 Slovak Republic



5,455,407 2,244,000 2,250,000


Annual demand was 53,000 meters (units) in 2008 rising to 61,000 in 2012. The value will increase in this period from €2.1 million ($3.1 million) to €2.6 million ($3.3 million).

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

Valu

e $

and

euro

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Met

er u

nits

$ 3,109,932 3,019,552 3,177,794 3,160,014 3,344,164euro 2,115,600 2,377,600 2,502,200 2,488,200 2,633,200Units 52,960 58,610 59,420 59,420 61,020

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The C&I will retain its share of about one third of the market in terms of value.

2008 2009 2010 2011 2012


€ 67% 63% 62% 61% 63%


€ 33% 37% 38% 39% 37%



6.1.21 Slovak Republic, Continued


2008 2009 2010 2011 2012

Units 50,700 55,800 56,400 56,400 58,000


$ 2,071,230 1,912,620 1,954,530 1,936,750 2,120,900

Units 2,260 2,810 3,020 3,020 3,020

Euro 706,600 871,600 963,200 963,200 963,200 C&I

$ 1,038,702 1,106,932 1,223,264 1,223,264 1,223,264

Units 52,960 58,610 59,420 59,420 61,020


$ 3,109,932 3,019,552 3,177,794 3,160,014 3,344,164

Meter technology

The Slovak market remains electromechanical and electronic with very little AMI on the horizon.


2008 2009 2010 2011 2012 Units 25,000 25,000 25,000 25,000 25,000



Euro 725,000 810,000 810,000 810,000 810,000

Units AMR

Euro

Units 700 800 1,400 1,400 3,000 AMI

Euro 84,000 96,000 154,000 140,000 285,000

Units

Residential

Prepayment Euro

Units 2,250 2,800 3,000 3,000 3,000 C&I C&I AMI

Euro 675,000 840,000 900,000 900,000 900,000


Euro 31,600 31,600 63,200 63,200 63,200





Actaris had the leading market share in 2008 with 49%.

49%

0%

51%

0%

10%

20%

30%

40%

50%

60%

Actaris Landis+Gyr Others



Utility background

The main participants in the Slovak electricity market are a single, dominant generation company and three large distribution/supply companies, which cover the entire territory of the country.

Until 1994, Slovenský energetický podnik s.p. (SEP) was the state-owned national electricity utility. However, during Slovakia's initial privatisation efforts in 1994, SEP was transformed into SE and is today the primary generator and transmitter of electric power in Slovakia.

SE has responsibility for the high voltage (mainly 400 kV) grid.

Three regional utilities (RDUs) operate distribution systems in Bratislava, Zilina and Kosice:

• Zapadoslovenske Energeticke Zavody Bratislava (ZSE); West Slovakian RDU; 965,000 customers, distributes power in the Western third of the country

• Stredoslovenske Energeticke Zavody Zilina (SSE); Central Slovakian RDU, distributes power in the central third

• Vychodoslovenske Energeticke Zavody Kosice (VSE); East Slovakian RDU, distributes power in the Eastern third

In late July 2004, the three distribution companies were sold. 49% of VSE was sold to RWE for €130 million, a stake in SSE to CEZ of Czech Republic and 49% of ZSE to E.ON.




Table 6.21: ESI characteristics Slovak Republic

Largest generator by capacity – 80% Top 3 producers by capacity – 85% Generators > 5% – 3 Heavily dominated by new Slovenské elektrárne a.s. (SE a.s, 66% controlled by Italy’s Enel SpA)

Large companies present: Largest – Enel Other significant – TEKO, RWE, EdF, E.ON

TSO – 1 SEPS, Slovenska elektrizacna prenosova sustava Legally unbundled



DNOs – 3 SSE, VSE, ZSE Regional distribution companies are dominant in respective areas. SE a.s. distributes directly to large consumers accounting for 5% of total electricity. In addition, about 150 local distribution operators (area-suppliers) are active. Managed



6.1.22 Slovenia



2,007,711 727,000 876,683


Annual demand was 36,000 meters (units) in 2008 and will rise to 51,000 in 2012. The value will decline in this period from €1.8 million ($2.7 million) to €4.8 million ($6 million).

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

Valu

e $

and

euro

0

10,000

20,000

30,000

40,000

50,000

60,000

Met

er u

nits

$ 2,676,870 5,597,525 8,626,475 6,061,075 6,061,075euro 1,821,000 4,407,500 6,792,500 4,772,500 4,772,500Units 36,005 40,005 44,505 56,005 51,005

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The contribution in value of the C&I sector will decline in value over the next five

years.

2008 2009 2010 2011 2012


Euro 89% 96% 97% 96% 96%


Euro 11% 4% 3% 4% 4%



6.1.22 Slovenia, Continued


2008 2009 2010 2011 2012

Units 35,000 39,000 43,500 55,000 50,000


$ 2,388,750 5,365,750 8,394,700 5,829,300 5,829,300

Units 1,005 1,005 1,005 1,005 1,005

Euro 196,000 182,500 182,500 182,500 182,500 C&I

$ 288,120 231,775 231,775 231,775 231,775

Units 36,005 40,005 44,505 56,005 51,005


$ 2,676,870 5,597,525 8,626,475 6,061,075 6,061,075

Meter technology

The small Slovenian market will cintinue installing AMR and is beginning to move towards AMI.


2008 2009 2010 2011 2012

Units 0 0 0 0 0 Electromechanical

Euro 0 0 0 0 0

Units 10,000 5,000 0 0 0 Electronic

Euro 200,000 100,000 0 0 0


Euro 0 0 0 0 0

Units 25,000 25,000 30,000 20,000 20,000 AMR

Euro 1,425,000 1,425,000 1,710,000 1,140,000 1,140,000

Units 0 9,000 13,500 35,000 30,000 AMI

Euro 0 2,700,000 4,900,000 3,450,000 3,450,000

Units 0 0 0 0 0

Residential

Prepayment Euro 0 0 0 0 0

Units 1,000 1,000 1,000 1,000 1,000 C&I C&I AMI

Euro 175,000 175,000 175,000 175,000 175,000


Euro 21,000 7,500 7,500 7,500 7,500


The largest market share in 2008 was for Landsi+Gyr with 57%. We do not have a figure but believe that a high proportion of the 29% of ‘Others’ is likely to be held by Iskra, the Slovenian meter company which is prominent in Europe.



6.1.22 Slovenia, Continued

12%

57%

1%

29%

0%

10%

20%

30%

40%

50%

60%

Actaris Landis+Gyr Oskra Others



Utility background

The Slovenian electricity market is situated between three regional markets with different characteristics and prevailing prices – the market of Central and Eastern Europe, the Italian market and the market of South-East Europe.

Operation of Slovenia's electricity transmission system is the responsibility of state-owned Elektro-Slovenija’ Eles. The national electricity grid consists of 110 kV, 220 kV, and 440 kV networks.

Distribution

The activities of the distribution system operator (DSO) are carried out by a state owned DSO named SODO, which rents the networks and contracts most of its activities to the five regional distribution companies, which are the main suppliers. They are 79.5% state-owned.

Table 6.22: ESI characteristics Slovenia

Largest generator by capacity – 70% Top 3 producers by capacity – 95%, largest 70% Generators > 5% - 2 majority state-owned ELES Elektro Slovenija Slovenske Hidroelektrarne 70%

Large companies present: Largest – HSE

TSO – 1 ELES Legally unbundled


Monitoring of wholesale/balancing market –


DNOs – 5 Legally unbundled in 2007



6.1.23 Russia



140,702,096 53,212,000 66,000,000


Annual demand is expected to continue at a fairly static high level, with 5.8 million meters (units) sold in 2008 rising to 5.9 million in 2012. The value in 2008 is estimated at €154 million ($228 million) declining to €150 million ($191 million by 2012.

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

Valu

e $

and

euro

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Met

er u

nits

$ 227,663,486 175,895,610 181,984,148 185,454,225 191,055,411euro 154,873,120 138,500,480 143,294,605 146,026,949 150,437,332Units 5,838,000 5,839,500 5,891,000 5,840,550 5,890,500

2008 2009 2010 2011 2012

Meter production has increased rapidly in Russia for the last ten years and over 90%

of these are sold within Russia, the balance being exported to other CIS countries, over 80% of exports going to Ukraine and Kazakhstan. Since 1995 about 47 million meters have been manufactured in Russia and about 42 million have been used in Russia. At this rate of production the entire stock of Russian meters will have been replaced in the next three to four years. Replacements will then begin a new cycle. The rate of replacement will be based on a shorter life for electronic meters than, as in the past, for the longer–lived electromechanical meters, but it will be based on a smaller number installed in the first half of the 1990s, when production was beginning in Russia. Although the population of Russia is declining, the number of households is increasing as they become smaller. There will be continued growth in the residential meter market, which will be accelerated with a conversion to AMI meters some time in the future, although not expected too soon.

This suggests that the increase in production and consumption of meters in Russia will start to tail off in about three years although it will still remain high.



6.1.23 Russia, Continued

Russian meter production in units, 2000 to 2008

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Meters 1,682,613 2,062,373 3,179,686 4,030,327 5,117,087 5,248,565 5,983,105 6,400,000 6,848,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: Energomera


There is some disagreement between different sources regarding the split in value between the residential and C&I markets. Some sources have put the C&I sector far higher.

2008 2009 2010 2011 2012


Euro 85% 86% 85% 85% 86%


Euro 15% 14% 15% 15% 14%


2008 2009 2010 2011 2012

Units 5,792,880 5,791,380 5,840,880 5,790,430 5,840,380


$ 200,806,586 154,247,190 159,446,728 162,916,805 168,517,991

Units 45,120 48,120 50,120 50,120 50,120

Euro 18,270,000 17,046,000 17,746,000 17,746,000 17,746,000 C&I

$ 26,856,900 21,648,420 22,537,420 22,537,420 22,537,420

Units 5,838,000 5,839,500 5,891,000 5,840,550 5,890,500


$ 227,663,486 175,895,610 181,984,148 185,454,225 191,055,411




Meter technology

Russia has a mixed electromechanical and electronic meter base and is moving towards more electronic meters, with 83% of consumption being electronic.

Some AMI metering will be introduced but there is no large scale roll-outs planned to our knowledge.


2008 2009 2010 2011 2012

Units 1,160,000 1,050,000 950,000 800,000 750,000 Electromechanical

Euro 16,240,000 11,550,000 10,450,000 8,800,000 8,250,000


Euro 108,933,120 97,269,480 99,981,105 101,538,386 102,952,113


Euro 0 0 0 0 0

Units 20,000 17,500 16,000 13,800 12,000 AMR

Euro 2,200,000 1,662,500 1,520,000 1,311,000 1,140,000

Units 70,000 87,500 109,375 136,719 170,898 AMI

Euro 8,750,000 10,500,000 13,125,000 16,132,813 19,824,219

Units 4,000 4,500 4,500 4,750 5,000

Residential

Prepayment Euro 480,000 472,500 472,500 498,750 525,000

Units 45,000 48,000 50,000 50,000 50,000 C&I C&I AMI

Euro 18,000,000 16,800,000 17,500,000 17,500,000 17,500,000


Euro 270,000 246,000 246,000 246,000 246,000


The leading company in the Russian market is Energomera, with a 38% share in 2008. Energomera has increased its market share each year for the last five years and is now the dominant supplier in Russia and also in the Ukraine. The company is a significant meter producer by international standards, among the top 10 in the world in value of meter sales. There are four other smaller companies, the second being Inkotex with 17%, followed by LEMZ (Leningrad) with 14%, MZEP (Moscow) with 12%, and Frunze with 7%.

Almost all meters used in Russia are manufactured by Russian companies. Small numbers of C&I meters are imported. Over 80% of meters produced and used in Russia are electronic, converting the installed base from electromechanical to electronic.

AMR and other remote reading systems have increased their penetration but are not yet widely used in the domestic sector. In Russia, AMR systems used for automatic meter reading of electric energy are known as “Automated System for the Control and Account of Electric Energy” (ASCAEE).

At present, none of the power systems in Russia have a full-scale ASCAEE with a data collection centre. 20% of the power systems have decentralised ASCAEE. Less than 20% of approximately 260,000 big industrial customers have ASCAEE, and the figure for budget and municipal customers is even lower. More than 90% of the 21 million domestic meters (2.5 grade of accuracy) presently in use should be replaced with 2 grade meters. AMR systems are still uncommon in Russia, with only a few hundred sites.




Market shares in value 2008 (continued)

In October 2000, RAO UES of Russia approved the concept of AMR systems applied to retail customers and domestic households.

In May, the Moscow Electrical Metering Equipment Plant (MZEP) and a number of well-known Russian AMR equipment companies formed an association called Group of Companies the Russian Systems (GCRS).

1% 1% 0.2% 1%

38%

17%

14%12%

7%9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Actaris

Landis+

GyrElst

erIsk

ra

Energomera

Inkotex

LEMZMZEP

Frunze

Others


Various federal executive authorities carry out accreditation in the Russian Federation in accordance with the relevant legislation. In the course of this, bureaucratic incongruities, overlapping fields of activity and the application of different procedures and criteria in the accreditation process take place. Often, the accreditation and certification activities of several federal executive authorities are superimposed.

Thus, it is an important task now to create a unified system. The Accreditation System of the Russian Federation will be such a system in the field of assessing compliance with established requirements for the quality and safety of products and services.

State standards of the Russian Federation of series 51000, which have been developed taking into account analogous European standards of series EN 45000, can and must serve as a regulatory basis to create such a system.

The basic principle and approach to the creation of this system is prepared by Gosstandart of Russia together with the Economics Ministry of Russia and the RF Chamber of Trade and Industry in accordance with Decree No. 113, dated 2 February 1998, of the Russian Federation Government. The draft of the statement has been developed, taking into account the world practice of carrying out the works on accreditation, present-day requirements of the legislation effective in the country, accumulated potential, and experience in accreditation works.




Utility background

Russia's electricity sector is currently in a transitional period. Since independence, the sector has been dominated by Unified Energy Systems (UES), which is 52% owned by the Russian government. UES, headed by former privatisation minister Anatoly Chubais, controls approximately 70% of the country's distribution system and oversees Russia's 72 regional electricity companies, called energos. In March 2003, Russian President Vladimir Putin signed six bills which intended to substantially reform the industry. According to the reform package, tariff rates on the domestic market would be liberalised by 1 July 2005, and UES would be liquidated beginning in 2006. UESs generation and distribution facilities are expected to be privatised. The transmission grid will remain under state control.

The structure, which is already largely formulated and companies created, is as follows:

Generation companies

7 Wholesale Generating Companies (WGCs or OGKs) have been spun off from RAO UESR and the Energos, six thermal OGKs and one Hydro OGK. 14 TGCs, Territorial Generating Companies will be created from the assets of the Energos.

Transmission and distribution

FGC, Federal Grid Company has been created to manage the Unified National Power Grid (UNPG).

The System Operator, OAO "UES SO-CDA" controls the operational dispatch of the system, with powers to command generators.

FGC will manage 55 trunk grid distribution companies.

11 MRSKs, intra-regional companies manage 64 local distribution companies.

Retail companies

Competitive Retail Companies will be established on the basis of retail units spun off in the course of regional Energos' restructuring. A number of Guarantee Suppliers will be created with an obligation to ensure uninterrupted supply of electricity to customers in the event of a competitive supply situation.

Table 6.23: ESI characteristics Russia

Generators > 5% - RAO UES, Rosenergoatom After current restructuring there will be 7 WGCs wholesale generating companies (6 thermal, 1 hydro) 14 TGCs territorial generating companies

TSO – FGC Federak Grid Co operates the 43,294 km long distance bulk transmission network 6 regional united power systems operate in parallel. The Northwest, Mid-Volga, Urals, North Caucasian, and Siberian Systems. The united Far East power system operates independently of the national unified power system.




Table 6.23: ESI characteristics Russia (continued)

DNOs FGC manages 55 trunk grid distribution companies 11 MRSKs intra-regional companies manage 64 local distribution companies MRSK Moscow – 2 MRSK St Petersburg - 1 MRSK Centre-East – 11 MRSK South Centre – 4 MRSK South Caucasus – 8 MRSK Volga – 7 MRSK Centre-Volga – 9 MRSK North-West – 8 MRSK Ural -4 MRSK Tyumen – 1 MRSK Sibir – 9 Far East IES



6.1.24 Spain



40,491,052 17,630,000 27,360,580


Annual demand was 1,400,000 meters (units) in 2008 rising to 4,600,000 in 2012. The value will increase in this period from €60 million ($88 million) to €152 million ($194 million) as the AMI roll-out gets under way in 2010.

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

Valu

e $

and

euro

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

5,000,000

Met

er u

nits

$ 87,870,132 47,967,900 110,159,800 157,454,600 193,725,800euro 59,775,600 37,770,000 86,740,000 123,980,000 152,540,000Units 1,399,500 1,310,900 2,620,600 3,620,600 4,600,600

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The contribution of the C&I market will decrease from its very high level of 55% in

value in 2008 to 9% as the roll-out grows.

2008 2009 2010 2011 2012


€ 45% 26% 82% 88% 91%


€ 55% 74% 18% 12% 9%



6.1.24 Spain, Continued


2008 2009 2010 2011 2012 Units 1,151,600 1,075,000 2,490,000 3,500,000 4,500,000


$ 39,939,312 12,344,400 89,941,400 137,795,000 177,165,000

Units 247,900 235,900 130,600 120,600 100,600


$ 47,930,820 35,623,500 20,218,400 19,659,600 16,560,800

Units 1,399,500 1,310,900 2,620,600 3,620,600 4,600,600


$ 87,870,132 47,967,900 110,159,800 157,454,600 193,725,800

Meter technology

In August 2007 Spain enacted a 100% switch to ‘smart’ meters by 31 December 2018, planning to substitute an average of 10% of meters each year from 2008 to 2018.

The two largest utilities, Endesa and Iberdrola, have already embarked on the substitution programme. Between them they account for 76% of electricity end-points in Spain, Endesa having 11 million and Iberdorla 10 million, out of the total 27 million.

There are five big distribution companies in Spain, with about 320 small distributors which account for only 25 of energy consumed. 6 distribution companies do not own any meters.

In September 2008, the distribution companies owned 23,285,343 meters and customers 3,985,362.

Electricity is billed every two months after the meter is read but the supplier can estimate the bill every second billing period.

Spain has a large park of 30 - 40 year old electromechanical meters which will be replaced with the AMI meters.


2008 2009 2010 2011 2012 Units 1,600

Electromechanical Euro 49,600

Units 1,060,000 895,000 490,000 Electronic

Euro 22,260,000 8,820,000

Units AMR

Euro

Units 90,000 180,000 2,000,000 3,500,000 4,500,000 AMI

Euro 4,860,000 9,720,000 62,000,000 108,500,000 139,500,000

Units

Residential

Prepayment Euro

Units 247,000 235,000 130,000 120,000 100,000 C&I C&I AMI

Euro 31,616,000 26,790,000 15,080,000 14,640,000 12,200,000


Euro 990,000 1,260,000 840,000 840,000 840,000



6.1.24 Spain, Continued


The largest market share in 2008 was held by Landis+Gyr with 35%, followed by Actaris with 23%. Spain ahs a strong domestic metering industry with a number of local meter companies.

23%

35%

3%

18%

6%5%

7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Actaris Landis+Gyr Iskra ZIV Circutor Kamstrup Others



Utility background

Spain has the fifth largest electricity market in Europe (behind Germany, France, the United Kingdom, and Italy), and it is growing quickly. The Spanish electricity sector is in the midst of restructuring, with considerable privatisation taking place ahead of the scheduled EU mandate. There are five major utility companies in Spain, in descending order of size: the formerly state held Endesa, Iberdrola, Union Fenosa, Hidrocantabrico, and the newly independent Viesgo. The latter was bought from Endesa by Enel in January 2002 and has a 5% market share. This purchase reflects Enel's strategy to regain market share abroad after selling its Elettrogen utility at home to Endesa in 2001.

While demand for electricity has rapidly increased within Spain in the past years, domestic supply has not. As such, Spain began to import electricity from Morocco for the first time in December 2001, when cold temperatures created a surge in demand.

Table 6.24: ESI characteristics Spain

Largest generator by capacity – 40% Top 3 producers by capacity – 80% Endesa - 42% Iberdrola Group Hydroelectrica del Cantabrico SA Union Fenosa

TSO – 1 REE Red Eléctrica de España Ownership




6.1.25 Sweden



9,045,389 4,675,000 5,263,131


Annual demand was 297,000 meters (units) in 2008 falling off in 2010 to 115,000 as the national AMI roll-out is completed. The value will decline from €32 million ($47 million) to €11 million ($14 million).

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

Valu

e $

and

euro

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

Met

er u

nits

$ 46,618,992 29,052,012 10,992,612 14,203,172 14,257,782euro 31,713,600 22,875,600 8,655,600 11,183,600 11,226,600Units 297,100 295,100 115,100 147,100 148,100

2008 2009 2010 2011 2012


The C&I sector will regain a little of its importance after the completion of the AMI roll-out.

2008 2009 2010 2011 2012


Euro 97% 96% 89% 92% 91%


Euro 3% 4% 11% 8% 9%



6.1.25 Sweden, Continued


2008 2009 2010 2011 2012

Units 280,000 278,000 98,000 130,000 130,000


$ 45,276,000 27,891,740 9,832,340 13,042,900 13,042,900

Units 17,100 17,100 17,100 17,100 18,100

Euro 913,600 913,600 913,600 913,600 956,600 C&I

$ 1,342,992 1,160,272 1,160,272 1,160,272 1,214,882

Units 297,100 295,100 115,100 147,100 148,100


$ 46,618,992 29,052,012 10,992,612 14,203,172 14,257,782

Meter technology

Sweden was one of the first countries whose governments mandated ‘smart’ metering technology for all households in the country. In March 2003, the Swedish government enacted a bill requiring monthly readings of all electricity meters by 1 July 2009. The roll-out is almost if not entirely complete now.

Three major multinational energy groups dominate electricity distribution in Sweden: Vattenfall, Fortum, and Sydkraft. Vattenfall is wholly owned by the Swedish state; Fortum is largely held by the state of Finland; and Sydkraft is part of the German E.On group. These three have close to 1 million customers each, which give them a combined market share of more than 50%. The rest of the market is distributed between some 190 companies with only local or regional presence.

1.2 million large users will have meters which can be read every hour.

Vattenfall began purchasing AMR in 2003, with 425,000 units for installation over the following years. It ordered another 200,000 units during 2004, with a remaining 175,000 units purchased in 2005. In addition, it has purchased 150,000 AMR meters from Iskraemco.

Sydkraft, now owned by E.On, has installed 5,000 Kamstrup meters, with data read by a combination of GSM and communication via the power network. This will be expanded to cover all of Sydkraft’s 1 million customers.

Skara Energi, a medium sized energy company in Central Sweden, has appointed Enermet to set up AMR over 7,300 metering points.

The total project cost is likely to reach €1.7 billion.





2008 2009 2010 2011 2012


Euro

Units Electronic

Euro

Units Ripple control

Euro

Units AMR

Euro

Units 280,000 278,000 98,000 130,000 130,000 AMI

Euro 30,800,000 21,962,000 7,742,000 10,270,000 10,270,000

Units

Residential

Prepayment Euro

Units 17,000 17,000 17,000 17,000 18,000 C&I C&I AMI

Euro 731,000 731,000 731,000 731,000 774,000


Euro 182,600 182,600 182,600 182,600 182,600

Vodafone Sweden and Actaris have jointly developed a machine-to-machine

communication service that enables power companies to read their electricity meters (and gas and water meters) via Vodafone's GSM network, which covers the majority of the population. This joint package solution will furnish power companies with a whole new type of meter-reader with inbuilt SIM-card, operation and maintenance of communication systems, and a central data system that collects and transfers meter data to the power companies' billing systems. Electricity meters will be read at night-time when mobile traffic is lighter. This helps ensure the optimal utilisation of the mobile network and allows larger volumes of meter data to be transferred rapidly (via GPRS) to the power companies' billing systems.

Market participants

Meter companies prominent in the Scandinavian AMR market are Landis+Gyr (through its subsidiary, the former Enermet of Finland}, Senea of Sweden in partnership with Actaris, Echelon, ADD Grup and Iskraemco.

Landis+Gyr through Enermet has established a dominant position in providing AMI/AMR in Scandinavia.

Senea claims to have won five out of six contracts to supply systems covering entire distribution areas in Sweden since the deregulation of the electricity market. In addition to holding a significant share of the domestic market, it has also exported to Finland and Norway. The company is in partnership with Actaris for marketing, distribution, and project management in the Scandinavian market. Actaris is also going to license and integrate Senea's CustCom radio and PLC communication devices with its electricity meters.

The following chart is for the whole of Scandinavia, not just Sweden and includes Denmark, Finland, Norway and Sweden.





54% of all meters sold in Scandinavia in 2008 were by Landis+Gyr, followed by Echelon with 19%, ADD Grup with 12% and Actaris with 10%.

10%

54%

12%

19%

6%

0%

10%

20%

30%

40%

50%

60%

Actaris Landis+Gyr ADD Echelon HTS

Utility background

As stated above, Vattenfall, Fortum, and Sydkraft are the three dominating multinational energy groups distributing electricity in Sweden. Vattenfall is owned completely by the Swedish state, the majority of Fortum is held by the state of Finland, and Sydkraft is part of the German E.On group. With 1 million customers each, they hold a combined market share of more than 50%. The remaining market share is distributed among some 190 local or regional companies. Among these, Göteborg Energi and Graninge are the largest with 270,000 and 160,000 customers respectively, while the smallest utilities have fewer than 5,000 power users. All these utilities are now preparing themselves to meet the new requirements from regulators.

Sweden is a member of Nordel, the Organisation for Electric Power Cooperation in Nordic countries and has 9 interconnections with Norway, 6 with Denmark, 5 with Finland, and one newly completed with Germany.

Table 6.25: ESI characteristics Sweden

Largest generator by capacity – 15% Top 3 producers by capacity – 88% Vattenfall – 46% Sydkraft Birka Energi

TSO – 1 Svenska Kraftnät Ownership




6.1.26 Switzerland



7,581,520 3,332,000 4,000,000


Annual demand was 205,000 meters (units) in 2008 rising in 2009 and then dropping to 177,000 in 2012. The value will decrease in this period from €27 million ($40 million) to €21 million ($27 million).

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

Valu

e $

and

euro

0

50,000

100,000

150,000

200,000

250,000

Met

er u

nits

$ 40,283,145 39,268,400 31,508,700 27,878,405 27,141,170euro 27,403,500 30,920,000 24,810,000 21,951,500 21,371,000Units 205,250 225,300 208,300 189,800 177,300

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) Switzerland will remain a country with a high proportion contributed to value by the

C&I sector.

2008 2009 2010 2011 2012


€ 54% 64% 69% 63% 59%


€ 46% 36% 31% 37% 41%



6.1.26 Switzerland, Continued


2008 2009 2010 2011 2012

Units 178,900 205,000 195,000 175,500 162,000


$ 21,643,545 25,209,500 21,717,000 17,477,105 16,130,270

Units 26,350 20,300 13,300 14,300 15,300

Euro 12,680,000 11,070,000 7,710,000 8,190,000 8,670,000 C&I

$ 18,639,600 14,058,900 9,791,700 10,401,300 11,010,900

Units 205,250 225,300 208,300 189,800 177,300


$ 40,283,145 39,268,400 31,508,700 27,878,405 27,141,170

Meter technology

AMI is not expected in large measure in the near future in Switzerland, which is dominated by a large number of very small distributors.

2008 2009 2010 2011 2012

Units 15,000 0 0 0 0 Electromechanical

Euro 495,000 0 0 0 0


Euro 13,485,000 19,600,000 16,020,000 12,640,000 11,455,000

Units 5,000 5,000 5,000 5,000 5,000 Ripple control

Euro 250,000 250,000 250,000 250,000 250,000

Units 0 0 0 0 0 AMR

Euro 0 0 0 0 0

Units 3,300 0 10,000 10,500 12,000 AMI

Euro 379,500 0 830,000 871,500 996,000

Units 600 0 0 0 0

Residential

Prepayment Euro 114,000 0 0 0 0

Units 26,000 20,000 13,000 14,000 15,000 C&I C&I AMI

Euro 11,700,000 9,600,000 6,240,000 6,720,000 7,200,000


Euro 980,000 1,470,000 1,470,000 1,470,000 1,470,000





The Swiss market is overwhelmingly dominated by Lands+Gyr, with an 85% share, with Iskra as runner-up with 6%.

0.2%

85%

6%9%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Actaris Landis+Gyr Iskra Others


The responsibility for national standards and legislation in metrology lies with the Confederation, whereas enforcement in legal metrology is mainly up to the Cantons. Regulations on metrology are to a far extent harmonised with EC Directives and in line with OIML and WELMEC.

The Swiss Federal Office of Metrology (METAS), attached to the Ministry of Justice and Police, is the primary metrology institution of Switzerland.

METAS leads the Swiss Verification Service (SVS) and the Swiss Calibration Service (SCS) and designates conformity assessment bodies in the field of metrology. In legal metrology, METAS is the competent authority for all metrological and physical aspects.

In accordance with the Federal Constitution, the Cantons are responsible for the enforcement in the field of metrology. The initial and re-verification functions and the survey of pre-packages are performed by their 49 verification offices. An increasing number of verifications in special fields (as utility meters, dosimeters, sound level meters and calibrators, road traffic instruments, portable combustion analysers) have, in agreement with the Cantons, been handed over to 79 verification laboratories, authorised by METAS and operated by public or private organisations or by the manufacturers themselves.

METAS supervises all verification activities in Switzerland, advises the cantonal offices and instructs the verification laboratories.

METAS is responsible for all Old and New Approach type examinations of measuring instruments and for metrological aspects of other devices. It has most test facilities on-site but may use other test laboratories for special examinations. Type approval certificates for measuring instruments are issued by METAS with the exception of medical devices where the Swiss Federal Office of Public Health (BAG) is the competent authority.






Initial verification is performed by the 54 local verification offices of the Cantons for most instruments. Gas, electricity, heat and warm water meters, some measuring instruments for medical or environmental protection. Initial verifications and all re-verifications are performed by the 49 local verification offices of the Cantons or the 79 authorised private verification laboratories for most instrument special applications are initially verified by verification laboratories.

Re-verification

Re-verification periods are specified by law:

• Heat meters - 5 years

• Electricity meters, statistical survey - 5 years

• Electronic electricity meters - 10 years

• Domestic gas meters - 14 years

• Electro mechanical electricity meters - 15 years

Utility background

The Swiss electric power industry is composed of about 1,170 companies, public and private, that are engaged in the generation, transmission and/or distribution of electric power. There is great diversity of size and activity among these companies. There are three types of electric companies: 90 companies that generate and transmit electricity, 940 that primarily distribute electricity, and 140 that perform all three electric power system functions and are vertically integrated.

Five large entities (the Uberlandwerke) cover the whole value chain from generation through transmission to distribution and end user supply: Atel, Axpo, BKW, EOS and EWZ.

The key differences between them are ownership and legal form (which covers not only private and public ownership but also differences within these categories such as partnerships, cantonal, city or municipal utility structures, and local cooperatives); size (from large trading and grid owning companies to regional and city utilities, and tiny village structures); and activity (from vertical integration through the whole value chain from generation to end user supply, to part of the chain or just one activity). There are also marked differences between the regions. For example, Suisse Romande, French-speaking Switzerland, is home to some large city based utilities (and the concept of public service is particularly strong), whereas some parts of Eastern Switzerland have a much denser network of small distribution companies.

In 2000, the Uberlandwerke formed a joint subsidiary called Etrans, to co-ordinate system operation across the five control areas which make up the Swiss high voltage transmission network that they own, and to form the technical interface with European system operators. Etrans is a member of ETSO (European Transmission System Operators) and the UCTE (Union for the Co-ordination of Electricity Transport).

Almost the whole transmission grid is controlled by a group of eight companies: Atel Netz AG in Olten, CKW in Lucerne, BKW FMB Energie in Berne, EGL Grid AG in Laufenburg, EOS in Lausanne, EWZ in Zurich, NOK in Baden, and RE in Poschiavo.

Distribution is carried by hundreds of small companies.




Table 6.26: ESI characteristics Switzerland

Generators > 5% - 6 with 76% of total, largest has 36% Atel-Aare Tessin AG BKW-FMB Energie AG CKW Centralschweizerische Kraftwerke EGL Elektrizitäts-Gesellschaft Laufenburg AG EOS-Energie Ouest Suisse NOK Nordostschweizerische Kraftwerke

TSO – 7 ATL, Atel-Aare Tessin AG BKW-FMB Energie AG CKW Centralschweizerische Kraftwerke EGL Elektrizitäts-Gesellschaft Laufenburg AG EOS-Energie Ouest Suisse EWZ Elektrizitätswerk dr Stadt Zurich green not listed NOK Nordostschweizerische Kraftwerke

DNOs – 800



6.1.27 Turkey



72,892,808 16,256,000 29,874,620



0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

Valu

e $

and

euro

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Met

er u

nits

$ 35,338,800 32,258,000 33,553,400 34,594,800 35,445,700euro 24,040,000 25,400,000 26,420,000 27,240,000 27,910,000Units 1,171,500 1,242,700 1,254,700 1,271,700 1,278,700

2008 2009 2010 2011 2012


2008 2009 2010 2011 2012 Units 96% 96% 95% 95% 95%

Residential € 74% 76% 74% 73% 72%


€ 26% 24% 26% 27% 28%


2008 2009 2010 2011 2012 Units 1,120,500 1,187,500 1,194,500 1,206,500 1,208,500


$ 26,224,800 24,396,700 24,993,600 25,336,500 25,448,900

Units 51,000 55,200 60,200 65,200 70,200


$ 9,114,000 7,861,300 8,559,800 9,258,300 9,956,800

Units 1,171,500 1,242,700 1,254,700 1,271,700 1,278,700


$ 35,338,800 32,258,000 33,553,400 34,594,800 35,445,700



6.1.27 Turkey, Continued

Meter technology

Residential meters are electromechanical.

C&I meters are mostly solid state.

Turkey is the fourth leader in use of prepayment meters after the United Kingdom and South Africa, with 2 million units in service, but these are confined to gas and water because TEDAS did not permit them. However, the privatised distribution companies will install them and growth is expected.

In May 2007 the Turkish Electricity Transmission Company (TEIAS) issued invitations for bids to tender for an AMR system, providing automatic collection of interval data from approximately 3,000 existing three phase solid state meters located at approximately 720 different locations, and with the proven capability to extend this capacity to at least another 10,000 meters.

There are no reports of a roll-out of residential AMI in Turkey.


2008 2009 2010 2011 2012 Units



Euro 16,500,000 17,400,000 17,400,000 17,550,000 17,550,000

Units 500 500 500 500 500 AMR

Euro 40,000 40,000 40,000 40,000 40,000

Units 10,000 12,000 14,000 16,000 18,000 AMI

Euro 600,000 720,000 840,000 960,000 1,080,000

Units 10,000 15,000 20,000 20,000 20,000

Residential

Prepayment Euro 700 1,050,000 1,400,000 1,400,000 1,400,000

Units 50,000 55,000 60,000 65,000 70,000 C&I C&I AMI

Euro 5,500,000 6,050,000 6,600,000 7,150,000 7,700,000

Units 1,000 200 200 200 200 Grid Grid AMI

Euro 700,000 140,000 140,000 140,000 140,000


Turkey has a vigorous domestic meter manufacturing industry which supplies almost all of the market with a small exception of C&I meters. The leading Turkish company is Elektromed with a share of 34% in 2008, followed by Makel, Köhler and Basari.

In recent years, progress has been achieved in Turkey in the manufacturing of measuring instruments. In May 2005 there were 22 solid state electric meter, 3 natural gas meter and 14 water meter manufacturing firms in Turkey.

Elektromed is the leading meter manufacturers in Turkey and is owned by Termikel – Group. The company was founded in Ankara in 1994 with a yearly production in excess of 800,000 electricity, water and gas meters and this has risen to 2 million a year now. Eelektromed is one of the leading companies in the world making prepayment digital meters, with over 3,000,000 installed worldwide. Turnover in 2006 was € 40 million. Each meter produced is calibrated individually. Market share is estimated at 45% - 55%.

Turkey does not import many meters.




1% 0.4%

34%

19%

9%

11%

25%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Actaris Landis+Gyr Electromed Makel Köhler Basari Others

Type approval The Ministry of Industry and Trade (MIT) has the main responsibility for legal

metrology in Turkey. MIT is the final authority and actual measurements are performed by various laboratories authorised by MIT.

During production, the first inspection of the meters is done in repairing and calibration stations. The instruments used at these stations are also calibrated by UME, National Metrology Institute.

Measuring instruments coming from Third Countries, those instruments can enter Turkish market only after MIT issues type system approvals and stamp each product. Instruments coming from EU countries that have an EC type approval certificate and can circulate freely.

Inspection and verification

MIT has 7 regional metrology centres equipped to handle the required legal measurements such as mass, volume, length, gas and water flow. It has 81 provincial verification offices. In each municipality there is a verification bureau.

Utility background

Until 1994, the organisation responsible for electricity generation, transmission and around 50% of distribution in Turkey was Turkiye Elektrik Kurumu, known as TEK. In that year, TEK was split into two different companies; the Turkish Electricity Generation and Transmission Corporation (TEAS) and the Turkish Electricity Distribution Corporation (TEDAS). In February 2001, Turkey passed the long-anticipated Electricity Market Law, which paved the way for a free market in power generation and distribution and in March, 2001 in line with the Electricity Market Law, TEAS was separated into three state-owned companies.

TEAS is the company responsible for generation. According to the new Electricity Market Law, in addition there will be private sector generation companies and auto-producers.





Transmission and distribution have been separated and are owned by TEAS and TEDAS respectively.

The TEDAS distribution regions are being transferred to private companies and full privatisation is expected to be complete by the end of 2009.

Table 6.27: ESI characteristics Turkey

Generators > 5% - 1 (maximum share 20%) EUAS Electricity Generation Company TSO – 1 TEIAS Turkish Electricity Transmission Company Legally unbundled DNOs – 9 TEDAS Turkish Electricity Distribution Company + 20 local affiliates and private sector distribution companies Accounts Separate from TSO - Yes



6.1.28 Ukraine Population, household and meter base


45,994,288 19,459,000 18,500,000


Annual demand is static at 776,000 meters and value at €16 million ($23 million), with the US$ value in 2012 lower.

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Valu

e $

and

euro

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Met

er u

nits

$ 23,417,100 19,916,775 19,916,775 19,916,775 19,916,775euro 15,930,000 15,682,500 15,682,500 15,682,500 15,682,500Units 776,250 775,250 775,250 775,250 775,250

2008 2009 2010 2011 2012


The C&I sector is important and contributes about one quarter of revenue.

2008 2009 2010 2011 2012


Euro 73% 75% 75% 75% 75%


Euro 27% 25% 25% 25% 25%


2008 2009 2010 2011 2012

Units 761,000 761,000 761,000 761,000 761,000


$ 17,742,900 15,328,900 15,328,900 15,328,900 15,328,900

Units 15,250 14,250 14,250 14,250 14,250

Euro 3,860,000 3,612,500 3,612,500 3,612,500 3,612,500 C&I

$ 5,674,200 4,587,875 4,587,875 4,587,875 4,587,875

Units 776,250 775,250 775,250 775,250 775,250


$ 23,417,100 19,916,775 19,916,775 19,916,775 19,916,775



6.1.28 Ukraine, Continued

Meter technology

There are small sales of electromechanical meters in the Ukraine but the bulk of the market is electronic.


2008 2009 2010 2011 2012


Euro 250,000 250,000 250,000 250,000 250,000


Euro 10,220,000 10,220,000 10,220,000 10,220,000 10,220,000

Units 0 0 0 0 0 AMR

Euro 0 0 0 0 0

Units 20,000 20,000 20,000 20,000 20,000 AMI

Euro 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000

Units 1,000 1,000 1,000 1,000 1,000

Residential

Prepayment Euro 100,000 100,000 100,000 100,000 100,000

Units 15,000 14,000 14,000 14,000 14,000 C&I C&I AMI

Euro 3,675,000 3,430,000 3,430,000 3,430,000 3,430,000


Euro 185,000 182,500 182,500 182,500 182,500


The Ukrainian market is very fragmented, with no dominant domestic producer and a high proportion of Russian imports. This dates back to the time of the centrally planned economy when production was allocated to one or two of the constituent republics to supply the whole of the USSR. The largest supplier of meters in the Ukraine is the Russian company Energomera, also the largest in Russia, with an 18% market share of the Ukrainian market in 2008, followed by Meridian with 14% and NIK with 12%.

7%

2%

4%

18%

12%

14%

7% 7%6%

4%

19%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Actaris

Landis+

GyrElst

er

Energomera NIK

Meridian

Kommunarsch

etmas

h

Inkotex

Elgama

MZEP

Others



6.1.28 Ukraine, Continued


More than 1,000 types of measuring instrument are checked by the Derzhstandart.

In Ukraine the mandatory verification interval for electricity meters is 8 - 16 years depending on type.

For gas meters it is 5 years.

For water and heat meters it is 2 years.

Utility background

NEC Ukrenergo is the state enterprise founded in May 1998 to replace the state company Ukrelectroperedacha (responsible for operation of high voltage lines and interstate transmission of electricity) and the National Dispatch Centre - NDC (responsible for dispatch and control of the integrated energy system). Ukrenergo has eight regional divisions and until recently included as a separate division the state enterprise Energorynok, which provided electricity market operation functions. Ukrenergo operates the national grid with a voltage of more than 220 kV and the interstate power networks, with all relevant infrastructures, including automation, control and communications systems.

Ukrenergooperates system (bulk) and cross-border 35 kV - 800 kV transmission lines.

27 seven joint-stock electricity distribution companies ensure electricity and also heat supply. The government has already sold the shares of seven of these companies, which are no longer controlled by the state. Currently the state owns 50% + 1 share or more in 14 oblenergos, from 25% +1 share (blocking shareholding) up to 50% shares in seven oblenergos, and six oblenergos are privately owned.

A number of attempts have been made to privatise distribution companies.

Table 6.28: ESI characteristics Ukraine

Generators - 1 nuclear, 4 TPP, 2 HPP Energoatom - 9% (state-owned) Dniprohydroenego - 5% (state-owned) Dnisterhydroenergo - 4% (state-owned) JSC Donbassenergo - 14% JSC Zpadenergo - 8% JSC Tsentrenergo - 10% JSC Dniproenergo - 15% IPP Vostokenergo 11 IPPs (energos), 14 state-owned TSO – 1 with cross-border power lines NEK Ukrenergo (replacing Ukrelectroperedacha) DNOs – 27 energos State-owned oblenergos, 2 regional for Kiev and Sevastapol 25 other regional energos



6.1.29 United Kingdom



60,943,912 26,017,000 28,500,002


Annual demand was 1,870,000 meters (units) in 2008 rising to 2,160,000 in 2011 and then dropping slightly to 1,690,000 as current electronic meter renewals come down. A roll-out of AMI will commence in 2012/13 but the contract will not be awarded until the end of 2009 and at least a two year planning period is expected. The value will increase in this period from €69 million ($101 million) to €129 million ($164 million) because off the start of the transition from basic electronic to AMI meters.

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

200,000,000

Valu

e $

and

euro

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Met

er u

nits

$ 101,409,420 75,521,820 79,388,970 179,687,220 163,911,280euro 68,986,000 59,466,000 62,511,000 141,486,000 129,064,000Units 1,870,020 1,665,020 1,505,020 2,160,020 1,690,030

2008 2009 2010 2011 2012


The balance between residential and C&I meter revenue will not change appreciably during the period.

2008 2009 2010 2011 2012

Units 97% 97% 96 97% 96% Residential

Euro 91% 87% 87% 94% 94%

Units 3% 3 4% 3% 4% Industrial, grid, commercial

Euro 9% 13% 13% 6% 6%



6.1.29 United Kingdom, Continued


2008 2009 2010 2011 2012

Units 1,820,000 1,610,000 1,445,000 2,100,000 1,630,000


$ 92,536,500 65,697,100 68,675,250 169,354,500 153,936,700

Units 50,020 55,020 60,020 60,020 60,030

Euro 6,036,000 7,736,000 8,436,000 8,136,000 7,854,000 C&I

$ 8,872,920 9,824,720 10,713,720 10,332,720 9,974,580

Units 1,870,020 1,665,020 1,505,020 2,160,020 1,690,030


$ 101,409,420 75,521,820 79,388,970 179,687,220 163,911,280

Meter technology

The UK government has announced that ‘smart’ meter will be rolled-out to all domestic households by the end of 2020. It anticipates a period of around two years to design and establish the full details of the roll-out, followed by a ten year roll-out period.

In May 2007, the government set in train the requirement for energy suppliers to install ‘smart’ meters in most businesses by 2012.

90% of meters manufactured in the UK are solid state. Approximately 90% of new meter installations and around 75% of the replacement installations in the UK are now solid state meters. A breakdown of the present installed base of residential meters by electromechanical vs. solid state is not available; however it is known that the market is moving toward solid state metering. One distribution company commented that they can be removed and reinstalled in another property.

Electricity is billed every quarter and bills can be estimated.

AMI/AMR is used by all the 110,000 C&I or half hourly segment of the UK market in which consumption is read every half hour. In the residential sector less than 1% is currently AMR.

A cost benefit analysis conducted by Ofgem concluded that the benefits outweighed the costs for ‘smart’ metering marginally. However, when other external ties are factored in, the benefits increase. Ofgem concluded that without government intervention the introduction the roll-out of ‘smart’ metering is likely to be patchy and to take some time. Various options are under consideration, such as the mandatory use of ‘smart’ meters when electromechanical meters are replaced. Trials are being conducted and four energy companies have taken part in them; EDF Energy, E.ON UK, Scottish and Southern Energy and Scottish Power. There are also six different metering / feedback device companies, four IT specialist companies, two charities and three universities involved.

Each participating company has carried out a range of trials to test out consumer response to different interventions including a combination of some or all of the following: improved billing (with and without ‘smart’ meters), energy efficiency information, community engagement, clip-on visual display units and ‘smart’ meters.

Around 40,000 households are taking part in energy saving trials.





The government has proposed that real time display units be provided with any new meters fitted from 2008, and to all households that request them between 2008 - 2010. It is estimated that these short-term measures will deliver savings of 300,000 tones of carbon per year by 2020.

Prepayment meters

The UK is a world leader in the use of prepayment meters, which have been available for many years. No other country in Europe uses them widely. Ofgem estimates the number of electricity prepayment meters at 3.8 million, or around 15% of total GB installed electricity meters and there are over 1.5 million gas prepayment meters. Other than the UK, the only other country where prepayment meters are sold in any significant quantity is South Africa. The lack of use of prepayment meters in Continental Europe is said to arise from differing Continental regulation in relation to the ability to cut off electricity supply for non-payment.

There are at present four different technologies (meter types - electromechanical, solid state) in use in the UK:

• Magnetic card (or token) meters were introduced in the late 1980s and were adopted by approximately half of the UK utilities. They are used by 1.5 million customers

• ‘Smart’ key meters were introduced in the early 1990s and are used by 1.5 million customers. Customers charge their key at a payment outlet

• ‘Smart’ card meters were introduced in the mid 1990s. They were developed by Landis & Gyr and sold to the (then) UK utilities Norweb and Midlands Electricity. They are used by fewer than 1 million customers

• Key pad meters were developed by PRI in the late 1990s. This is a one-way information system


2008 2009 2010 2011 2012


Euro 0 0 0 0 0

Units 1,150,000 1,110,000 925,000 900,000 370,000 Electronic

Euro 14,950,000 14,430,000 12,025,000 11,700,000 4,810,000

Units 0 0 0 0 0 AMR

Euro 0 0 0 0 0

Units 20,000 80,000 150,000 970,000 1,150,000

Unit price 125 125 120 110 95 AMI

Euro 2,500,000 10,000,000 18,000,000 106,700,000 109,250,000

Units 650,000 420,000 370,000 230,000 110,000

Residential

Prepayment Euro 45,500,000 27,300,000 24,050,000 14,950,000 7,150,000

Units 50,000 55,000 60,000 60,000 60,000 C&I C&I AMI

Euro 6,000,000 7,700,000 8,400,000 8,100,000 7,800,000


Euro 36,000 36,000 36,000 36,000 54,000





In 2008, Actaris had the largest market share with 43% and Landis+Gyr was second with 37%. These figures exclude peripherals and systems for prepayment meters.

43%

37%

3% 2% 2%

13%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Actaris Landis+Gyr Elster Iskra Horstman EDMI


The European Measuring Instruments Directive (MID) applies in all Scandinavian countries.

Utility background

The electricity supply industry in the UK has gone through a radical transformation since it was privatised in 1989. The two most significant changes have been the privatisation of almost all the electricity companies and the introduction of competition.

The generation market in England and Wales has changed from a highly concentrated market with a few major players to a market with many diverse generating companies including merchant generators, many of which own only one plant. There are now 38 major power producers in England and Wales.

National Grid plc is the transmission network operator in England and Wales, with a central role in the industry.

Distribution remains a monopoly business, and under the Utilities Act of 2000 it has become a separately licensable activity. Nine distribution companies operate 12 authorised distribution areas. These companies hold separate licences in respect of each area and are governed by the terms of their distribution licences. They are under a statutory duty to connect any customer requiring electricity within a defined area and to maintain that connection. Many distribution companies have changed hands in the last ten years since privatisation, and some are now referred to as brands.

Two new competitive business sectors have emerged in the last few years with the encouragement of the regulator: Meter Asset Providers (MAP) and Meter Asset Managers (MAM), with an estimated market of £800 million annually.




Table 6.29: ESI characteristics United Kingdom

Largest generator by capacity – 20% Top 3 producers by capacity – 40% British Energy - 14% Innogy - 13% Powergen - 12% Edison Mission Energy - 9% AES - 7% TSO – 2 Ownership England and Wales - NGC Transco plc Scotland - ScottishPower plc, Scottish & Southern Energy plc Northern Ireland - SONY Viridian DNOs – 15 Legally unbundled



6.2 Country Profiles The Americas


6.2.1 Argentina 6.2.2 Brazil 6.2.3 Chile 6.2.4 Canada 6.2.5 Mexico 6.2.6 United States of America


South America – Overview



388,619,463 103,813,000 102,156,862


Annual demand was 6.1 million meters (units) in 2008 rising to 6.8 million in 2012. The value will increase in this period from $301 million (€205 million) to $316 million (€249 million).

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

Valu

e $

and

euro

5,600,000

5,800,000

6,000,000

6,200,000

6,400,000

6,600,000

6,800,000

7,000,000

Met

er u

nits

$ 300,836,769 280,445,536 289,241,586 305,402,769 315,795,448euro 204,650,863 220,823,257 227,749,280 240,474,621 248,657,833Units 6,091,348 6,329,149 6,390,069 6,526,964 6,804,677

2008 2009 2010 2011 2012

One country, Brazil accounts for over half of the total for South America, with 3.6

million meters in 2008.

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) Residential meters accounted for 14% of the market in value in 2008 and this will

remain about the same, at 12% in 2012.

2008 2009 2010 2011 2012


Euro 86% 86% 86% 87% 87%


Euro 14% 14% 13% 13% 12%



South America – Overview, Continued


2008 2009 2010 2011 2012

Units 5,788,713 6,041,625 6,1099.880 6,254,744 6,532,150


$ 208,147,487 208,569,487 219,924,225 238,538,730 250,217,054

Units 302,635 287,524 280,189 272,220 272,527

Euro 63,053,934 56,595,314 54,580,598 52,648,850 51,636,531 C&I

$ 92,689,282 71,876,048 69,317,360 66,864,039 65,578,394=

Units 6,091,348 6,329,149 6,390,069 6,526,964 6,804,677


$ 300,836,769 280,445,536 289,241,586 305,402,769 315,795,448

Meter technology

South America will move very largely to electronic meters, and with AMI in some countries. Chile is planning a roll-out of advanced meters in Santiago.


2008 2009 2010 2011 2012 Units 1,901,000 1,198,015 722,711 486,107 454,211



Euro 70,727,471 84,407,868 93,234,157 99,185,048 101,863,202

Units 24,019 28,524 38,915 75,617 86,516 AMR

Euro 3,833,512 4,817,183 9,001,919 8,907,006 7,149,606

Units 60,047 399,338 522,576 669,748 757,018 AMI

Euro 6,284,445 39,485,103 52,104,701 67,675,785 76,704,828

Units 24,019 28,524 27,797 21,605 21,629

Residential

Prepayment Euro 1,390,957 1,560,602 1,533,578 1,251,638 1,304,976

Units 300,233 285,242 277,966 270,060 270,364 C&I C&I AMI

Euro 60,540,155 54,339,022 52,289,470 50,392,990 49,311,575


Euro 2,513,778 2,256,292 2,291,129 2,255,859 2,324,956


6.2.1 Argentina



40,482,000 12,208,000 10,125,800



0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Valu

e $

and

euro

0

100,000

200,000

300,000

400,000

500,000

600,000

Met

er u

nits

$ 15,990,954 14,030,897 14,614,843 15,153,132 15,030,704euro 10,878,200 11,047,950 11,507,750 11,931,600 11,835,200Units 508,235 518,435 539,035 559,540 550,040

2008 2009 2010 2011 2012


The bulk of value is in the residential sector.

2008 2009 2010 2011 2012 Units 99% 99% 99% 100% 100%

Residential € 90% 90% 91% 91% 91%


€ 10% 10% 9% 9% 9%



6.2.1 Argentina, Continued


2008 2009 2010 2011 2012 Units 505,400 515,700 536,300 556,900 574,400


$ 14,367,192 12,678,537 13,262,483 13,837,666 13,715,238

Units 2,835 2,735 2,736 2,640 2,640


$ 1,623,762 1,352,360 1,352,360 1,315,466 1,315,466

Units 508,235 518,435 539,035 559,540 550,040


$ 15,590,954 14,030,897 14,614,843 15,153,132 15,030,704

Meter technology

Demand is higher for electronic residential meters in Argentina.

There is some pre-payment metering and a small amount of AMR has been installed but there is no current demand for Ami.


2008 2009 2010 2011 2012 Units 60,000 60,000 50,000 40,000 20,000



Euro 8,360,000 8,550,000 9,120,000 9,690,000 9,880,000

Units AMR

Euro

Units AMI

Euro

Units 5,400 5,700 6,300 6,900 7,400

Residential

Prepayment Euro 453,600 473,100 522,900 565,800 599,400

Units 2,800 2,700 2,700 2,600 2,600 C&I C&I AMI

Euro 1,044,400 1,007,100 1,007,100 989,800 969,800


Euro 60,200 57,750 57,750 66,000 66,000


The Elster company in Argentina, Elster Amco de Sud America had the highest market share in 2008 with 44%, followed by Actaris with 16% and Landis+Gyr with 11%.




16%

11%

44%

29%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Actaris Landis+Gyr Elster Others


There is no regulation of electricity meters in Argentina. INTI, the NMI of Argentina, has been involved in the technical responsibilities of Legal Metrology since September 2003. One of its goals is to incorporate instruments of public services and medicine to the field of Argentina's Legal Metrology.

Utility background

Argentina has one of the most competitive deregulated power sectors in South America. Since 1991, the government has pursued an aggressive privatisation programme in tandem with the creation of an open electricity market, which has attracted foreign investors and project partners lured by the economic growth in the country.

Argentina has two power market zones: Mercado Eléctrico Mayorista (MEM) covers most of the country, while Mercado Eléctrico Mayorista en la Región Patagónica Argentina (MEMSP) is responsible for the southernmost region of the country. Both zones are under the administration of the Compañía Administradora del Mercado Mayorista Eléctrico SA (CAMMESA), a non-profit organisation headed by the Ministry of Energy and owned by participants on the power grid.

The participants are organised into four associations according to function: ATEERA (Transportation), ADEERA (Distribution), AGUEERA (Large electricity-users), and AGEERA (Generators). CAMMESA is also responsible for the functioning of the central grid.

Independent companies including some state-owned companies carry out generation, while three primary distribution companies (Edenor, Edesur, and Edelap) and one extra high voltage transmission company (Compañía Nacional de Transporte Energética en Alta Tensión - Transener), are responsible for transmission. Transener owns and operates the grid (Sistema Argentino de Interconexión - SADI) under a 95-year license agreement entered into with the Argentine government in 1993.





Smaller distribution companies that share part of their distribution lines operate under a separate organisation: Technical Additional Service of the Transportation Function (PFTT), which reports to CAMMESA.

Table 6.30: ESI characteristics Argentina

Generators - Many Generation companies are restricted to a 10% market share TSO – 1 high voltage network SADI 6 regulated monopoly transmission companies Distrocuyo SA Litsa Transba SA Transcomahue SA Transener SA Transnoa SA

DNOs – 28 regulated monopoly regional / municipal distributors The main distribution companies are Edenor (51% owned by the Argentinean Group EASA - Electricidad Argentina Sociedad Argentina), Edesur (majority owned by a subsidiary of Endesa) and Edelap controlled by AES.



6.2.2 Brazil



196,342,592 53,381,000 55,842,150


Annual demand was 3.6 million meters (units) in 2008 rising to 3.9 million in 2012. The value will increase in this period from €140 million ($205 million) to €155 million ($197 million).

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

Valu

e $

and

euro

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

Met

er u

nits

$ 205,182,600 180,517,800 183,134,000 191,579,500 196,557,900euro 139,580,000 142,140,000 144,200,000 150,850,000 154,770,000Units 3,601,800 3,706,600 3,661,500 3,676,500 3,876,400

2008 2009 2010 2011 2012

Brazil currently has 91.5% electrification and 53 million electricity customers. The “Prodeem” and “Luz no Campo” programmes of rural electrification have been completed; the latter achieved 600,000 new connections by 2003. A new programme, “Luz para Todos” expects to provide full electrification by 2008. 2.5 million rural households are without electricity, and of these, 70% will be electrified with grid-connected power and 30% with stand-alone isolated systems in the future.

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The C&I sector will retain about 12% to 14% of the market in terms of value.

2008 2009 2010 2011 2012


€ 86% 86% 86% 87% 87%


€ 14% 14% 13% 12% 12%



6.2.2 Brazil, Continued


2008 2009 2010 2011 2012 Units 3,520,500 3,625,000 3,580,000 3,595,000 3,795,000


$ 176,870,000 155,829,000 158,877,500 167,322,000 172,529,000

Units 81,300 81,600 81,500 81,500 81,400


$ 28,312,200 24,688,800 24,257,000 24,257,000 24,028,400

Units 3,601,800 3,706,600 3,661,500 3,676,500 3,876,400


$ 205,182,600 180,517,800 183,134,000 191,579,500 196,557,900

e

Meter technology

Brazil is split between electromechanical and electronic meters for the residential sector.

Tariff system

In the 1990s, Eletrobras installed 1.5 million meters in poor households, which did not previously have meters, as an energy saving measure. Prior to this, these households had paid a flat amount on the basis that they would consume 30 kWh per month. In reality, they consumed far more. Meter installations have led to a reduction in consumption and additional revenue for the distribution utilities.

AMR - AMI

The market in Brazil is reported to be looking more towards technology development. Several major utilities have issued RFPs for advanced metering systems, including AMR and ‘smart’ meters.

Brazil had deployed 106,000 AMR units by 2002 and was, at that time, the 11th largest AMR user. It is reported that interest in AMR is growing.

Actaris uses the Euridis bus for AMR, with more then 15,000 meters installed in some 300 buildings and is the leading provider of this type of application in Brazil.

Pre-payment meters

Energy theft is a major problem for Brazilian utilities and there is interest in pre-payment metering.





2008 2009 2010 2011 2012 Units 1,600,000 1,100,000 550,000 250,000 200,000



Euro 38,180,000 50,600,000 59,800,000 64,400,000 70,150,000

Units 10,000 20,000 25,000 40,000 40,000 AMR

Euro 300,000 600,000 750,000 1,200,000 1,200,000

Units 250,000 300,000 400,000 500,000 500,000 AMI

Euro 29,000,000 34,800,000 46,000,000 57,500,000 57,500,000

Units 500 5,000 5,000 5,000 5,000

Residential

Prepayment Euro 40,000 400,000 400,000 400,000 400,000

Units 80,000 80,000 80,000 80,000 80,000 C&I C&I AMI

Euro 16,400,000 16,400,000 16,400,000 16,400,000 16,400,000


Euro 2,860,000 3,040,000 2,700,000 2,700,000 2,520,000


Landis+Gyr had the largest market share in 2008 with 41%, followed by Actaris with 18%. Elster and the Brazilian company Nansen had 13%.

18%

41%

13% 13%

7%

9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Actaris Landis+Gyr Elster Nansen Complant FAE

Market access In order to access the Brazilian market, foreign suppliers must register with the

various electricity power companies since these companies represent 90% of the end-user segment. Such registration in the case of public utilities must conform to public procurement legislation (Law 8666); the major requirement concerning foreign participation in tenders is that foreign suppliers be represented in the Brazilian market. Both the foreign supplier and its legal representative are required to present documentation, including technical and financial qualifications, which need to be officially translated into Portuguese and notarised.




Type approval The National Institute of Metrology, Standardisation, and Industrial Quality

(INMETRO) were legally created in December 1973. It provides technical support to Conmetro, the National Metrology, Standardisation, and Industrial Quality Council, which is responsible for establishing the national policies on metrology and quality.

Brazilian industrial standards and regulations in the electricity power sector have been loosely defined in the past, but the Brazilian Electrical Power Research Centre (CEPEL) and the Electro-Solid states Equipment Certification Association (UCEE) have indicated that there has been a tendency to follow European standards instead. The Brazilian Technical Standards Association (ABNT) for example, is virtually a copy of the ISO and IEC, both European standards. In practice however, the largest Brazilian concessionaires have their own specification requirements and equipment testing / inspection facilities. When turnkey tenders are adopted, the winners do not necessarily follow the same criteria used by the concessionaires, who are reported as concerned primarily with best price.

To preserve equipment quality, Eletrobras recently created the NBR 19000 Quality Project - Proquip - through which ISO 9000 standards are being adopted for the supply of electricity power equipment to Brazilian concessionaires. Eletrobras is providing financing for those Brazilian manufacturers who have not yet set up internal quality controls.

From 1 June 2001, manufacturers and suppliers have been obliged to comply with a new Brazilian approval regime. This regime has brought in a lot of changes, most notably stricter requirements for product testing and the establishment of new certification assessment bodies (CABs) to evaluate a product's conformity to relevant standards. Accredited CABs are being set up in order to analyse test results and to verify a product's conformity to Brazilian standards. Type examination, product quality assurance, and total quality assurance will be performed. The CABs will be able to issue certificates of conformity to type.

Under the new regime, third-party accredited laboratories must be used for product testing. Products manufactured outside of Brazil must be tested by one of the following:

• Brazilian laboratories accredited by INMETRO

• Foreign laboratories accredited by INMETRO

• Foreign laboratories with which INMETRO has established MRAs

The requirements for product testing will become much stricter, and it will no longer be possible for foreign manufacturers to use a local specialist engineer (a member of CREA, the professional Brazilian engineering organisation) to review and endorse existing foreign test reports.

An in-country presence is required in the form of a locally registered company (either directly or via an authorised agent) in order to apply for and hold approval in Brazil. The local company applying for approval will also be required to guarantee the supply of spares and maintenance for the product.

The Electrical Metrology Division of INMETRO is responsible for the custody of the national metrological standards, which are systematically traced and compared to international standards. This is done though “key comparisons” under the supervision of the Bureau International des Poids et Mesures and to standards of metrological laboratories of other countries, namely the National Institute of Standards and Technology (NIST / USA) and the Physikalisch-Technische Bundensanstalt (PTB / Germany). In particular, the Electrical Metrology Division maintains highly accurate standards regarding voltage, current, resistance, capacitance, inductance, energy, and power.




Type approval (continued)

The main requirements in the metrology legislation have been established by the Instituto Nacional de Metrología, Normalização, e Qualidade Industrial (National Institute for Metrology, Normalisation and Industrial Quality, INMETRO) in Act No. 262 of 30 December 2002.

The legislation states that new solid state electricity meters, produced in Brazil or imported, are subject to model approval from the date of this Act.

The main regulatory advance in metering, following the general rules outlined above, is that utilities are free to adopt and install new and modern metering systems.

Utility background

83% of generation is hydropower. Brazil ranks consistently as one of the world's top hydropower producers. The electricity supply industry is dominated by Eletrobras (Centrais Elétricas Brasileiras SA), a company established in 1962, which is responsible to the Ministry of Mines and Energy.

Eletrobras has a wide portfolio of assets in the power industry and accounts for about 60% of the installed generating capacity in Brazil as well as 51% of the country's transmission lines of 230 kV or higher power. Although generation remains mostly under government control, and transmission is not slated for privatisation in the near future, distribution is mostly in private hands. Regulatory difficulties have been blamed for the lack of international interest in Brazilian electricity distribution. New regulations were introduced in February and July 2002 to address these problems and to boost investment.

An estimated 80% of Brazilian electricity generation is in public hands. As part of the privatisation programme, three remaining major federally-owned utilities, Eletronorte, Furnas Centrais Eletricas (Furnas), and the Companhia Hidroeletrica do Sao Francisco (Chesf), have been split into several smaller generating and distributing utilities. However, additional privatisation of these companies has been ruled out by the Lula administration.

Federal utility Eletrobrás controls about half of the country's installed capacity and most of the large transmission lines. It coordinates and supervises the expansion and operation of the generation, transmission, and distribution systems. Private capital flows resulting from privatisation are expected to play a key role in bolstering the industry, especially as state-owned generators have not had investment capital available.

There are 63 distribution utilities.

Table 6.31: ESI characteristics Brazil

Generators Eletrobas controls generation through four subsidiaries Chesf, Electronorte, Eletronuclear, Eletrosul, Furnas Many state utilities TSO – Eletrobras controls transmission through four subsidiaries Chesf, Electronorte, Eletronuclear, Eletrosul, Furnas DNOs – 64 regional and municipal distribution subsidiaries



6.2.3 Chile



16,454,143 5,004,000 4,742,867


Annual demand was 259,000 meters (units) in 2008 rising to 437,000 in 2012. The value will increase considerably in this period from €5 million ($7.5 million) to €18 million ($23 million), as a result of the roll-out of ‘smart’ metering in Santiago.

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Valu

e $

and

euro

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Met

er u

nits

$ 7,509,495 11,542,395 14,869,160 19,706,844 22,831,044euro 5,108,500 9,088,500 11,708,000 15,517,200 17,977,200Units 259,100 329,600 361,100 406,900 436,900

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) At present C&I meters constitute about half the value of the market but this will be

reduced to 16% with the roll-out of AMI meters by 2012.

2008 2009 2010 2011 2012


Euro 49% 71% 77% 82% 84%


Euro 51% 29% 23% 18% 16%



6.2.3 Chile, Continued


2008 2009 2010 2011 2012

Units 245,500 316,000 347,000 392,000 422,000


$ 3,660,300 8,216,900 11,442,700 16,129,000 19,253,200

Units 13,600 13,600 14,100 14,900 14,900

Euro 2,618,500 2,618,500 2,698,000 2,817,200 2,817,200 C&I

$ 3,849,195 3,325,495 3,426,460 3,577,844 3,577,844

Units 259,100 329,600 361,100 406,900 436,900


$ 7,509,495 11,542,395 14,869,160 19,706,844 22,831,044

Meter technology

Chiledctra has announced plans to create a ‘smart’ grid in Santiago, the capitals population, Santiago; is home to 5 millions of Chile’s 14 million population. Chile has few energy reserves and energy efficiency is an important issue, after periods in which the country has been deprived of supply by Argentina. The Energy Efficiency Country Programme was established in 2005 and a plan was launched in 2006, with four ‘smart’ grid pilot projects are already under way. An energy efficiency plan will be drawn up in 2009 for the years 2010 to 2020.


2008 2009 2010 2011 2012

Units 25,000 25,000 15,000 10,000 10,000


Euro 250,000 250,000 150,000 100,000 100,000

Units 220,000 260,000 280,000 300,000 310,000


Euro 2,200,000 2,600,000 2,800,000 3,000,000 3,100,000

Units 0 0 0 0 0


Euro 0 0 0 0 0

Units 0 30,000 50,000 80,000 100,000

Unit price 0 118 118 118 118 AMI

Euro 0 3,540,000 5,900,000 9,440,000 11,800,000

Units 500 1,000 2,000 2,000 2,000

Unit price 80 80 80 80 80

Residential

Prepayment

Euro 40,000 80,000 160,000 160,000 160,000

Units 13,500 13,500 14,000 14,800 14,800


Euro 2,524,500 2,524,500 2,604,000 2,723,200 2,723,200

Units 100 100 100 100 100

Unit price 940 940 940 940 940 Grid Grid AMI

Euro 94,000 94,000 94,000 94,000 94,000



6.2.3 Chile, Continued


There are two regulatory boards in Chile: CNE, the National Commission of Energy, and SEC, Superintendence of Electricity and Fuels.

Electricity meters must be type approved by Certification Bodies authorised by SEC. To obtain this they have to be verified, calibrated, sealed and certified.

Re-verification of customer-owned meters is required after 4 years.

Utilities own about half the meters and rent them to customers, and the customers own the rest.

Utility background

With the sale of Endesa and Chiletra in 1988 and 1989, Chile became the first country in Latin America to privatise its electricity sector. Its electricity market is now completely open to private investment and competition.

Most of the transmission system is operated by TRANSELEC, a subsidiary of ENDESA.

There are two main transmission grids in Chile. The SIC (Sistema Interconectado Central) is the Central Grid of Chile, which interconnects the most important electricity generating plants through a transmission system extending 1,879 km on a North-South axis through Chile, with isolated systems on the peripheries. SIC extends from the Third to the Tenth Regions of Chile and serves 92% of the population. The total power installed in SIC represents 96% and energy supplied 98% of that supplied by the public utilities in the country. This excludes self-producers, which account for 20% of power capacity installed in Chile. ENDESA has 2,514 MW of capacity in SIC or 66% of the system's capacity of 3,814 MW. CHILGENER stations, with 848.4 MW capacity in SIC provide 17.4% of the system's total consumption.

The other grid is SING (Northern Interconnected System), which includes the First and Second regions in the northern part of the country. SING is 1,733 km long, with 152 MW capacity and only serves 6% of the population. Main users are the rapidly expanding mining and industrial companies.

There are 20 distribution companies. The largest, CHILECTRA has about 55% of the market, Chilqinta 13% and CGEL 13%.

Table 6.32: ESI characteristics Chile

Generators - 3 control 70% of the market (all privatised) ENDESA - 45% Gener - 15% Colbun - 10% Self producers - 12% TSO – 4 (2 regional, 2 local) Sistema Interconectado Central (90% market share) Sistema Interconectado del Norte Grande Asyen Magallanes Network access – Regulated third party access Wholesale market - Balancing services are provided by the principal distributors and transmission operators organised into two institutions: Centros de Despacho Economico de Carga (CDEC) of SIC and of SING DNOs – 20 34 distribution companies



6.2.4 Canada



33,212,000 13,859,000 13,000,000


Annual demand was 1,896,500 meters (units) in 2008 fluctuating to 1,826,600 in 2012. The euro value will increase slightly over this period from €110 million ($162 million) to €118 million ($150 million).

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value, $ and €

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value ($) The C&I sector will decline in contribution from 15% to 12% in value.

2008 2009 2010 2011 2012


$ 85% 85% 87% 87% 88%


$ 15% 15% 13% 13% 12%



6.2.4 Canada, Continued


2008 2009 2010 2011 2012

Units 1,810,000 1,600,000 1,970,000 1,950,000 1,750,000


$ 138,250,000 134,100,000 159,120,000 154,050,000 131,900,000

Units 86,500 86,500 85,500 85,600 76,600

Euro 16,292,517 18,490,366 18,614,173 18,692,913 13,893,701 C&I

$ 23,950,000 23,482,765 23,640,000 23,740,000 17,645,000

Units 1,896,500 1,686,500 2,055,500 2,035,600 1,826,600


$ 162,200,000 157,582,765 182,760,000 177,790,000 149,545,000

Meter technology

Until recently the residential market in Canada was restricted to electromechanical meters for regulatory reasons. The regulatory procedures changed in 2004 and it is now anticipated that there will be a growing conversion to electronic meters.

In Ontario, which accounts for 4.3 million out of 12 million domestic meters; there will be a government mandated conversion to electronic meters by 2010. Other provinces are expected to follow with AMI deployments.

Market trend Widespread use of AMR was impeded by the regulations for type approval of

electronic meters, but this has been addressed. Ontario is leading the way with a province–wide adoption of ‘smart’ metering for all customers by 2010.

Currently, there is extensive use of AMR for large C&I customers, primarily monitored through MV-90 software using dial-up connections. There are also a variety of small AMR pilot projects for residential customers. Various communication media are being used, the most common being drive-by radio communications and power line carrier applications.

Until very recently, regulatory policy made wide deployment of residential electronic meters uneconomical compared to the old electromechanical meter technology, which does not have any of the functionality required for advanced metering and system control. As a consequence, Canadian utilities did not rush to adopt the new technology.

Under these rules, Measurement Canada required 100% sampling of electronic meters, which meant that deployment of single phase electronic meters would be at 128 times the cost of deploying electromechanical meters. Conversion of the electromechanical meter population to solid state would have added US$192 million per year to the cost of meter maintenance, exclusive of acquisition, initial verification, and installation costs. Verification costs would have risen by 750,000 x (US$25.00 - US$0.94) = US$18 million per year.

Ontario Province in Canada has opted to shut down its coal generation by 2007 and to reduce its dependence on hydropower. To achieve this, Ontario has to replace 25,000 MW of capacity by 2020. Without the coal plants, and with the forecasted growth in demand, it is critical for Ontario to embrace energy efficiency and reduce peak usage.




Market trend (continued)

Residential and small business customers in Ontario will be offered a standard rate plan to ensure that consumers can both take advantage of time-of-use rates and have the opportunity to shift consumption from periods of high demand and prices to periods of lower demand and prices. The Ontario Government has an interim target for the installation of 800,000 ‘smart’ electricity meters by 2007 and installation of ‘smart’ meters for all 4.3 million Ontario customers by 2010.


2008 2009 2010 2011 2012

Units 60,000 50,000 0 0 0 Electromechanical

$ 1,500,000 1,250,000 0 0 0


$ 26,950,000 7,350,000 7,200,000 7,050,000 6,900,000

Units 0 0 0 0 0 AMR

$ 0 0 0 0 0

Units 200,000 300,000 600,000 600,000 600,000 AMI

$ 11,800,000 17,700,000 34,800,000 34,200,000 33,000,000

Units 1,000,000 1,100,000 1,220,000 1,200,000 1,000,000

Residential

Prepayment $ 98,000,000 107,800,000 117,120,000 112,800,000 92,000,000

Units 0 0 0 0 0 C&I C&I AMI

$ 0 0 0 0 0


$ 19,975,000 19,507,765 19,740,000 19,740,000 13,725,000

Market shares by value 2008

Itron is the market leader with 50%, followed by Landis+Gyr with 16% and Elster with 13%.

50%

16%13%

11% 10%

0%

10%

20%

30%

40%

50%

60%

ItronActaris Landis+Gyr Elster GE Others




Electricity standards

Canada uses the ANSI C12 standards for electricity meters.


At present, a mix of federal and provincial regulation governs the Canadian electricity industry. Canada has federal regulations with uniform requirements for type approval, certification, and verification of electricity meters. The Electricity and Gas Inspection Act & Regulations (EGIA) and Weights and Measures Act & Regulation (W&M) are two federal regulations governing electricity metering.

For over 100 years, the Canadian electricity utility industry has had the highest level of regulatory intervention for measurement accuracy. The occurrence and severity of Measurement Canada’s interventions and policies, and in particular the requirement to verify every solid state meter before it enters into service, places a heavy burden on the utilities' ability to optimise their processes, reduce their costs, introduce new technologies, and meet escalating customer expectations.

Measurement Canada recognised that this situation had to change and carried out a series of pilot projects to compare the results of sample testing. These projects were completed in 2004, and sample testing of electronic meters is now being trialled after a 6-year period in service.


Single phase electromechanical meters are currently verified using sample testing at a cost of about US$0.13 per meter, per year. The seal period is 12 years when re-verification is required.

The cost of verifying polyphase mechanical meters under present Measurement Canada regulations and specifications, which allow sample testing, is US$0.94 per year. The seal period is 8 years when re-verification is required.

Solid state single phase and polyphase meters are sealed for 6 years and can now be re-verified by sample testing.


Historically, Measurement Canada required Canadian government inspectors to perform all the sealing and inspection of gas and electricity meters for Canadian markets. However in the last two years, the Canadian government modified the conditions for accreditation to allow metering manufacturers outside Canada to be accredited. This has effectively opened up the Canadian market for electronic meters.

In August 2004, Itron Inc received accreditation from Measurement Canada to inspect and seal electricity and natural gas meters at the company's Oconee S.C. factory for direct shipments to Canadian utilities. Itron is the first company outside of Canada to gain such accreditation.

In addition, Canada has granted the CENTRON solid state single phase meter a 10-year initial seal period allowing the meter to remain in the field for 10 years prior to sampling for accuracy. The CENTRON is the first solid state meter to be granted an extended initial seal period.





The following meter manufacturers are listed as manufacturers of conforming meters, i.e. those that are permitted as main meters:

• Elster Metering and ex-ABB

• GE Canada Inc.

• PML

• Itron Canada, ex-SchlumbergerSema and ex-Schlumberger

• Itron Canada / Square D and ex-Schlumberger / Square D

• Landis+Gyr

Implications for manufacturers

The US market does not have federal regulations that inhibit new technology. As the US market moves away from mechanical meters, availability of these meters will decrease. Eventually manufacturers will not be able to sustain the production of obsolete mechanical meters for the Canadian market alone. When this occurs, Canadian utilities will be forced to use electronic meters, and their maintenance costs will increase dramatically. Canadian customers are disadvantaged both in terms of costs and new value-added services. Given the huge extra cost imposed, it is not surprising that electronic meters have not been adopted in significant numbers by utilities in Canada.

Utility background

A key feature of the Canadian electricity market is its regional diversity, as indicated by the differences in fuels used for power generation, the market structure, the regulation, and pricing. While hydropower accounts for 61% of Canadian electricity generation, there is pronounced diversity, with generation coming from a number of other sources.

Canadian electricity is generally cost competitive with other North American jurisdictions. Due to the operations of hydraulic systems, most hydro-rich provinces have surplus energy available for domestic and international trade. Canadian legislation requires that exports must be authorised by the NEB and that interested Canadian electricity buyers be provided with the opportunity to purchase the electricity, for use in Canada, on similar terms and conditions as the proposed export sale. Exports to the US have generally accounted for less than 9% of domestic generation in recent years.

The electricity transmission interests in several provinces are considering membership in regional transmission organisations (RTOs), which are expected to facilitate access by Canadian exporters to US markets and access by Canadians to US supplies. RTO formation could lead to more north-south trade and further integration of US and Canadian electricity markets. To the extent that Canadian competitiveness can be maintained, higher export revenue would result. Market integration could also result in an upward movement of prices. Under Canada's constitution, the electricity regulatory authority falls under the jurisdiction of the provinces. In most provinces, a few dominant utilities provide the bulk of generation, transmission, and distribution. Although some of these utilities are privately owned, the majority are owned by the provinces. There is also some IPP generation.




Table 6.33: ESI characteristics Canada

Generators Vertically integrated utilities in all provinces, with some IPPs. Alberta is fully open and Ontario is in transition. ISO Alberta - ESB Alberta Ltd Ontario - Hydro One Inc. Elsewhere by vertically integrated utilities DNOs – Alberta c. 10 municipal, Ontario - 92 municipal



6.2.5 Mexico Population, household and meter base


109,955,400 27,810,000 33,631061


Annual demand was 1,886,000 meters (units) in 2008 falling to 1,437,000 in 2012. The value will decrease in this period from $78 million (€53 million) to $63 million (€50 million).

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

Valu

e $

and

euro

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Met

er u

nits

$ 78,330,000 68,955,000 65,500,000 61,545,000 63,240,000euro 53,285,714 54,295,276 51,574,803 48,460,630 49,795,276Meter units 1,885,800 1,631,400 1,566,900 1,446,900 1,436,900

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value ($)

Around 15% of the market is accounted for by the C&I sector.

2008 2009 2010 2011 2012


$ 87% 85% 85% 84% 85%


$ 13% 15% 15% 16% 15%


2008 2009 2010 2011 2012

Units 1,850,000 1,595,500 1,531,000 1,411,000 1,401,000


$ 68,250,000 58,700,000 55,360,000 51,520,000 53,330,000

Units 35,800 35,900 35,900 35,900 35,900

Euro 6,857,143 8,074,803 7,984,252 7,893,701 7,803,150 C&I

$ 10,080,000 10,255,000 10,140,000 10,025,000 9,910,000

Units 1,885,800 1,631,400 1,566,900 1,446,900 1,436,900


$ 78,330,000 68,955,000 65,500,000 61,545,000 63,240,000



6.2.5 Mexico, Continued

Meter technology

The customer base for Mexico is growing at a rate of 4.5% per year. With this amount of growth, the utilities also need to examine other technology options and improve processes.

One, two, and three phase electromechanical meters are used for domestic and commercial customers and LV services with voltages of 120/240 V. The error class for electromechanical meters is 2%.

Solid state demand meters are used for industrial and commercial customers, and MV services up to 749 kW, kWh/kW/kVArh, three phase 12-0/240/480 V. The error class for electronic meters is 0.5%.

Electronic meters are used for MV industrial customers with demand of 750 kW and above, as well as for HV customers. Three phase multi-function demand is kWh/kW/kVArh 120 V. The error class for electronic meters is 0.2%.

CFE is currently evaluating the possibility of using electronic meters for residential customers and low voltage commercial customers, who account for more than 95% of all installed meters.

AMR is used for 15,488 MV industrial (750 kW and above) and HV customers. The memory records a usage profile every 5 minutes, using a telephone modem or Ethernet port for remote reading and measurement of energy quality.

AMR is not currently used for domestic customers or for industrial or commercial customers below 750 kW. CFE uses remote meter reading for its domestic customers.

However it is reported that an AMR system has been developed in Mexico by Asesoria Tecnica en Compro SA, which has an interface for electricity, gas and water and one or two way communication. It includes theft detection and has a disconnect capability. Theft is a major issue in Mexico and it is reported that for LFC, the district of Mexico City losses amount to $800 million annually.

CFE is investigating AMI together with Elster and a pilot is being conducted.

Annual demand for meters by technology, forecast from 2008 to 2012, volume and value ($)

2008 2009 2010 2011 2012

Units 1,300,000 1,115,000 1,100,000 1,000,000 950,000 Electromechanical

Euro 24,761,905 24,582,677 24,251,969 21,259,843 20,196,850


Euro 15,000,000 15,433,071 13,228,346 11,102,362 10,866,142

Units 0 0 0 0 0 AMR

Euro 0 0 0 0 0

Units 100,000 80,000 80,000 110,000 150,000 AMI

Euro 6,666,667 6,173,228 6,047,244 8,141,732 10,866,142

Units 0 500 1,000 1,000 1,000

Residential

Prepayment Euro 0 31,496 62,992 62,992 62,992

Units 35,000 35,000 35,000 35,000 35,000 C&I C&I AMI

Euro 5,523,810 6,338,583 6,283,465 6,228,346 6,173,228


Euro 1,333,333 1,736,220 1,700,787 1,665,354 1,629,921





Itron is market leader with a 70% share.

70%

0%

9%

21%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Itron Landis+Gyr Elster Others

In Mexico, Itron is partnering with IUSA-GE, a market leader in watt-hour meters supplied to the Mexican utility industry. The two companies are working together to adapt Itron's 45 Series Electric ERT meter module to fit IUSAs AP-85 polyphase meter. This will act as an initial step in developing AMR systems and solutions for Mexico's Federal Electricity Commission (CFE), the national utility responsible for generation, transmission, distribution, and sale of electricity to nearly all areas of Mexico apart from the Mexico City area. CFE has placed an order for 25,000 SENTINEL solid-state electricity meters and also has the option to purchase an additional 37,000 units. C&I metering represents approximately 60 percent of CFEs annual billing.


Mexico uses the ANSI C12 standards for electricity meters.


The Centro Nacional de Metrología is the authority responsible for metrology regulations.

Type approval and certification is subject to the Normas Oficiales Mexicanas (NOM), based on ANSI and IEC standards NOM-044-SCFi-1999 for kWh meters and NOM-127-SCFI-1999 for multifunction meters.

Evaluation of meters takes place in three stages:

• Prototypes are tested in the primary laboratory

• Acceptance tests are applied in CFEs workshop

• Tests are performed on meters installed in the field


CFE has its own primary laboratory,116 workshops around Mexico, and 13 secondary meter laboratories, all accredited to the Normas Mexicanas de Laboratorios de Calibración.




Utility background

State ownership of energy assets is a historically significant characteristic of Mexico's economy. The most important national entities in energy are the state-owned oil and gas company, Petroleos Mexicanos (PEMEX), and the national electricity utility, Comisión Federal de Electricidad (CFE) and Luz y Fuerta del Centro, the state-owned distribution company in Mexico City. Control over Mexico's huge energy sector is currently concentrated under the offices of the Ministry of Energy.

For years, CFE and Luz y Fuerta del Centro have enjoyed a monopoly in the electricity power sector, although reforms instituted in 1992 allow for IPP and co-generation facilities to sell their power. CFE owns most of Mexico's installed electricity generating capacity, including all the nuclear and geothermal generating capacity, and generates 92% of the country's electricity.

LFC is Mexico's other state-owned electricity utility, with about 2% of the generating capacity, primarily around Mexico City. PEMEX also generates electricity, producing about 3% of the total and various private sectors IPP and co-generation generating facilities produce the rest. CFEs dominance is beginning to wane slightly as the company lacks the funds needed to meet Mexico's soaring electricity demand, and IPPs are now beginning to secure a significant share of the market.

Mexico has a unified electric grid that serves 97% of the population. It can be divided into four sections: Northern, North Baja, South Baja, and Southern. The Northern section of the grid is connected to the United States at the Eagle Pass, Texas - Piedras, Mexico border. The connection uses an asynchronous technique that handles the problem of differences in current between Mexico and the United States. Other trans-border lines are scheduled, including one from a power station outside Phoenix, Arizona to Sonora, Mexico. Another is being planned between Tucson, Arizona and Northern Mexico.

Table 6.34: ESI characteristics Mexico

Generators CFE Comision Federal Electrica (state-owned), with six Generation Business Units - 92% Luz y Fuerzo del Centro (state-owned) - 2% PEMEX (state-owned oil company) - 4% IPPs - 2% TSO – CFE DNOs – 13 distribution Business Units in CFE Luz y Fuerzo del Centro in Mexico City



6.2.6 United States of America Population, household and meter base


303,824,640 117,901,000 147,419,565


Annual demand was 10 million meters (units) in 2008 rising to 13 million in 2012. The value will increase in this period from $1,087 million (€739 million) to $1,410 million (€1,111 million).

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

Valu

e $

and

euro

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

Mer

ter u

nits

$ 1,086,600,000 1,115,930,000 1,193,990,000 1,281,520,000 1,410,370,000euro 739,183,673 878,685,039 940,149,606 1,009,070,866 1,110,527,559Meter units 10,042,000 10,212,000 10,847,000 11,399,000 12,999,000

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value ($)

The US market will retain about one fifth of its value in the C&I sector

2008 2009 2010 2011 2012


$ 78% 78% 79% 80% 81%


$ 22% 22% 21% 20% 19%


2008 2009 2010 2011 2012

Units 9,175,000 9,305,000 9,920,000 10,430,000 11,980,000


$ 844,350,000 866,180,000 944,130,000 1,021,220,000 1,141,820,000

Units 867,000 907,000 927,000 969,000 1,019,000

Euro 164,795,918 196,653,543 196,740,157 204,960,630 211,456,693 C&I

$ 242,250,000 249,750,000 249,860,000 260,300,000 268,550,000

Units 10,042,000 10,212,000 10,847,000 11,399,000 12,999,000

Euro 739,183,673 878,685,039 940,149,606 1,009,070,866 1,110,527,559 Total meters

$ 1,086,600,000 1,115,930,000 1,193,990,000 1,281,520,000 1,410,370,000



6.2.6 United States of America, Continued

Meter technology

At the end of 2008 electromechanical meters constituted 75% of the residential electricity installed meter stock in the USA. 94 million of the residential meters in the USA were electromechanical and 32 million were electronic meters.

There were 21 million electronic C&I meters by the end of 2008.

The preponderance of electromechanical meters hides the rapidity of the switch to electronic meters. In 1998, there were only 1.6 million in the USA. Today, 95% of the solid state residential meters are Centron meters manufactured by Itron. With shipments of electronic meters (basic and AMI/AMR) in the USA peaking between 6-8 million per year in the last three years and rising to 11-12 million, it is clear that a total replacement the electromechanical stock of meters in the USA will take about ten years unless production is expanded substantially, or meters are imported, and if the funds are available to do it.

Market trend The electricity meter market has grown historically in the USA at 3% per year. Under

a BAU (business as usual) scenario we would have expected it to grow at a CAGR of 4.8% in the next five years in real terms, because of the installation of AMI/AMR. The consensus of opinion seems to be that the utility industry in the USA is one of the more vulnerable ones, largely because it is driven by new installations decided by utilities and not under government mandate, as is mostly the case in the European and Asian countries where large AMI roll-outs are planned.

The utility industry faces two specific difficulties at the customer end. Housing starts have suffered an unprecedented melt-down in the USA, and the manufacturing slow-down means that utility revenue is reduced on two fronts.

Against this must be weighed the fiscal stimulus announced by the Federal government, but yet to be approved by Congress.

We have heard a number of warnings of a decline in 2009 and none suggesting growth in the USA. We believe that demand may be static for at least a year. However, as the chart above shows, we anticipate the growth in 2011 and 2012 as large AMI deployments start, by which time recovery may be under way.

Annual demand for meters by technology, forecast from 2008 to 2012, volume and value ($)

2008 2009 2010 2011 2012

Units 350,000 310,000 200,000 0 0 Electromechanical

$ 6,300,000 7,750,000 5,000,000 0 0


$ 34,300,000 35,280,000 36,750,000 38,400,000 36,800,000

Units 2,000,000 1,950,000 1,600,000 1,400,000 1,400,000 AMR

$ 120,000,000 117,000,000 94,400,000 81,200,000 81,200,000

Units 6,000,000 6,200,000 7,200,000 8,000,000 9,500,000 AMI

$ 672,000,000 694,400,000 792,000,000 880,000,000 997,500,000

Units 125,000 125,000 170,000 230,000 280,000

Residential

Prepayment $ 11,750,000 11,750,000 15,980,000 21,620,000 26,320,000

Units 850,000 890,000 910,000 950,000 1,000,000 C&I C&I AMI

$ 197,200,000 204,700,000 205,660,000 212,800,000 222,000,000


$ 45,050,000 45,050,000 44,200,000 47,500,000 46,550,000




Market shares value by 2008

Itron is the market leader with a 44% share, followed by Landis+Gyr with 11%, GE with 8% and Elster with 7%. The electricity meter market in the USA is dominated by four companies:

• Itron - In 2004, Itron bought SEM, making the combined group the largest meter manufacturer in the USA, as well as the largest AMR supplier in the world. In February 2007 Itron acquired Actaris worldwide to create the largest metering group in the world and further to consolidate its position in the United States with Actaris’s water and gas meter business.

• Landis+Gyr

• Elster

• GE

Iskra has been making inroads in the US market. In 2007, Iskara was bought by the Egyptian El Sewedy Group.

There are many small regional meter companies selling meters within their areas of operation within their own states.

Electricity meter market shares in the USA, by value 2008

44%

11%

7% 8%

1%

29%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

ItronActaris Landis+Gyr Elster GE Iskra Others

Market shares value by 2008 (continued)

AMR/AMI

By the end of 2008 an estimated 39% of the 147 million electricity meters in the USA were automated for AMR or AMI. A recent survey by FERC (Federal Energy Regulatory Commission) found that advanced meters with fuller AMI functionality are installed in about 6% of US homes and businesses, amounting to 9 million. Interestingly, according to FERC, some utilities did not record fixed network AMR as AMI, and rural co-operatives have the highest level of penetration, presumably driven by meter reading savings.

In the Energy Policy Act of 2005, Congress ordered regulators in every state to consider advanced meters.




Market shares value by 2008 (continued)

To date the take-up of AMI meters and time-of-use meters has been slow because of the expense and resistance from regulators to allow utilities to pass the cost on to customers. The USA has lead the introduction of AMR but paradoxically this may be a hindrance to a fast take up AMI metering, because of the legacy cost of the existing one way AMR meters.

Pacific Gas and Electric (PG&E) in California is operating time-of-use meters and in the summer warned customers that that midday electric prices the next day were going to skyrocket. In a pilot programme, 70% of consumers cut their monthly bills an average of about 10%. PG&E says the savings will offset costs in 12 years.

AMR/AMI suppliers, market shares

Itron continues to lead the AMR market and is the largest supplier of AMR in the world.

Itron sells AMR units under its own name and also embedded in other meters.

The company manufactures electricity meters in their facility in Oconee, South Carolina. In addition, they have a retrofit centre capable of retrofitting most utility-owned meter types available with add-on AMR technology. The Oconee facility currently has the capacity to produce more than six million units annually.

Market shares of principal suppliers of AMR to electrical utilities in the USA by value, 2008

48%

25%

18%

4%2%

3%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Itron Land+Gyr ESCO elster Sensus Other

Source: Company reports


The ANSI C12 standards apply for electricity meters in the USA.





In the United States, the state Public Utility Commissions or the Public Service Commissions are generally responsible for making sure that the standards developed by the National Institute of Standards and Technology (NIST) are respected in matters of types of meters, meter approval, and inspection or supervision of meter inspections. They are also responsible for handling disputes between consumers and natural gas suppliers.

Each state can apply the regulations for which it is responsible in a different manner. It is also important to note that the individual state has the choice of applying federal standards in matters of meter specifications. For example, certain states can use the standards of the American National Standards Institute (ANSI) instead of those of the NIST. The following organisations are responsible for implementing these standards (the first is governmental, whereas the second is a private, non-profit organisation).

There are no national type approvals and certifications for gas and electricity meters in the USA. Instead, there are American National Standards for these devices, and regulation is done at the state level by public utility commissions. The federal government develops standards, and state governments develop regulations.

Approval of new meter types is done through collaboration between the federal level and the states. At the federal level, the National Conference on Weights and Measures (NCWM) oversees the National Type Evaluation Programme (NTEP) and has adopted regulations in relation to this programme, e.g. the Uniform Regulation for National Type Evaluation.


Regulations relating to initial verifications are determined by the states. In some states, the initial verification is done by manufacturers or natural gas distributors.


Regulations relating to meter re-verification are also determined by the states. In California, standards stipulate that all meters have to be re-verified every ten years. However, a distributor can, under certain conditions, present a sampling plan instead of re-verifying each meter. The sampling methods have to meet statistical sampling principles. Re-verifications are done by distributors and the monitoring procedures used by the Public Utilities Commission are the same as for the initial verification.

In Florida, re-verifications are done by distributors, and the Public Service Commission uses the same means to monitor re-verifications as for initial verifications. In that state, regulations vary according to meter types.

The National Institute of Standards and Technology (NIST)

The National Institute of Standards and Technology (NIST) have statutory responsibilities in relation to cooperation between the states in order to make uniform both the laws and the weight and measurement methods of inspection. Established in 1901, the NIST is a government organisation that falls under the jurisdiction of the US Commerce Department’s Technology Administration. This organisation’s mission is to develop and promote measurement standards and technology in various applications. NIST carries out this mission with four programmes. One of these programmes is the NIST Laboratories which aims at doing studies in various areas to improve the technological infrastructure in the United States. It is through this programme that standards pertaining to natural gas measurements are implemented.





The NIST laboratories answer the industry’s and federal public entities’ needs in matters of measurement methods, tools, data and technology as well as the needs of other government levels (states, counties, municipalities) in a wide variety of scientific areas. One of these laboratories is called Technology Services, and provides a variety of products in collaboration with federal government agencies, national measurement institutes, state and local governments and the private sector.

The American National Standards Institute (ANSI)

The American National Standards Institute (ANSI) is the main standardising organisation in the United States. Established in 1918, this private non-profit organisation administers and coordinates the voluntary standardising process in the United States and the conformity evaluation system in many jurisdictions, such as natural gas. The ANSI not only manages all that relates to standards in the United States but also has a great influence on standards all over the world.

The ANSI is not regulated by a government organisation.

Developing metrological standards

In the United States, the National Institute of Standards and Technology (NIST) annually publish a standard called “The Technology Handbook: Specifications, Tolerances, and Other Technical Requirements for Weighing and Measuring Devices.” This document includes a set of standards for different measuring devices, such as scales in food shops, water meters, or gas meters. Whereas the NIST publishes this standard, it is actually developed and adopted each year by the Specifications and Tolerances Committee of the National Conference on Weights and Measures.

Regulating the devices used for meter testing

Regulation of the devices used for meter testing is carried out by individual states, and there are differences between the requirements of each state.

Utility background

Ultimate control over the electricity supply industry in the USA rests with the US Department of Energy, which oversees its development.

In 2005, there were some 3,300 companies operating in the electricity supply industry in the United States. Of this total, 63.7% were publicly owned, 28.5% were classed as cooperatives, 240 or 7.6% were investor owned utilities, and 9 were owned by the US Federal Government. The institutional framework of regulation and supervision means that these companies are split between traditional, vertically-integrated utilities, generators, transmission companies, distributors, wholesalers, and retailers.

In 1968, the North American Electric Reliability Council (NERC) was established to oversee the supply of bulk power around the country. NERC operates 10 regional reliability councils.

The electricity power industry is in transition from highly-regulated, local monopolies which provided their customers with a total package of all electricity services toward competitive companies that provide the electricity. Utilities continue to provide transmission or distribution services. In addition, states are moving away from regulations that set rates for electricity toward oversight of an increasingly deregulated industry, in which prices are determined by competitive markets.





Almost half of the states have passed major legislation and/or regulations to restructure their electricity power industry. Those which regulate distribution services and retail rates for electricity within their borders decide whether deregulation is in their best interest.

The transmission system has been challenged recently in the US to move unprecedented amounts of power and in unexpected directions. Unplanned generation outages and the evolution of the electricity industry, under open access, are the direct causes of this.

The adequacy of the transmission system is under question at present, but NERC states that the transmission system of the US is expected to perform reliably in the short term. Although the system was stressed in the summer of 1998, it performed reliably and demand was not interrupted. However in the long term, the system's reliability is open to question. Business is increasing, but very little is being done to increase the load serving and transfer capability of the bulk transmission system. Most of the transmission projects planned over the next decade is intended to reinforce parts of the system to alleviate local problems.

Table 6.35: ESI characteristics United States

Generators Nearly 900 generation utilities The structure varies by state The bulk of generation is by investor-owned utilities, followed by public companies and cooperatives. TSO - 617 transmission owners Mostly investor-owned and public companies DNOs – 2,440



6.3 Asia Pacific


6.3.1 Australia 6.3.2 China 6.3.3 India 6.3.4 Indonesia 6.3.5 Japan 6.3.6 Korea, South 6.3.7 Malaysia 6.3.8 New Zealand 6.3.9 Philippines 6.3.10 Taiwan 6.3.11 Thailand 6.3.12 Vietnam


6.3.1 Australia



21,007,300 6,636,000 10,134,048


Annual demand was 396,000 meters (units) in 2008 and this will rise to 1,727,000 in 2012 as the AMI roll-out gathers momentum. The value will increase in this period from €28 million ($40 million) to €183 million ($232 million).

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

Valu

e $

and

euro

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

Met

er u

nits

$ 40,451,460 64,096,900 92,557,600 185,242,200 232,073,450euro 27,518,000 50,470,000 72,880,000 145,860,000 182,735,000Units 395,550 593,050 758,050 1,438,050 1,727,050

2008 2009 2010 2011 2012


The roll-out of AMI meters will reduce the share of C&I meters from 46% in terms of value to 7% by 2012.

2008 2009 2010 2011 2012


Euro 54% 75% 83% 91% 93%


Euro 46% 25% 17% 9% 7%



6.3.1 Australia, Continued


2008 2009 2010 2011 2012

Units 325,500 523,000 688,000 1,368,000 1,727,000


$ 21,797,160 55,536,600 88,479,300 195,759,900 249,966,150

Units 70,050 70,050 70,050 70,050 50

Euro 12,690,000 12,690,000 12,690,000 12,690,000 12,690,000 C&I

$ 18,654,300 16,116,300 16,116,300 16,116,300 16,116,300

Units 395,550 593,050 758,050 1,438,050 1,727,050


$ 40,451,460 64,096,900 92,557,600 185,242,200 232,073,450

Meter technology

In 2005, the government of Victoria mandated ‘smart’ meters in the National Electricity (Victoria) Act 2005. Installations started in 2006 and 2.3 million are being installed by 2010. Victoria is the first state in Australia to do this. The project will cost AUD $780 million.

New South Wales is following Victoria. According to the Australian Department of Resources, Energy & Tourism 5 million ‘smart’ meters will be deployed in these two jurisdictions by 2017.

On December 2008, the government of South Australia issued the draft of a National Electricity (South Australia) (‘smart’ meters) Amendment Act 2009 to mandate ‘smart’ meters in South Australia. It has not yet reached the statute book. Other jurisdictions are expected to follow.


2008 2009 2010 2011 2012

Units 97,000 80,000 30,000 20,000 15,000


Euro 3,007,000 2,480,000 1,140,000 620,000 420,000

Units 200,000 200,000 150,000 50,000 45,000


Euro 11,000,000 11,000,000 8,250,000 2,750,000 2,925,000

Units 0 0 0 0 0


Euro 0 0 0 0 0

Units 2,500 235,000 500,000 1,290,000 1,660,000

Unit price 110 100 100 100 100 AMI

Euro 275,000 23,500,000 50,000,000 129,000,000 166,000,000

Units 26,000 8,000 8,000 8,000 7,000

Unit price 21 100 100 100 100

Residential

Prepayment

Euro 546,000 800,000 800,000 800,000 700,000

Units 70,000 70,000 70,000 70,000 70,000


Euro 12,600,000 12,600,000 12,600,000 12,600,000 12,600,000

Units 50 50 50 50 50


Euro 90,000 90,000 90,000 90,000 90,000





The largest meter manufacturer in Australia is Landis+Gyr, which has taken over Ampy Email Metering and is owned by the Australia-based Bayard Group. Ampy was founded 80 years ago and produces electromechanical, solid state and ‘smart’ meters. Landis+Gyr supply the bulk of residential meters.

Bayard is an Australia-based holding company, which acquired AMPY Email Metering in 2003 and Landis+Gyr in 2004, and has added Hunt Technologies and Cellnet from the US and Enermet in 2007. meter2cash was merged with Landis+Gyr in January 2008. Landis+Gyr is now the name for all metering and technology companies in the group.

EDMI started in Australia in 1978 as a privately owned company, specialising in the design and manufacture of customised, small-scale solid state products. After acquisition by Bridex Singapore in the 1990s, it has grown into a leading meter manufacturer. EDMI also provides AMR software. Its Australian operation is based in Brisbane. EDMI produces premium products at the high-end of the market for generation and transmission utilities in 132 kV class substations. The company is now moving down into the lower end of the market.

Iskra’s unit share has fluctuated between 1% and 12% over the last four years.

Elster supplies meters imported from the UK.

Actaris.

Type approval Australia has a well-developed national measurement system which is made up of

four national organisations which are complemented by trade measurement authorities and legal metrology authorities. The national organisations are:

• National Measurement Institute (NMI) is responsible for legal metrology and establishing and maintaining Australia’s units and standards of measurement

• National Association of Testing Authorities (NATA), Australia is responsible for laboratory accreditation and is the largest such system in the world. NATA accreditation recognises and promotes facilities competent in specific types of testing, measurement, inspection and calibration

• Standards Australia is responsible for standards specifications

• Joint Accreditation System of Australia and New Zealand (JAS-ANZ) is responsible for certification of management systems, products and personnel

There are four approving authorities for electricity meters:

• Country Energy

• EMC Technologies Pty Ltd

• Measurement Services, Testing and Certification Australia

• Parkside Laboratories (New Zealand)





The following organisations are accredited to carry out initial verification:

• Country Energy

• AMPY Email Metering

• ETSA Utilities, South Australia

• Formway Metering Services Pty Ltd

• Measurement Services, Testing and Certification Australia

• Nilsen Industrial Landis+Gyr Pty Ltd

• Western Power Corporation

• WF Energy Controls

Meter regulations

The restructuring of the Australian ESI has now been proceeding for 14 years since the ESI itself set up an industry reform working group during 1990. Originally, in some Australian states (e.g. Victoria, South Australia and Tasmania) the four ESI functions were carried out within a single, vertically-integrated, monopoly business. In other states (e.g. New South Wales and Queensland) generation and transmission were contained in a single monopoly business, while distribution and retail supply were carried out by a number of businesses, each with a monopoly franchise covering a specified geographical area within the state. A major objective of ESI restructuring in Australia has been to un-bundle the four ESI functions into separate businesses.

The wholesale market NEMMCO, National Electricity Market Management Company consists of the sale of bulk electricity by generators to retail suppliers and large end-use customers in southern and eastern Australia which comprises.

A two tier system has been established for retail supply in each state.

‘First tier’ retailers are attached to a distribution business with a monopoly geographical franchise in that state. However, first tier retailers can sell electricity to customers throughout the state. The retail business is “ring fenced” from the distribution business (i.e. established as a separate accounting entity within one holding company).

‘Second tier’ retailers are stand-alone businesses not attached to a distribution business in that state. A second tier retailer in one state may be a first tier retailer in another state.

Generally, metering is the responsibility of the distributor or the retailer. In reality, the utilities in Australia are the major buyers and installers of electricity meters.

Meter regulations in Australia exist at both federal and state level. For most of the smaller customers metering arrangements are still under state level regulation by the respective energy regulator. All jurisdictions of the individual states are under the authority of NEMMCO, which works across state borders.




Utility background

In 1996, major reforms were instituted for Australia's electricity industry. Prior to the reforms, the supply of electricity in Australia was provided by vertically-integrated, publicly-owned state utilities meeting the needs of individual states and territories. The electricity industry had never operated on a national basis. Interstate grid connections were weak and electricity trade had been limited between the interconnected states. The state governments were responsible for operational and planning activities, and tariff structures. The National Commonwealth government's only involvement in the industry was through its principle shareholder status in the Snowy Mountains Hydro-electric Scheme in which the two states of Victoria and New South Wales also hold shares. Some regulatory controls by the Commonwealth were exercised, mainly through control over state borrowing limits, taxation, foreign ownership, and environmental regulations.

Electricity reform and privatisation in Australia have occurred at both the state and national levels. Australia's dual path to electricity reform bears some similarities to developments in US electricity markets. One result of Australia's dual state / national approach to electricity reform is that each state has pursued different reforms, with reform efforts at the national level providing guidance rather than direction, whereas UK reform was entirely a central government effort. Victoria has pursued the most aggressive electricity reform measures in Australia and has most closely followed the UK model, while other states have pursued various degrees of more limited reform. The restructuring of the Australian ESI has now been proceeding for 16 years and consists of the following steps:

• Introduction of competition

• Unbundling of ESI functions

• Re-organisation of the electricity market

• Separation of network charges

• Privatisation of electricity businesses in some states

• Formalisation of ESI regulation

Key to these reforms has been the creation of the National Electricity Market (NEM), which is a wholesale pool operated by the National Electricity Market Management Company (NEMMCO), serving the states of Queensland, New South Wales, Victoria, Southern Australia, and the Australian Capital Territory via an interconnected national grid. The NEM currently does not include the states of Tasmania, Western Australia, or the Northern Territories, although Tasmania is expected to join when construction of an electricity link to the mainland is completed. Geographic distance is the main obstacle to the inclusion of the other two states in the NEM. As a result, in November 2002, the government of the state of Western Australia adopted its own plans for reforming its electricity sector which included the unbundling of the state's regulated utility, Western Power, and the establishment of a wholesale power market by 2005.




Table 6.36: ESI characteristics Australia

Generators > 5% - Mixed state-owned and private, many generating companies TSO – Mostly one per state Network access – Regulated third party access DNOs Victoria - 5 New South Wales - 6 Australian Capital Territories - 1 Queensland - 7 South Australia - 1 Western Australia - 1 Tasmania -1



6.3.2 China



1,330,044,000 450,000,000 385,000,000


Annual demand was 52 million meters (units) in 2008 rising to 63 million in 2012. The value will increase in this period from €724 million ($1.064 billion) to €1.142 billion ($1.45 billion). China currently has a manufacturing production capacity of 80 to 100 million meters per year, according to the National Institute of Metrology of China.

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

Valu

e $

and

euro

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

Met

er u

nits

$ 1,064,280,000 1,221,740,000 1,288,097,500 1,388,427,500 1,450,340,000euro 724,000,000 962,000,000 1,014,250,000 1,093,250,000 1,142,000,000Units 52,025,000 54,530,000 56,780,000 60,780,000 62,930,000

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) In China the industrial sector accounts for over 40% of the value in the meter market

and this will come down to about one third as a roll-out of AMI meters get under way. It will, however, remain high because (up until the manufacturing crisis in China) industry accounted for 75% of electricity demand in China. However, this may raise questions about the Chinese utility sector’s ability to finance the AMI development because revenue is bound to be impacted.

2008 2009 2010 2011 2012


Euro 59% 64% 64% 66% 62%


Euro 41% 36% 36% 34% 33%



6.3.2 China, Continued


2008 2009 2010 2011 2012

Units 49,000,000 51,000,000 53,000,000 57,000,000 59,000,000


$ 626,955,000 782,955,000 822,325,000 922,655,000 894,080,000

Units 3,025,000 3,530,000 3,780,000 3,780,000 3,930,000

Euro 297,500,000 345,500,000 366,750,000 366,750,000 379,500,000 C&I

$ 437,325,000 438,785,000 465,772,500 465,772,500 481,965,000

Units 52,025,000 54,530,000 56,780,000 60,780,000 62,930,000

Euro 724,000,000 962,000,000 1,014,250,000 1,093,250,000 1,142,000,000 Total meters

$ 1,064,280,000 1,221,740,000 1,288,097,500 1,388,427,500 1,450,340,000

Meter technology

The important announcement, issued in he last few months, is the Chinese government’s decision to roll-out a national installation of AMI meters, starting in 2009. All the installed electromechanical meters will be replaced and electronic meters up-graded to 2-way AMI capability. The time frame quoted is five years. This will be the largest AMI deployment in the world. It is early to predict exact volumes of meters to be deployed each year and the estimates may be amended.

The domestic sector has been moving rapidly moving from electromechanical meters to cheap digital meters. Currently, residential customers use both electromechanical meters and electronic meters manufactured in China. The principal products are DD28 and DD86, which historically have had design lives of 5 and 10 years respectively. This is now superseded by the announcement about the AMI installation.


2008 2009 2010 2011 2012

Units 14,000,000 6,000,000 2,000,000 1,000,000 1,000,000


Euro 84,000,000 36,000,000 12,000,000 6,000,000 6,000,000

Units 26,000,000 10,000,000 9,000,000 5,000,000 3,000,000


Euro 208,000,000 80,000,000 72,000,000 40,000,000 24,000,000

Units 0 0 0 0 0


Euro 0 0 0 0 0

Units 6,500,000 4,500,000 4,500,000 4,500,000 4,500,000


Euro 84,500,000 58,500,000 58,500,000 58,500,000 58,500,000

Units 0 28,000,000 35,000,000 44,000,000 48,000,000

Unit price 0 14 13 13 13

Residential

AMI

Euro 0 392,000,000 455,000,000 572,000,000 624,000,000




Annual demand for meters by technology, forecast from 2008 to 2012, volume and value (€) (continued)

2008 2009 2010 2011 2012

Units 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000

Unit price 20 20 20 20 20 Residential Prepayment

Euro 50,000,000 50,000,000 50,000,000 50,000,000 50,000,000

Units 3,000,000 3,500,000 3,750,000 3,750,000 3,900,000


Euro 255,000,000 297,500,000 318,750,000 318,750,000 331,500,000

Units 25,000 30,000 30,000 30,000 30,000


Euro 42,500,000 48,000,000 48,000,000 48,000,000 48,000,000

Historical development

It has been a top priority for China to electrify rural areas, and it has now achieved 98% electrification throughout the country. The economic boom has created a huge temporary migration of population from the poor rural areas into the urban areas, and there is an unknown mass of labour drifting in search of temporary, poorly paid work. The exact number is unknown but is thought to be well in excess of 100 million and possibly 200 million. This is threatening the social and economic stability of the country, and the government is intent on finding ways of persuading the rural population to remain on the land. This is not a problem specific to China and is happening in most other developing countries as well. The scale of the problem in China however, is far greater than elsewhere. Rural electrification has become a high priority not only to improve living conditions but to provide an economic boost and to aid education, which in turn helps to develop rural communities and create a reason to stay. At the same time, the government has mandated “one household one meter” moving away from the old social collective policies.

This has now been achieved and the emphasis for new residential meters will therefore shift to new housing in urban areas. Construction in China has grown at 8.3% over the last few years, and this is expected to continue as the urban housing stock is upgraded both by the government and by private activity.

As a result of this drive to electrification, China has become the largest meter market in the world. It is a two tier market consisting of millions of low-price, short-life, locally manufactured meters and higher-quality meters both domestically produced and imported in the C&I sector. Large customers with transformer capacity over 50 kVA already use time-of-use metering. Local Chinese administrations started to implement selective time-of-use pricing in 1985 to help reduce the gap between power supply and demand. TOU pricing mainly applies to large consumers of electricity power who take power at high voltage and who represent about one-third of electricity power consumption. The ratio of peak load to off-peak prices is usually 3 to 1.




Historical development (continued)

Seasonally-adjusted pricing is also being implemented in some regions. Problems currently preventing wider application of time-of-use and seasonal pricing, which are being addressed, include the following:

• Basic prices are too low

• The difference between peak and off-peak prices does not provide enough incentive to conserve energy

• Electronic meters are of poor quality or are too expensive

• Tariff collection is inadequate

• TOU metering will be introduced for residential customers

Prices The market in China is divided into two price categories: local and imported. Only the

largest meters are imported. In 2004, China imported 229,816 electricity meters at an average price of US$72.2 per meter, 5-6 times the price of a Chinese-made high-end meter:

• Chinese manufactured high-end electromechanical meters are sold for US$12-17 with a 15-year life

• Low-end electromechanical meters cost US$7 and have a 10-year life with no guarantee

• Chinese manufactured digital residential meters cost US$9-12 and have a 10-year life

• High-end C&I meters follow international pricing. The new long-life meters will be more expensive

Tariffs In April 2005, in an effort to alleviate pressure on the city’s power supplies, Beijing’s

Municipal Development and Reform Commission introduced variable pricing to be brought into effect in the summer. The cost of electricity at peak hours was then to be over four times the cost of consumption in low-use periods. Peak hours have been defined as from 11:00 to 13:00 and from 20:00 to 21:00, July to September.

Prepayment meters

China has recently become a major user of prepayment meters, and there are more than 10 million prepayment meters installed, mostly for electricity, but also covering gas and water. This makes China the largest user of prepayment meters, overtaking the UK and South Africa.

Electricity meter market shares in China, by value 2008

The market is overwhelmingly dominated by Chinese companies, which are the only ones with the production capacity to meet Chinese demand. The international companies compete only in the high end of the market.

China is the largest producer and consumer of kWh meters in the world.




Electricity meter market shares in China, by value 2008 (continued)

There are over 600 companies involved in electricity meter manufacturing in China. The first was established in Shanghai in 1949, when China had a total installed generating capacity of 1,900 MW. There are several very large producers, with some of the largest manufacturing facilities in the world both for electromechanical and electronic meters.

The Chinese companies export at two levels. The leaders in the industry can produce high quality meters to international standards. They also produce products on a contract basis to the specifications of western utilities, such as the Enel meter for the Telegiastore. China is a large manufacturer of meters under contract for overseas meter suppliers. This resource has moved into a new stage over the last few years, progressing from low-quality, and low-price meters to the technical capability to produce meters to international ISO and IEC standards.

A visible sign of this progress is the large increase in advertising in the trade press by Chinese meter manufacturers, with a lot of emphasis on technical standards and accuracy levels.

At the other end of the scale, large numbers of cheap, low quality meters are sold to India, Southeast Asia and Africa, often by unlicensed Chinese manufacturers. We have heard a number of reports of breakdown and deterioration after as little as eighteen months of service, many from India and more recently from Africa.

The recent announcement of the AMI roll-out in China may mean that the good Chinese companies will become preoccupied with their own domestic market and be less concerned to compete abroad. This will probably not affect the lower end of the industry, which will continue dumping poor product into the developing countries.

0.4%

3.4%

0.2%

15%

12%

16%

11%

41%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Actaris Landis+Gyr Elster Holley NingboSanzing

JiangsuLinyang

Wasion Others

Standards China has had only one mechanical meter industry standard: JB/T50070-2002

“Reliability Requirements and Compliance Test for Electricity Meters.” This standard specified methods for testing electricity meters in a laboratory environment to ascertain whether they met reliability requirements as laid out in the product contract and product specification. There are different failure modes for mechanical meters and static electricity meters.




Standards (continued)

New standards are now being drafted. The “Particular Requirements for Multi-function Electricity Meters” is now being drawn up by the National Committee of Standardisation Techniques for Electrical Measuring Instruments. The standard specifies particular requirements for multi-function electricity meters, which can measure and display more than one type of power, such as active and reactive power, while being integrated with some additional functions.

The features of China’s power market deregulation, the demands for metering management, and power generation and distribution, as well as the use of multi-function electricity meters in China, are all being taken into account during the formulation of standards. The standard is expected to define the requirements for multi-function electricity meters in the following aspects: basic and additional functions, display, security, event log and software requirements, and standardisation of the display format and the auxiliary connection terminal.

More and more commercial firms are using intelligent meters in their metering and billing systems. Previously, the commercial value of meters was based on their data acquisition and processing abilities. Now, the value depends on their inter-operability and system integration. As such, IEC TC13 published the IEC 62056 series of standards: Electricity metering - Data exchange for meter reading, tariff, and load control. The COSEM (Companion Specification for Energy Metering) is a set of international standards which consists of six parts.

The release of these technical specifications enables all relevant meters, support tools, and other system devices to be interoperable and easily integrated. The National Committee of the Standardisation Techniques for Electrical Measuring Instruments (TC104) is arranging for experts to translate these standards into Chinese and to prepare them for transfer to China’s national standards.

Type approval China has made much progress in establishing metrology and the related

procedures for meter management and control. The body responsible is the General Administration of Quality Supervision, inspection and Quarantines of the PR of China (AQSIQ). AQSIQ has established the National Institute of Metrology (NIM). NIM has established primary standard for electrical energy.

The Provincial Bureaux of Quality and technical Supervision (PBQTS) are responsible for electricity meters and accept the type approval application.

The type approval certificate has no term of validity. A manufacturing license (CMC) is usually valid for three years but the pattern approval does not need to be renewed.


The initial verification is carried out by technical organisation authorised by PBQTS.

The verification interval for single phase electromechanical meters is 15 years, with some only 10 years.

Electronic meters are restricted to 5 years.


After expiry of the verification period meters can be re-verified or discarded and replaced with new meters.




Market participants

Holley Group is the largest meter company in China, which started as a manufacturer of bamboo products some 30 years ago. Holley produces electromechanical and electronic meters and has a production capacity of 15 million meters. The company has a factory in Thailand and is forming alliances with companies in the USA and other advanced technology countries.

Jiangsu Linyang Electronics Co. Ltd, founded in 1995, is one of the largest meter manufacturers in China. Jiangs Linyang Solid State claims production capacity for 5 million single phase / three phase meters, 2.5 million single phase / multi-tariff meters and 3 million meters of other types. In 2003, its annual revenue reached RMB 520 million (US$63 million). Linyang passed the certification for ISO9001 Quality Assurance System in 2001 and again passed the re-audit for ISO9001: 2000 Edition Quality Assurance System, in 2002. The company claims to have 25% of the Chinese market.

Shanghai Electric Co. is the oldest electric company in China and was founded in 1882. It founded the first meter company in China, Shanghai Metering Works Co. Ltd in 1950 and its first production facility for meters came on-line in 1953. In 2005 the company produced 2 million single phase electronic meters and 1 million three phase electronic meters. In total 10 types of slid state metre are produced. The company manufactures 6 types of electromechanical meters. Shanghai Metering is the leading AMR provider in China, with 1.4 million installed by the end of 2007 and 2 million prepayment meters installed, equivalent to 26% of the prepayment market. Shanghai has developed a remote controlled prepayment meter system and has installed 550,000 units.

Londian Electrics, founded in 1994, claims to be the second largest meter manufacturer in China with manufacturing facilities in Shenzhen and Harbin. It also claims to be the largest manufacturer in China of electronic meters and the second largest exporter. In 2000, the company had production capacity for 2.2 million single phase static meters and 200,000 polyphase static meters. Londian has ISO 9001 certification, European CE certification, and the recommended Products Certification of the EEC. It has stated that its main business objective is the development of the domestic static market.

Shenzhen STAR claims to be the first and largest producer of electronic meters in China with production capacity of 10 million electronic meters. It has obtained the ISO9001 approval from the famous British BSI Corporation, and its products have also achieved KEMA-KEUR & CE quality certification of the Netherlands.

Zhejiang Eonpass Meter Manufacture Co. Ltd has annual production of 1.2 million single phase meters, 50,000 three phase meters, and 500,000 gas meters.

Shenzhen Clou manufactures electronic meters.

Utility background

In 1949, when the People's Republic of China was founded, the installed generating capacity of the country was less than 2 GW. Today, China is the fourth largest electricity producer in the world, with an estimated 430 GW by the end of 2005.

At the end of 2002, the electricity industry was restructured into a number of new enterprises, splitting the functions of generation, transmission and distribution.





Generation

5 generating companies were established:

• Huaneng Group

• Huadian Power

• Guodian Power

• Datang Power Group

• China Power Investment Company

Transmission networks

Two transmission companies have been formed which are responsible for operation of the country’s power grids:

• State Grid Corporation of China (SG)

• China Southern Power Grid Corporation (CSG)

CSG is co-funded by the former Guangdong Provincial Power Group Corporation the former affiliated Southern Company, Yunnan Provincial Power Group Corporation Ltd, Guizhou Provincial Power Corporation and Hainan Provincial Power Corporation. It covers Guangdong, Guangxi, Yunnan, Guizhou and Hainan five provinces (regions), linking with Hong Kong and Macao.

Distributions

There are five regional power networks in SG and three isolated provincial power grids on the mainland of China:

• North China Power Network (NCPN)

• Northeast China Power Network (NEPN)

• East China Power Network (ECPN)

• Central China Power Network (CCPN), which includes the Chuanyu (Sichuan and Chongqing) Power Network (CYPN)

• Northwest China Power Network (NWPN)

The three isolated provincial power grids include the following:

• Power Grid (HNPN)

• Xinjiang Autonomous Region Power Grid (XJAR)

• Lhasa Power Grid (Tibet)

No official information is available about the distribution network except that the Chinese authorities claim that 96% of townships, 88% of villages, and 82% of rural areas have power supply.

ABS has modelled the distribution system of China based on comparable large developing countries with a high level of electrification and has estimated the distribution network to be at 7.6 million km in 2000.

China has made great efforts to electrify the whole country and 96% of households now have access to electricity.




Table 6.37: ESI characteristics China

Generators > 5% - 5 state-owned generating companies Huaneng Group Huadian Power Guodian Power Datang Power Group China Power Investment Company IPPs both state-owned and private Grid companies – 2 State Grid Corporation of China (SGCC) China Southern Power Grid Co. Ltd Transmission networks – 6 trans-regional grids (Northeast China, North China, East China, Central China and Northwest China) South China Electric Power Joint-venture Network links four southern provinces Three isolated independent provincial or municipal networks DNOs – hundreds



6.3.3 India



1,147,995,904 276,256,000 144,000,000


Annual demand was 13.6 million meters (units) in 2008 rising to 20.1 million in 2012. The value will increase in this period from €190 million ($279 million) to €366 million ($464 million).

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

400,000,000

450,000,000

500,000,000

Valu

e $

and

euro

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Met

er u

nits

$ 279,255,900 285,455,360 330,841,350 385,991,100 464,337,400euro 189,970,000 224,768,000 260,505,000 303,930,000 365,620,000Units 13,604,500 15,704,800 16,850,500 18,216,000 20,107,000

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The contribution of the C&I sector in terms of value will remain at about a quarter of

the market.

2008 2009 2010 2011 2012


Euro 76% 74% 72% 71% 72%


Euro 24% 26% 28% 29% 28%



6.3.3 India, Continued


2008 2009 2010 2011 2012

Units 13,000,000 14,900,000 15,845,000 17,010,000 18,700,000


$ 213,150,000 210,312,000 237,331,250 274,281,900 334,010,000

Units 604,500 804,800 1,005,500 1,206,000 1,407,000

Euro 44,970,000 59,168,000 73,630,000 87,960,000 102,620,000 C&I

$ 66,105,900 75,143,360 93,510,100 111,709,200 130,327,400

Units 13,604,500 15,704,800 16,850,500 18,216,000 20,107,000


$ 279,255,900 285,455,360 330,841,350 385,991,100 464,337,400

Market trend India is on the move in the electrical sector and there are ambitious targets for

metering. There are four drivers in the development of the metering market in India. The first is the distribution and growth of the population, second is growth in rural electrification, third is economic growth, and fourth is government policy to achieve 100% electrification by 2012 with all connections metered.

Demand has risen at a CAGR of 6% for the last three years and it could rise further if government plans are met. These are to achieve 100% electrification, 100% metered connections and conversions to electronic meters by 2012 are followed. However, although India is progressing very fast, the history of achieving development plan targets has been poor in the past and we prefer to reserve judgement at this juncture.

Meter technology

There has been a rapid shift in demand from electromechanical meters to solid state in the last three years in India.

The new Regulations published by the CEA (Central Electricity Authority) stipulate that all interface meters, consumer meters and energy accounting and audit meters shall be of electronic. This means that there must be a complete replacement of the existing stock of residential electromagnetic meters. A specific time limit for completion of this is not given, but the regulations state that replacement must be carried out under direction of the appropriate commission or in conformity with the reforms programme of the appropriate government.

Advanced metering is not part of this plan but it is likely that it will start in some cities, such as Mumbai, Delhi and Chennai in about three years.

There have been many departures from normal metering practice in India. Charges for some customers are on a flat rate basis at Rp 100 per month regardless of their consumption. In some states electricity it is provided free to farmers.

India suffers an extreme tamper problem, and electronic meters with tamper detection devices have resulted in large theft detection.

Utilities using electronic meters report cost savings and a 20% - 25% increase in revenue. Information is imprecise, but the incidence of solid state metering is approximately 1 million, and this will increase quickly in the next few years.

AMR is still rare and only used in the high-end C&I sector. Some Indian utilities are piloting walk-by and drive-by AMR, PLC communications, and telephone communications.




Prices As in China, the market in India is divided into two price categories. Locally

manufactured meters are available at US $8 - $9; high-end meters follow international pricing. There are reports from the market that the selection process has some flaws which cause concern. Indian planners specify requirements for a tender and these are based on the electricity policy and government targets, requiring high quality meters. However, when the decision is made the cheapest meters are chosen and ‘forced’ to meet the technical requirements, which either they cannot do, or they fail and breakdown results. In other words, the appearance may be that India is following high technological standards and ambition targets abut the reality id rather different.


2008 2009 2010 2011 2012

Units 2,000,000 1,700,000 700,000 0 0 Electromechanical

Euro 24,000,000 20,400,000 8,400,000 0 0


Euro 121,000,000 145,200,000 162,800,000 177,870,000 187,000,000

Units 0 0 0 0 0 AMR

Euro 0 0 0 0 0

Units 0 0 225,000 550,000 1,150,000 AMI

Euro 0 0 7,875,000 19,250,000 40,250,000

Units 0 0 120,000 290,000 550,000

Residential

Prepayment Euro 0 0 7,800,000 18,850,000 35,750,000

Units 600,000 800,000 1,000,000 1,200,000 1,400,000 C&I C&I AMI

Euro 42,000,000 56,000,000 70,000,000 84,000,000 98,000,000


Euro 2,970,000 3,168,000 3,630,000 3,960,000 4,620,000


Landis+Gyr, Actaris and Elster all have a presence in India and supply high end meters.

The Egyptian group, El Sewedy, which has bought Iskra, is active in India and expects to develop pre-payment business there.

Like China, India has what amounts to a two-tier domestic meter industry, a top tier of reliable producers of good products and a lower tier producing low priced, poor quality meters.

The small segment of private investor-owned electricity companies in India is reported to favour quality products and to be willing to pay for them, and these constitute the main market for the international meter companies.

The bulk of the electricity utility sector in India is state-owned in one form or another, and they have by far the largest number of end points. The principal companies, called the SEBs (State Electricity Boards) are being restructured and unbundled, but old practices still prevail. The newspapers report cases of corruption in tendering and the companies select cheap, locally produced meters from the lower tier companies, or alternatively Chinese imports. In 2008 over 1 million Chinese meters were imported.





The top tier Indian meter companies:

• Genus Overseas Solid States Ltd claims to have the largest installed base of electronic meters in India with more than 5 million. The company produces 2.4 million electronic meters annually

• Secure Meters Limited, an Indian company founded in 1988, which manufactured under licence from Polymeters Response International Limited in the U.K. SML has since entered into a strategic global alliance with PRI, U.K. Secure has four manufacturing facilities. Secure Meters is the largest exporter of meters from India

• India Meters Ltd entered the meter business in 1963 and claims the leading position

• Larsen & Toubro is one of India’s largest engineering groups

• Emco is the third largest manufacturer of transformers and a leading meter manufacturer. The company has four manufacturing facilities, three for transformers and one for meters

• Hi-Tech Systems & Services Ltd

Metering regulations

In March 2006 the Central Electricity Authority published the CEA (Installation and Operation of Meters) Regulations 2006. These apply to meters installed by generating companies and licensees engaged in the business of generation, transmission, distribution and supply of electricity to all categories of consumers.

Type approval These regulations are comprehensive and provide for type, standards, ownership,

location, accuracy class, installation, operation, testing and maintenance, access, sealing, safety, meter reading and recording, meter failure or discrepancies, anti tampering features, quality assurance, calibration and periodical testing of meters, additional meters and adoption of new technologies in respect of following meters for correct accounting, billing and audit of electricity.

Interface meters are meters used for accounting and billing of electricity, connected at the point of interconnection between electrical systems of generating company, licensee and consumers, directly connected to the inter-state transmission system or intra-state transmission system that have to be covered under ABT and have been permitted open access by the appropriate commission.

Consumer meters are meters used for accounting and billing of electricity supplied to the consumer but excluding those consumers covered under interface meters.

Energy accounting and audit Meters are meters used for accounting of the electricity to various segments of electrical system so as to carry out further analysis to determine the consumption and loss of energy therein over a specified time period.

The regulations state that “All interface meters, consumer meters and energy accounting and audit meters shall be of static type.

The meters not complying with these regulations shall be replaced by the licensee on his own or on request of the consumer. The meters may also be replaced as per the regulations or directions of the Appropriate Commission or pursuant to the reforms programme of the appropriate government.




Standards All interface meters, consumer meters and energy accounting and audit meters must

comply with the relevant standards of Bureau of Indian Standards (BIS).

The Indian Standard IS 13779 is more stringent than IEC 1036. Meter designs take into account the tropical weather while tamper proof conditions are very stringent.

If BIS Standards are not available for particular equipment or material, the relevant British Standards (BS), International Electro-technical Commission (IEC) Standards, or any other equivalent Standard shall be followed.

The regulations give precise details of standards required for each category of meter.

Calibration and periodic testing

Inter-face meters

Each interface meter must be tested at time of commissioning by the owner at site for accuracy using a standard reference meter of better accuracy class than the meter under test.

All interface meters shall be tested at least once in five years. These meters must also be tested whenever the energy and other quantities recorded by the meter are abnormal or inconsistent with electrically adjacent meters. Whenever there is unreasonable difference between the quantity recorded by interface meter and the corresponding value monitored at the billing centre via communication network, the communication system and terminal equipment must be tested and rectified. The meters may be tested using NABL accredited mobile laboratory or at any accredited laboratory and recalibrated if required at manufacturer’s works.

Testing and calibration of interface meters may be carried out in the presence of the representatives of the supplier and buyer.

Consumer meters

Consumer meters must be tested at site at least once in five years. The licensee may test the meter at site or can remove the meter and replace the same by a tested meter duly tested in an accredited test laboratory. In addition, meters installed in the circuit shall be tested if study of consumption pattern changes drastically from the similar months or season of the previous years or if there is a consumer’s complaint pertaining to a meter. The standard reference meter must be of better accuracy class than the meter under test for site testing of consumer meters up to 650 volts. The testing for consumers meters above 650 volts should cover the entire metering system including CTs, VTs. Testing may be carried out through NABL accredited mobile laboratory using secondary injection kit, measuring unit and phantom loading or at any accredited test laboratory and recalibrated if required at manufacturer’s works.

Energy accounting and audit meters

Energy accounting and audit meters must be tested at site at least once in five years or whenever the accuracy is suspected or whenever the readings are inconsistent with the readings of other meters, e.g., check meters, standby meters. The testing must be carried out without removing the CTs and VTs connection. Testing may be carried out through NABL accredited mobile laboratory using secondary injection kit, measuring unit and phantom loading or at any accredited test laboratory and recalibrated if required at manufacturer’s works.




Standards (continued) New technologies

The distribution licensee may make out a plan for the introduction and adoption of new technologies such as pre-paid meters, time of the day meters (TOD), automatic remote meter reading system through appropriate communication system, with the approval of the Appropriate Commission or according to the regulations or directions of the appropriate commission or pursuant to the reforms programme of the appropriate government.

Accredited laboratories and testing facilities

Several independent test laboratories such as NPL (National Physics Laboratory) and CPRI (Central Power Research Institute) undertake type testing and certification of meters.

A metering protocol laboratory has been established by the Central Power in Bangalore, following the guidelines of IEC 62056 and with the help of the Device Language Message Specification (DLMS) user association in Switzerland.

The Conformance Test Tool (CTT) is now available for both manufacturers and utilities to verify meters for compliance with international protocols.

Market participants

There are around 30 meter manufacturers in India. A number of the leaders in the market claim to be number one.

Utility background

India is trying to expand electricity power generation capacity as current generation is seriously below peak demand. Although about 80% of the population has access to electricity (access is defined as villages not households), power outages are common, and the unreliability of electricity supplies is severe enough to constitute a constraint on the country's overall economic development. The government has targeted capacity increases of 100,000 MW over the next ten years. However, it should be pointed out that India has not succeeded in achieving a single target for building power generation capacity in any of its Five Year Development Plans since Independence in 1949. By the end of 2004, total installed Indian power generating capacity was 126 GW, including the captive generating capacity of the large Indian industrial sector.

Although development of the power sector has primarily been the responsibility of the Indian government, electricity is generated by five types of organisation; Central government, State governments (State Electricity Board SEB), Privately- owned generating utilities selling to the public network. Private captive generators for industry, IPPs.




Table 6.38: ESI characteristics India

Major generators of Central GOI (25%) NTPC National Thermal Power Corporation NHPC National Hydroelectric Power Corporation NEEPCO North-Eastern Electric Power Corporation THDC Tehri Hydro Development Corporation DVC Damodar Valley Corporation HJPC Nathpa Jhakri Power Corporation 36 State-owned generating companies (56%) Private utilities (6%) CPP (9%) IPP (4%) TSO – Powergrid of India One central government-owned TSO (Central Transmission Utility – CTU) and several state government-owned STUs (State Transmission Utility) operate as not exclusive licensee the transmission grids under a RTPA regime. Sub-transmission and distribution 41 state-owned distribution companies 6 private distribution companies



6.3.4 Indonesia



237,512,352 60,548,000 40,502,776



0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Valu

e $

and

euro

1,400,000

1,450,000

1,500,000

1,550,000

1,600,000

1,650,000

1,700,000

1,750,000

Met

er u

nits

$ 25,627,980 22,844,760 23,524,616 24,257,457 24,835,524euro 17,434,000 17,988,000 18,523,320 19,100,360 19,555,530Units 1,528,030 1,579,430 1,628,162 1,679,266 1,731,783

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The residential sector dominates the market in value.

2008 2009 2010 2011 2012


€ 93% 92% 92% 92% 92%


€ 7% 8% 8% 8% 8%



6.3.4 Indonesia, Continued


2008 2009 2010 2011 2012 Units 1,520,000 1,569,400 1,616,132 1,665,236 1,715,753


$ 23,725,800 21,112,480 21,703,436 22,321,977 22,958,464

Units 8,030 10,030 12,030 14,030 16,030


$ 1,902,180 1,732,280 1,821,180 1,935,480 1,877,060

Units 1,528,030 1,579,430 1,628,162 1,679,266 1,731,783


$ 25,627,980 22,844,760 23,524,616 24,257,457 24,835,524

Meter technology

The residential base is entirely electromechanical, C&I meters solid state.

Prepayment meters

Persero Wilayah Kalimantan Barat, which supplies electricity to 300,000 customers, has ordered Actaris prepayment meters and systems for installation in Pontianak, Eastern Indonesia. PLN Pontianak has chosen the ACE9000 Taurus IBS and ACE9000 Taurus ITP.

23,000 Actaris TSK one way prepayment meters have been delivered to EDTL in East Timor.

PLN, the state utility, has installed 100,000 advanced meters, the Actaris ACE SL7000 with AMR capability.


2008 2009 2010 2011 2012 Units 1,480,000 1,524,400 1,570,132 1,617,236 1,665,753



Euro 80,000 120,000 128,000 144,000 160,000

Units AMR

Euro

Units AMI

Euro

Units 30,000 30,000 30,000 30,000 30,000

Residential

Prepayment Euro 1,260,000 1,260,000 1,260,000 1,260,000 1,260,000

Units 8,000 10,000 12,000 14,000 16,000 C&I C&I AMI

Euro 1,240,000 1,310,000 1,380,000 1,470,000 1,424,000


Euro 54,000 54,000 54,000 54,000 54,000





There is one dominant supplier of meters to PLN, the state utility.

Actaris first established a presence in Indonesia in 1984 ago when PT Mecoindo opened.Actaris is the major meter supplier in Indonesia to PLN, the state-owned utility. In 2002, the company migrated the manufacture of electronic meters to Indonesia from Felixstowe in the UK to reduce costs. Market share estimated at 70% - 80%. The company produces residential electromechanical meters for the global market and industrial polyphase electricity meters for Asia.

Pt Bara Daya Nusantara is the Elster Company in Indonesia.

P.T. Istana Karang Laut is the Elster-Instromet company.

Indonesia imports nearly three quarters of a million of low priced Chinese residential meters. C&I meters are imported from several countries with no discernible pattern. We suspect PLN simply selects the lowest quote from reputable manufacturers for each tender.


The Legal Metrology Law No. 2, 1981 is the basis of legal metrology activities in Indonesia. National Legal Metrology Institute (Directorate of Metrology) has overall responsibility for approval and verification of measuring instruments and other equipment.

A system of accreditation was introduced in 2002 showing traceability to national, regional, international or foreign measurement standards.


Indonesia has 27 provinces and more than 290 territories. Each of the province and 28 territories have regulatory bodies in the field of weights and measures, usually within the organisation of Ministry of Trade Affairs. Inspectors from these organisations inspect and verify instruments for use for trade.

The verification of electricity meters started in 1990 in cooperation with PLN, the state-owned utility. However, due to the large number of meters installed (29 million in total at that time) only new meters were verified before installing them. It was specified that 144 million meters must be verified by the end of 2007.

The re-verification period is 10 years.

Utility background

Prior to the Asian financial crisis of 1997, Indonesia had plans for a rapid expansion of power generation, based mainly on opening up Indonesia's power market to IPPs. Historically the main electricity utility was state-owned PLN (Perusahan Umum Listrik Negara), which is responsible for generation, transmission and distribution throughout the country. The crisis led to critical financial strains on PLN, which made it difficult to pay for all of the power for which it had signed contracts with IPPs. PLN has over $5 billion in debt, which has grown fast in terms of local currency due to the decline in the value of the rupiah. PLN probably suffered more than any other power utility in Asia as a result of the Asian financial crisis and is only now finding its way out of its problems.

Under the pressure of events the government has restructured the company.





The operational coverage of PLN encompasses almost the entire Indonesian territories, which consist of more than 13,000 islands and decentralisation authority is needed in order to streamline management. As national electricity supplier PT PLN has established 6 subsidiaries and one joint venture Company.

PT Indonesia Power is responsible for electricity generation, transmission and distribution outside Java and Bali. It was established in October 1995 under the name of PT PJB and changed its title into PT Indonesia Power in September 2000.

PT Pembangkitan Jawa Bali (PT PJB) is responsible for electricity generation, transmission and distribution in the islands of Java and Bali. Established in October 1995 under the name of PT PJB II and changed its title into PT PJB in September 2000.

PT Pelayanan Listrik Nasional Batam (PT PLN Batam) handles power supply for public in Batam Island region, established in October 2000.

PT Indonesia Comnets Plus deals with telecommunication, established in October 2000.

PT Prima Layanan Enjiniring (PT PLN Enjiniring) is responsible for engineering consultancy, engineering and construction supervision, established in October 2002.

PT Pelayanan Listrik Nasional Tarakan (PT PLN Tarakan) is responsible for power supply in the Tarakan Island region.

PT Geo Dipa Energi a joint venture between PLN and PERTAMINA (state oil and Gas Company) manages the geothermal generation.

Table 6.39: ESI characteristics Indonesia

Generators (State-owned) PT Pembangkitan Tenaga Listrik Java-Bali (PJB) I & II - 52% (to be split into 5 gencos) IPPs - 8% CPPs - 40% TSO – 1 Java-Bali Transmission Company (JBTC) DNOs – Several regional distribution companies



6.3.5 Japan



127,288,416 50,498,000 83,600,000


Annual demand was 3.3 million meters (units) in 2008. It will jump to 7.4 million in 2009 with an AMI roll-out and will rise to 9.2 million in 2012. The value will increase in this period from €127 million ($187 million) to €594 million ($754 million).

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

Valu

e $

and

euro

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

Met

er u

nits

$ 187,204,500 576,970,779 670,700,941 702,694,031 754,223,772euro 127,350,000 454,307,700 528,110,977 553,302,387 593,876,986Units 3,300,100 7,405,450 8,336,054 8,667,413 9,193,531

2008 2009 2010 2011 2012

Installed capacity of watt-hour meters in Japan

Source: METI



6.3.5 Japan, Continued

Customers (2001)

• 81.7 million total electricity customers

• 9,000 large factories, liberalised sector EHV customers 2,000 kW +, (26% of output)

• 20,000 medium factories, HV Power Sector industrial customers 500-2,000 kW, (9% of output)

• 270,000 small factories, HV Power Sector industrial customers < 500 kW, (9% of output)

• 20,000 HV Power Sector medium commercial customers 500-2,000 kW, (5% of output)

• 430,000 HV Power Sector small commercial customers < 500 kW, (14% of output)

• 6,400,000 LV small factories and stores < 50 kW, (5% of output)

• 70,000,000 LV residential customers, (31% of output)


The composition of demand will change with the AMI roll-out. C&I accounted for 40% in 2008 in terms of value, but this will drop to 9% by 2012.

2008 2009 2010 2011 2012


Euro 60% 89% 90% 91% 91%


Euro 40% 11% 10% 9% 9%


2008 2009 2010 2011 2012

Units 2,880,000 6,985,350 7,915,954 8,242,313 8,768,431


$ 112,851,900 512,734,179 605,397,541 636,615,931 688,145,672

Units 420,100 420,100 420,100 425,100 425,100

Euro 50,580,000 50,580,000 51,420,000 52,030,000 52,030,000 C&I

$ 74,352,600 64,236,600 65,303,400 66,078,100 66,078,100

Units 3,300,100 7,405,450 8,336,054 8,667,413 9,193,531


$ 187,204,500 576,970,779 670,700,941 702,694,031 754,223,772




Meter technology

All IGC meters are electronic AMI meters. 97% of all residential meters in Japan are still electromechanical but this will change with an AMI roll-out starting in 2009.

C&I are almost all solid state. Precision meters for contracts from 500-10,000 kW have an error range of 1%, and high precision meters for contracts over 10,000 kW have an error range of 0.5%.

Var-hour meters for calculating the power factor have an error range of 2.5%.

Maximum demand meters have an error range of 3%.

The introduction of electronic meters in Japan

The first electronic meters were introduced with TOU metering in 1988 for customers with contracts for demand of at least 500 kW and in stages for customers with contracts from 50-500 kW for bulk supply use. The first stage was customers with 250-300 kW and over in July 1988. The contract sizes were reduced annually to 80 kW in July 1997.

The first AMR was introduced for bulk supply in 1993 and has again been extended down the size scale progressively.

In 1990 electronic meters were introduced into the residential sector for TOU and AMR. This meshed with the first market liberalisation in 2000 for customers with consumption of 2000 kW or more.

AMR is almost total among large scale users, with demand of 500 kW or more. It is not complete but growing among small to medium users with demand 50-500 kW and very limited below that.

AMR is being developed as a multi-function resource, providing other services to consumers as well as reading meters.

TEPCO (Tokyo Electric Power Co), the largest utility, has researched several AMR systems and introduced LV AMR system using telephone lines as a trunk line and LV power lines as a branch line among approximately 3,000 customers in mountainous areas, where the electric power demand density is low and the meter reading efficiency is poor on account of lack of access other than on foot.


2008 2009 2010 2011 2012

Units 2,535,000 2,560,350 2,585,954 2,611,813 2,637,931 Electromechanical

Euro 55,770,000 56,327,700 56,890,977 57,459,887 58,034,486


Euro 3,000,000 3,000,000 3,000,000 3,012,500 3,012,500

Units 5,000 5,000 10,000 10,000 10,000 AMR

Euro 400,000 400,000 800,000 800,000 800,000

Units 220,000 4,300,000 5,200,000 5,500,000 6,000,000 AMI

Euro 17,600,000 344,000,000 416,000,000 440,000,000 480,000,000

Units 0 0 0 0 0

Residential


Units 420,000 420,000 420,000 425,000 425,000 C&I C&I AMI

Euro 50,400,000 50,400,000 51,240,000 51,850,000 51,850,000


Euro 180,000 180,000 180,000 180,000 180,000




Tokyo Electric Power Company (TEPCO)

In 2001, Tokyo Electric Power Company (TEPCO) implemented a new Itron handheld meter reading system to gather data and provide on-site billing services to more than 26 million TEPCO customers throughout the Tokyo metropolitan area.

TEPCO meter readers now enter the meter data into their new Itron handheld computers, which immediately process the consumption data and apply the appropriate billing determinants for each customer on-site. The handheld computer then transmits the consumption and billing data, via a wireless link, to a portable printer unit located on the meter reader’s belt. The printer unit instantly creates an invoice that is left at the customer’s location.

Itron handheld meters are used by 5 out of Japan’s 10 Epcos and constitute 65% of electricity meters in Japan.

Shikoku Electric Power Company in Japan

Shikoku has developed a system to provide information systems and control to a wide range of platforms. The OpenPlanet architecture enables data transfer and analysis from the residential to large-scale industrial levels. It can manage small household devices or major power system controls. The Java based architecture is standardised, scalable, and inter-operable.

The OpenPlanet system utilises the Internet and can communicate with cell phones, PDAs, and virtually any communications device. The installation of a one-chip microcomputer on any solid state device will allow OpenPlanet to interface with and control the device. Services enabled by OpenPlanet include: load management and analysis, outage monitoring, home security and alarms, home health care services, and education services.

Shikoku has installed an OpenPlanet server device (a miniature computer called an Opus) in the meter of each of their customers. This device provides the interface to the OpenPlanet network (via the Internet) and will immediately allow Shikoku to provide the services available through this network. The Opus device can communicate via a home’s existing power lines to any devices used within the home, and there is no need for re-wiring or installation of in-home communications networks.


In Japan, a modern legal metrology system was initially established with the enactment of the Law of Weights and Measures in 1891. In 1992, the law and related regulations were significantly revised and became effective in 1993.

METI is responsible for ensuring that the design of the specified measuring instrument meets certain criteria for accurate measurement. The Ministry carries out this responsibility by examining the designs of measuring instruments and testing sample instruments.

Once the pattern of an instrument has been approved, METI issues a certificate of type approval and certification, and subsequent production instruments made to the pattern are marked with an assigned type number. The marking and numbering on a production instrument is the primary indication to the prefectural and other verification institutes that the measuring instrument is of an approved pattern.

Pattern type approval and certification is required for all the specified measuring instruments regardless of type, as listed in clause 4.1. Manufacturers, importers, and foreign manufacturers can apply for pattern type approval and certification testing of these instruments.





Initial verification and re-verification

The Japan Electric Meters Inspection Corporation (JEMIC), a non-profit institution established by special law, is responsible for the verification of electricity meters and has carried out verification for 40 years. JEMIC uses an automatic watt-hour meter testing system developed for calibration.

In addition, the Measurement Law allows METI to designate non-profit testing laboratories as designated verification institutes, which are then obliged to conduct verifications.

Domestic meters with a rated current of 30, 120, 200 amps are tested every 10 years.

VCT/CT meters are tested every 7 years. Mechanical meters are tested every 5 years.

High precision, precision class, var-hour and maximum demand meters are tested every 5 years for mechanical meters and every 7 years for static meters.


Osaki Electrical Company is the dominant electricity meter provider, with a 40% market share of the Japanese meter market. The company manufactures electromechanical and electronic meters. It manufactures and sells watt-hour meters, electromechanical and electronic meters, current limiters, time switch control equipment panels, demand control equipment panels, centralised automatic meter reading systems, and fibre optical couplers. Osaki was established in 1937 and is headquartered in Tokyo.

Osaki electromechanical meters comply with or exceed ANSI C12 standards and are warranted for 25 years. Electronic meters comply with or exceed ANSI C12.16 standards and are warranted for 5 years.

Other manufacturers include the following:

• Fuji Electric Company Limited

• Mitsubishi Electric Corporation

• Toshiba Company Limited

• Matsushita

• Anritsu Meter Company Limited

• Bailey Japan Company Limited

• Daichi Solid states Company Limited

• Emerson Japan Limited

• Emic Corporation

• Gomi Electric Instrument Company Limited

• Miwa Electric Company Limited

• Omron Corporation





• Takemoto Denki Corporation

• Toyo Keiki Company Limited

• Tsuruga Electric Corporation

• Toko Seiki Company Limited

• Tsuda Electric Meters Company Limited

• Yokogawa M&C Corporation

Utility background

89.3% of Japanese capacity is owned by the ten vertically-integrated investor-owned EPCos (Electric Power Companies), EPDC, JAPCo, and other utilities. The largest EPCos are among the top ten electricity utilities in the world.

Although the Japanese transmission and distribution system has been integrated at the national level since 1958, it comprises two geographically separate networks, each operating at different frequencies. The Chubu, Hokuriku, Kansai, Chogoku, Shikoku, and Kyushu EPCo networks covering Kyushu, Shikoku, and southern Honshu operate at 60 Hz, while the Tokyo, Tohoku, and Hokkaido systems supplying Hokkaido and northern Honshu operate at 50 Hz.

In Japan, electricity has traditionally been distributed at 6 kV, but more recently 22 kV and 33 kV systems have been introduced to improve voltage stability and reduce losses in remote areas.

Table 6.40: ESI characteristics Japan

Generators > 12 10 Vertically integrated regional investor-owned companies Chubu EPCo - 14.5% Chugoku EPCo - 6.6% Hokkaido EPCo - 3.6% Hokuriko EPCo - 3.1% Kansai EPCo - 17% Kyushu EPCo - 9.0% Shikoku EPCo - 3.2% Tohuku EPCo - 8.9% Tokio EPCo - 33.2% Okinawa EPCo - 0.8% JPower, investor-owed (formerly, Electric Power Development Company, state-owned) Japan Atomic Power Company (investor-owned) TSO – 10 The ten EPCOs DNOs – 10 The ten EPCOs



6.3.6 Korea, South



48,379,392 16,502,000 22,217,471


Annual demand was 300,000 meters (units) in 2008 rising to 5,467,000 in 2012 with the roll-out of the national AMI a home management network. The value will surge in this period from €14 million ($21 million) to €470 million ($596 million) and will remain at that level until 2015 when the roll-out is completed.

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

Valu

e $

and

euro

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Met

er u

nits

$ 20,807,850 28,746,450 361,492,800 478,967,800 596,442,800euro 14,155,000 22,635,000 284,640,000 377,140,000 469,640,000Units 300,050 571,050 3,267,050 4,367,050 5,467,050

2008 2009 2010 2011 2012


The share of C&I in the meter market value will plummet from 43% to 2% by 2012.

2008 2009 2010 2011 2012


€ 54% 65% 97% 98% 98%


€ 43% 33% 3% 2% 2%



6.3.6 Korea, South, Continued


2008 2009 2010 2011 2012 Units 260,000 521,000 3,207,000 4,307,000 5,407,000


$ 11,870,250 19,119,850 349,961,200 467,436,200 584,911,200

Units 40,050 50,050 60,050 60,050 60,050

Euro 6,080,000 7,580,000 9,080,000 9,080,000 9,080,000 C&I

$ 8,937,600 9,626,600 11,531,600 11,531,600 11,531,600

Units 300,050 571,050 3,267,050 4,367,050 5,467,050


$ 20,807,850 28,746,450 361,492,800 478,967,800 596,442,800

Meter technology

Korea is planning one of the most ambitious advanced metering projects in the world. It combines metering with home services and communications using PLC.

In 2004 the Korean government announced plans to pursue a new generation of value-added energy business by combining electricity and IT and announced an investment of €270 million over the 5 years from 2004 to 2009. In 2004 KEPCO, Korea’s electricity utility announced the launch of a full-scale PLC home networking business, combining power and IT through PLC. The services trialed included AMR, Broadband Internet, Vole (Voice over Powerline) and various other home services.

The business will combine the automation, digitalisation, and networking of electrical equipments based on PLC (Powerline Communication) technology. This is not only for the domestic Korean market, but will also become an important export industry. The system will also provide social welfare benefits including free high-efficiency lighting to 700,000 households.

The system is being installed by Xeline, a Korean company which claims to be a world leader in PLC home network technology. The company is carrying out field trials in Germany, China, Italy, Algeria, Japan, Malaysia, South Africa, Indonesia, Thailand, Australia, Brazil as well as in Korea.

KEPCO has been piloting AMI using PLC technology in 2004 and 2005 in Daejon and Daegu City, with a 1,500 household panel. The trial reported a 100% success rate with its AMR capability.

Following this pilot a series of further pilots are in the field testing different aspects. KEPCO plans to have its research programme for a ‘smart’ grid completed by 2013. All piloting will be completed in 2009 and deployment of AMR/AMI will commence in late 2009. KEPCO is planning to replace all analogue electricity meters with digital power meters by 2015, involving 22 million households.



6.3.6 Korea, South, Continued


2008 2009 2010 2011 2012 Units 200,000 150,000 0 0 0

Electromechanical Euro 6,000,000 4,500,000 0 0 0


Euro 1,250,000 8,750,000 5,000,000 7,500,000 10,000,000


Euro 0 0 0 0 0

Units 5,000 5,000 0 0 0 AMR

Euro 425,000 425,000 0 0 0

Units 0 10,000 3,000,000 4,000,000 5,000,000 AMI

Euro 0 900,000 270,000,000 360,000,000 450,000,000

Units 5,000 6,000 7,000 7,000 7,000

Residential


Units 400,000 480,000 560,000 560,000 560,000 C&I C&I AMI

Euro 40,000 50,000 60,000 60,000 60,000

Units 6,000,000 7,500,000 9,000,000 9,000,000 9,000,000 Grid Grid AMI

Euro 50 50 50 50 50

Utility background

The government-controlled utility KEPCO (Korea Electric Power Company) has dominated the supply industry and has had a central role in the extraordinary economic development of the country in recent years. KEPCO was a vertically integrated utility responsible for generation, transmission and distribution but has now been unbundled into separate generation, transmission, and distribution units.

The South Korean government is moving ahead with plans to break up and privatise most of the assets of state utility KEPCO, albeit at a much slower pace than originally planned, and with electricity distribution being retained as a government-held corporation. The plan to retain distribution assets of KEPCO was a change in policy announced in July 2004. The South Korean government has unbundled KEPCO into separate generation, transmission, and distribution units.

The transmission system consists of three voltage levels; 345 kV, 154 kV and 66 kV. The 66 kV lines are being phased out for system simplification and the 345 kV lines are being expanded for higher system stability and bulk power transmission. There used to be a 22 kV transmission system but that has now been phased out completely. There has been considerable growth in the T&D systems in South Korea over the last 25 years.

In order to serve low-voltage customers, power is supplied through 22.9 kV distribution lines before being transformed to 220 V and/or 380 V electricity. KEPCO carries out programmes to increase distribution line feeders and transformer capacities to effectively meet the increasing demand in power.

Table 6.41: ESI characteristics Korea, South

Generators > 5% KEPCO - nuclear and hydro 5 thermal subsidiaries owned by KEPCO to be privatised TSO – 1 KEPCO DNOs – vested 2003



6.3.7 Malaysia



25,274,132 5,841,000 7,355,000



0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Valu

e $

and

euro

0

100,000

200,000

300,000

400,000

500,000

600,000

Met

er u

nits

$ 20,453,580 20,792,440 23,649,940 24,932,640 26,075,640euro 13,914,000 16,372,000 18,622,000 19,632,000 20,532,000Units 412,040 475,020 535,020 560,020 570,020

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The residential sector had 81% of the value of the market in 2008 and this will not

change much in the next five years.

2008 2009 2010 2011 2012


Euro 81% 84% 86% 86% 87%


Euro 19% 16% 14% 14% 13%



6.3.7 Malaysia, Continued


2008 2009 2010 2011 2012

Units 387,000 450,000 510,000 535,000 545,000


$ 16,500,750 17,418,050 20,275,550 21,558,250 22,701,250

Units 25,040 25,020 25,020 25,020 25,020

Euro 2,689,000 2,657,000 2,657,000 2,657,000 2,657,000 C&I

$ 3,952,830 3,374,390 3,374,390 3,374,390 3,374,390

Units 412,040 475,020 535,020 560,020 570,020


$ 20,453,580 20,792,440 23,649,940 24,932,640 26,075,640

Meter technology Installed meters

• Peninsular Malaysia (Tenaga Nasional Berhad)

• 3 phase MV/HV kWh?kVar x/5A, x/1A Class 0.5, 0.2, 0.1 - 0.18%

• 3 phase LVCT kWh/kVar x/5A Class 2 - 0.88%

• 3 phase whole current kWh/kVar 10-100A Class 2 - 10.6%

• 1 phase whole current kWh 10-100A Class 2 - 88.34%

• 6,600,000

• Borneo, Sarawak (SESCO)

• Total meters - 335,000

• Borneo, Sabah (SESB)

• Total meters - 420,000

• Total meters installed Malaysia - 7,355,000

Meter demand

In 2004, TNB embarked on a programme to installed 100% electronic meters in Peninsular Malaysia with completion of the conversion from electromechanical meters in 2014. A roll-out of AMR or AMI is likely to happen but it will probably not start until 2014-2016. At present there is no information on this. There will be continued trials on a small basis during the next two to three years.

Tenaga Nasional Berhad (TNB), the large national utility, is currently using Wavenet for the remote meter reading of its large power consumers and in the remote monitoring of its substations equipment in the SCADA implementation. Wavenet enables the transmission of data via narrow band cellular radio, where cables or telephone lines are unavailable. To date, Wavenet is operational in the central and southern regions of Peninsular Malaysia.

TNB installed 1,000 AMR units on a trial basis early in 2006 and plans to replace 60,000 manually read meters between 2006 and 2009, for with bulk customers.





In June 2007, a contract was announced to install Itron Remote Meter Reading (RMR) technology for 90,000 Low Voltage C&I meters in order to automate meter data collection, analysis and billing process.

TNB has just signed a contract to purchase Casio DT-X5M10E handheld meter readers. The original product was deployed in the 90s and is now obsolete and maintenance of the equipment became more demanding. The Casio produce is a ruggedised product with a numeric keyboard, compact size, is light weight and uses Bluetooth.

Prepayment meters

Malaysia is introducing prepayment meters in selected cases. Sabah Electricity Sdn Bhd (SESB) the small regional utility owned by TNB in East Malaysia, has awarded a contract to MIDA to supply 1,080 Metronix ‘smart’ card prepayment meters, designed and produced in Malaysia. The Metronix is now being exported.


2008 2009 2010 2011 2012


Euro 0 0 0 0 0


Euro 10,640,000 12,040,000 13,440,000 14,000,000 14,000,000

Units 5,000 5,000 5,000 5,000 5,000 AMR

Euro 425,000 425,000 425,000 425,000 425,000

Units 0 5,000 10,000 15,000 25,000 AMI

Euro 0 450,000 900,000 1,350,000 2,250,000

Units 2,000 10,000 15,000 15,000 15,000

Residential

Prepayment Euro 160,000 800,000 1,200,000 1,200,000 1,200,000

Units 25,000 25,000 25,000 25,000 25,000 C&I C&I AMI

Euro 2,625,000 2,625,000 2,625,000 2,625,000 2,625,000


Euro 64,000 32,000 32,000 32,000 32,000


Malaysia has an active metering industry.

• TNB Metering Services Sdn Bhd is one of many subsidiaries of TB and it provides metering services to TNB

The international meter manufacturers all have companies in Malaysia serving the Malaysian market and, in some case jointly with Singapore, servicing the regional market.

• EDMI began in Australia in 1978 as a privately owned company which specialised in the design and manufacture of customised, small-scale electronic products and was acquired by Bridex Singapore in the 1990s. EDMI Limited exports meters from Singapore to Australia and other markets. EDMI produces high-end products used by generation and transmission utilities in the 132 kV substations. The company is moving down into the smaller C&I and residential markets. EDMIs have a manufacturing and engineering operation located in Singapore with research and developments operations based in Australia. EDMIs meters are exported to more than 14 countries located in Asia, ASEAN, Australasia, the Middle East, and Europe. EDMIs wholly owned subsidiaries in Australia and Malaysia serve as localised regional service support centres. EDMI is listed on the Singapore stock exchange





• Industrious Horizon Sdn Bhd is the Elster-Instromet company servicing Malaysia. Elster-Instromet Sdn Bhd, located at the same address is the regional sales office for Asia

• Metertek Sdn Bhd is the Actaris Company in Malaysia

• Impianas Sdn Bhd is Itron’s business associate in Malaysia

• Iskraemeco (M) Sdn Bhd established an office in Malaysia in 1974

• Misa Sdn Bhd manufactures kilowatt hour meters and water meters

• MIDA, Malaysian Intelligence Meters Sdn Bhd has designed a prepayment ‘smart’ meter, the Metronix, which is no being exported. The company is negotiating with utilities in Bahrain and Singapore. University Tenaga Nasional had implemented the system to reduce power usage at its student hostels. MIM is also negotiating with Defence Ministry to install the meters in selected residences of armed forces personnel

Type approval The National Metrology Laboratory (NML), SIRIM Berhad is responsible for the

pattern approval of new measuring instruments for trade use.

The pattern approval criteria adopted by SIRIM Bhd. are generally in accordance with the recommendations of the International Organisation of Legal Metrology (OIML). The approval procedures may involve an evaluation and full testing of the instrument or a combination of partial tests and endorsement of overseas test results such as those issued under the OIML Certificate System.

Electricity meters and gas meters are both regulated by the Energy Commission.

Instruments which have been approved by the custodian are subject to verification and stamping by Inspectors of Weights and Measures of the Ministry of Domestic Trade and Consumer Affairs before they are put into service. The validity of such verification is 12 months after which the instruments have to be re-verified to ensure that they are still within the prescribed limits of error applicable for such instruments.


All utility meters are tested before being put into service. These tests are generally carried out by the private companies responsible for the supply of these utilities under the surveillance of their respective authorities. The electromechanical meter testing laboratory has been phased out.


Utility meters such as water meters, electricity meters, household gas meters and taximeters are exempted from the inspection and verification by inspectors of weights and measures. Nevertheless, they are still subject to legal requirements.

For medium and high voltage transformer meters the verification interval is once a year. For other meters there is no specific interval.

Meters are only re-verified when complaints are received from the consumers.




Utility background

Currently, three state-owned utilities dominate power generation and distribution in Malaysia. The market was opened to IPPs in 1994, and 15 IPPs were licensed, though not all of the projects have been built. Malaysia is considering reforms to its power sector to make it more competitive and to lower costs.

The largest of the three utilities is TNB (Tenaga Nasional Berhad) responsible for generation, transmission and distribution of power throughout Peninsular Malaysia except in remote areas. Sarawak is supplied by SESCO (Sarawak Electricity Supply Corporation) and Sabah by SESB (Sabah Electricity Board), which is part owned by TNB. In addition, several private licensees generate and supply electricity in isolated mines and areas.

The market was opened to IPPs in 1994.

There are three unconnected transmission systems, one extensive network for Peninsular Malaysia which is linked both to Thailand and to Singapore and two separate systems in Sarawak and Sabah, which are not linked.

Table 6.42: ESI characteristics Malaysia

Generators > 5% - 3 Utilities Tenaga Nasional Berhad - 60% TNB Generation Sdn Bhd TNB Hidro Sdn Bhd (TNB Hydro) Sarawak Electricity Supply Corporation (SESCo) TNB Sabah Sdn Bhd (formerly Sabah Electricity Sdn Bhd) IPPs - 40% TSO – 1 TNB Transmission Network Sdn Bhd (Peninsula Malaysia) DNOs – 3



6.3.8 New Zealand



4,173,460 1,626,000 1,800,000


Annual demand was 291,000 meters (units) in 2008. This will rise to an estimated 3 71,000 in 2012 with an AMI roll-out. The value will increase from €13 million ($19 million) in 2008 to €18 million ($23 million) in 2012.

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Valu

e $

and

euro

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Met

er u

nits

$ 18,644,010 20,996,910 19,653,250 22,828,250 22,828,250euro 12,683,000 16,533,000 15,475,000 17,975,000 17,975,000Units 290,520 333,520 320,500 370,500 370,500

2008 2009 2010 2011 2012


The bulk of the market is in the residential sector and the AMI roll-out will consolidate that for the period of the roll-out.

2008 2009 2010 2011 2012


Euro 97% 99% 99% 99% 98%


Euro 3% 1% 1% 1% 2%



6.3.8 New Zealand, Continued


2008 2009 2010 2011 2012

Units 290,000 333,000 320,000 370,000 370,000


$ 18,316,200 20,713,700 19,456,400 22,631,400 22,631,400

Units 520 520 500 500 500

Euro 223,000 223,000 155,000 155,000 155,000 C&I

$ 327,810 283,210 196,850 196,850 196,850

Units 290,520 333,520 320,500 370,500 370,500


$ 18,644,010 20,996,910 19,653,250 22,828,250 22,828,250

Meter technology

In 2006, the government initiated debate regarding ‘smart’ meters, with a view to starting installations of ‘smart’ meters and load control technologies in 2008. Most of the utilities have announced plans to installed advanced metering, covering the entire installed meter base in New Zealand in the next few years.

In April 2008, it was announced that Genesis Energy, New Zealands largest electricity and gas supplier will install over 700,000 AMI meters over the next few years.

340,000 AMI meters are to be installed in Auckland by Mercury Energy.

Contact Energy will install 500,000 AMI meters.

Meridian Energy plans to install 200,000 AMI meters.


2008 2009 2010 2011 2012

Units 80,000 40,000 20,000 20,000 20,000


Euro 960,000 1,400,000 320,000 320,000 320,000

Units 200,000 13,000 0 0 0


Euro 11,000,000 910,000 0 0 0

Units 0 0 0 0 0


Euro 0 0 0 0 0

Units 10,000 280,000 300,000 350,000 350,000

Unit price 50 50 50 50 50 AMI

Euro 500,000 14,000,000 15,000,000 17,500,000 17,500,000

Units 0 0 0 0 0

Unit price 0 0 0 0 0

Residential

Prepayment

Euro 0 0 0 0 0





2008 2009 2010 2011 2012

Units 500 500 500 500 500


Euro 155,000 155,000 155,000 155,000 155,000

Units 20 20 0 0 0

Unit price 3,400 3,400 0 0 0 Grid Grid AMI

Euro 68,000 68,000 0 0 0


The National Organisation for Legal Metrology has ultimate responsibility.

The Trading Standards Service (TSS) advises the Minister of Consumer Affairs on the technical and legislative requirements for trade measurement in New Zealand. TSS publishes a series of policy guides in relation to:

• Pattern approval

• Legal metrology accreditation

• Compliance

• Accreditation audits

• Consumer cost method of measurement

TSS The Testing Laboratory Registration Council (TELARC) operates its accreditation services under the name International Accreditation New Zealand (IANZ) and comprises over 570 laboratories (54 of which are calibration laboratories) throughout New Zealand distributed over industry and other administrations.

Utility background

The electricity supply industry of New Zealand has been in the process of reform and restructuring for over fifteen years. The changes have affected all sectors of the industry and are designed to make the industry more competitive and customer orientated. The restructuring of the industry has also been subject to lengthy debate since the end of the 1980s.

In 1998, the state-owned generator, ECNZ was split into three; generation, transmission and distribution. The generation assets were sold to four state-owned companies. Contact Energy Limited now controls around 30% of the installed capacity of New Zealand; Meridian Energy Limited, acquired ten power stations; Genesis Power Limited acquired seven power stations and Mighty River Power Limited acquired eight power stations. There are additionally a number of private generators.

Transpower owns and operates the national grid. This high-voltage cable transmission system is the physical "hub" of the wholesale electricity market. The national grid transports electricity from approximately 40 major power stations across the country. These connect with the power lines (or networks) operated by the distributors at more than 200 grid exit points. Transpower owns over 12,300 kilometres of high-voltage transmission line.





30 distribution companies own the local low-voltage power lines which connect with the national grid and distribute electricity to consumers. Generally they sell their services directly to retailers rather than end-use consumers.

Table 6.43: ESI characteristics New Zealand

Generators – 40 Top 5 > 95% Contact Energy Ltd Genesis Power Ltd Meridian Energy Ltd Mighty River Power Ltd Trust Power Ltd TSO – Transpower DNOs - 28 Trust Owned or Public distribution companies that own and operate the local distribution networks throughout New Zealand



6.3.9 Philippines



96,061,680 18,308,000 15,600,000



0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Valu

e $

and

euro

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Met

er u

nits

$ 18,204,480 17,429,480 19,607,530 19,963,130 20,496,530euro 12,384,000 13,724,000 15,439,000 15,719,000 16,139,000Units 625,540 639,040 685,040 705,040 735,040

2008 2009 2010 2011 2012


The contribution of the C&I sector will decline somewhat, from 45% to 34% in 2012.

2008 2009 2010 2011 2012 Units 91% 91% 92% 92% 93%

Residential € 55% 59% 62% 62% 62%


€ 45% 40% 36% 35% 34%


2008 2009 2010 2011 2012

Units 570,500 584,000 630,000 650,000 680,000


$ 9,216,900 9,664,700 11,842,750 12,198,350 12,731,750

Units 55,040 55,040 55,040 55,040 55,040

Euro 6,114,000 6,114,000 6,114,000 6,114,000 6,114,000 C&I

$ 8,987,580 7,764,780 7,764,780 7,764,780 7,764,780

Units 625,540 639,040 685,040 705,040 735,040


$ 18,204,480 17,429,480 19,607,530 19,963,130 20,496,530



6.3.9 Philippines, Continued

Meter technology

Philippines with remain split in the residential sector between electromechanical and electronic meters. A change to advanced metering Is not expected for several years.


2008 2009 2010 2011 2012


Euro 3,150,000 2,700,000 2,700,000 2,700,000 2,700,000


Euro 3,080,000 3,780,000 4,200,000 4,480,000 4,900,000

Units 500 2,000 5,000 5,000 5,000 AMR

Euro 40,000 160,000 400,000 400,000 400,000

Units 0 2,000 5,000 5,000 5,000 AMI

Euro 0 170,000 425,000 425,000 425,000

Units 0 10,000 20,000 20,000 20,000

Residential

Prepayment Euro 0 800,000 1,600,000 1,600,000 1,600,000

Units 55,000 55,000 55,000 55,000 55,000 C&I C&I AMI

Euro 6,050,000 6,050,000 6,050,000 6,050,000 6,050,000


Euro 64,000 64,000 64,000 64,000 64,000


The Philippines has imported increasing numbers of meters from China. GE has a presence but the European meter companies do not have a presence in the Philippines.

The Philippines market is supplied by local companies.

The Philippines imports half a million cheap meters from China each year. The large distribution utility in Manila, Meralco, is more discerning than the small distribution utilities scattered around the provinces, which have always been price conscious markets.


The National Metrology Laboratory (NMLPhil) is the leading arm of the Industrial Technology Development Institute, carrying out type approval, calibration, verification and testing. Responsibilities are delegated to authorised agencies. The Energy Regulatory Commission (ERC) is responsible for meter testing, calibration and verification.

Utility background

The most significant event in Philippine energy industry in recent years was the Power Industry Reform Act (PIRA). The PIRA legislation required Napocor to break-up its vertically integrated assets into generation, transmission, distribution and supply in order to prepare for privatisation. Napocor has designated two new subsidiary companies designed solely for privatisation. Transco owns the state's high voltage transmission lines and infrastructure.



6.3.9 Philippines, Continued


Psalmcorp owns the power plants and has already sold 12 power plants and is selling the rest to private investors. There has been opposition to bids for Transco, which is still state-owned, among them one from a consortium with the State Power Grid of China among its members. The government has sold its share of Meralco, a mixed-ownership company that serves Manila and the immediate surrounding area by buying power from various IPPs, and also Panay Distribution Company.

The Philippine power system consists of three major island grids, namely Luzon, Visayas and Mindanao; there are also several small island grids. The Luzon grid is the largest, accounting for 75% of total generation and installed capacity. The Visayas grid comprises the islands of Cebu, Leyte, Negros, Panay, Samar and (soon) Bohol. Together they amount to around 10% of total generation and installed capacity. The Mindanao grid accounts for about 15% of total generation and installed capacity.

Luzon, which includes the capital Manila, has about 75% of national electricity demand. Prices are such that industrial and commercial customers subsidise residential customers, and the Luzon grid subsidises those of the Visayas and Mindanao.

The Philippines, due to its geography, has problems linking all of its larger islands together into one grid and ensuring availability of electric power in rural areas. The government had set a target date of 2006 for full electrification, and was also taking steps to link together the country's three major power grids (Luzon, Visayas, and Mindanao). Where it is not economical to link small islands' grids into the national grid, separate local systems are being established around small generating plants.

Distribution is performed by 27 private and municipality owned utilities, and also by 119 rural electricity cooperatives.

MERALCO (Manila Electric Company) is the largest distribution utility in the Philippines and holds the franchise for 9,328 km2 covering Metro Manila, ten other cities and 101 municipalities. The company distributes 75% of national electricity sales.

Table 6.44: ESI characteristics Philippines

Generators – 1 utility Power Sector Assets and Liabilities Management Corporation (PSALM, successor to NAPOCOR) IPPs – Mirant

TSO – 1 National Transmission Corporation (TransCo) (successor to NAPOCOR)

DNOs – 146 MERALCO in Manila is by far the largest Private distribution companies - 17 Electric cooperatives – 119 LGUs – 10



6.3.10 Taiwan



22,920,946 6,965,000 12,387370



0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

Valu

e $

and

euro

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Met

er u

nits

$ 29,260,350 22,282,150 48,825,150 62,287,150 87,496,650euro 19,905,000 17,545,000 38,445,000 49,045,000 68,895,000Units 427,025 310,025 435,025 545,025 705,025

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The C&I share in terms of value will decline slightly as electronic and AMI meters are

deployed, but will remain at 24% by 2012.

2008 2009 2010 2011 2012


Euro 70% 59% 69% 71% 76%


Euro 30% 41% 31% 29% 24%



6.3.10 Taiwan, Continued


2008 2009 2010 2011 2012

Units 387,000 270,000 385,000 485,000 635,000


$ 20,374,200 13,081,000 33,528,000 43,942,000 66,103,500

Units 40,025 40,025 50,025 60,025 70,025

Euro 6,045,000 7,245,000 12,045,000 14,445,000 16,845,000 C&I

$ 8,886,150 9,201,150 15,297,150 18,345,150 21,393,150

Units 427,025 310,025 435,025 545,025 705,025


$ 29,260,350 22,282,150 48,825,150 62,287,150 87,496,650

Meter technology

Residential meters are electromechanical - 1 phase/3 wire but there will be conversion to electronic meters, starting in 2009, and then a roll-out of AMI meters with a longer term timeframe than some other advanced metering schemes.

C&I meters are solid state, 3 phase/3 wire, 3 phase/4 wire

Prepayment meters are manufactured and used in Taiwan.

Taipower is using AMR technology in the C&I sector.

Taipower has produced a ‘smart’ Grid Roadmap which started in 2007 and coordinates a series of parallel activities leading to a full ‘smart’ grid by 2025. An advanced automatic reading system will be built in stages with completion by 2016.


2008 2009 2010 2011 2012

Units 380,000 250,000 200,000 100,000 0 Electromechanical

Euro 13,300,000 8,750,000 7,000,000 3,500,000 0

Units 0 10,000 80,000 180,000 230,000 Electronic

Euro 0 750,000 6,000,000 13,500,000 17,250,000

Units 5,000 5,000 0 0 0 AMR

Euro 400,000 400,000 0 0 0

Units 0 0 100,000 200,000 400,000 AMI

Euro 0 0 13,000,000 17,200,000 34,400,000

Units 2,000 5,000 5,000 5,000 5,000

Residential

Prepayment Euro 160,000 400,000 400,000 400,000 400,000

Units 40,000 40,000 50,000 60,000 70,000 C&I C&I AMI

Euro 6,000,000 7,200,000 12,000,000 14,400,000 16,800,000


Euro 45,000 45,000 45,000 45,000 45,000



6.3.10 Taiwan, Continued


Tatung, a major conglomerate founded in 1918, is Taiwan’s leading manufacturer of meters, and Taiwan’s leading manufacturer of computers, with 20,000 employees. The company makes electromechanical, electronic and prepayment meters. Tatung probably has a share of 50% to 60% of the market.

GE has a presence in the market.

Minsun Technology Company makes electronic meters.

CTE Corporation.

Taiwan imports meters from China and the USA.

Type approval MOEA, the Ministry of Economic Affairs is responsible for regulation and approval of measuring instruments.

NML, National Measurement Laboratory has established standards for electricity.

Electricity meters are not currently subject to type approval but this will be introduced.


BSMI, Bureau of Standards Metrology and Inspection verify instruments before sale. BSMI has seven offices located throughout Taiwan. All electricity meters must be verified and inspected. 1 million meters are verified annually.

BSMI licenses approved and properly equipped independent testing institutions to carry out verification. Tertec, Taiwan Electric and Research Testing Centre verifies all electricity meters in its laboratories.

Electromechanical meters have a verification interval of 7 years.

Electronic meters have a verification interval of 8 years.


BSMI inspects meters when they are in use.

Utility background

Taiwan Power Company (Taipower), the state-owned electric power utility, currently dominates Taiwan's electric power sector. However, Taipower's monopoly status has been undermined by a 1994 measure which allowed IPPs to provide up to 20% of Taiwan's electricity.

IPPs are required to sign power purchase agreements with Taipower, which distributes the power to consumers. However, regulations issued by the government in July 1998 allowed foreign investors to play a greater role in Taiwan's electric transmission and distribution sector. The rules raised the level permitted of foreign investment in these sectors from 30% to 50%.

Table 6.45: ESI characteristics Taiwan

Generators - 1 utility Taipower - 80% IPPs - 20%

TSO – 1 Taipower

DNOs – 1 Taipower



6.3.11 Thailand



65,920,946 16,876,000 18,352,498


Annual demand will remain stable, with 932,000 meters (units) in 2008 compared with 933,000 in 2012. The value will be €18 million ($27 million) and €21 million ($27 million) in 2012, with some conversion from electromechanical to electronic residential meters.

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Valu

e $

and

euro

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Met

er u

nits

$ 27,127,380 24,022,050 24,568,150 24,822,150 26,790,910euro 18,454,000 18,915,000 19,345,000 19,545,000 21,095,205Units 932,040 937,050 888,050 863,050 933,051

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The contribution of the C&I sector in terms of value will remain high in Thailand at

about half of total revenue.

2008 2009 2010 2011 2012


Euro 44% 44% 46% 44% 45%


Euro 56% 56% 54% 56% 55%



6.3.11 Thailand, Continued


2008 2009 2010 2011 2012

Units 882,000 887,000 838,000 813,000 883,000


$ 11,995,200 10,934,700 11,480,800 11,734,800 13,703,300

Units 50,040 50,050 50,050 50,050 50,051

Euro 10,294,000 10,305,000 10,305,000 10,305,000 10,305,205 C&I

$ 15,132,180 13,087,350 13,087,350 13,087,350 13,087,610

Units 932,040 937,050 888,050 863,050 933,051


$ 27,127,380 24,022,050 24,568,150 24,822,150 26,790,910

Meter technology

1 phase and 3 phase electro-mechanical meters are used residentially.

Both MEA and PEA uses C&I electronic meters.

There are no reports of MEA or PEA, the two distribution companies, using AMR or AMI meters yet but it is anticipated in the future.

Thailand is not moving fast into the new technology and will continue using electromechanical meters while converting some to electronic meters.


2008 2009 2010 2011 2012


Euro 7,200,000 6,750,000 5,850,000 5,400,000 4,950,000


Euro 800,000 1,300,000 1,700,000 1,900,000 3,000,000

Units 1,000 5,000 10,000 10,000 10,000 AMR

Euro 80,000 400,000 800,000 800,000 800,000

Units 0 0 5,000 10,000 20,000 AMI

Euro 0 0 450,000 900,000 1,800,000

Units 1,000 2,000 3,000 3,000 3,000

Residential

Prepayment Euro 80,000 160,000 240,000 240,000 240,000

Units 50,000 50,000 50,000 50,000 50,001 C&I C&I AMI

Euro 10,250,000 10,250,000 10,250,000 10,250,000 10,250,205


Euro 44,000 55,000 55,000 55,000 55,000





Actaris has sold small quantities of meters in Thailand but Landis+Gyr none. We do not have information about Elster.

Holley Group Electric (Thailand) Co Ltd is a subsidiary of Holley Group the largest meter manufacturer in China, which is rapidly establishing a global presence. Holley Thailand’s major customers are the Provincial Electricity Authority and Metropolitan Electricity Authority of Thailand, National Electricity Cooperatives (Philippines) and Electricite du Lao.

Thailand reported imports of 1.9 million meters in 2006, 2.2 million in 2007 and 1.6 million in 2008, about two thirds from China with an average import price of $7.87 and one third via Singapore. We do not know how many of these have been exported.

Type approval There is no organisation in Thailand responsible for measurement of electricity

directly. The two distribution companies Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA) are the responsible bodies.

EGAT, the Electricity Generating Authority of Thailand, the state-owned generating company operates the Energy Meter Calibration Laboratory.


All meters have to be verified at the start. For imported meters standards are referred to the country of origin, IEC or in the case of the US ANSI.

Locally manufactured meter standards are base on IEC 521-1976 and verified at random.

After 20 years meters are checked, and if necessary replaced by MEA and 15 years in the case of PEA.


There is no re-verification interval. However, the MEA operating in urban Bangkok usually verifies meters after 20 years and PEA, operating in the more difficult conditions of rural Thailand, after 15 years.

Utility background

EGAT (Electricity Generating Authority of Thailand) is the overall supply authority and reports to NEA (National Energy Authority). EGAT generates and transmits most of the country's electricity, selling to two distribution authorities and to individual large industrial bulk consumers.

The two government-owned distribution authorities are MEA (Metropolitan Electricity Authority) which distributes throughout the capital Bangkok / Thonburi, and PEA (Provincial Electricity Authority) which distributes nation-wide in all the provinces. These two companies are responsible for metering in Thailand.

Two other categories produce electricity. POFs (Privately Owned Franchise) generate electricity and distribute it within a licensed area. Their sales are almost all restricted to their own areas. There are also a number of auto-producers.




Table 6.46: ESI characteristics Thailand

Generators EGAT plc - 74% Powergen 1 (5,999 MW) and Powergen 2 (4,600 MW) proposed IPPs - 19% 41 SPPs - 7%

TSO – 1 EGAT An ISO is proposed

DNOs – 2 Metropolitan Power Authority Provincial Power Authority Proposed to be reformed as REDCOs



6.3.12 Vietnam



86,116,560 25,000,000 25,000,000




0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Valu

e $

and

euro

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Met

er u

nits

$ 25,107,600 21,437,600 21,856,700 22,974,300 23,533,100euro 17,080,000 16,880,000 17,210,000 18,090,000 18,530,000Units 1,525,050 1,550,051 1,565,052 1,605,053 1,625,054

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) 89% of the value in the market is in the residential sector as electgridification of the

country continues.

2008 2009 2010 2011 2012


Euro 79% 83% 84% 84% 85%


Euro 21% 17% 16% 16% 15%



6.3.12 Vietnam, Continued


2008 2009 2010 2011 2012

Units 1,500,000 1,525,001 1,540,002 1,580,003 1,600,004


$ 19,845,000 17,843,500 18,262,600 19,380,200 19,939,000

Units 25,050 25,050 25,050 25,050 25,050

Euro 3,580,000 2,830,000 2,830,000 2,830,000 2,830,000 C&I

$ 5,262,600 3,594,100 3,594,100 3,594,100 3,594,100

Units 1,525,050 1,550,051 1,565,052 1,605,053 1,625,054


$ 25,107,600 21,437,600 21,856,700 22,974,300 23,533,100

Meter technology Installed base

The growth of the installed base of meters in Vietnam has been very erratic, with a huge spurt in 2005. The country has achieved a high level of residential electrification in a remarkably short time, rising from 14 million end points to 26 million between 2004 and 2006. Most households now have access to electricity.

The installed base of electricity meters in Vietnam, 2004 to 2006

2004 2005 2006 Inductive Inductive

Total Total 1 Phase 3 Phase

Electronic Total

EVN 6,882,984 11,844,864 12,677,452 185,176 166,855 13,029,483

PC 1 1,639,429 1,649,429 1,727,970 68,948 17,454 1,814,372

PC 2 1,965,402 1,975,402 2,135,869 18,866 18,207 2,172,942

PC 3 949,162 1,959,162 2,106,407 35,015 13,657 2,155,079

Hanoi PC 589,113 2,594,113 2,828,108 15,451 9,966 2,853,525

Haiphong PC 1,228,288 1,068,288 1,130,124 36,458 8,949 1,175,531

HoChiMinh PC 211,367 2,223,367 2,424,949 6,958 13,797 2,445,704

Dongnai PC 257,493 257,490 74,115 1,976 2,149 78,240

Ninhbinh PC 42,732 42,732 44,911 1,918 176 47,005

13,765,970 23,614,847 25,149,905 370,766 251,210 25,771,881

Source: Vietnam Metrology Institute

Vietnam uses electromechanical meters in the residential sector and electronic meters in the C&I sector. This is unlikely to change in the near future as the priority in the country has been to establish an electrical network from a very narrow base and the system is still in early stages of development.

EVN is testing AMR. IntraCoastal recently delivered the first batch of Rabbit-powered AMR systems to EVN to be implemented and evaluated. 150 of the units were shipped and another 1,000 units over the next 3 years.





2008 2009 2010 2011 2012


Euro 13,500,000 13,500,000 13,500,000 13,500,000 13,500,000

Units 0 25,000 40,000 80,000 100,000 Electronic

Euro 0 550,000 880,000 1,760,000 2,200,000

Units 0 0 0 0 0 AMR

Euro 0 0 0 0 0

Units 0 1 2 3 4 AMI

Euro 0 0 0 0 0

Units 0 0 0 0 0

Residential


Units 25,000 25,000 25,000 25,000 25,000 C&I C&I AMI

Euro 3,500,000 2,750,000 2,750,000 2,750,000 2,750,000


Euro 80,000 80,000 80,000 80,000 80,000


EDMI has an office in Ho Chi Minh City.

Sytec System & Technologies Vietnam Ltd is the Elster representative in Vietnam.

Given a relationship between EVN, the state utility of Vietnam and EDF it is interesting that Actaris has no presence in Vietnam.

Elmaco trades in electrical measurement instruments and other equipment.

Linkton Vina is the Vietnam associate of Linkton Singapore.

In 2005 a major problem occurred with faulty meters in Ho Chi Minh City and the government ordered EVN to replace 238,000 faulty electricity meters. 312,000 meters in question purported to have been manufactured by the Singapore-based Linkton Company, which supposedly manufactured all of these devices on the island state. However, the local media eventually discovered that the meters were manufactured by Linkton Vina in Viet Nam and did not comply with the contract signed between the buyer and the seller. Linkton failed to show documents to identify the original manufacturers of the meters.

There are many companies manufacturing electrical products in Vietnam but little information is available about meter manufacturers.

Vietnam imports meters from China and Singapore.

Type approval In 2001 / 2002 the Ministry of Science and Technology issued a set of decisions

regarding Legal Metrology. The Directorate of Standards and Quality, STAMEQ is the organisation responsible for metrology in Vietnam.

STAMWQ has branches in 64 provinces and cities.

61 authorised laboratories belong to the Power Companies, subsidiaries of EVN (Electricite de Vietnam, the state utility). 2 authorised laboratories belong to local industrial departments.




Type approval (continued)

All locally produced and imported meters are type approved.

MTE (Switzerland-Germany) and China re-accepted.

Vietnamese standards for electromechanical meters follow IEC 62053-21.

For electronic meters standards follow IEC 62053-22 (IEC 1036, IEC 687 and IEC 1268.


All meters are verified.


All meters are the property of EVN. Customer complaints are made to the local; power company and meters are checked by he local power company and the branch of STAMEQ.

Solid state reference meters classification 0.005-01-0, 02-0, 1-0, 2-05.

Residential 1 phase meters are re-verified after 5 years, 3 phases after 2 years.

Utility background

The Vietnamese government has approved a master plan for the development of an electricity market in the country in three phases, the provision of a competitive supply market by 2015, application of a wholesale business model between 2015 and 2022, and a fully competitive retail market after 2024.

The state power company, Electricity of Vietnam (EVN), is responsible for planning and generation, and is working on a plan to develop a national electricity grid by 2020, linking several regional grids.

Three regional companies, PC1, PC2 and PC3 are now responsible only for transmission and distribution in their regions.

PC1 (Power Company Number 1), with headquarters in Hanoi, covers the region which was formerly North Vietnam and lies above the 17th parallel. PC1 operates its transmission system at 220 and 110 kV; PC2 at 220, 110 and 66 kV and PC3 at 110 and 66 kV. These lines increased from 2,438 km in 1986 to 6,300 km by the end of 1996.

PC2 (Power Company Number 2), with headquarters in Ho Chi Minh City, covers the Southern region.

PC3 (Power Company Number 3), with headquarters in Da Nang, is responsible for Central Vietnam.

There are five city distribution companies; Hanoi, Ho Chi Minh City, Hai Phong, Dong Nai. Ninh Binh.

Table 6.47: ESI characteristics Vietnam

Generators I state-owned utility EVN, Electricite de Vietnam 4 foreign-owned IPPs are being built TSO – 1 EVN and the regional PCs DNOs 3 regional distribution companies (PCs), owned by EVN 5 city distribution companies (PCs), owned by EVN



6.4 Middle East


6.4.1 Iran

Middle East - Overview



194,359,932 41,460,000 44,283,553

Annual demand for all meters Annual demand in the Middles East was 3.4 million meters (units) in 2008 rising

slightly to 3.5 million in 2012. The value will increase in this period from €107 million ($157 million) to €127 million ($161 million). Iran is the largest market in the Middle east accounting for 1.3 million annually.

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

$ 156,900,000 153,200,000 157,781,000 156,987,500 161,190,000euro 106,734,694 120,629,921 124,237,008 123,612,205 126,921,260Units 3,359,000 3,324,000 3,490,000 3,412,250 3,467,350

2008 2009 2010 2011 2012



Middle East - Overview, Continued

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) Residential meters account for 97% of meters in the Middle East and this will remain

the case.

2008 2009 2010 2011 2012


$ 87% 88% 89% 89% 88%


$ 13% 12% 11% 11% 12%


2008 2009 2010 2011 2012

Units 3,275,000 3,250,000 3,417,000 3,330,000 3,370,000 Residential

$ 136,700,000 134,900,000 140,761,000 139,820,000 141,510,000

Units 84,000 74,000 73,000 82,250 97,350 C&I

$ 20,200,000 18,300,000 17,020,000 17,167,500 19,680,000

Units 3,359,000 3,324,000 3,490,000 3,412,250 3,467,350 Total meters

$ 159,900,000 153,200,000 157,781,000 156,987,000 161,190,000

Meter technology

Electromechanical meters will remain in use in the Middle East alongside increasing numbers of basic electronic and AMI meters. AMI meters will be installed in the Gulf states of the UAE and Kuwait.


2008 2009 2010 2011 2012


$ 36,800,000 36,600,000 36,000,000 29,900,000 29,670,000


$ 47,250,000 47,600,000 46,761,000 49,500,000 50,820,000

Units 0 0 0 0 0 AMR

$ 0 0 0 0 0

Units 325,000 325,000 500,000 530,000 540,000 AMI

$ 52,650,000 50,700,000 58,000,000 60,420,000 61,020,000

Units 0 0 0 0 0

Residential

Prepayment $ 0 0 0 0 0

Units 80,000 70,000 70,000 80,000 95,000 C&I C&I AMI

$ 15,200,000 13,300,000 13,300,000 14,400,000 16,625,000


$ 5,000,000 5,000,000 3,720,000 2,767,500 3,055,000


6.4.1 Iran



65,875,224 20,003,066 20,000,000


Annual demand was 1,338,000 meters (units) in 2008 rising to 1,479,000 in 2012. The value will increase in this period from €25 million ($36 million) to 42 million ($54 million).

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

Valu

e $

and

euro

1,250,000

1,300,000

1,350,000

1,400,000

1,450,000

1,500,000

Met

er u

nits

$ 36,191,400 34,899,600 37,124,640 47,985,680 53,573,680euro 24,620,000 27,480,000 29,232,000 37,784,000 42,184,000Units 1,338,050 1,378,050 1,378,550 1,379,050 1,479,050

2008 2009 2010 2011 2012

Annual penetration by segment from 2008 to 2012, IGC and residential, volume and value (€) The bulk of value in the Iranian meter market is in the residential sector.

2008 2009 2010 2011 2012


Euro 88% 89% 90% 92% 93%


Euro 12% 11% 10% 8% 7%



6.4.1 Iran, Continued


2008 2009 2010 2011 2012

Units 1,326,000 1,366,000 1,366,500 1,367,000 1,467,000


$ 31,832,850 31,134,050 33,359,090 44,220,130 49,808,130

Units 12,050 12,050 12,050 12,050 12,050

Euro 2,965,000 2,965,000 2,965,000 2,965,000 2,965,000 C&I

$ 4,358,550 3,765,550 3,765,550 3,765,550 3,765,550

Units 1,338,050 1,378,050 1,378,550 1,379,050 1,479,050


$ 36,191,400 34,899,600 37,124,640 47,985,680 53,573,680

Meter technology

Almost all residential meters currently installed are electromechanical. The bulk of meters are manufactured in Iran but there are some imports. Until recently Iran only manufactured a few electronic meters but is now establishing a large-scale capability to make electronic meters in Iran.

The Vice Chairman of Tavanir, the Iran national power company has announced that Iran needs to digitalise the power industry as well. It is assumed from this remark that electromechanical meters are mainly used in the power industry.

The government has just announced a partnership between Kontorsazi, the leading Iranian meter manufacturer and Actaris, to introduce digital technology and to manufacture electronic meters. It is the plan to convert the current electromechanical meter base completely to, electronic meters over a period of 20 years through replacement of the existing stock, and to reduce energy consumption by 10%. The Energy Minister has appointed Kontorsazi to achieve the conversion of meters to solid state.

There is an AMR and AMI capability in Iran.


2008 2009 2010 2011 2012

Units 1,050,000 950,000 850,000 350,000 250,000


Euro 12,600,000 11,400,000 10,200,000 4,200,000 3,000,000

Units 260,000 400,000 500,000 1,000,000 1,200,000


Euro 7,540,000 11,600,000 14,500,000 29,000,000 34,800,000

Units 0 0 0 0 0


Euro 0 0 0 0 0

Units 1,000 1,000 1,000 1,000 1,000

Unit price 95 95 95 95 95

Residential

AMR

Euro 95,000 95,000 95,000 95,000 95,000





2008 2009 2010 2011 2012

Units 5,000 5,000 5,500 6,000 6,000

Unit price 104 104 104 104 104 AMI

Euro 520,000 520,000 572,000 624,000 624,000

Units 10,000 10,000 10,000 10,000 10,000

Unit price 90 90 90 90 70

Residential

Prepayment

Euro 900,000 900,000 900,000 900,000 700,000

Units 12,000 12,000 12,000 12,000 12,000


Euro 2,880,000 2,880,000 2,880,000 2,880,000 2,880,000

Units 50 50 50 50 50


Euro 85,000 85,000 85,000 85,000 85,000

Major participants

At present there is one major player in the Iranian meter market, with another company becoming more significant.

• Sherkat Kontorsazi Iran was founded in 1968 ago by the Ministry of Power and AEG, and was the only manufacture of meters in Iran. It initially had a production capacity of 100,000 meters a year, but this has now reached 1 million meters a year. It is the leading electric meter company in Iran. The company makes electromechanical and electronic meters. In 2007 the company has reached an agreement with Actaris for transfer of technology used in the production of digital power meters. A large digital electric meter manufacturing factory was opened in Qazvin in April 2007, to make electronic meters. Some €1.5 billion Euros and 30 billion rials have been invested in the key project. The factory will produce 300,000 digital meters a year and production may increase to a million units. The market share is estimated at 70% of the residential meter market

• Kerman Tablo has been manufacturing meters since 1999 with the first Iranian digital meter. Kerman Tablo would be capable of producing 500,000 meter per year and in second phase programme expanding to reach 1,000,000 meters per year. Kerman Tablo also produces AMR software

Other Iranian meter manufacturers are:

• Iran Electrical Watt-Meter Mfg Co.

• Vernik Counter Co.

Iran imports meters from the UK, France, Germany, Slovenia and China.

Standards and type approval

The Institute of Science and Industrial Research of Iran (ISIRI) is the body charged with drawing up standards in Iran. Each province has its own standards office which has the task of overseeing production units, retail outlets and customs offices located in that province.




Standards and type approval (continued)

Goods entering the country must conform to ISIRI requirements, or any of the following standards:

• International Standards: ISO, ITU, IEC, CODEX

• European Union Standards: all ending with EN (e.g. DINEN, BSEN)

• National Standards of EU Countries: BSI (United Kingdom), DIN/VDE (Germany), UNI (Italy), ANFOR (France), NNI (Netherlands), AENOR (Spain), ON (Austria), IPQ (Portugal), DS (Denmark), SEE (Luxembourg), NSF (Norway), SIS (Sweden), NSAI (Ireland), ELOT (Greece)

• National Standards of North American Countries: API, ASME, ANSI, ASTM, AGI, API, UL

• National Japanese Standards: JIS

• Standards for Measurement Devices: OIML

All goods on the Compulsory Standards List entering the country commercially must receive a Certificate of Conformity (COC) from the standards office under whose jurisdiction the port of entry falls. Without the certificate, customs will not clear the goods in question. To receive a COC, the prospective importer can go through one of the following four routes:

• Clearly stating one of ISIRIs acceptable standards in all commercial documents including the contract, proforma invoice, import registration documents, L/Cs, etc. to illustrate the seller’s undertaking to conform with basic standards and requirements

• Production of SD (Note 1) or MD (Note 2) stating the goods’ conformity with the stated standards and specifications of the goods

• Production of test results carries out by an approved laboratory

• Obtaining and producing a Verification of Conformity (VOC) issued by an approved surveillance / inspection agency

Importers may ship the goods to Iran without the documents mentioned above and receive a COC from the standards office after inspection and testing by ISIRI or customs officials. The samples taken will be sent for testing to an approved laboratory and should the results confirm the goods specifications and their conformity with approved standards, a COC will be issued.


The following can apply for type approval by ISIRI and will then be able to import their goods into the country with the minimum of delay.

Companies that have registered their goods with ISIRI within the last two years and at least three of their products have shown complete conformity with the applicable standards.

Companies who have a global market share of at least 10% of the goods in question or have a minimum 50 years experience of producing the product (s), or have received the CE mark or other certificates of quality approved and verified by a reputable organisation.

Initial verification, inspection and re-verification

No data is available.




Utility background

The ultimate authority in the Iranian electricity industry is the Ministry of Energy (MOE). Until the 1990s, electricity generation and transmission was carried out by Tavanir (the Iran Power Generation and Transmission Co) and the Iran Power Organisation (IPO). Both companies have now been merged operationally with the MOE and a new structure has been developed for the industry. The Ministry of Energy Tavanir Management is now the responsible entity.

Geographically, supply is parcelled out among 16 regional electricity companies (RECs) which own all electricity assets in their respective areas of operation. 13 RECs are constituted under public law, and are owned 100% by the MOE. Three are under private law and are owned jointly by Tavanir and two of the public RECs. The private law RECs are joint-stock companies with powers to raise money and are fore-runners of a privatised industry.

There is a distinction between ownership of assets and the operation of those assets. While the RECs own the assets, they have contracts with generating and distribution companies to supply and distribute power, and they import and export electricity from the other RECs. The hydro stations are owned by regional water companies, which are owned by the MOE. Hydro power planning is mainly driven by irrigation requirements. Each REC maintains the transmission network within its area and 14 have interconnections with other RECs, forming a national interconnected grid.

Table 6.48: ESI characteristics Iran

Generators 14 regional companies 27 generation companies Tavanir is the national organisation TSO – 1 Tavanir DNOs – 42 Regional and municipal distribution companies

Source: ESI 2009 Ed 14


6.5 Africa


6.5.1 Egypt 6.5.2 South Africa

Africa - Overview Population, household and meter base

Population Number of households Installed electricity meter base Maghreb 209,966,960 36,579,000 43,680,934

Sub-Saharan Africa 756,665,653 160,063,000 25,268,857

All Africa 966,632,613 196,642,000 68,949,790 With a population of nearly one billion this table demonstrates two demographic facts

which are important in moulding the meter market and its future trends. There are only 200,000 households for one billion people, giving an average household size of 4.8 members, 5.6 in North Africa and 4.6 in sub-Saharan Africa. This compares with 2.3 in Europe. It may take a long time and it will happen most quickly in the more economically advanced countries of South Africa and the Mediterranean littoral countries of North Africa, but the household size will reduce. Together with increased electrification this will cause the number of meter end points to grow in Africa. The second point is the huge difference between North Africa and sub-Saharan Africa, excluding South Africa. In the North there are more electricity meters than households, indicating a very high rate of electrification and widespread commercial use. In sub-Saharan Africa the number of meters is only 15% the number of households, indicating the extremely low rates of electrification.

Annual demand for all meters Annual demand was 4.1 million meters (units) in 2008 rising to 5 million in 2012. The

value will increase in this period from €94 million ($138 million) to €138 million ($175 million).

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

200,000,000

$ an

d eu

ro c

urre

ncy

units

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Met

er u

nits

$ 138,184,377 132,421,858 140,130,787 155,482,876 175,275,786euro 94,002,977 104,269,179 110,339,202 122,427,461 138,012,430Units 4,125,759 4,344,409 4,535,693 4,766,648 5,043,872

2008 2009 2010 2011 2012



Africa - Overview, Continued

This breaks down as 56% in North Africa in volume (meter units) and 47% in value,

compared with 44% in volume and 53% in value in sub-Saharan Africa. The weight to greater value in sub-Saharan Africa is due to the extent of pre-payment and AMI meters in South Africa.

Meter demand in Africa by geographic region

Units '000 2008 2009 2010 2011 2012

Maghreb 2,309,665 2,436,483 2,570,193 2,711,799 2,861,815

Sub-Saharan Africa 1,816,094 1,907,927 1,965,500 2,054,850 2,182,058

All Africa 4,125,759 4,344,409 4,535,693 4,766,648 5,043,872

euro '000

Maghreb 43,818 46,496 49,282 53,493 56,703

Sub-Saharan Africa 50,185 57,773 61,057 68,934 81,309

All Africa 94,003 104,269 110,339 122,427 138,012

$ '000

Sub-Saharan Africa 64,412 59,050 62,588 67,936 72,013

Maghreb 73,772 73,372 77,542 87,547 103,263

All Africa 138,184 132,422 140,131 155,483 175,276 Two countries account for almost half the meters in Africa, Egypt with 32% and

South Africa with 14%, followed by Algeria and Morocco with 8% each, Nigeria with 6%, Ethiopia with 5%, Tunisia and Ghana each with 4%. No other African country has more than 1% of the continental total.

Meter production in Africa

Meters are produced at factories in South Africa, Egypt, Ethiopia, Ghana, Senegal and Zambia. The Activ group of Sudan has announced plans to build an assembly plant for prepayment meters in Kenya.

Main participants in Africa

Three meter companies have the largest market shares in Africa, Actaris, Landis+Gyr and El Sewedy of Egypt. Actaris and Landis+Gyr are both leaders in South Africa in pre-payment metering. Actaris has a plant in Senegal supplying meters throughout West Africa. El Sewedy is dominant in the Egyptian market and has recently expanded widely throughout Africa, with factories in Egypt, Ghana, Ethiopia and Zambia, with ambitious plans for further penetration of the African markets and overseas.

Imports

In the last five years imports of Chinese meters into sub-Saharan Africa have fluctuated between 550,000 to 1 million, with 1,073,555 units in 2007 and 814,252 in 2008. During this period Chinese imports into the North African countries have grown each year from 55,582 in 2003 to 189,406 in 2007 and then they jumped in 2008 to 611,406. These figures are probably subject to some error but they do show a growing penetration of the African market by Chinese meters and this is consistent with the many reports Chinese activity in Africa, driven by a search for raw materials.

This demonstrates a fundamental division in the African meter market. The average selling price of Chinese meters is only 38% that of the market leaders such as Actaris and Landis+Gyr and this is one of the reasons why the value of African market is lower than it would be if compared pro rata against markets like Europe, Japan and North America. The other reason is that the industry has not moved towards advanced metering in the same way as in the industrialised countries, although the technologies may leapfrog over basic installations in the future.


6.5.1 Egypt



81,713,520 16,520,000 24,439,112



0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

$ an

d eu

ro c

urre

ncy

units

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Mat

er u

nits

$ 27,896,190 25,542,240 26,996,009 30,127,473 31,847,436euro 18,977,000 20,112,000 21,256,700 23,722,420 25,076,721Units 1,316,040 1,391,560 1,471,260 1,555,995 1,646,127

2008 2009 2010 2011 2012


The revenue composition of the Egyptian market will not change in the next five years because there is not expected to be a roll-out of AMI, which would increase the value of the residential sector.

2008 2009 2010 2011 2012


Euro 83% 83% 84% 85% 85%


Euro 17% 16% 16% 15% 15%



6.5.1 Egypt, Continued


2008 2009 2010 2011 2012

Units 1,291,000 1,365,500 1,444,200 1,527,935 1,617,067


$ 23,255,400 21,353,780 22,648,799 25,621,5113 27,182,726

Units 25,040 26,060 27,060 28,060 29,060

Euro 3,157,000 3,298,000 3,423,000 3,548,000 3,673,000 C&I

$ 4,640,790 4,188,460 4,347,210 4,505,960 4,664,710

Units 1,316,040 1,391,560 1,471,260 1,555,995 1,646,127


$ 27,896,190 25,542,240 26,996,009 30,127,473 31,847,436

Meter technology

Around 80% of residential meters are electromechanical. AMR is being piloted in the residential sector. We have not found any AMI developments in the pipeline.


2008 2009 2010 2011 2012


Euro 11,880,000 12,474,000 13,097,700 15,002,820 15,752,961


Euro 3,600,000 3,960,000 4,356,000 4,791,600 5,270,760


Euro 0 0 0 0 0

Units 1,000 1,000 1,000 1,000 1,000 AMR

Euro 60,000 60,000 60,000 60,000 60,000

Units 0 500 500 500 500 AMI

Euro 0 40,000 40,000 40,000 40,000

Units 10,000 10,000 10,000 10,000 10,000

Residential

Prepayment Euro 280,000 280,000 280,000 280,000 280,000

Units 25,000 26,000 27,000 28,000 29,000 C&I C&I AMI

Euro 3,125,000 3,250,000 3,375,000 3,500,000 3,625,000


Euro 32,000 48,000 48,000 48,000 48,000


The dominant meter supplier in Egypt is El Sewedy Electrometer Egypt, which is a subsidiary of the rapidly growing El Sewedy industrial and engineering group that also manufactures cables and transformers. El Sewedy has a 50% market share, followed by Gamma and El Masaara.




50%

15% 15%

20%

0%

10%

20%

30%

40%

50%

60%

El Sewedy Gamma El Maasara Others


El Sewedy has emerged very quickly in the last two or three years to become a major competitor in the international meter industry. As the dominant meter company in Egypt, El Sewedy may also diversify into gas and water metering. The company has ambitious plans for international expansion in several regions and is poised to move into the top ranks of meter suppliers.

El Sewedy sells meters to 70% of African countries, supplying them from its factories in Egypt, Ghana, Ethiopia and Zambia. The company is also expanding its presence in the Middle East with a factory in UAE, and is building a factory in India for pre-payment meters.

In the Americas, El Sewedy has two major developments. It has established a factory in Brazil to supply the South American market, and another in Mexico to supply ANSI standard electromechanical and electronic meters to North America.

El Sewedy first attracted international attention with its acquisition of Iskra of Slovenia in 2006. Iskra had financial difficulties running up to 2006 and with a 2% - 3% share of the global electricity meter market was seeking a partner. Iskra has a significant share of the European market with a presence in almost all countries and a 20% market share in Germany, 37% in the Netherlands, 13% in Switzerland, 12% in Austria and 5% in France. If the big Chinese meter companies are excluded this takes El Sewedy into the top 5 companies in the world.


EOS, Egyptian Organisation for Standardisation and Quality is the competent official body responsible for standardisation activities, quality and industrial metrology. EOS has issued about 5000 Egyptian standards covering all the different industrial sectors.

The General Department for Industrial Metrology has 11 labs specialised in the fields of industrial metrology (mechanical, physical and electrical measurements. These inspect, observe and calibrate measuring equipment received from different industrial institutes and issue the relevant metrology certificate.

Meter suppliers have to confirm to Egyptian standards and we are informed that the only reliable way to do this is to cooperate with an Egyptian manufacturer.




Utility background

Egypt's power sector is currently comprised of seven state-owned power production companies, one transmission company and nine regional distribution companies, which were held by the Egyptian Electricity Authority (EEA). In July 2000, the EEA was converted into a holding company, though still owned by the state. Previous privatisation plans have stalled, and the future direction of government policy in the electric utilities sector is unclear.

The Unified Power System (UPS) operates at 500, 220 and 132 kV. It began operating in 1967 when the Aswan High Dam Complex was commissioned.

The UPS, which has a total installed generating capacity of 14,948 MW, is divided into two areas, Northern and Southern. The Northern area comprises five electric zones: Cairo, Delta, Behaira, Alexandria and Canal. The Southern area is divided into two zones: Mid-Egypt and Upper Egypt.

Distribution is carried out by regional organisations. The following areas are covered:

• Alexandria

• Cairo

• Canal

• Beheira

• South Delta Zone

• North Delta Zone

• Upper Egypt

• Mid Egypt

In addition, some municipal councils buy in bulk form and distribute independently.

Distribution is at 33, 11, 6 and 3 kV.

Table 6.49: ESI characteristics Egypt

Generators - 1 EEHC, Egyptian Electricity Holding Company IPPs selling to EEHC: Renewable Energy Authority, NREA, Zafarana wind farm and three privately-owned power plants

TSO – The Egyptian Electricity Transmission Company, EEHC, is responsible for ultra high voltage and high voltage transmission, system control and dispatching in Egypt and export-import contracts of energy

DNOs – 8 regional companies: Greater Cairo Electricity Distribution Company Alexandria Electricity Distribution Company Canal Electricity Distribution Company North Delta Electricity Distribution Company South Delta Electricity Distribution Company Beheira Electricity Distribution Company North Upper Egypt Electricity Distribution Company South Upper Egypt Electricity Distribution Company



6.5.2 South Africa



48,782,756 15,913,000 8,452,114


Annual demand was 564,000 meters (units) in 2008 rising to 748,000 in 2012. The value will increase in this period from €19 million ($28 million) to €44 million ($56 million).Africaa

These figures refer specifically to meters and do not include an estimated 40,000 load management stand alone RCRs and 450,000 sets of prepayment support equipment in 2008. If these were included the total number of units increases to 1,044,000 in 2008. Because of the additional technology of prepayment systems the total revenue figure is higher.

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

$ an

d eu

ro c

urre

ncy

units

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

Met

er u

nits

$ 27,762,420 31,849,060 34,160,968 42,215,308 55,885,588euro 18,886,000 25,078,000 26,898,400 33,240,400 44,004,400Units 564,120 613,080 626,080 669,080 748,080

2008 2009 2010 2011 2012


The continued installation of more expensive prepayment meters and the planned move to advanced metering will increase the proportion of meter revenue in the residential sector r, versus the IGC sector.

2008 2009 2010 2011 2012


Euro 83% 88% 89% 91% 93%


Euro 17% 12% 11% 9% 7%



6.5.2 South Africa, Continued


2008 2009 2010 2011 2012

Units 553,000 602,000 615,000 658,000 737,000


$ 23,049,600 27,894,280 30,238,700 38,293,040 51,963,320

Units 11,120 11,080 11,080 11,080 11,080

Euro 3,206,000 3,114,000 3,088,400 3,088,400 3,088,400 C&I

$ 4,712,820 3,954,780 3,922,268 3,922,268 3,922,268

Units 564,120 613,080 626,080 669,080 748,080


$ 27,762,420 31,849,060 34,160,968 42,215,308 55,885,588

Meter technology

South Africa is currently in the grips of an energy crisis caused by a lack of investment in new generating capacity in recent years (see below). This is encouraging the further installation of prepayment meters because of the need to optimise revenue collection.

The government is keen to achieve energy savings and in the National Electricity Emergency Programme has itemised measures to reduce demand with ‘smart’ meters and ripple control. The targets for ripple control savings are 2,161 MW from domestic water heaters, 246 MW from laundry, 122 MW from pool pumps and 736 MW from other appliances, amounting to a 6% contribution to peak demand.

‘Smart’ meters are under discussion at the present time and firm decisions have not been taken except to identify the fact that they are an important part of the solution to demand side management. An obstacle to fast installation is the lack of common codes and standards for a common architecture. South Africa was the first country to achieve this with prepayment metering and is now addressing the problem for AMI metering and Secom is driving the initiative for AIM demand side management. A roll-out of ‘smart’ meters is expected to start in 2009.

Prepayment meters

Two countries dominate the market, the United Kingdom and South Africa. Prepayment metering in South Africa started in 1992 and was introduced in response to the political decision to expand electrification from its originally very small base. Before 1988, Eskom, the national electricity utility, and the fifth largest of its kind in the world, supplied electricity to large customers in industry and mining and to municipalities, which distributed power to end-users. Eskom had only 120,000 customers, who were on billed accounts. In 1990 came a revolutionary change, “Electricity for All” saw Eskom embarking on a programme which lifted electrification from 33% in that year to 69% in 2003. Eskom in the same period increased its customer base from 120,000 to 3.5 million. Today South Africa is a world leader in developing prepayment meter technology, especially with applications in the developing world.





2008 2009 2010 2011 2012


Euro 528,000 360,000 360,000 312,000 220,000


Euro 510,000 510,000 510,000 510,000 510,000


Euro 0 0 0 0 0

Units 0 0 0 0 0 AMR

Euro 0 0 0 0 0

Units 1,000 57,000 70,000 115,000 197,000 AMI

Euro 142,000 8,094,000 9,940,000 16,330,000 27,186,000

Units 500,000 500,000 500,000 500,000 500,000

Residential

Prepayment Euro 14,500,000 13,000,000 13,000,000 13,000,000 13,000,000

Units 11,000 11,000 11,000 11,000 11,000 C&I C&I AMI

Euro 3,014,000 3,014,000 3,014,000 3,014,000 3,014,000


Euro 192,000 100,000 74,400 74,400 74,400


The largest market shares in 2008 were 41% for Landis+Gyr and 38% for Actaris.

38%41%

3%

7%

11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Actaris Landis+Gyr Elster Scheider Others





The Type Approval Issuing Authority is the SABS. Type approval testing is also conducted by the SABS in its ISO 17025 accredited test laboratory but test results from competent laboratories are accepted.

Verification

The verification function is undertaken by private companies accredited by the National Accreditation Body to SABS 0378 which relates ISO 17025 to legal metrology. The approval to verify is granted to these laboratories by the Director of Trade Metrology in terms of the Trade Metrology Act after the accreditation certificates are evaluated to establish conformance to legal metrology requirements.

Private companies are not to perform initial verification, but are allowed to do subsequent verification.

South Africa is trying to establish common type approval and verification standards throughout SADC. South Africa and Mauritius are the only member countries with full legislation and regulatory control, and verification and inspection procedures. Basic legislation for elementary instruments exists in Botswana, Congo DR, Malawi, Namibia, Seychelles, Swaziland, Tanzania and Zambia. Lesotho, Angola and Mozambique currently have no metrology or infrastructure.

Utility background

State-owned Eskom controls 91% of generation capacity followed by municipalities 6% and private generators 3% which participate in the market via PPA agreements with Eskom and municipalities.

South Africa's National Electricity Regulator (NER) is responsible for the licensing of electricity generators, transmitters and distributors in the country. NER is also overseeing the restructuring of South Africa's electricity supply industry in accordance with existing legislation and the Energy Policy White Paper. The legislation and regulation is crucial to the government's continuing electrification programme.

Eskom and more than 400 municipalities are responsible for operating and maintaining the country's electricity distribution lines. Municipal distributors serve about 60% of the customers and 40% of sales volume. Municipalities generally supply to consumers within areas covered by their local governments, while Eskom's customers served directly by them are geographically dispersed.

NERs plan for South Africa's electricity distribution scheme is being formed. Its original plan was to merge the distribution assets of Eskom with the country's municipal distributors to form six regional electricity distributors (REDS). Eskom and the municipalities were to own shares in the new distributors based on the assets each contributed to the REDS. The REDS would come under the umbrella of a newly created, government-controlled holding structure called EDI Holdings (EDI). However, this plan was changed with the introduction of a new draft Electricity Distribution Industry Restructuring Bill. The new plan, put forward in the spring of 2003, still calls for the establishment of EDI and six REDS, but now Eskom will not hold a stake in the REDS. It will however, still merge its distribution assets into the REDS.





Within South Africa the distribution system is divided into 12 distribution regions. These regions vary considerably in size and load. The smallest geographically is the Southern Transvaal Distribution Region No 2, which in 1990 had fewer than 12,000 customers but the highest sales at over 30,000 GWh. The largest is the Northern Cape Distribution Region which had 10,000 customers but sales of only 3,700 GWh and which interconnects with Namibia.

The fragmented market structure for electricity distribution makes it difficult for the South African government to oversee the sector. The problems are exacerbated by the wide differences in the financial strengths of the municipalities. More than 120 municipalities have less than 1,000 customers and more than 90 municipalities have electricity revenues of less than US$100,000 per year. Four municipalities earn half of all municipal revenues and an additional 18 municipalities account for another 25% of total revenues from electricity sales. Conversely, the bottom 289 municipalities’ account for less than 1% of total municipal electricity distribution revenues, and the bottom 25% of municipal distributors all lose money.

Another problem with the distribution system is that prices do not accurately reflect relevant costs. The prices consumers are charged for electricity vary greatly across consumer class and are not closely related to the costs associated with servicing those markets.

Power Crisis

South Africa is currently experiencing a severe shortage of electricity as demand exceeds supply to an unprecedented extent, and there are dire predictions that it will precipitate a recession. It is predicted that the shortage will last until significant new generating capacity comes on line in 2012. Economic growth is expected to fall but there are conflicting views about how much this will be. The general consensus seems to be that growth will fall to 3% in 2008, down from an average of about 5% over the past four years.

The government has declared a national emergency, and announced steps to deal with the crisis. These include a 10% mandatory cut in electricity consumption by households, companies and industries, to last until 2010.

There have been outages and the mines, heavy consumers of power and vital to the economy have been reduced to 90% of their consumption, after being totally cut off earlier in February. Heavy consumers of electricity, especially mining groups, have expressed concern about the effects of the power shortages on their operations, and warned of job losses.

With the cooperation of heavy industrial users, about 2,000 MW has been saved by the middle of March, but Eskom wanted a reduction to 3,000MW. If that target is not achieved by the end of March 2008, Eskom has warned that-load-shedding may commence. Eskom plans to reduce demand by a further 5,000 MW by 2025, introducing LPG gas cookers and solar power water heaters.

The regulator has approved a 14% electricity price increase after Eskom proposed 18.7% initially. Electricity prices are set to double over the next five years to help finance Eskom's expansion plans. The chairman of Eskom has announced expenditure of $38 billion over the next five years to build new generating facilities.

The problem has been caused by rapid industrialisation, a massive electrification programme adding 3.5 million households to the grid, and strong economic growth. Eskom has started an emergency programme to construct new generating facilities, including two new coal-fired stations, two open-cycle gas fired turbine plants and a hydro scheme n Drakensberg and plans to reopen three mothballed power stations.




Table 6.50: ESI characteristics South Africa

Generators > 1 large state-owned utility Eskom – 91% Municipal councils own generating plants, in which they are selling shares to private investors. CDC Globeleq owns 95% of 600 MW coal fired Kelvin plant from Greater Johannesburg Municipal Council Cape Town is looking for IPP investors Greater Pretoria Municipal Council has awarded a refurbishment and operations contract to ABB

Privatisation plans – the government has mandated 30% privatisation of Eskom but Eskom has counter proposed a merger with private interests

TSO – 1 Eskom is the transmission company within South Africa Montraco, a privately-owned company is licensed to transmit electricity to Mozambique and Swaziland

The transmission licence provides for non-discriminatory access by generators being dispatched centrally

TSO owner of the grid assets – Yes

Market model – Not decided

DNOs – Eskom has 48.2% of customers 190 licensed municipal and private distributors in 2003 Eskom – 3,505,039 customers All distributors – 7,272,809



7.0 Metrology, standards, type approval and verification 7.0 Metrology, standards, type approval and verification

Legislation for measuring instruments

People using measurement results in the application field of legal metrology are not required to be metrological experts and governments take responsibility for the credibility of such measurements. Most countries and metrology authorities abide by three underlying principals.

• Legally controlled instruments should guarantee correct measurement results

• They should perform reliably under working conditions

• They must maintain reliability throughout the whole period of use, operating within given permissible errors

All over the world, national legal requirements are laid down for these areas. They cover measuring instruments, measurement and testing methods.

Enforcement of measuring instrument legislation - legal control

Type approval

Preventive measures are taken before marketing of the instruments. The instruments have to be type approved (sometimes referred to as pattern approved) and verified.

Manufacturers are granted type approval by a competent authorised body once that type of instrument meets all associated legal requirements.

Verification and testing

With serially manufactured measuring instruments, verification ensures that each instrument fulfils all requirements laid down in the approval procedure.

Verification is done in a variety of ways and locations. It can be done in laboratories, or in the manufacturer’s premises under controlled and authorised conditions.

National metrology institutes

A National Metrology Institute (NMI) is an institute designated by national decision to develop and maintain national measurement standards for one or more quantities. Some countries operate a centralised metrology organisation with one NMI. The NMI may then devolve the maintenance of specific standards to certain laboratories without these having the status of a NMI. Other countries operate a decentralised organisation with a multiplicity of institutes, all having the status of a NMI.

An NMI represents the country internationally in relation to the national metrology institutes of other countries and in relation to the Regional Metrology Organisations and the BIPM (Bureau Internationale des Poids et Mesure. The task of the BIPM is to ensure world-wide uniformity of measurements and their traceability to the International System of Units (SI).

The NMIs are the backbone of the international metrology organisation.

Designated national laboratories

Designated laboratories in most countries are nominated by the NMI in accordance with the metrological plan of action for the different subject fields and in accordance with the metrological policy of the country.



7.0 Metrology, standards, type approval and verification, Continued

National metrology institutes (continued)

Accredited laboratories

Accreditation is third party recognition of a laboratory’s technical competence, quality system and impartiality. Public as well as private laboratories can be accredited. Accreditation is voluntary, but a number of international, European and national authorities assure the quality of testing and calibration laboratories within their area of competence by requiring accreditation by an accreditation body.

Accreditation is granted on the basis of laboratory assessment and regular surveillance. It is generally based on regional and international standards e.g. ISO/IEC 17025 “General requirements for the competence of testing and calibration laboratories”, and technical specifications and guidelines relevant for the individual laboratory. The intention is that tests and calibrations from accredited laboratories in one member country will be accepted by the authorities and industry in all other member countries. Therefore, accreditation bodies have internationally and regionally agreed multilateral agreements in order to recognise and promote the equivalence of each other’s systems as well as the certificates and test reports issued by the accredited organisations.

Global metrology infrastructure

ILAC

The International Laboratory Accreditation Cooperation (ILAC) is an international cooperation between the various laboratory accreditation schemes operated throughout the world. It is also the world’s principal international forum for the development of laboratory accreditation practices and procedures. ILAC promotes laboratory accreditation as a trade facilitation tool, together with the recognition of competent calibration and test facilities around the globe. As part of its global approach, ILAC also provides advice and assistance to countries that are in the process of developing their own laboratory accreditation systems. These developing countries are able to participate in ILAC as Affiliates, and thus can access the resources of ILACs more established members.

OIML

The International Organisation of Legal Metrology (OIML) was established in 1955 to promote the global harmonisation of legal metrology procedures. It is an inter-governmental treaty organisation with 58 member countries participating in technical activities and 51 corresponding member countries that belong purely as observers. OIML collaborates with the Meter Convention and BIPM on the international harmonisation of legal metrology. It liaises with more than 100 international and regional institutions concerning activities in metrology, standardisation and related fields.

A worldwide technical structure provides members with metrological guidelines for the elaboration of national and regional requirements concerning the manufacture and use of measuring instruments for legal metrology applications. The OIML develops model regulations, and issues international recommendations that provide members with an internationally agreed basis for the establishment of national legislation on various categories of measuring instruments. The technical requirements in the European Measuring Instruments Directive (MID) are to a large extent equivalent to the International Recommendations of OIML.




Global metrology infrastructure (continued)

The OIML Certificate System gives manufacturers the possibility of obtaining an OIML Certificate and a Test Report to indicate that a given instrument type complies with the requirements of the relevant OIML International Recommendations. Certificates are issued by OIML member states who have established one or more Issuing Authorities responsible for processing applications from manufacturers wishing to have their instrument types certified. These certificates are the subject of voluntary acceptance by national metrology services.

Regional metrology infrastructures

The world is divided into five regional groupings of metrology infrastructures:

• EURAMET e.V (European Association of National Metrology Institutes)

• SIM, Inter American Metrology System

• APMP, Asia Pacific Metrology Programme

• SADCMET, SADC Cooperation in Measurement Traceability

• COOMET, Cooperation Metrologique for Eastern Europe and Asia

Figure 7.1: Regional metrology organisations

Source: Metrology in Short




Europe EURAMET e.V (European Association of National Metrology Institutes).

EURAMET e.V. is the new Regional Metrology Organisation (RMO) of Europe and since 1 July 2007 the successor of EUROMET. EURSMET is a collaborative forum on measurement standards, established by a Memorandum of Understanding in 1987. It originated from the Western European Metrology Club (WEMC), which was initiated by a conference on metrology in Western Europe in 1973.

EURAMET is a voluntary collaboration between the national metrology institutes in the EU, EFTA and the EU. The European Commission is also a member. In 2007 there were 35 members and 3 corresponding applicants and corresponding NMIs.

Figure 7.2: Member countries of EURAMET e.V., 2007

Source: EURAMET e.V.

Europe (continued) Accreditation - EA

The European Cooperation for Accreditation (EA) is the organisation of accreditation bodies in Europe. In June 2000, EA was established as a legal entity according to Dutch law. The members of EA are the nationally recognised accreditation bodies of the member- or candidate countries, of the European Union and EFTA.

Legal metrology - WELMEC

WELMEC was founded in June 1990 with 18 representative members from national authorities responsible for legal metrology in European Union and EFTA member. This name was changed to “European co-operation in legal metrology” in 1995 but remains synonymous with WELMEC. Since that time WELMEC has accepted associated membership of countries, which have signed agreements with the European Union. Members are the national legal metrology authorities in the EU and EFTA member countries, whilst national legal metrology authorities in those countries that are in transition to membership of the EU are associate members. In 2007 there are 31 member countries.




Europe (continued) EU legislation for measuring instruments

EU - MID - Measuring Instruments Directive

A new directive, the Measuring Instruments Directive (MID), has been developed and came into effect on 30 October 2006.

The MID regulates requirements concerning ten measuring device types and their market positioning. When an MID certificate is acquired for a specific product it means that the product can be installed in any EU country and used for billing purposes any for any other industrial and commercial purposes. The aim is to create a single market in measuring instruments across Europe and all EU countries accept MID approval. The producer’s responsibility

The directive is relevant for active electrical energy meters, gas meters and heat meters but not water meters. The MID describes requirements for 10 measuring instrument categories (electricity, heat and gas meters, amongst others) to be used in the European market. As far as electricity meters are concerned, the MID is limited to active electrical energy meters for residential, commercial and light industrial use. Meters of this category put in circulation from 30 October 2006, must comply with the MID. There is a 10-year transitional period for meters that have been accredited according to previous national systems.

Reactive energy, prepayment and grid meters are not covered by MID.

A meter can be placed on the market if it is type-approved and has been calibrated by an authorised body. Under MID, meters can be put into use if the manufacturer has declared its conformity with MID. The meter can display the MID CE mark.

Within the MID regulation for electricity meters there are 2 partial approvals, MID B & D and MID B & F and one MID H1 approval, which is a full quality assurance for design and production.

The MID B is the type examination for the product itself. When a product obtains the MID B Annex MI-003, it means that all components and casing (technical content), are approved. The MID D approval can be obtained when the production process is approved by an authorised company (notified body) such as KEMA. With MID B & D the manufacturer is allowed and able to calibrate its own meters so they are ready to be installed directly throughout Europe and used for billing purposes. If the meters can’t be calibrated in the factory, the manufacturer can offer the products to an external notified body. In this case the MID B & F will be obtained.

After the MID is implemented, the manufacturer is responsible for affixing the CE-marking and the supplementary metrology marking on the product. By doing so, the manufacturer ensures and declares that the product is in conformity with the requirements of the directives. The Measuring Instruments Directive is a mandatory directive.




Europe (continued)

The following table comparers previous national practice with the new provisions of MID.

Function Description Previous national

practices MID

Type approval Ensure that the designand construction of aninstrument conforms to requirements

Tested against national Requirements. The national authority approved (or rejected)based on examination of technical report submitted by manufacturer

Manufacturer choosesNotified Body. Manufacturer may have tests undertakenthere or can self-approve if design and test processes meet requirements

Verification

Ensure ongoing manufacture of instruments is consistent with type approved sample and the product meets performance requirements

Manufacturer had the choice of routes: (i) meters individually examined by a independent and competent person (an appointed meter examiner); Or (ii) samples of batchesof meters are examined by a independent and competent person: or (iii) manufacturer self verification - systems authorised by authority and periodically audited bya competent person.

Essentially the same except manufacturer chooses route and theNotified Body who willundertake the test/ examination requirements. Self verification will beassured by appropriate market surveillance.

The government’s responsibility

The government is obliged to prevent measuring instruments that are subject to legal metrological control and that do not comply with applicable provisions of the directives, from being placed on the market and/or put into use. For example, the government shall in certain circumstances ensure that a measuring instrument with inappropriately fixed markings is withdrawn from the market.

Market surveillance

The government fulfils its obligations through market surveillance. To do this, it authorises inspectors to:

• Survey the market

• Note any non-conforming products

• Inform the owner or producer of the product about the non-conformance

• Report to the government about non-conforming products




Europe (continued)

Software used within the instruments is not included in the existing directives but is covered by the MID:

• CEN (for Gas) and CENELEC (for electricity have been mandated to develop product standards in support of the MID

• CENELEC has produced three new standards; EN 50470-1, 50470-2, and 50470-3, regarding accuracy requirements

Americas Infrastructure SIM, Inter American Metrology System

The Inter American Metrology System (SIM for Sistema Interamericano de Metrologia), was formed by agreement among the national metrology organisations of the 34 member nations of the Organisation of American States (OAS). Created to promote international, particularly InterAmerican, and regional cooperation in metrology, SIM is committed to the implementation of a global measurement system within the Americas in which all users can have confidence.

Legal Metrology

SIM also covers legal metrology issues in the Americas. The objective of the Legal Metrology Working Group is the harmonisation of legal metrology requirements and activities in the Americas in consideration of OIML recommendations and documents.

Working towards the establishment of a robust regional measuring system, SIM is organised into five sub regions.

• NORAMET for North America

• CARIMET for the Caribbean

• CAMET for Central America

• ANDIMET for the Andean countries

• SURAMET for South America

Accreditation – IAAC

The Inter American Accreditation Cooperation (IAAC) is an association of accreditation bodies and other organisations interested in conformity assessment in the Americas.

Asia Pacific Infrastructure APMP, Asia Pacific Metrology Programme

The Asia Pacific Metrology Programme (APMP) brings together the national metrology institutes of the region, and is aimed towards developing international recognition of the measurement capabilities of its members. APMP was started in 1977 and is the oldest continually operating regional metrological grouping in the world.

APMP takes a proactive stance to training and has conducted a series of extremely informative seminars on metering for professionals involved in Asia.

Accreditation – APLAC

The Asia Pacific Laboratory Accreditation Cooperation (APLAC) is a basis of cooperation between organisations in the Asia Pacific region responsible for accrediting testing and inspection facilities.




CIS, Central Asia Infrastructure

COOMET, Cooperation Metrologique for Euro Asia

COOMET has an important role in establishing modern standards of metrology in countries which have been closed to global comparisons and standards for many years and lack the infrastructure to address this deficiency.

The Euro-Asian cooperation of national metrology institutions (COOMET) is a regional MSTQ organisation founded in June 1991. COOMET is open for metrology institutions from any other regions to join as associate members. Members of COOMET are the metrology institutions from Belarus, Bulgaria, Germany, Kazakhstan, Kyrgyzstan, DPR of Korea, Cuba, Lithuania, Moldova, Russia, Romania, Slovakia, Uzbekistan and Ukraine.

COMET faces a number of problems of promoting metrology standards.

Lack of specialised training courses for metrologists from NMIs or similar institutes of COOMET countries.

Traceability of standards of COOMET NMIs and participation in international comparisons are not satisfactory. Currently, COOMET NMIs mostly cannot afford international comparisons or calibrations because of high costs.

Not enough advice is provided on national legislation in the MSTQ field.

African Infrastructure SADC

SADC is the Southern African Development Community and 14 countries are signatories to the SADC Treaty. The “Memorandum of Understanding on Cooperation in Standardisation, Quality Assurance, Accreditation and Metrology in the Southern African Development Community”, the SADC SQAM Programme was signed in 2000. This “Memorandum of Understanding” established the SADC SQAM Programme and its constituent regional structures SADCA, SADCMET, SADCMEL, SADCSTAN and SQAMEG with the goal of removing technical barriers to trade.

SADCMET, SADC Cooperation in Measurement Traceability

The SADC Cooperation in Measurement Traceability (SADCMET) was established in 2000. Presently, SADCMET has 14 ordinary Members, the National Metrology Institutes or de facto National Metrology Institutes of the member countries and four Associate Members.

Accreditation - SADCA

The SADC Cooperation in Accreditation (SADCA) facilitates the creation of a pool of internationally acceptable accredited laboratories and certification bodies for personnel, products and systems, including quality and environmental management systems in the region. It also provides Member States with access to accreditation as a tool for the removal of TBTs in both the voluntary and regulatory areas.

Legal Metrology - SADCMEL

The SADC Cooperation in Legal Metrology (SADCMEL) facilitates the harmonisation of the National Legal Metrology regulations of the Member States and between SADC and other regional and international trading blocs. Its ordinary members are the legal metrology authorities in the SADC member states.


8.0 Standards 8.0 Standards

International Standards

There are two global standards bodies (ISO and IEC), and two regional bodies for the EU (CEN and CENELEC).

Table 8.1: Four main bodies which determine standards

Body Acronym Influence International Standards Organisation ISO Global International Electrotechnical Commission IEC Global European Committee for Standardisation CEN European European Committee for Electrotechnical Standardisation CENELEC European

Source: IEA Report on Standards

International Standards (continued)

At a global level, the two principal standards making bodies are the ISO and IEC. The ISO has a wide remit with emphasis on information technology involving data communications. Membership of the ISO is comprised of national standards organisations rather than individual companies. It produces International Standards (ISO series) and Draft International Standards (DIS series) which are drafted when subject matter is insufficiently stable for a full International Standard.

The IEC is responsible for electrical and solid state standardisation of equipments and components with a particular interest in matters of safety. The IEC and ISO co-operate to produce joint standards under the guidance of Joint Technical Committees of which JTC1 was formed in 1988.

The Comité Européen de Normalisation (CEN) is a European equivalent of ISO. It has a sister organisation, CENELEC. CEN is producing standards for gas and CENELEC for electricity in support of MID. CENELEC has produced tree new standards; EN 50470-1, 50470-2 and 50472-3.

Electricity metering standards used by utilities around the world vary, but most can trace their origins to either the International Electrotechnical Commission (IEC) or the American National Standards Institute (ANSI).

Terminology There are two facts that help a reader familiar with one set of standards to

understand and compare the ANSI and IEC metering standards. The first is the method of defining the current rating. The ANSI standards define a small number of values of maximum current (for example 200A or 10A) and all the other load-based performance requirements are based on that classification. The ANSI mid-scale calibration point is called test amps (TA). Conversely, the IEC standards use a mid-scale calibration point on which to base the other performance requirements. The term basic current (Ib) is used for direct connect IEC meters and the term rated current (In) is used with transformer operated meters. In IEC meters the maximum current is specified separately from the basic current or rated current.



8.0 Standards, Continued

Terminology (continued)

The second important fact is the use of the term “class”. In the ANSI standards, class is the maximum current rating of the meter. For example an ANSI class 20 meter would have a maximum current rating of 20 amps. In the IEC standards, the term “class” is the accuracy specification. For example, an IEC class 2 meter would have a basic accuracy rating of 2%. There are fundamental differences between the two standards as applied to the design and testing of polyphase meters.

International Electrotechni-cal Commission (IEC)

The IEC standard originated in Europe and has been adopted in various forms in the remainder of the world. IEC 60687.025 is the IEC accuracy standard.

Table 8.2: IEC Standards for Watt-hour Meters

Alternating current static watt-hour meters for active energy (classes 1 and 2) EN 61036 IEC 61036 Electricity metering – tariff and load control EN 61037 IEC 61037

Source: IEC

American National Standards Institute (ANSI)

The ANSI C12 electricity metering standards are used in many countries around the world. While the largest markets for ANSI standard electricity meters are in Canada, Mexico and the United States, they are also being used by utilities in Central and South America, and in parts of Asia. The overall standard, within which are many specific standards, is ANSI C12.

Table 8.3: ANSI Standards for Watt-hour Meters

ANSI C12.1 is the overall equipment performance standard for electricity revenue meters. ANSI C12.10 primarily serves to specify the outline and terminal dimensions of the meters. ANSI C12.20 specifies the more accurate metering performance and influence limits for 0.2% and 0.5% accuracy meters. ANSI C12.18 is a standard that specifies how to transport data. ANSI C12.21 is an extension of C12.18 that allows for the use of a remote point-to-point communications channel, particularly by telephony. ANSI C12.2-2001 is the accuracy standard ANSI C12.19 is identical to IEEE 1377-1997. It defines the table structure for utility application data to be passed between a meter and a computer.

Source: ANSI



8.0 Standards, Continued

National Standards

Various national standards have such a high reputation that they are used in countries which do not yet have fully developed national standards. Prominent among these are the following.

ANSI, American National Standards Institute

ANSI standards are used outside the United States mainly in South and Central American countries, many of which also recognise IEC, BSI and DIN. In many countries ANSI is regarded as a quasi-international standard.

The Institute oversees the creation, promulgation and use of thousands of norms and guidelines that directly impact businesses in nearly every sector: from acoustical devices to construction equipment, from dairy and livestock production to energy distribution, and many more. ANSI is also actively engaged in accrediting programmes that assess conformance to standards - including globally-recognised cross-sector programmes such as the ISO 9000 (quality) and ISO 14000 (environmental) management systems.

BSI, British Standards Institution

The British Standards Institution (BSI) is the National Standards Body representing the interests of the UK across all of the European and international standards organisations and through their committees. Independent of government, BSI is globally recognised as an impartial body serving both the private and public sectors. British Standards have been adopted by many other countries and international standards bodies and are especially vital to exporters and importers in their engineering, design, procurement, manufacturing, and quality assurance departments. There are currently more than 21,000 British Standards including the management systems series.

DIN - Deutsches Institut für Normung e. V.

Deutsches Institut für Normung e. V. (DIN), engages in standardisation activities that advance rationalisation, quality assurance, environmental protection, safety and communication in industry, technology, science, government, and in the public domain. Recognised by the German Federal Government as Germany’s national standards body, DIN has been a member of the International Organisation for Standardisation (ISO) since 1951. DIN is organised along two distinct missions, standardisation and business activities. The profits DIN generates from its business activities are the single largest contribution for the non-profit core activities of standardisation. Promotion funds paid by industry directly finance the DIN standards committees. Funds from public authorities are used for specific standardisation projects in the public interest.

DIN represents the interests of German standardisation at both the national and international levels. Maintaining a collection of more than 38,000 documents, DIN offers standards covering everything. DIN standards are widely used in other countries without comparable national standards.


9.0 Methodology and technical notes Overview

Overview This is the 7th Edition of the ABS World Utility Meter Report.

With studies like the Utility Meter Report we review each edition and have a thorough re-assessment of the methodology periodically. For the 6th edition we created a new model of the global meter market, identifying new metrics to calculate annual demand in 2006/07 and to project future demand. In doing this we have broken the market into a number of separate components, each of which has a different base and different drivers. This was a significant methodological advance on previous practice.

The production of this model involves four basic stages, which are described below in greater detail:

1. Creation and maintenance of the ABS Metering Database of statistics and market commentary

2. Compilation and analysis of official statistics for creation of the installed base and to define the metrics of annual demand and projections

3. Market estimation and projections using official statistics and the metrics of annual demand and projections in four stages

4. Validation with known demand data and industry interviews

This is a methodological exercise which is necessary for a large number of countries where the metering market is progressing without major developments such as conversion to advanced metering systems. However, in the growing number of countries which have decided to install advanced metering the metrics of the market have been overturned. In these countries executive decisions have been taken, usually at national or state government level, in other cases by utilities without legislation, to replace the entire or a large proportion of the meter stock with advanced meters. In these cases the driver is the decision, not the condition of the meter stock.

For this round of the Meter Report we have undertaken the most extensive consultation with the meter manufacturing industry we have yet conducted. The Research Director or other executives of ABS have personally visited or held discussions with most of the leading meter companies and been briefed of developments. The companies have been extremely helpful with their time and also in sharing data with ABS.


Topic

9.1 ABS Metering Database of statistics and market commentary 9.2 Compilation an analysis of official statistics for creation of the installed base and to define the metrics of annual demand and projections 9.3 Market estimation and projections using official statistics and the metrics of annual demand and projections in four stages


9.1 ABS Metering Database of statistics and market commentary

Overview ABS has built up an extensive database for every country, filling in relevant modules

of information for each country, comprised of statistics, market commentary and industry reports. This database now contains several thousand reports and records. These have been obtained through continuous literature search, interviews in the metering and utility industries and purchase of reports from relevant sources. Each round of this study contains new information sources and is a refinement of its predecessor, as new sources of information becomes available. As each edition is issued a new file is opened to receive new data, which is analysed and entered into the master database for the next year.

Literature search

Extensive literature search is carried out continuously to investigate a number of different avenues. This is cross-referenced with parallel searches regarding other aspects of the energy industry, such as generation, transmission and distribution and relevant data identified.

Regulators Some regulators publish comprehensive information about the subject of metering.

For example, the British electricity and gas regulator, Ofgem and the three British water regulators publish extensive figures on metering as well as analysis of costs and revenue, together with some forecasts of metering take up. Ofgem has also published figures for the installed mater base, and annual demand for electricity and gas meters, as well as prepayment meters. Where this data exists it is robust. We have also carried out a good deal of correspondence with regulators asking specific questions. We found them universally helpful and in some cases they obviously appointed staff to investigate issues for us.

National energy projections and demand forecasts

ABS has filed the official national energy demand forecasts produced by over one hundred countries. The have been used to validate projections of future demand for meters.

Government enquiries

An unusual source of information, which is yielding unique data in isolated, has emerged in the last few years. Governments and organisations in several countries have conducted investigations following accusations of monopolies and cartels. These investigations are based on information given by suppliers under oath to a government commission or in court and contain sales figures because the enquiries are concerned with markets.

Competition authorities

Similar information can be found in the routine enquiries conducted by government commissions to approve mergers or acquisitions. Some of these reports contain market share data provided by the manufacturers. In at least eight such reports this data is extensive and as far as we are aware probably not available anywhere else. One of these reports provides market shares for all manufacturers in the EU, for each country individually and overall for the EU. We have located similar reports in the USA and Japan. We have so far uncovered ten of these reports and they have made a valuable contribution to the study. This data is robust because of the nature of its submission and compilation and it usually contains market shares, although this data sometimes blacked out.



9.1 ABS Metering Database of statistics and market commentary, Continued

Parliamentary questions and enquiries

In specific circumstances questions are asked in parliaments and ministers have to provide answers. With the current interest in energy efficiency there have been several such cases where data has been provided in the minister’s response.

SEC Filings The files compiled by US companies for the Securities Exchange Commission

provide valuable data in market and business assessments.

Metrological Bureaux

Some of the metrological bureaux publish reports on metering in addition to information on type approvals and verification requirements in their countries. Several have conducted studies of their industries in preparation for issuing new standards and these sometimes include detailed analysis of the existing meter park. In several cases these include population data for different meter types where there are issues about changing usage patterns for types of meter such electromechanical and solid state meters.

Trade Associations

Some Trade Associations provide industry wide data gathered from members.

Socio / economic studies

A number of studies of metering have been conducted by international bodies like the World Bank. These studies are mostly concerned with issues such as energy conservation, fuel theft, investment in water infrastructure and the measurement of energy or water is crucial to them. They are valuable because they often survey countries in the developing world for which data is sparse. A valuable source in the last two years has been a country-wide survey of households in Russia and CIS countries measuring the incidence of metering.

Sub-metering The scope of this edition of the report has been extended to include sub-metering

and heat metering. Sub-metering is principally used in the water and heat sector, and only marginally for electricity and gas. The Multi-Utility Report, which covers electricity, gas, water and heat metering, also contains an additional chapter investigating the RBC, (Read, Bill, Collect) industry, also known as Metering Services. We have had consultations with RBC companies.

Company reports and presentations

Companies have vastly different approaches to the release of market information. Some companies provide only very general data but others are very open. Some leaders in the industry have published information about revenue, market sizes and company shares, while other have provided isolated items of information. Together with the personal consultations, this has contributed to the calculation of total market sizes from company data and to validate our estimates against these independent figures.

Press There is an increasing volume of information about the meter market in the press,

notably the magazine Metering International.




Electricity The USA and the European countries are well served with data from the EIA in the

US and Eurelectric for Europe. We acknowledge the valuable contribution of both of these two bodies in helping us to create these market models. Both organisations publish numbers of consumers by category, residential and industrial.

It was more difficult in the rest of the world. With some exceptions such as Japan, Hong Kong, South Korea, Taiwan, Israel, Singapore, Brazil, South Africa and a few other well documented countries it is difficult to piece together an installed base of meter connections by category. This is often because a country has a large number of distribution companies and no central body consolidates the records. In these cases we have used numbers of households by electrification.

Note that the definitions of electrification differ from country to country. For example, in the two biggest countries, China and India, the definitions are not comparable. China uses a straightforward measurement, the percentage of households with access to electricity but India does not. A village or area is counted as electrified in India if there is an electrical connection within the boundaries of the area and the people dwelling within those boundaries are regarded as having access to electricity. This is similar to the definition of having access to water if the people in question live within 20 meters of a standpipe, which is a frequently used measurement. The definition of electrification in India was tightened up in 2001 but it still does not tell us how many households have electric power connections. Taking account of these limitations we have produced estimates of the numbers of electricity meter connections in every country.

Applying ratios from the countries where we have precise data we have estimated the numbers of industrial / commercial meter connections.

Gas Whereas every country uses electricity and water, not all use gas. The EIA provides

natural gas consumption data for all countries and it is possible to eliminate the non-using countries. Consumer figures are provided by category for the US. Some individual countries publish national figure, such as the UK and some other European countries. There are large variations in the usage patterns.

It is necessary to distinguish between piped gas and LPG. Piped gas is now nearly all natural gas, which in many countries supplies the feedstock which is fed into the old city gas system. Some countries with extensive use of natural gas, notably Japan and Mexico use LPG deliver to homes in cylinders, in parallel with piped supply.

The International Gas Union publishes a report with the numbers of customers in the different categories, residential and industrial and power generators in member countries. There are some gaps in this information and the data is now rather old but it is a useful start.

Europe is well served by Eurogas, which publishes an annual report for all EU countries.

Where data is not available we have estimated the figures. There are some countries, notably in Eastern Europe and the CIS, where gas is incorporated with heating and sometimes metered centrally and billed as part of a service charge.




Water In the past, the water sector has proved more difficult to estimate than electricity or

gas, for three reasons. As in the other two sectors, the first stage is to estimate the number of water connections. It is essential to define what is meant by a “connection”. Does it mean a household connection or proximity to a source of supply?

Secondly, some countries do not meter domestic water supply. For example, in the UK there are only 6 million domestic water meter connections, in Canada only 55% of households are metered, and in Iceland and Ireland there are no domestic water meters. In such countries, water is charged as part of the local rates or taxes. In many former socialist countries it was not charged as political policy and this remains the case, although many studies have established that charging a full commercial rate for water is the most viable way to provide an economic water service. The outcome is that the rate of water metering is increasing in many countries.

Thirdly, it is common practice for water to be metered centrally in apartment blocks and for the cost to be passed on to apartment occupiers as a service charge. This is charged either by sub-metered consumption, by RUBs (Ratio Utility Billing System) apportioning the total consumption measured with a master meter, or by a ‘back of the envelope’ calculation by eh property owner.

Despite these gaps, there is more data available now from published reports and this study has benefited accordingly.


9.2 Compilation an analysis of official statistics for creation of the installed base and to define the metrics of annual demand and projections

Overview Five sets of official statistics are used.

Households’ population of each country

See comments below.

Economic data Real GDP growth rates are used in forecasting C&I meter demand growth.

Electricity customers

See comments below.

Meter production statistics

Production statistics are valuable where they exist, but unfortunately few countries publish them in sufficient detail to be helpful. The most helpful are the US Census Bureau production statistics, which account for an important segment of the world meter market and provide the necessary breakdowns. Organisations in several other countries have published production data in trade or industry association reports. We cannot measure demand by adding together production and imports and subtracting exports. Therefore we have to start from the other direction, by modelling the market and estimating production by adding demand and exports and subtracting imports.

Import / export statistics

International trade has been recorded in two ways. Import / export figures are available in summarised totals for each type of meter, in units and $ value. These record simply the total exports or imports of meters reported per year. Country of origin and destination is available for every country individually. ABS subscribes to the Global Trade Atlas, an invaluable service which consolidates the trade statistics of every country on an on-going basis.


9.3 Market estimation and projections using official statistics and the metrics of annual demand and projections in four stages

Overview The current market sizes and future projections were carried out in four stages. The

first step was to construct a table with the installed base of electricity utility meters in every country.

The installed base of electricity meters in 2008 recorded historically where available

The first step has been to construct a spreadsheet of the installed base of meters for each country. We have used the principle of subsidiary, using data at the most local level possible. Sources used include the following sources publishing numbers of customers.

Utility reports of numbers of customers

National government or industry associations reporting numbers of customers

Regional associations

Associations such as Eurelectric (Europe), SAPP (Southern African Power Pool), Ecowas (West Africa), CIER (South American Electricity Commission), Carilec (Caribbean Electricity utility Association) reporting numbers of customers, AUPTDE (Arab Union of Producers, Transporters and Distributors of Electricity), APEC (Asia Pacific Electricity Council), ASEAN Centre

Miscellaneous reports

These include the World Bank, EBRD, Asian Development Band, African development Bank, Inter-American Development Bank, UK Parliamentary Report, Competition authorities / Office of Fair Trading reporting numbers of consumers.

Household statistics multiplied by electrification

Household figures are not always easy to come by. ABS has been able to access a world wide study of numbers of households containing historical figures and forecasts to 2025 for every country. This is major new data resource compiled by an international agency.

Electrified households include sub-metered connections or users billed with flat-rated charges. This can be extensive; for example, there are an estimated half million apartments in buildings that have master meters but no sub-meters in New York City, out of the 3,021,588 households counted in the 2000 census. Fortunately the estimations of meter populations based on household data are all in small developing countries without published industry figures and where sub-metering or flat charges are unlikely.

Where available the customer bases were recorded or residential and C&I customers. Where not split, we have split this by an average of 90% household meters and 10% C&I to establish the two installed bases.



9.3 Market estimation and projections using official statistics and the metrics of annual demand and projections in four stages, Continued

Table 9.1: Sources for installed base of electricity meters

# of countries Utilities 37 Regulators, national industry or government organisations 36 Regional organisations 67 Miscellaneous 25 Household and C&I calculations 16

Theoretical calculation of annual demand for new meters in 2008

Demand has three components; new connections (expansion), replacement of aging stock (maintenance), and substitution of electromechanical meters with electronic meters or advanced meters (system up-grade). A set of metrics was developed to estimate annual demand and three to project growth.

New residential installations

The calculation of meters installed in new premises was based on the growth in one year in the numbers of electrified household connections.

As with the installed base of meters, in 16 counties customer data was not available and the figures had to be estimated from household numbers and the level of electrification.

New C&I installations

C&I connections were calculated at an average of 10% of the number of households connections, unless exact figures were available to over-ride his average. The proportion of C&I meters ranges from 5% to 20% of the residential meter park across different countries.

Residential replacements

Replacements were based on an average life of 25 years for residential electromechanical meters. We either have the installations or have regressed back to the number of meter installed 25 years ago.

A common error is to apply this percentage of replacement to the current year but this can introduce a large error in growing markets, where replacement is for a much smaller number of old meters on a smaller base (see below).

The variability of the meter replacement period introduces a large possibility of error. The life of electromechanical meters can range from 20 to 40 years, and a recent Entergy study showed meters installed in 1948 still in operation. In Germany if the meters were replaced after 20 years this would involve 2.2 million meters annually, if after 40 years 1.1 million. In small countries where tee annual total is small this error is not so significant. However in the larger countries it can be and every effort was made to obtain the real figure.

ABS is compiling a database of meter life by country.




Theoretical calculation of annual demand for new meters in 2008 (continued)

Two other factors have a great deal of importance in making replacement calculations; the age of the customer base and the national rate of electrification. These are often ignored but they are vital to an accurate assessment and we have taken considerable care to establish the situation in each country.

The reason why these factors are so important is that the amount of replacement in a given years does not depend on the size of the installed base in that year but in the year of installation. This effect becomes particularly strong in countries which have instituted large rural electrification programmes in the last twenty five years; notably, China, India, Bangladesh, South Africa, Brazil, Ecuador, Egypt, Indonesia, Morocco and Pakistan. There are others in the developing world but these are especially successful in achieving their objectives rapidly. The following charts demonstrate the effect clearly. The first is for the UK, the most mature electric infrastructure in the world. The UK achieved almost its current level of capacity in 1975. There has been some growth since then but the customer base 25 years ago was 83% of what it is today, so today’s replacement level is almost the same percentage of today’s installed base. As the chart shows, residential replacement are by far the largest component of annual demand, twice the total of the other three components combined.

Figure 9.1: New and replacement installations of meters in the United Kingdom

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Somewhere in between the extremes lies Brazil. Brazil is still growing fast, despite rural electrification in the 1980s and 1990s, but it already had a sufficiently large number of urban electrical connections in 1980 for there to be a large installed bas e twenty five years old, requiring routine replacement. So the number of new installations of meters is only marginally larger than replacement. It is a market on the path to maturity.




Figure 9.2: New and replacement installations of meters in the Brazil

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Bangladesh is at the opposite pole. In 1980 only 0.02% of rural homes had an electrical connection, only 26,000 households out of a country with a population over 100 million. Today still only 31% of the entire country is electrified and there is a huge need to make new installations but there are not very many meters old enough to warrant replacement.

Figure 9.3: New and replacement installations of meters in the Bangladesh

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We have created spreadsheets of the numbers of customers and the household base for every country in 2006, historically as far back as possible. Where available we have used actual customer numbers in the relevant past years. We have customer numbers for most countries in 2006 but for not so many from 1981. Where we have to estimate the customer base in the earlier years we have applied the proportions described above to the 2006 figures. In some countries rural electrification makes a significant contribution to these proportions. Where we do not have a history of rural electrification, which is in most of the smaller developing countries, we have used the following conventions.

For countries with electrification of at last 90% in 2006 we have not applied a growth factor beyond household growth.

For countries with electrification between 50% in 2006 and 90% we have applied a reducing fraction of 0.9.

For countries with electrification below 50% in 2006 we have also applied a reducing fraction of 0.9. We considered a smaller fraction but concluded that electrification is so low that there is no evidence that there has been any rural electrification.

Fortunately, we have not had to make these assumptions for the large countries because we have the actual information. In the small countries the end result is hardly significant.

C&I replacements

We have estimated the installed base in 1989 as described above, based on the C&I base in 2006.

Up-grading from electromechanical to electronic or to advanced meters

In terms of new replacements, the rate at which new electronic meters are being substituted for electromechanical meters has two effects. It has an impact on the replacement rate because the life is shorter than for electromechanical metes but it also alters the volume of new meters being installed. The introduction of AMR in the USA caused peaks and troughs in the annual meter sales because of one-off large utility contracts. This is now happening in Europe which is leading the way with the introduction of nationally mandated ‘smart’ meters schemes, already in Italy, Sweden and the Netherlands and almost certain to come in Ireland and Spain. These cause huge surges in meter purchases followed by famines for some years until they start to need to be replaced.

The large schemes are well documented but the smaller conversions of parts of systems from electromechanical to electronic meters are less well reported.

We have modified replacement estimates on specific evidence or estimates and also used these reports to validate the model.

This has now entered into the next generation with the advent of 2-way advanced metering, AMI.





Imports and exports

There are many discrepancies in import and export data and we have always viewed it with circumspection. There is frequent disagreement between exports reported by one country to another and the imports reported by the receiving country. There is confusion of classifications, especially when a country is importing for assembly and re-exports. We do not use the data as a metric in creating the global meter market model. However, we have run a check of the demand estimates against imports averaged over the last four years to see if there were any major inconsistencies. This has revealed some cases off activity in the market, such as electrification expansion and network rehabilitation which we were not aware of and we have made some adjustments. These are all in small countries, mostly in Africa and Latin America.

A specific case where import/export data is useful is to identify countries where large numbers of Chinese meters are being sold.

Specific reports of annual meter demand

In about 40 countries we have obtained specific reports of annual meter demand from regulators, governments, organisations, utilities or competition authorities authorising mergers or prosecuting cartels and we have overridden theoretical calculations with these figures if they differ. In a few cases we have been able to calculate exact figures from production, import and export data.

Forecasting for 2008 to 2012

Two metrics are used to project forward to 2012 from 2008 base data.

Growth in residential meter demand

The household counts mentioned above are forecast forward, and from this we have calculated CAGR of residential housing for each country. These figures are applied to household meter demand from 2008, modified by potential increases in electrification.

Growth in C&I meter demand

C&I meters are forecast by applying GDP growth to C&I meter demand in 2006. We have not made allowance for future GDP growth trends but each edition of the report uses the latest data.

Exchange rates

In 2008 the euro/$ exchange rate varied from $1.58 to €1 in April to $1.41 in December, with an average of 1.47.

In 2009 it was 1.27 in March, which we have used in the report for 2009 onwards.

Demand units

Units2008 2009 2010 2011 2012

United States 10,042,000 10,212,000 10,847,000 11,399,000 12,999,000Canada 1,896,500 1,686,500 2,055,500 2,035,600 1,826,600Mexico 1,885,800 1,631,400 1,566,900 1,446,900 1,436,900North America 13,824,300 13,529,900 14,469,400 14,881,500 16,262,500Albania 63,643 64,384 65,133 65,891 66,658Austria 133,770 165,270 294,500 585,200 545,700Belgium 231,500 228,500 211,500 215,500 205,500Bosnia and Herzegovina 54,803 55,526 56,259 57,002 57,754Bulgaria 621,100 254,450 174,200 164,200 132,150Croatia 142,145 143,230 144,322 145,424 146,534Cyprus 29,409 29,769 30,132 30,501 30,874Czech Republic 357,640 358,740 355,540 366,440 362,040Denmark 275,200 273,200 221,200 256,200 247,200Estonia 23,950 28,850 121,850 61,210 51,000Finland 337,200 337,200 333,200 398,200 268,200France 936,300 935,503 1,035,500 235,500 7,155,500Germany 1,470,650 1,540,750 1,500,700 2,250,650 3,050,650Greece 323,460 191,000 274,000 195,000 320,000Hungary 633,550 648,125 564,530 524,240 472,245Iceland 7,972 8,111 8,253 8,398 8,545Ireland 38,060 53,010 57,005 37,005 68,005Italy 1,455,610 935,610 809,010 711,010 462,010Latvia 50,890 20,250 19,160 19,110 18,600Lithuania 168,400 116,500 126,700 85,600 80,000Luxembourg 7,091 7,218 7,346 7,477 7,610Macedonia 36,983 37,458 37,940 38,427 38,921Malta 14,088 14,291 14,496 55,000 60,000Netherlands 301,161 414,000 492,000 830,000 1,509,000Norway 168,700 178,700 336,200 339,200 349,200Poland 662,620 684,885 740,276 784,070 892,070Portugal 237,040 272,510 592,510 952,010 1,001,010Romania 579,816 630,020 597,020 502,020 462,020Serbia and Montenegro 297,100 295,100 115,100 147,100 148,100Slovakia 52,960 58,610 59,420 59,420 61,020Slovenia 36,005 40,005 44,505 56,005 51,005Spain 1,399,500 1,310,900 2,620,600 3,620,600 4,600,600Sweden 297,100 295,100 115,100 147,100 148,100Switzerland 205,250 225,300 208,300 189,800 177,300Turkey 1,171,500 1,242,700 1,254,700 1,271,700 1,278,700United Kingdom 1,870,020 1,665,020 1,505,020 2,160,020 1,690,030Europe 14,692,185 13,759,794 15,143,229 17,572,230 26,223,851Armenia 51,552 52,345 53,151 53,970 54,801Azerbaijan 128,776 134,718 140,935 147,438 154,242Belarus 185,992 188,505 191,052 193,633 196,250Georgia 84,083 84,745 85,411 86,083 86,760Kazakhstan 346,710 354,351 362,161 370,142 378,300Kyrgyzstan 49,824 50,394 50,970 51,553 52,143Moldova 63,225 63,986 64,755 65,533 66,321Russia 5,838,000 5,839,500 5,891,000 5,840,550 5,890,500Tajikistan 48,201 49,276 50,375 51,498 52,646Turkmenistan 47,559 48,358 49,170 49,996 50,836Ukraine 776,250 775,250 775,250 775,250 775,250Uzbekistan 261,901 268,056 274,355 280,803 287,402CIS 7,882,073 7,909,484 7,988,586 7,966,451 8,045,451

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Demand units

Units2008 2009 2010 2011 2012

Bahrain 9,151 9,792 10,477 11,211 11,996Iran 1,338,050 1,378,050 1,378,550 1,379,050 1,479,050Iraq 414,635 389,000 427,800 387,000 356,000Israel 196,553 199,066 211,010 180,000 210,000Jordan 65,466 70,441 81,800 88,017 89,000Kuwait 29,963 31,761 33,667 35,687 39,500Lebanon 87,322 91,339 98,770 74,000 65,000Oman 37,598 39,854 53,000 52,300 55,438Palestine 18,542 8,906 9,440 10,007 10,607Qatar 11,573 12,268 13,004 13,784 14,611Saudi Arabia 537,692 469,950 514,700 460,000 430,000Syria 300,066 292,442 301,240 300,945 287,000United Arab Emirates 94,346 100,006 112,340 210,250 250,000Yemen 218,043 231,125 244,202 210,000 169,148Middle East 3,359,000 3,324,000 3,490,000 3,412,250 3,467,350Afghanistan 34,804 35,395 35,997 36,609 37,232Australia 395,550 593,050 758,050 1,438,050 1,727,050Bangladesh 423,595 435,661 448,071 460,834 473,960Bhutan 3,036 3,148 3,265 3,385 3,510Brunei 3,283 3,330 3,378 3,427 3,476Cambodia 19,938 20,632 21,351 22,095 22,865China 52,025,000 54,530,000 56,780,000 60,780,000 62,930,000Fiji 5,975 6,096 6,219 6,345 6,473Hong Kong 121,949 125,006 128,139 131,350 134,643India 13,604,500 15,704,800 16,850,500 18,216,000 20,107,000Indonesia 1,528,030 1,579,430 1,628,162 1,679,266 1,731,783Japan 3,300,100 7,405,450 8,336,054 8,667,413 9,193,531Korea, North 227,475 229,932 232,415 234,925 237,462Korea, South 300,050 571,050 3,267,050 4,367,050 5,467,050Laos 59,073 61,222 63,448 65,756 68,147Macau 10,054 10,377 10,711 11,055 11,411Malaysia 412,040 475,020 535,020 560,020 570,020Maldives 3,588 3,763 3,945 4,137 4,338Mongolia 24,161 24,838 25,534 26,250 26,985Myanmar 46,402 47,298 48,211 49,142 50,091Nepal 152,219 156,677 161,266 165,989 170,850New Zealand 290,520 333,520 320,500 370,500 370,500Pakistan 1,192,242 1,234,287 1,277,815 1,322,878 1,369,530Papua New Guinea 11,886 12,187 12,495 12,811 13,135Philippines 625,540 639,040 685,040 705,040 735,040Singapore 62,128 62,819 63,517 64,223 64,937Sri Lanka 271,136 276,563 282,098 287,744 293,503Taiwan 427,025 310,025 435,025 545,025 705,025Thailand 932,040 937,050 888,050 863,050 933,051Vietnam 1,525,050 1,550,051 1,565,052 1,605,053 1,625,054Asia Pacific 78,038,391 87,377,717 94,876,378 102,705,421 109,087,651

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Demand units

Units2008 2009 2010 2011 2012

Algeria 330,000 346,500 363,825 382,016 401,117Egypt 1,316,040 1,391,560 1,471,260 1,555,995 1,646,127Libya 66,212 70,185 74,396 78,860 83,592Mauritania 7,412 7,677 7,952 8,237 8,531Morocco 348,000 368,880 391,013 414,474 439,342Sudan 84,000 87,360 90,854 94,489 98,268Tunisia 158,000 164,320 170,893 177,729 184,838Maghreb 2,309,665 2,436,483 2,570,193 2,711,799 2,861,815Angola 17,494 18,040 18,603 19,183 19,782Benin 19,583 20,266 20,973 21,704 22,461Botswana 6,531 6,671 6,815 6,962 7,111Burkina Faso 17,793 18,221 18,658 19,106 19,564Burundi 1,876 1,939 2,003 2,069 2,138Cameroon 30,000 31,200 32,448 33,746 35,096Cape Verde 4,300 4,446 4,596 4,752 4,913Central African Republic 1,041 1,070 1,100 1,131 1,163Chad 2,049 2,093 2,138 2,184 2,231Comoros 3,047 3,158 3,274 3,394 3,519Congo Republic 12,193 12,734 13,299 13,890 14,506Congo DR 28,889 30,036 31,228 32,467 33,756Cote d'Ivoire (IvoryCoast) 24,724 25,380 26,053 26,744 27,453Djibouti 29,082 29,801 30,537 31,292 32,066Equatorial Guinea 863 908 954 1,003 1,055Ethiopia 196,000 207,760 220,226 233,439 247,445Gabon 12,279 12,586 12,900 13,222 13,553Gambia, The 3,982 4,122 4,267 4,418 4,573Ghana 149,971 155,811 161,879 168,182 174,731Guinea 11,193 11,492 11,799 12,115 12,438Guinea-Bissau 517 529 541 553 566Kenya 57,191 59,479 61,858 64,332 66,906Lesotho 2,867 2,933 3,001 3,070 3,140Liberia 3,426 3,659 3,907 4,172 4,456Madagascar 17,000 17,340 17,687 18,041 18,401Malawi 10,672 10,885 11,103 11,325 11,552Mali 22,020 22,681 23,361 24,062 24,784Mauritius 28,000 28,840 29,705 30,596 31,514Mozambique 57,000 58,710 60,471 62,285 64,154Namibia 444 489 538 591 651Niger 5,902 6,120 6,345 6,578 6,820Nigeria 240,000 244,800 249,696 254,690 259,784Rwanda 4,541 4,768 5,006 5,255 5,517Sao Tome and Principe 1,271 1,288 1,305 1,323 1,341Senegal 61,530 63,375 65,276 67,233 69,249Seychelles 10,500 10,763 11,032 11,307 11,590Sierra Leone 2,307 2,344 2,381 2,420 2,459Somalia 6,808 7,055 7,311 7,576 7,850South Africa 564,120 613,080 626,080 669,080 748,080Swaziland 2,738 2,856 2,979 3,107 3,241Tanzania 46,633 47,716 48,823 49,957 51,117Togo 16,785 17,334 17,902 18,488 19,094Uganda 22,021 22,746 23,494 24,267 25,066Zambia 21,000 21,840 22,714 23,622 24,567Zimbabwe 37,911 38,567 39,235 39,914 40,606Sub-Saharan Africa 1,816,094 1,907,927 1,965,500 2,054,850 2,182,058

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Demand units

Units2008 2009 2010 2011 2012

Argentina 508,235 518,435 539,035 559,540 550,040Bolivia 101,830 104,488 107,215 110,013 112,885Brazil 3,601,800 3,706,600 3,661,500 3,676,500 3,876,400Chile 259,100 329,600 361,100 406,900 436,900Colombia 591,039 609,347 628,222 647,681 667,743Ecuador 258,180 266,108 274,280 282,702 291,384Guyana 8,715 8,824 8,935 9,047 9,160Paraguay 63,738 66,129 68,609 71,183 73,853Peru 305,582 314,294 323,254 332,470 341,948Suriname 5,004 5,094 5,185 5,279 5,374Uruguay 84,610 86,081 87,577 89,099 90,647Venezuela 303,516 314,150 325,157 336,550 348,342South America 6,091,348 6,329,149 6,390,069 6,526,964 6,804,677Bahamas, The 3,600 3,646 3,693 3,740 3,788Barbados 6,062 6,142 6,224 6,307 6,391Belize 3,791 3,910 4,034 4,161 4,292Bermuda 4,287 4,384 4,483 4,585 4,688Virgin Islands, British 646 658 671 683 696Cayman Islands 1,019 1,039 1,058 1,078 1,099Costa Rica 69,893 72,514 75,233 78,054 80,981Cuba 217,079 222,077 227,189 232,420 237,770Dominican Republic 74,349 76,745 79,220 81,774 84,410El Salvador 112,022 115,507 119,101 122,806 126,627Grenada 2,544 2,583 2,623 2,663 2,703Guadaloupe 8,149 8,271 8,394 8,518 8,645Guatemala 147,629 151,968 156,433 161,030 165,762Haiti 22,416 22,994 23,588 24,196 24,821Honduras 94,114 97,668 101,356 105,183 109,155Jamaica 27,390 27,597 27,805 28,014 28,225Netherlands Antilles 3,931 4,001 4,073 4,146 4,221Nicaragua 60,743 62,992 65,324 67,742 70,250Panama 49,067 50,530 52,037 53,589 55,187Puerto Rico 56,599 57,288 57,986 58,692 59,406Saint Lucia 2,138 2,168 2,199 2,230 2,261Trinidad and Tobago 19,876 20,331 20,796 21,272 21,758Central America & Carribean 987,346 1,015,015 1,043,518 1,072,883 1,103,137

World 129,000,402 137,589,467 147,936,873 158,904,348 176,038,489

Page 4 of 4

Demand euro

euro 2008 euro 2009 March euro2008 2009 2010 2011 2012

United States 739,183,673 878,685,039 940,149,606 1,009,070,866 1,110,527,559Canada 110,340,136 124,263,780 144,377,953 140,818,898 117,751,969Mexico 53,285,714 54,295,276 51,574,803 48,460,630 49,795,276North America 902,809,524 1,057,244,094 1,136,102,362 1,198,350,394 1,278,074,803Albania 1,526,482 1,787,439 1,808,244 1,829,292 1,850,584Austria 5,838,600 9,393,000 19,287,200 36,041,140 33,475,640Belgium 10,150,000 9,910,000 10,750,000 13,810,000 13,280,000Bosnia and Herzego 1,391,767 1,632,208 1,653,753 1,675,582 1,697,700Bulgaria 13,176,400 7,285,000 5,210,000 5,110,000 3,980,500Croatia 5,305,982 6,188,436 6,235,659 6,283,243 6,331,190Cyprus 915,330 1,072,428 1,085,538 1,098,809 1,112,242Czech Republic 12,115,200 11,893,300 12,061,500 12,390,000 11,975,000Denmark 34,766,200 28,388,200 32,720,200 24,880,200 22,048,200Estonia 875,200 3,322,150 13,035,450 5,346,570 4,470,000Finland 35,570,200 35,570,200 35,210,200 42,035,200 28,385,200France 28,085,600 28,040,006 48,790,000 12,590,000 500,830,000Germany 56,182,500 73,587,500 93,595,000 172,502,500 259,102,500Greece 15,717,600 9,537,000 14,250,000 12,000,000 23,150,000Hungary 14,210,760 15,015,700 13,678,000 13,190,600 12,466,100Iceland 740,856 872,533 887,802 903,339 919,147Ireland 1,480,500 2,648,000 2,930,000 3,080,000 5,290,000Italy 66,283,000 42,883,000 38,095,000 34,150,000 23,165,000Latvia 1,283,480 789,450 648,430 623,480 599,400Lithuania 9,142,300 4,385,500 5,273,800 3,726,000 5,316,000Luxembourg 228,052 268,668 273,455 278,327 283,286Macedonia 965,300 1,131,678 1,146,225 1,160,959 1,175,882Malta 438,472 514,829 522,240 2,755,906 3,188,976Netherlands 18,890,680 40,040,000 46,280,000 76,070,000 123,285,000Norway 15,454,700 12,784,700 24,527,200 22,202,200 22,832,200Poland 26,916,500 28,052,975 30,354,344 32,067,200 35,647,200Portugal 8,233,670 6,677,500 28,237,500 47,775,000 46,150,000Romania 16,767,240 15,023,000 13,586,000 12,191,200 11,471,200Serbia and Montene 3,766,486 4,416,745 4,474,604 4,533,222 4,592,607Slovakia 2,115,600 2,377,600 2,502,200 2,488,200 2,633,200Slovenia 1,821,000 4,407,500 6,792,500 4,772,500 4,772,500Spain 59,775,600 37,770,000 86,740,000 123,980,000 152,540,000Sweden 31,713,600 22,875,600 8,655,600 11,183,600 11,226,600Switzerland 27,403,500 30,920,000 24,810,000 21,951,500 21,371,000Turkey 24,040,000 25,400,000 26,420,000 27,240,000 27,910,000United Kingdom 68,986,000 59,466,000 62,511,000 141,486,000 129,064,000Europe 622,274,358 586,327,845 725,038,645 935,401,768 1,557,588,055Armenia 1,163,735 1,367,741 1,388,802 1,410,187 1,431,901Azerbaijan 2,907,007 3,520,072 3,682,505 3,852,433 4,030,203Belarus 4,329,826 5,079,401 5,148,028 5,217,583 5,288,077Georgia 2,135,376 2,491,098 2,510,692 2,530,441 2,550,345Kazakhstan 7,092,932 8,390,867 8,575,793 8,764,794 8,957,961Kyrgyzstan 1,124,726 1,316,740 1,331,803 1,347,037 1,362,447Moldova 1,293,454 1,515,148 1,533,365 1,551,802 1,570,460Russia 154,873,120 138,500,480 143,294,605 146,026,949 150,437,332Tajikistan 1,088,095 1,112,360 1,137,165 1,162,524 1,188,448Turkmenistan 939,395 955,177 971,224 987,541 1,004,131Ukraine 15,930,000 15,682,500 15,682,500 15,682,500 15,682,500Uzbekistan 5,173,178 6,128,566 6,272,587 6,419,993 6,570,863CIS 198,050,844 186,060,150 191,529,070 194,953,784 200,074,667

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Bahrain 309,592 370,997 396,967 367,717 367,717Iran 24,620,000 27,480,000 29,232,000 37,784,000 42,184,000Iraq 17,595,409 16,187,946 17,895,000 16,898,075 15,196,850Israel 6,494,497 8,968,289 8,446,385 6,212,598 8,960,630Jordan 2,205,800 2,459,793 2,607,381 2,763,824 2,929,653Kuwait 1,184,968 1,214,718 1,311,895 1,416,847 1,530,195Lebanon 3,342,959 4,024,186 5,285,600 4,352,559 4,526,662Oman 1,212,010 1,687,500 1,576,273 1,670,849 1,771,100Palestine 637,488 659,459 699,027 740,750 785,426Qatar 397,398 469,180 478,564 488,135 497,898Saudi Arabia 16,536,054 22,739,476 25,923,780 19,990,400 21,241,995Syria 11,360,544 10,681,227 11,215,288 11,726,400 8,582,677United Arab Emirate 14,421,769 14,825,900 11,019,270 11,296,050 11,496,063Yemen 6,416,206 8,861,250 8,149,578 7,904,000 6,850,394Middle East 106,734,694 120,629,921 124,237,007 123,612,205 126,921,260Afghanistan 642,283 756,068 768,921 781,993 795,286Australia 27,518,000 50,470,000 72,880,000 145,860,000 182,735,000Bangladesh 8,092,094 9,633,239 9,907,639 10,189,855 10,480,109Bhutan 59,976 71,984 0 77,398 80,255Brunei 108,864 127,815 129,647 131,506 133,392Cambodia 419,695 502,715 520,230 538,355 557,112China 724,000,000 962,000,000 1,014,250,000 1,093,250,000 1,142,000,000Fiji 177,033 209,052 213,275 217,583 221,978Hong Kong 4,043,313 4,797,358 4,917,600 5,040,856 5,167,202India 189,970,000 224,768,000 260,505,000 303,930,000 365,620,000Indonesia 17,434,000 17,988,000 18,523,320 19,100,360 19,555,530Japan 127,350,000 454,307,700 528,110,977 553,302,387 593,876,986Korea, North 4,814,114 5,632,422 5,693,252 5,754,739 5,816,890Korea, South 14,155,000 22,635,000 284,640,000 377,140,000 469,640,000Laos 1,205,177 1,445,702 1,498,280 1,552,771 1,609,243Macau 347,527 415,190 428,541 442,321 456,544Malaysia 13,914,000 16,372,000 18,622,000 19,632,000 20,532,000Maldives 93,663 113,677 119,197 124,984 131,053Mongolia 445,884 530,561 545,425 560,705 576,413Myanmar 886,426 1,045,835 1,066,031 1,086,618 1,107,602Nepal 2,907,898 3,464,409 3,565,870 3,670,302 3,777,794New Zealand 12,683,000 16,533,000 15,475,000 17,975,000 17,975,000Pakistan 13,643,828 16,349,392 16,925,962 17,522,864 18,140,817Papua New Guinea 186,482 221,310 226,910 232,650 238,536Philippines 12,384,000 13,724,000 15,439,000 15,719,000 16,139,000Singapore 2,059,917 2,410,815 2,437,611 2,464,705 2,492,101Sri Lanka 4,207,956 4,968,110 5,067,544 5,168,968 5,272,422Taiwan 19,905,000 17,545,000 38,445,000 49,045,000 68,895,000Thailand 18,454,000 18,915,000 19,345,000 19,545,000 21,095,205Vietnam 17,080,000 16,880,000 17,210,000 18,090,000 18,530,000Asia Pacific 1,239,189,131 1,884,833,353 2,357,477,231 2,688,147,920 2,993,648,471

Page 2 of 4

Demand euro


Algeria 8,829,678 10,478,583 10,743,521 11,015,157 11,293,662Egypt 18,977,000 20,112,000 21,256,700 23,722,420 25,076,721Libya 2,180,600 2,157,231 2,334,203 2,522,733 2,723,504Mauritania 197,145 197,638 216,709 237,342 259,654Morocco 6,045,395 6,014,362 6,544,490 7,113,000 7,722,425Sudan 3,798,493 3,785,218 4,125,643 4,491,417 4,884,261Tunisia 3,789,689 3,750,969 4,060,735 4,390,931 4,742,774Maghreb 43,818,000 46,496,000 49,282,000 53,493,000 56,703,000Angola 447,488 458,764 479,475 501,146 523,837Benin 500,924 515,374 540,559 567,002 594,784Botswana 171,967 174,646 180,817 187,216 193,857Burkina Faso 455,147 463,358 480,897 499,125 518,083Burundi 47,999 49,301 51,625 54,060 56,615Cameroon 2,488,676 2,565,253 2,695,637 2,832,788 2,977,145Cape Verde 109,992 113,237 118,471 124,149 130,108Central African Repu 26,621 27,212 28,358 29,553 30,801Chad 52,410 53,228 55,107 57,055 59,077Comoros 77,928 80,318 84,391 88,676 93,185Congo Republic 311,894 323,839 342,785 362,856 384,133Congo DR 738,972 763,827 804,880 848,182 893,882Cote d'Ivoire (IvoryC 651,021 664,400 691,247 719,215 748,371Djibouti 853,291 869,294 902,830 937,706 974,003Equatorial Guinea 24,680 25,796 27,486 29,289 31,213Ethiopia 3,999,435 4,129,646 4,347,069 4,576,164 4,817,703Gabon 397,219 404,777 420,505 436,866 453,898Gambia, The 98,851 101,740 106,751 112,015 117,547Ghana 3,949,010 4,078,905 4,295,052 4,522,876 4,763,151Guinea 286,299 292,242 304,114 316,483 329,381Guinea-Bissau 13,222 13,446 13,941 14,455 14,988Kenya 1,505,944 1,550,097 1,626,591 1,706,944 1,791,404Lesotho 73,340 74,591 77,542 80,655 83,159Liberia 87,630 93,038 100,702 109,003 117,998Madagascar 403,555 413,788 432,535 452,155 472,701Malawi 281,008 280,430 285,299 290,267 295,775Mali 337,291 346,016 361,873 378,476 395,872Mauritius 491,183 495,842 510,285 525,175 540,541Mozambique 1,971,083 1,986,307 2,040,596 2,096,473 2,154,046Namibia 12,035 12,167 12,539 12,923 13,319Niger 159,860 162,906 169,240 175,829 182,689Nigeria 4,587,415 4,743,436 5,000,202 5,271,127 5,557,158Rwanda 119,585 124,817 132,814 141,330 150,403Sao Tome and Princ 32,512 32,756 33,644 34,557 35,498Senegal 1,712,785 1,753,874 1,830,895 1,911,392 1,995,582Seychelles 206,659 207,099 211,580 216,167 220,871Sierra Leone 62,470 63,106 64,989 66,932 68,938Somalia 174,149 179,410 188,427 197,906 207,878South Africa 18,886,000 25,078,000 26,898,400 33,240,400 44,004,400Swaziland 65,676 79,289 82,700 86,258 89,969Tanzania 1,118,492 1,324,690 1,355,445 1,386,915 1,419,116Togo 402,582 481,241 497,001 513,276 530,085Uganda 528,174 631,469 652,249 673,713 695,884Zambia 353,236 419,496 430,405 441,598 453,082Zimbabwe 909,291 1,070,710 1,089,250 1,108,111 1,127,298Sub-Saharan Africa 50,184,997 57,773,179 61,057,202 68,934,461 81,309,430

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Argentina 10,878,200 11,047,950 11,507,750 11,931,600 11,835,200Bolivia 2,801,574 3,327,403 3,414,248 3,503,360 3,594,797Brazil 139,580,000 142,140,000 144,200,000 150,850,000 154,770,000Chile 5,108,500 9,088,500 11,708,000 15,517,200 17,977,200Colombia 16,677,751 19,902,127 20,518,607 21,154,184 21,809,447Ecuador 7,103,107 8,474,180 8,734,406 9,002,623 9,279,077Guyana 239,762 281,002 284,528 288,098 291,713Paraguay 1,843,494 2,213,852 2,296,900 2,383,062 2,472,457Peru 8,407,239 10,008,645 10,293,987 10,587,463 10,889,306Suriname 137,659 162,209 165,131 168,107 171,136Uruguay 2,327,813 2,741,225 2,788,867 2,837,336 2,886,648Venezuela 9,545,765 11,436,164 11,836,857 12,251,589 12,680,852South America 204,650,863 220,823,257 227,749,280 240,474,621 248,657,833Bahamas, The 101,585 119,088 120,612 122,156 123,719Barbados 166,773 195,605 198,207 200,844 203,516Belize 109,647 130,912 135,036 139,289 143,677Bermuda 117,956 139,618 142,773 146,000 149,299Virgin Islands, British 17,769 20,958 21,356 21,762 22,176Cayman Islands 28,048 33,079 33,704 34,341 34,990Costa Rica 2,021,522 2,427,611 2,518,641 2,613,085 2,711,069Cuba 6,125,474 7,253,342 7,420,327 7,591,155 7,765,917Dominican Republic 2,202,841 2,631,947 2,716,799 2,804,386 2,894,798El Salvador 3,160,999 3,772,627 3,890,002 4,011,028 4,135,820Grenada 73,583 86,474 87,797 89,141 90,505Guadeloupe 235,709 276,884 281,001 285,178 289,417Guatemala 4,061,617 4,839,391 4,981,600 5,127,988 5,278,678Haiti 648,333 769,800 789,668 810,049 830,955Honduras 2,788,475 3,349,481 3,475,960 3,607,214 3,743,425Jamaica 772,888 901,344 908,137 914,980 921,875Netherlands Antilles 108,139 127,419 129,710 132,042 134,415Nicaragua 2,696,493 3,236,678 3,356,496 3,480,749 3,609,601Panama 1,419,180 1,691,653 1,742,095 1,794,040 1,847,534Puerto Rico 1,676,955 1,964,672 1,988,588 2,012,796 2,037,299Saint Lucia 61,839 72,586 73,610 74,648 75,700Trinidad and Tobago 574,889 680,642 696,210 712,134 728,421Central America & 29,170,714 34,721,813 35,708,328 36,725,004 37,772,808

World 3,396,883,124 4,194,909,611 4,908,181,125 5,540,093,158 6,580,750,328

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Demand $

$ 2009 March $2008 2009 2010 2011 2012

United States 1,086,600,000 1,115,930,000 1,193,990,000 1,281,520,000 1,410,370,000Canada 162,200,000 157,815,000 183,360,000 178,840,000 149,545,000Mexico 78,330,000 68,955,000 65,500,000 61,545,000 63,240,000North America 1,327,130,000 1,342,700,000 1,442,850,000 1,521,905,000 1,623,155,000Albania 2,243,929 2,270,048 2,296,470 2,323,201 2,350,242Austria 8,582,742 11,929,110 24,494,744 45,772,248 42,514,063Belgium 14,920,500 12,585,700 13,652,500 17,538,700 16,865,600Bosnia and Herzego 2,045,898 2,072,904 2,100,266 2,127,990 2,156,079Bulgaria 19,369,308 9,251,950 6,616,700 6,489,700 5,055,235Croatia 7,799,793 7,859,313 7,919,287 7,979,719 8,040,612Cyprus 1,345,535 1,361,984 1,378,634 1,395,487 1,412,547Czech Republic 17,809,344 15,104,491 15,318,105 15,735,300 15,208,250Denmark 51,106,314 36,053,014 41,554,654 31,597,854 28,001,214Estonia 1,286,544 4,219,131 16,555,022 6,790,144 5,676,900Finland 52,288,194 45,174,154 44,716,954 53,384,704 36,049,204France 41,285,832 35,610,808 61,963,300 15,989,300 636,054,100Germany 82,588,275 93,456,125 118,865,650 219,078,175 329,060,175Greece 23,104,872 12,111,990 18,097,500 15,240,000 29,400,500Hungary 20,889,817 19,069,939 17,371,060 16,752,062 15,831,947Iceland 1,089,059 1,108,117 1,127,509 1,147,240 1,167,317Ireland 2,176,335 3,362,960 3,721,100 3,911,600 6,718,300Italy 97,436,010 54,461,410 48,380,650 43,370,500 29,419,550Latvia 1,886,716 1,002,602 823,506 791,820 761,238Lithuania 13,439,181 5,569,585 6,697,726 4,732,020 6,751,320Luxembourg 335,236 341,209 347,288 353,475 359,773Macedonia 1,418,991 1,437,231 1,455,706 1,474,418 1,493,370Malta 644,554 653,833 663,245 3,500,000 4,050,000Netherlands 27,769,300 50,850,800 58,775,600 96,608,900 156,571,950Norway 22,718,409 16,236,569 31,149,544 28,196,794 28,996,894Poland 39,567,255 35,627,278 38,550,017 40,725,344 45,271,944Portugal 12,103,495 8,480,425 35,861,625 60,674,250 58,610,500Romania 24,647,843 19,079,210 17,254,220 15,482,824 14,568,424Serbia and Montene 5,536,735 5,609,266 5,682,748 5,757,192 5,832,611Slovakia 3,109,932 3,019,552 3,177,794 3,160,014 3,344,164Slovenia 2,676,870 5,597,525 8,626,475 6,061,075 6,061,075Spain 87,870,132 47,967,900 110,159,800 157,454,600 193,725,800Sweden 46,618,992 29,052,012 10,992,612 14,203,172 14,257,782Switzerland 40,283,145 39,268,400 31,508,700 27,878,405 27,141,170Turkey 35,338,800 32,258,000 33,553,400 34,594,800 35,445,700United Kingdom 101,409,420 75,521,820 79,388,970 179,687,220 163,911,280Europe 914,743,306 744,636,363 920,799,080 1,187,960,246 1,978,136,829Armenia 1,710,690 1,737,032 1,763,779 1,790,937 1,818,514Azerbaijan 4,273,300 4,470,491 4,676,781 4,892,590 5,118,358Belarus 6,364,844 6,450,839 6,537,996 6,626,330 6,715,858Georgia 3,139,003 3,163,694 3,188,579 3,213,660 3,238,938Kazakhstan 10,426,610 10,656,402 10,891,257 11,131,289 11,376,610Kyrgyzstan 1,653,347 1,672,260 1,691,389 1,710,738 1,730,307Moldova 1,901,377 1,924,238 1,947,374 1,970,788 1,994,484Russia 227,663,486 175,895,610 181,984,148 185,454,225 191,055,411Tajikistan 1,599,500 1,635,169 1,671,633 1,708,910 1,747,019Turkmenistan 1,380,911 1,404,110 1,427,699 1,451,685 1,476,073Ukraine 23,417,100 19,916,775 19,916,775 19,916,775 19,916,775Uzbekistan 7,604,571 7,783,279 7,966,186 8,153,391 8,344,996

CIS 291,134,740 236,709,897 243,663,596 248,021,318 254,533,343

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Demand $

$ 2009 March $2008 2009 2010 2011 2012

Bahrain 455,100 471,167 504,148 467,000 467,000Iran 36,191,400 34,899,600 37,124,640 47,985,680 53,573,680Iraq 25,865,251 28,687,971 20,558,691 21,460,555 19,300,000Israel 9,546,910 10,119,725 10,726,908 7,890,000 11,380,000Jordan 2,947,111 3,123,938 3,311,374 3,510,056 3,720,660Kuwait 1,428,418 1,542,692 1,666,107 1,799,396 1,943,347Lebanon 4,914,150 5,110,716 5,315,144 5,527,750 5,748,860Oman 1,781,654 1,888,554 2,001,867 2,121,979 2,249,298Palestine 790,107 837,513 887,764 941,030 997,491Qatar 584,175 595,859 607,776 619,932 632,330Saudi Arabia 24,308,000 21,300,000 32,923,200 25,400,000 26,977,334Syria 16,700,000 13,565,158 14,243,416 14,955,586 10,900,000United Arab Emirate 22,000,000 21,200,000 17,560,000 13,000,000 14,600,000Yemen 9,387,723 9,857,109 10,349,964 11,308,536 8,700,000Middle East 156,900,000 153,200,000 157,781,000 156,987,500 161,190,000Afghanistan 944,155 960,206 976,530 993,131 1,010,014Australia 40,451,460 64,096,900 92,557,600 185,242,200 232,073,450Bangladesh 11,895,378 12,234,214 12,582,701 12,941,115 13,309,739Bhutan 88,164 91,420 98,295 101,924Brunei 160,030 162,325 164,652 167,013 169,408Cambodia 616,952 638,448 660,692 683,711 707,532China 1,064,280,000 1,221,740,000 1,288,097,500 1,388,427,500 1,450,340,000Fiji 260,239 265,496 270,859 276,330 281,912Hong Kong 5,943,670 6,092,644 6,245,352 6,401,888 6,562,346India 279,255,900 285,455,360 330,841,350 385,991,100 464,337,400Indonesia 25,627,980 22,844,760 23,524,616 24,257,457 24,835,524Japan 187,204,500 576,970,779 670,700,941 702,694,031 754,223,772Korea, North 7,076,747 7,153,176 7,230,430 7,308,519 7,387,451Korea, South 20,807,850 28,746,450 361,492,800 478,967,800 596,442,800Laos 1,771,611 1,836,042 1,902,816 1,972,019 2,043,739Macau 510,864 527,292 544,247 561,747 579,811Malaysia 20,453,580 20,792,440 23,649,940 24,932,640 26,075,640Maldives 137,685 144,370 151,380 158,730 166,437Mongolia 655,450 673,812 692,689 712,095 732,045Myanmar 1,303,046 1,328,210 1,353,860 1,380,005 1,406,655Nepal 4,274,610 4,399,799 4,528,655 4,661,284 4,797,798New Zealand 18,644,010 20,996,910 19,653,250 22,828,250 22,828,250Pakistan 20,056,427 20,763,728 21,495,971 22,254,038 23,038,838Papua New Guinea 274,129 281,064 288,175 295,466 302,941Philippines 18,204,480 17,429,480 19,607,530 19,963,130 20,496,530Singapore 3,028,078 3,061,735 3,095,766 3,130,176 3,164,968Sri Lanka 6,185,696 6,309,499 6,435,781 6,564,590 6,695,977Taiwan 29,260,350 22,282,150 48,825,150 62,287,150 87,496,650Thailand 27,127,380 24,022,050 24,568,150 24,822,150 26,790,910Vietnam 25,107,600 21,437,600 21,856,700 22,974,300 23,533,100Asia Pacific 1,821,608,022 2,393,738,358 2,993,996,083 3,413,947,859 3,801,933,559

Page 2 of 4

Demand $

$ 2009 March $2008 2009 2010 2011 2012

Algeria 12,979,627 13,307,800 13,644,271 13,989,250 14,342,950Egypt 27,896,190 25,542,240 26,996,009 30,127,473 31,847,436Libya 3,205,420 2,739,694 2,964,438 3,203,871 3,458,849Mauritania 289,798 251,002 275,220 301,424 329,760Morocco 8,886,556 7,638,270 8,311,502 9,033,510 9,807,480Sudan 5,583,676 4,807,245 5,239,567 5,704,099 6,203,011Tunisia 5,570,734 4,763,749 5,157,133 5,576,482 6,023,323Maghreb 64,412,000 59,050,000 62,588,140 67,936,110 72,012,810Angola 657,808 582,634 608,927 636,469 665,283Benin 736,359 654,531 686,503 720,107 755,387Botswana 252,792 221,802 229,636 237,770 246,202Burkina Faso 669,066 588,470 610,733 633,901 657,974Burundi 70,558 62,613 65,563 68,658 71,902Cameroon 3,658,359 3,257,897 3,423,424 3,597,714 3,781,026Cape Verde 161,689 143,585 150,456 157,672 165,240Central African Rep 39,133 34,560 36,014 37,533 39,117Chad 77,047 67,600 69,985 72,461 75,028Comoros 114,554 102,004 107,176 112,621 118,347Congo Republic 458,484 411,279 435,332 460,837 487,856Congo DR 1,086,290 970,068 1,022,835 1,077,213 1,135,246Cote d'Ivoire (IvoryC 957,002 843,794 877,875 913,421 950,445Djibouti 1,254,339 1,104,013 1,146,582 1,190,911 1,237,001Equatorial Guinea 36,280 32,761 34,907 37,198 39,641Ethiopia 5,879,176 5,244,692 5,520,721 5,811,847 6,118,566Gabon 583,913 513,929 534,036 554,831 576,458Gambia, The 145,310 129,211 135,573 142,262 149,287Ghana 5,805,051 5,180,251 5,454,660 5,744,170 6,049,284Guinea 420,859 371,151 386,221 401,942 418,320Guinea-Bissau 19,436 17,077 17,705 18,358 19,036Kenya 2,213,741 1,968,639 2,065,749 2,167,863 2,275,113Lesotho 107,811 94,732 98,221 101,848 105,613Liberia 128,816 118,159 127,891 138,437 149,859Madagascar 593,227 525,515 549,314 574,248 600,338Malawi 413,082 356,149 362,327 368,647 375,093Mali 495,818 439,444 459,575 480,675 502,764Mauritius 722,039 629,724 648,056 666,986 686,497Mozambique 2,897,496 2,522,630 2,591,531 2,662,576 2,735,675Namibia 17,692 15,452 15,924 16,412 16,916Niger 234,994 206,892 214,933 223,308 232,019Nigeria 6,743,508 6,024,212 6,350,192 6,694,469 7,057,687Rwanda 176,167 158,519 168,672 179,258 191,014Sao Tome and Prin 47,792 41,600 42,727 43,889 45,084Senegal 2,517,797 2,227,438 2,325,212 2,427,518 2,534,423Seychelles 303,789 263,018 268,703 274,538 280,510Sierra Leone 91,831 80,145 82,536 85,005 87,529Somalia 255,999 227,853 239,299 251,346 264,009South Africa 27,762,420 31,849,060 34,160,968 42,215,308 55,885,588Swaziland 96,544 100,697 105,029 109,548 114,260Tanzania 1,644,183 1,682,356 1,721,416 1,761,382 1,802,277Togo 591,796 611,176 631,191 651,861 673,208Uganda 776,415 801,966 828,357 855,616 883,773Zambia 519,257 532,760 546,615 560,830 575,415Zimbabwe 1,336,657 1,359,802 1,383,348 1,407,301 1,431,669Sub-Saharan Afric 73,772,377 73,371,858 77,542,647 87,546,766 103,262,976

Page 3 of 4

Demand $

$ 2009 March $2008 2009 2010 2011 2012

Argentina 15,990,954 14,030,897 14,614,843 15,153,132 15,030,704Bolivia 4,118,313 4,225,801 4,336,095 4,449,267 4,565,393Brazil 205,182,600 180,517,800 183,134,000 191,579,500 196,557,900Chile 7,509,495 11,542,395 14,869,160 19,706,844 22,831,044Colombia 24,516,295 25,275,702 26,058,631 26,865,813 27,697,998Ecuador 10,441,568 10,762,208 11,092,695 11,433,331 11,784,427Guyana 352,450 356,872 361,350 365,884 370,475Paraguay 2,709,936 2,811,593 2,917,063 3,026,489 3,140,020Peru 12,358,641 12,710,980 13,073,363 13,446,078 13,829,419Suriname 202,359 206,005 209,717 213,496 217,343Uruguay 3,421,885 3,481,356 3,541,861 3,603,417 3,666,043Venezuela 14,032,274 14,523,928 15,032,808 15,559,518 16,104,682South America 300,836,769 280,445,536 289,241,586 305,402,769 315,795,448Bahamas, The 149,330 151,241 153,177 155,138 157,124Barbados 245,156 248,418 251,723 255,072 258,466Belize 161,182 166,259 171,496 176,898 182,470Bermuda 173,396 177,315 181,322 185,420 189,610Virgin Islands, Britis 26,121 26,617 27,123 27,638 28,163Cayman Islands 41,230 42,010 42,804 43,613 44,437Costa Rica 2,971,637 3,083,066 3,198,674 3,318,617 3,443,058Cuba 9,004,446 9,211,744 9,423,815 9,640,767 9,862,715Dominican Republic 3,238,176 3,342,572 3,450,334 3,561,571 3,676,393El Salvador 4,646,669 4,791,237 4,940,303 5,094,006 5,252,492Grenada 108,167 109,822 111,503 113,209 114,941Guadeloupe 346,492 351,643 356,871 362,176 367,560Guatemala 5,970,577 6,146,027 6,326,632 6,512,545 6,703,922Haiti 953,049 977,646 1,002,878 1,028,762 1,055,313Honduras 4,099,059 4,253,841 4,414,469 4,581,162 4,754,149Jamaica 1,136,145 1,144,707 1,153,334 1,162,025 1,170,782Netherlands Antilles 158,965 161,823 164,732 167,693 170,707Nicaragua 3,963,845 4,110,581 4,262,749 4,420,551 4,584,194Panama 2,086,194 2,148,400 2,212,460 2,278,431 2,346,369Puerto Rico 2,465,124 2,495,133 2,525,507 2,556,251 2,587,369Saint Lucia 90,903 92,185 93,485 94,803 96,139Trinidad and Tobag 845,087 864,416 884,187 904,410 925,095Central America & 42,880,950 44,096,703 45,349,576 46,640,755 47,971,466

World 4,993,418,164 5,327,948,715 6,233,811,708 7,036,348,323 8,357,991,433

Page 4 of 4

Export units summary

Units 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008United States 880,051 883,787 715,523 1,101,551 895,498 842,454 1,068,399 1,080,715 1,564,790 1,414,296 2,020,749 2,466,364Canada 7,781 5,653 6,634 18,645 72,042 23,892 27,676 17,093 6,260 7,382 28,452 20,637Mexico 2,551,694 2,726,946 4,224,252 2,193,439 3,177,322 2,824,056 3,072,773 3,414,072 4,268,260North America 887,832 889,440 3,273,851 3,847,142 5,191,792 3,059,785 4,273,397 3,921,864 4,643,823 4,835,750 6,317,461 2,487,001AlbaniaAustria 149,050 883,224 65,918 27,172 4,219 60,328 144,268 29,534 12,085 12,214 14,522Belgium 22,040 10,319 4,675 1,428 9,004 42,958 173,565 147,769 218,783Bosnia and HerzegovinaBulgaria 57,143 20,207 1,790 1,223 915Croatia 84 5,055 13,162 220 4,530 119 11,712Cyprus 522Czech Republic 1,210 8,652 5,873 4,873 306,028 4,037,471 791,111 279,374 100,647Denmark 7,822 2,180 3,283 6,552 18,439 27,663 62,443 83,581 108,927 120,491 211,196Estonia 1,856 785 48 15Finland 277,866 326,396 395,720 331,146 331,790 402,349 276,275 232,883 283,779 303,154 338,960France 331,892 303,926 233,889 112,083 245,436 192,227 157,250 276,735 276,979 343,432 840,549 308,594Germany 802,946 613,035 728,579 774,465 812,983 768,385 597,747 651,808 587,694 605,422 1,058,147Greece 585,848 465,646 347,721 521,201 384,868 1,062,927 1,263,624 1,237,260 1,244,303 1,314,782 1,814,191Hungary 311,322 82,363 246,408 410,193 3,372,465 3,897,589 3,065,696 1,630,356 1,165,755Iceland 11,033 184 407 276 821 8 1 27Ireland 149 2,866 14,459 200 556 1,003 1,108 149 19 168 2Italy 91,849 58,694 92,095 39,472 44,573 460,224 160,379 558,134 56,430 156,380 322,955Latvia 38 2 1,087 12,430 4 88 6,224 4,633 4,859Lithuania 142,203 121,066 104,537 103,796 71,965 91,625 60,748 70,556 114,667Luxembourg 52 93 61 267 1,755 264 391 49 8MacedoniaMalta 1 217Netherlands 30,280 34,051 13,168 18,956 4,530 12,328 128,574 323,734 357,625 52,767 214,295Norway 25,100 1,290 634 52,432 297 456 1,799 838 2,279 268 670 47Poland 254,354 137,875 239,004 314,144 483,431 678,251 994,494 1,073,818 822,264Portugal 47,451 76,467 402,137 518,378 462,041 682,527 775,155 827,097 27,814 3,429 47,513Romania 65,299 19,962 60,398 79,578 106,199 308,644 150,071 136,442Serbia and Montenegro 6,729 10,292 7,490 15,603Slovakia 253,468 206,715 293,169 302,466 305,241 211,194 178,935 210,789 142,996Slovenia 2,541,005 2,171,462 2,219,555 2,523,249 2,880,658 3,293,105 2,707,453 2,461,518 2,847,460Spain 789,647 96,501 17,956 55,675 10,258 23,677 29,050 19,041 40,706 120,264 72,346Sweden 0 11,624 78,768 357,165 41,939 46,453 73,755 59,812 47,858 65,529 136,900Switzerland 139,191 194,685 246,297 486,449 450,363 386,741Turkey 40,089 11,961 17,023 29,481 78,927 70,357 63,970 26,018 81,556 87,108United Kingdom 749,663 584,956 818,068 518,244 437,415 427,607 727,823 5,393,003 881,165 722,948 1,051,297Europe 3,889,563 3,500,945 6,818,224 6,174,401 5,965,353 7,981,908 12,125,718 22,332,756 12,499,275 10,348,706 12,225,081 794,229ArmeniaAzerbaijanBelarus 18,758 34,658 32,385 73,655 108,757

Page 1 of 5


Units 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008GeorgiaKazakhstan 14,209 3,776KyrgyzstanMoldovaRussia 24,611 26,062 72,337 73,860 95,629 182,489 507,041 317,718 479,908 778,620 649,737 659,781TajikistanTurkmenistanUkraine 533 2,849 27,967 25,716 37,972 42,598 108,546UzbekistanCIS 24,611 26,062 91,095 122,727 131,790 256,677 618,647 345,685 505,624 816,592 692,335 768,327BahrainIranIraqIsraelJordanKuwaitLebanonOmanQatarSaudi ArabiaSyriaUnited Arab EmiratesYemenMiddle EastAfghanistanAustralia 4,500 6,221 18,417 84,786 34,492 66,513 18,282 9,922 18,471 9,752 33,692 58,899BangladeshBhutanBruneiCambodiaChina 3,044,259 2,384,043 2,979,364 2,927,575 3,397,416 10,933,476 9,663,022 9,908,764 14,557,641 13,632,298 17,986,195 20,446,850FijiHong Kong 97,112 225,485 219,483 219,076 161,439 62,303 216,540 447,593 367,976 364,659 1,101,759 1,300,085India 108,430 502,796 405,384 310,137 269,825 257,712 314,297 316,362 292,270Indonesia 506,114 379,462 691,958 1,875,758 1,938,497 964,676 991,878 5,429,793 4,279,131 4,414,593 5,095,778Japan 36,091 39,533 23,520 77,978 26,656 11,923 7,569 18,935 11,470 20,060 116,187 70,480Korea, NorthKorea, South 17,768 49,383 45,895 50,306 22,630 27,543 28,175 117,888 46,679 10,174 5,468 10,754LaosMacauMalaysia 6,470 282,610 7,095 22,631 214 2,021 121,526 52,609 15,021 4,108 38,554

Page 2 of 5


Units 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008MaldivesMongoliaMyanmarNepalNew Zealand 1,649 1,785 338 3,836 6,029 6,332 11,289 10,988 12,903 19,614 25,989 24,499PakistanPapua New GuineaPhilippines 991 12098 15734 168 15535 18,779 32,862 184 10Singapore 215,835 33,549 69,576 239,306 98,904 118,388 141,189 426,648 627,686Sri Lanka 2 35 126 11 86 56 8 26 75 1,648 60Taiwan 80,502 235,188 21,950 10,020 17,416 20,557 8,546 14,012 11,633 5,404 20,461Thailand 115,865 195,000 113,036 72,268 58,136 193,976 99,897 118,047 1,075,998 2,052,771 4,073,914VietnamAsia Pacific 3,794,465 3,719,577 4,528,311 5,933,571 6,167,762 12,703,177 11,645,123 16,505,288 19,927,346 20,299,929 27,398,468 25,985,541Algeria 9EgyptLibyaMauritaniaMorocco 20 30 6SudanTunisiaMaghreb 20 30 15AngolaBeninBotswanaBurkina FasoBurundiCameroonCape VerdeCentral African RepublicChadComorosCongo RepublicCongo DRCote d'Ivoire (IvoryCoast)DjiboutiEquatorial GuineaEthiopiaGabonGambia, TheGhana

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Units 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008GuineaGuinea-BissauKenyaLesothoLiberiaMadagascarMalawiMaliMauritiusMozambiqueNamibiaNigerNigeriaRwandaSao Tome and PrincipeSenegalSeychellesSierra LeoneSomaliaSouth Africa 81,619 249,204 42,626 103,818 177,664 277,138 349,146 420,593 457,921 384,983 924,729 1,190,708SwazilandTanzaniaTogoUgandaZambiaZimbabweSub-Saharan Africa 81,619 249,204 42,626 103,818 177,664 277,138 349,146 420,593 457,921 384,983 924,729 1,190,708Argentina 171,434 74,329 61,647 74,181 689,527 301,394 428,713 406,303 409,028 519,983 324,786 423,749BoliviaBrazil 793,406 862,253 1,717,864 1,457,783 1,440,715 811,639 998,353 905,829 1,148,119 1,417,614 932,968 850,645Chile 4,900 4,222 3 73 68 314 5,007 6 14 447 2,000 345Colombia 18,487 4,502 8 37 3,406 28,059 22 356Ecuador 6 236 356 5,180GuyanaParaguay 317 423Peru 2 11 28 358 32SurinameUruguay 62,672 41,196 135,846 400,603 54,318Venezuela 351 117 33 2,801 2,239 5 82South America 988,227 945,306 1,779,514 1,532,045 2,130,698 1,179,542 1,501,361 1,315,264 1,695,515 2,339,392 1,320,115 1,274,771Bahamas, The

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Units 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008BarbadosBelizeBermudaVirgin Islands, BritishCayman IslandsCosta Rica 101 428 101 455CubaDominican RepublicEl SalvadorGrenadaGuatemala 1,680 4,435 2,920 204HaitiHonduras 73 71 7 147JamaicaNetherlands AntillesNicaragua 24 86 348PanamaPuerto RicoSaint LuciaTrinidad and TobagoC America & Carrib. 1,854 4,934 3,045 752 495

World 17,303,627 18,161,617 20,269,565 27,071,448 30,740,127 37,301,084 39,734,468 39,028,412 48,878,941 32,501,072

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Export $ summary

$ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008United States 61,155,238 57,426,645 59,249,566 91,702,511 87,341,066 60,492,805 78,060,927 73,066,299 101,608,165 132,839,041 195,331,841 220,480,273Canada 2,471,008 2,388,190 1,939,778 2,536,856 6,946,338 9,786,287 8,824,058 7,811,600 5,576,073 5,251,100 6,263,185 6,554,793Mexico 4,614,759 22,300,328 26,916,943 31,194,931 52,414,947 80,823,136 84,564,636 72,893,610 105,044,987 105,187,885 152,756,274North America 68,241,005 82,115,163 88,106,287 125,434,298 146,702,351 151,102,228 171,449,621 153,771,509 212,229,225 243,278,026 354,351,300 227,035,066AlbaniaAustria 13,024,854 7,956,076 7,665,508 1,306,840 498,386 1,444,003 1,519,986 1,607,053 1,465,972 775,529 837,814Belgium 824,290 430,996 225,402 181,951 707,197 1,298,474 5,670,727 4,589,013 7,397,148Bosnia & Herz.Bulgaria 498,924 167,674 75,638 138,043 104,142Croatia 35,625 152,734 460,865 43,508 166,083 46,693 71,615Cyprus 25,705Czech Republic 127,564 263,795 310,865 528,038 12,958,812 125,954,614 16,074,710 11,029,231 3,888,424Denmark 642,954 937,634 413,609 779,819 1,781,300 2,630,459 4,916,506 6,067,434 6,830,778 6,853,520 7,414,962Estonia 38,209 67,537 64,882 31,827 67,359 78,894 37,831 2,024 865Finland 22,753,771 25,165,656 26,285,330 18,418,913 19,563,282 22,891,669 19,483,175 18,187,099 25,877,596 31,852,400 41,576,768France 28,017,679 24,875,954 17,205,587 9,932,170 16,255,314 17,726,395 21,523,085 24,458,171 23,435,750 29,558,013 43,688,110 32,040,361Germany 35,820,135 27,228,000 28,180,040 24,729,047 30,061,613 35,983,760 37,841,653 39,692,180 29,591,662 29,435,223 42,773,380Greece 30,541,762 22,353,519 17,428,644 19,439,382 13,177,020 36,026,241 43,867,549 42,796,032 46,869,286 59,196,276 82,856,615Hungary 8,546,721 3,350,830 6,822,695 11,828,435 97,211,752 119,070,853 94,131,791 49,129,559 43,812,500Iceland 9,470 103 53,124Ireland 87,824 503,826 404,897 142,412 291,046 682,785 898,006 48,732 18,260 107,119 1,048Italy 3,534,841 3,772,813 3,943,504 2,985,592 3,328,276 3,060,299 5,690,480 13,959,478 3,417,305 7,667,755 8,827,051Latvia 753 311 1,887 19,431 2,250 18,698 4,187 4,692 5,898Lithuania 2,561,821 2,320,983 3,930,823 2,947,374 4,390,103 9,415,442 6,861,706 6,664,205 15,365,154Luxembourg 38,630 66,776 51,619 190,126 104,485 42,987 51,239 15,353 1,962MacedoniaMalta 670 16,945 703Netherlands 930,507 1,171,651 417,552 450,791 518,412 1,171,401 3,959,732 3,461,718 3,770,543 3,773,806 13,974,891Norway 1,392,304 362,704 225,156 2,354,554 78,330 76,614 221,997 60,660 181,201 139,748 242,424 813,710Poland 3,489,554 5,666,604 2,134,092 4,153,834 6,879,220 9,524,805 15,279,887 26,858,881 29,864,135 24,390,030Portugal 1,799,692 2,020,632 6,328,860 6,866,156 5,691,042 8,598,507 14,353,314 17,001,256 895,012 176,337 1,195,580Romania 1,296,925 677,508 1,163,188 1,986,721 2,231,456 4,938,100 2,817,220 5,182,555Serbia & Monte. 683,569 807,140 483,688 1,147,680Slovakia 5,781,021 5,566,105 7,342,534 7,210,636 6,428,930 5,992,463 4,519,374 5,644,869 5,177,104Slovenia 84,884,390 75,027,911 72,021,420 77,904,036 99,560,293 102,012,507 98,563,697 91,362,491 98,313,052Spain 8,769,803 4,121,812 1,865,570 1,265,927 646,917 920,483 1,071,548 1,014,266 2,627,124 2,250,593 5,100,144Sweden 0 1,799,293 7,094,914 4,208,122 5,365,956 3,996,063 5,479,487 4,405,721 6,670,681 8,881,543 13,030,082Switzerland 49,493,532 56,500,979 52,025,287 42,360,385 36,734,073 39,172,831 38,120,033 46,204,672 45,122,564 60,682,091 69,372,252 71,317,865Turkey 648,745 637,340 452,435 617,296 1,696,574 1,598,957 1,584,855 659,993 2,144,702 3,750,675United Kingdom 46,927,351 44,998,457 34,138,969 28,468,048 23,656,004 30,730,774 33,734,084 32,054,482 35,198,781 36,294,026 48,530,428

Page 1 of 5

Export $ summary

$ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Europe 243,737,009 227,907,305 313,229,694 254,854,528 253,943,374 315,866,788 467,479,175 635,145,188 491,238,049 479,426,715 586,295,419 108,047,350ArmeniaAzerbaijanBelarus 179,699 439,296 485,396 640,696 2,207,098GeorgiaKazakhstan 132,600 24,899 0 109,798KyrgyzstanMoldovaRussia 2,382,989 2,172,742 2,954,497 2,899,240 7,118,747 7,436,325 12,421,876 9,349,918 12,196,164 19,998,822 21,508,822 21,979,633TajikistanTurkmenistanUkraine 119,500 266,660 3,146,770 1,380,150 5,523,640 1,864,780 3,552,090UzbekistanCIS 2,382,989 2,172,742 3,134,196 3,471,136 7,629,042 8,196,521 15,005,432 12,496,688 13,576,314 25,522,462 23,373,602 25,531,723BahrainIranIraqIsraelJordanKuwaitLebanonOmanQatarSaudi ArabiaSyriaUAEYemenMiddle EastAfghanistanAustralia 1,504,012 969,388 1,148,696 2,026,762 800,251 2,133,170 1,753,588 1,433,980 1,246,088 1,550,752 2,385,981 4,239,481BangladeshBhutanBruneiCambodiaChina 15,017,790 15,286,638 14,777,117 22,877,298 37,648,187 214,324,727 130,930,876 114,669,967 197,118,038 162,274,679 266,350,701 354,164,878FijiHong Kong 3,739,220 4,120,940 5,045,272 9,758,561 7,943,050 3,968,188 12,457,630 15,137,534 16,643,513 11,367,149 33,353,708 32,901,819India 1,651,015 7,070,964 6,296,233 4,461,558 5,760,127 6,468,996 14,036,377 11,516,656 16,433,467Indonesia 8,924,495 5,081,708 10,321,015 18,821,665 16,215,385 9,153,316 11,337,615 16,306,810 22,536,370 23,735,013 23,958,845Japan 2,547,868 1,510,103 1,065,706 1,956,208 1,124,118 549,140 666,806 1,064,159 1,058,732 883,027 1,209,914 1,349,269

Page 2 of 5

Export $ summary

$ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Korea, NorthKorea, South 341,349 189,287 175,186 155,156 476,644 553,301 1,394,741 1,024,876 1,467,644 340,416 3,396,210 999,267LaosMacauMalaysia 359,641 248,331 107,565 3,079,653 258,186 229,749 5,339,883 1,034,536 1,263,586 251,537 637,138MaldivesMongoliaMyanmarNepalNew Zealand 153,282 206,724 83,344 615,239 1,277,766 769,511 1,295,664 1,318,632 1,609,017 1,892,264 3,239,541 2,866,786PakistanPapua NGPhilippines 21,911 85,047 75,855 110,453 185,135 23,040 419,684 181,147 105,276 67,448 3,051Singapore 1,859,444 1,762,496 5,394,634 6,727,962 15,156,243 11,074,460 13,844,239 16,171,087 20,439,926Sri Lanka 1,824 12,578 38,565 1,050 2,529 4,262 1,832 3,085 10,892 16,304 9,638Taiwan 1,485,610 3,580,379 290,383 207,925 400,451 445,864 273,120 975,616 535,193 250,776 1,490,952Thailand 1,542,369 2,768,367 3,074,972 930,003 810,853 1,782,649 2,003,372 1,497,218 1,841,407 2,389,987 2,215,586VietnamAsia Pacific 34,095,178 32,822,738 39,381,543 71,555,917 78,951,093 244,152,908 188,572,888 172,695,917 272,964,376 232,153,103 375,305,725 398,746,724Algeria 337EgyptLibyaMauritaniaMorocco 515 4,405 224SudanTunisiaMaghreb 515 4,405 561AngolaBeninBotswanaBurkina FasoBurundiCameroonCape VerdeCent.African Rep.ChadComorosCongo RepublicCongo DRCote d'Ivoire

Page 3 of 5

Export $ summary

$ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008DjiboutiEqu. GuineaEthiopiaGabonGambia, TheGhanaGuineaGuinea-BissauKenyaLesothoLiberiaMadagascarMalawiMaliMauritiusMozambiqueNamibiaNigerNigeriaRwandaSao T & Prin.SenegalSeychellesSierra LeoneSomaliaSouth Africa 6,141,322 7,095,618 5,068,334 5,127,840 9,360,205 10,221,300 22,724,337 25,284,695 27,921,968 18,670,342 52,010,773 46,691,191SwazilandTanzaniaTogoUgandaZambiaZimbabweSub-Saharan Africa 6,141,322 7,095,618 5,068,334 5,127,840 9,360,205 10,221,300 22,724,337 25,284,695 27,921,968 18,670,342 52,010,773 46,691,191Argentina 8,215,938 4,452,240 4,972,705 4,600,637 9,863,060 5,815,002 2,780,046 4,179,357 4,414,825 10,721,456 5,068,217 5,274,440BoliviaBrazil 21,919,842 24,238,900 38,778,400 30,463,754 29,246,862 14,844,849 15,172,731 15,360,602 18,937,336 27,919,568 17,822,720 18,223,250Chile 128,145 385,476 6,650 295,438 329,614 10,970 94,207 8,883 14,628 40,681 21,702 15,025Colombia 906,412 121,059 0 310 13,067 92,633 94,840 15,545 17,918Ecuador 26,505 6,449 75,426 170,872Guyana

Page 4 of 5

Export $ summary

$ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Paraguay 25,200 0 457Peru 9 39,106 10,925 9,348 17,814SurinameUruguay 58,372 76,571 228,646 98,406 122,825Venezuela 0 0 99,929 12,864 559 111,854 189,867 200 6,061South America 31,170,337 29,197,675 43,757,755 35,360,139 39,552,532 20,834,690 18,218,954 19,712,410 23,846,402 38,884,580 23,222,202 23,530,529Bahamas, TheBarbadosBelizeBermudaVirgin Islands, BCayman IslandsCosta Rica 23,979 77,716 19,800 31,438CubaDominican Rep.El SalvadorGrenadaGuatemala 62,042 32,799 29,054 7,954HaitiHonduras 8,373 1,493 1,530 627JamaicaNeth. AntillesNicaragua 200 8,091 4,963PanamaPuerto RicoSaint LuciaTrinidad & Tob.C Am & Carrib. 94,394 112,008 49,054 49,013 5,590

World 498,400,809 497,199,316 538,703,403 755,815,345 885,312,748 1,021,021,623 1,041,879,802 1,037,984,841 1,414,608,034 829,588,173

Page 5 of 5

Export unit prices $

$ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008United States 69 65 83 83 98 72 73 68 65 94 97 89Canada 318 422 292 136 96 410 319 457 891 711 220 318Mexico 11 11 12 37 27 26 34 31 36North America 77 92 27 33 28 49 40 39 46 50AlbaniaAustria 87 9 116 48 118 24 11 54 121 63 58Belgium 37 42 48 127 79 30 33 31 34Bosnia and HerzegovinaBulgaria 9 8 42 113 114Croatia 424 30 35 198 37 392 6Cyprus 49Czech Republic 105 30 53 108 42 31 20 39 39Denmark 82 430 126 119 97 95 79 63 57 35Estonia 48 42 58Finland 82 77 66 56 59 57 71 78 91 105 123France 84 82 74 89 66 92 137 88 85 86 52 104Germany 45 44 39 32 37 47 63 61 50 49 40Greece 52 48 50 37 34 34 35 35 38 45 46Hungary 27 41 28 29 29 31 31 30 38Iceland 0 0 0 0 0 1,184 103 1,968Ireland 589 176 28 712 523 681 810 327 961 638 524Italy 38 64 43 76 75 7 35 61 49 27Latvia 20 156 2 2 563 212 1 1 1Lithuania 18 19 38 28 61 103 113 94 134Luxembourg 743 718 846 712 60 163 131 313 245MacedoniaMalta 78Netherlands 31 34 32 24 114 95 31 11 11 72 65Norway 55 281 355 45 264 168 123 72 80 521 362 17,313Poland 22 15 17 22 20 23 27 28 30Portugal 38 26 16 13 12 13 19 21 32 51 25Romania 20 34 19 25 21 16 19 38Serbia and Montenegro 78 65 74Slovakia 23 27 25 24 21 28 25 27 36Slovenia 33 35 32 31 35 31 36 37 35Spain 11 43 104 23 63 39 37 53 65 19 71Sweden 155 90 12 128 86 74 74 139 136 95Switzerland 274 237 183 125 154 184Turkey 16 53 27 21 21 23 25 25 28 26 43United Kingdom 63 77 42 55 54 72 46 6 40 50 46

Page 1 of 5


$ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Europe 63 65 46 41 43 40 39 28 39 46ArmeniaAzerbaijanBelarus 10 13 15 9 20GeorgiaKazakhstan 9 7KyrgyzstanMoldovaRussia 97 83 41 39 74 41 24 25 26 33 33TajikistanTurkmenistanUkraine 224 94 113 54 145 44 33UzbekistanCIS 97 83 34 28 58 32 24 36 27 31BahrainIranIraqIsraelJordanKuwaitLebanonOmanQatarSaudi ArabiaSyriaUnited Arab EmiratesYemenMiddle EastAfghanistanAustralia 334 156 62 24 23 32 96 145 67 159 71 72BangladeshBhutanBruneiCambodiaChina 5 6 5 8 11 20 14 12 14 12 15 17FijiHong Kong 39 18 23 45 49 64 58 34 45 31 30 25India 15 14 16 14 21 45 36 56Indonesia 18 13 15 10 8 9 11 5 5 5Japan 71 38 45 25 42 46 88 56 92 44 10 19

Page 2 of 5


$ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Korea, NorthKorea, South 19 4 4 3 21 20 50 9 31 33 621 93LaosMacauMalaysia 56 1 15 136 1,206 114 44 20 84 61 17MaldivesMongoliaMyanmarNepalNew Zealand 93 116 247 160 212 122 115 120 125 96 125 117PakistanPapua New GuineaPhilippines 77 9 12 137 27 3 367 305 33Singapore 9 53 78 28 153 94 98 38 33 104Sri Lanka 912 359 306 95 29 76 229 119 145 10 161Taiwan 18 15 13 21 23 22 32 70 46 46 73 73Thailand 13 14 27 13 14 9 20 13 2 1 1VietnamAsia Pacific 9 9 9 12 13 19 16 10 14 11Algeria 37EgyptLibyaMauritaniaMorocco 147 37SudanTunisiaMaghreb 147 37AngolaBeninBotswanaBurkina FasoBurundiCameroonCape VerdeCentral African RepublicChadComorosCongo RepublicCongo DRCote d'Ivoire (IvoryCoast)

Page 3 of 5


$ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008DjiboutiEquatorial GuineaEthiopiaGabonGambia, TheGhanaGuineaGuinea-BissauKenyaLesothoLiberiaMadagascarMalawiMaliMauritiusMozambiqueNamibiaNigerNigeriaRwandaSao Tome and PrincipeSenegalSeychellesSierra LeoneSomaliaSouth Africa 75 28 119 49 53 37 65 60 61 48 56 39SwazilandTanzaniaTogoUgandaZambiaZimbabweSub-Saharan Africa 75 28 119 49 53 37 65 60 61 48Argentina 48 60 81 62 14 19 6 10 11 21 16 12BoliviaBrazil 28 28 23 21 20 18 15 17 16 20 19 21Chile 26 91 2,217 4,047 4,847 35 19 1,481 1,045 91 11 44Colombia 49 27 39 353 27 3 707 50Ecuador 27 212 33Guyana

Page 4 of 5


$ 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008Paraguay 1Peru 3,555 390 26 558SurinameUruguay 1 2 2 0 2Venezuela 285 110 17 40 85 40 74South America 32 31 25 23 19 18 12 15 14 17Bahamas, TheBarbadosBelizeBermudaVirgin Islands, BritishCayman IslandsCosta Rica 182 196 69CubaDominican RepublicEl SalvadorGrenadaGuatemala 7 10 39HaitiHonduras 21 219 4JamaicaNetherlands AntillesNicaragua 8 94 14PanamaPuerto RicoSaint LuciaTrinidad and TobagoCentral America & Carribean 23 16

World 29 27 27 28 29 27 26 27

Page 5 of 5

World Electricity Meter Report 2009

Documents

fuerta del

fuerzo del

tenaga nasional

secondary

sistema interconectado

attracted

ghana guinea

ripple control