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$700 MILLION: SMART METERS, THE HIDDEN COST OF FAILURE



The pitfalls in the UK’s smart meter rollout strategy are well known – missed targets, high costs, extended timeframes, etc.


What aren’t so well known, however, are the hidden pressures and downstream costs of failure.


In Q3 2019, we conducted primary research with a Big Six UK electricity provider. The results were sobering - at a conservative estimate, hidden industry costs of over $700 million a year.


Our research revealed:


  • Currently, electricity companies randomly audit Engineers. There’s no real consistency in the audits, which are labor intensive and time consuming.


  • At any one time, safety concerns meant between 9% and 73% of electricity Engineers were temporarily suspended from doing their job (in industry-speak, ‘off the road’).


  • Extrapolated across the industry, the primary cost of an Engineer being off the road equates to over $60 million per year.


  • Every off-the-road Engineer required a company Auditor and Area Manager to physically check their last three days’ work (at a minimum).


  • The secondary costs of Auditors and Area Managers checking an Engineer’s work equate to an industry loss of over $600 million per year.


  • The carbon footprint of physically checking an Engineer’s work is over 40,000 tonnes of CO2 each year.


  • The tertiary costs of Ofgem regulator fines for missed customer appointments equates to over $35 million.


  • At a conservative estimate, the combined industry cost is north of $700 million per year.

At 22i, we think we can help.


Our AI solution’s a product and software as a service (SaaS):


  • The product’s a mobile phone app: This records digital images of the circuit board to ensure correct smart meter installation.


  • The SaaS is cloud storage of all digital files created by the app: Easily searched and remotely audited by industry management.


SO WHAT?


Our AI allows Engineers to quickly and efficiently upload images via the app. Management can remotely view all work – by Engineer, geo-location, date and time.


This ensures consistent, cross-comparable work audits and removes the cost of physically inspecting an Engineer’s work.


On one level, this opens the door to the creation of a de facto industry standard. On another, our AI can help Engineers meet their daily targets and reduce time off the road.


This increases the opportunity for electricity providers to meet government targets – ultimately reducing an unnecessary $700 million in extra annual industry costs and 40,000 tonnes of carbon dioxide.


Ultimately, our AI increases safety, saves time, money and CO2.


People, planet, profit – we don’t just talk it, we do it too.