Electricity and gas companies from generation through to transmission and distribution and retail – are investing billions on IoT technology. An estimated $201 billion by 2018 will be spent worldwide. This presentation focuses on British utility companies from a 'Customer' perspective and their strategy till date and value-add going forward.

1. IoT Customer Centric Smart
Applications offered by Utility
Companies within the UK
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July 2016

2. Internet of Things
What is IoT?
Connecting any device with an on and off switch to the
Internet (and/or to each other). This includes everything
from mobile, coffee makers, washing machines,
headphones, lamps, wearable devices and almost
anything else you can think of.
•Devices
•Equipments
•Data
Smart
•White goods
•Brown goods
•Apparels
•Pets
Home •GPS / Fuel
•Safety Equipment
•Roadside
equipment
Cars
•Wearables
•Smart-devices
•Vehicles
Outdoors •Building
•Factory
•Infrastructure
Office
Device Network Cloud Application

3. Internet of Things
Growth by 2020s
Utility
1.9 billion
connected
home devices
by 2019,
bringing in
$490 billion in
revenue
(CMO)
Industry
The value of
IoT technology
in
manufacturing
is estimated to
be $2.3 trillion
by 2025 (Intel)
Infrastructure
90% of cars
connected to
the internet by
2020 (CMO)
Retail
26 billion
smart retail
units by 2020
(Gartner)
Healthcare
the value of
IoT technology
in healthcare
is estimated to
be $2.5 trillion
by 2025 (Intel)

4. Internet of Things
UK IoT Growth
17%
21%
UK
France
Italy
Germany
Rest of Europe 62%
In Western Europe Internet of Things (IoT) will grow at 21.8% compound annual growth
rate (CAGR) from $113.5 billion in 2015 to nearly $250 billion in 2019, representing 16% of
the Worldwide IoT Spending in 2015 (19% in 2019).
UK
Utility
Industry
Infrastructure
Retail
Health
Source: https://www.idc.com/getdoc.jsp?containerId=prEMEA40958015
Spend in Europe

5. Internet of Things
IoT within Utilities
Utility companies; from generation through to transmission, distribution and retail
will invest an estimated £151 billion by 2018 globally.
Source: http://energyconferencenetwork.com/iot-for-utilities/ https://www.sap.com/bin/sapcom/ko_kr/downloadasset.2014-10-oct-28-03.ceo-perspective-the-internet-of-things-for-utilities-pdf.html

6. Internet of Things
Big 6 UK Energy Companies
British Gas
15 million
EDF Energy
5.6 million
E.ON UK
5.3million
npower
6.5 million
Scottish P.
5.3million
SSE
9.1 million
Source: https://www.ukpower.co.uk/the-big-six-energy-companies
IoT spend is mainly distributed amongst the the big 6 in
the UK with varied customer numbers

7. Internet of Things
IoT within Utilities
Source: http://energyconferencenetwork.com/iot-for-utilities/ https://www.sap.com/bin/sapcom/ko_kr/downloadasset.2014-10-oct-28-03.ceo-perspective-the-internet-of-things-for-utilities-pdf.html
Customer
Centric Industry
Centric

8. Internet of Things
Utility Companies IoT Approach
Long term
Strategy
Entry level
Strategy
Utility companies strategy for IoT can be divided into two:
Long term and Entry level

9. Internet of Things
Company Specific Approach
Smartmeters
Outsource
Development
•SSE
•Scottish Power
In-house
Development
EDF
Startup or Customer
Ecosystem
•British Gas
•Npower
•E.ON
•All ‘Big 6’
British Gas is at the top
of the pile with it’s All In
IoT strategy. While SSE
and Scottish Power are
still exploring the
potential.

10. Customer Centric Smart
Applications

11. Internet of Things
Smart Meters
Energy
Companies
British Gas
EDF
E.ON
Others
Install 30 million
Smartmeters 2020
A smart meter is an electronic device that records consumption of electric
energy and communicates that information to the utility for monitoring
and billing. The official national smart meter roll-out across England, Wales
and Scotland will start in April 2016 and finish in 2020. But the big 6 have
already started to install smart meters even though they don't meet the final
smart meter specifications.

12. Internet of Things
Outsource Development
Scottish Power
Using the Intamac platform and working with
a hardware manufacturer, ScottishPower
launched the Unifi proposition which helped
their customers save money on their energy
bills and allowed them to control devices
remotely via smart plugs.
SSE
SSE has a tie-up with Tado, a German maker
of smart thermostats that is the leading
brand on the Continent. SSE said it will offer
customers free installation of the £200 Tado
device to encourage take-up.
Source: http://www.telegraph.co.uk/finance/11403096/Energy-giant-SSE-enters-smart-thermostat-battle-with-Tado.html http://www2.intamac.com/case-studies/scottish-power.html

13. Internet of Things
In-house Development
npower
npower are providing secure connectivity through
a Vodafone Global SIM to install a smart meter
anywhere in Britain. The smart meter can send a
monthly or daily reading and 48 half-hourly profile
readings where consent is given. All updates, along
with a map of the daily usage, can be seen via the
customers’ In Home Display.
EDF
EDF Energy is currently installing smart meters
region by region, helping them test and refine the
installation experience for their customers. They
expect to increase the number of installations in
the second half of 2016, in line with industry
readiness.
Source: https://www.edfenergy.com/for-home/energy-efficiency/smart-meters http://www.vodafone.com/business/m2m/case-study/npower-smart-meters-shine-a-light-on-energy-use

14. Internet of Things
Startup Ecosystem
A startup ecosystem is formed by people, startups in their various stages and various types of
organizations in a location (physical and/or virtual), interacting as a system to create new
startup companies. Utility company’s are focusing on Agile and Lead Methodology to develop
this ecosystem.
Npower
RWE npower is running an Internet of Things incubator within
Innovation Birmingham’s £8m iCentrum® building
e.on
e.on’s German branch launched proprietary LoRa™ network
technology. Alongside, digimondo, a Hamburg-based startup nurtured
as part of E.ON’s :agile innovation program, has begun setting up its
low-energy, long-range communications network in cities across
Germany. Conventional networks like WLAN, Bluetooth, and LTE often
lack sufficient range and solid-objection penetration or are simply too
expensive for many small applications. Enabling smart devices to talk
to one another across distances of several kilometers requires a system
that is significantly less expensive to set up and operate.
Source: https://www.innovationbham.com/2015/11/13/rwe-npower-to-run-internet-of-things-incubator-within-innovation-birminghams-8m-icentrum-building/ http://www.eon.com/en/media/news/press-releases/2016/2/17/eons-
digimondo-startup-helps-cities-join-the-internet-of-things.html

15. Internet of Things
British Gas’s Connected Home
Hive is British Gas’s Lean Startup to control customer’s home.
Connected Home
Connected devices like Hive drives back to its parent company,
Connected Home, an explosion of data. The business unit was
launched by British Gas in 2012 to operate along lean, start-up
principles. Connected Home is already processing 40TBs of static data
across 30 large nodes, according to head of data engineering Josep
Casals. This includes 30,000 messages a second on the publish-
subscribe message broker Kafka, with the main source of these reads
and writes coming from Hive.

16. Internet of Things
British Gas’s Proposition
Customer Ecosystem
Hive smart lights, plugs,
heating and sensors
Smart Meters
Protection
Home Services
Gas and
Electricity

17. Internet of Things
Summary
New Products
Increase Loyalty
Upsell
Collect Data
Better Service
• Via IoT Utility providers can offer
new services at a later date and
increase bottom line
• By offering custom IoT products
utility companies can increase
retention
• Selling services alongside gas and
electric increases profit margins
and opportunities to cross-sell
• Collect data on usage, waste,
consumption and more, for
analysis and improvement
• Offer customers a high quality
integrated service, which reflects
the advancements in technology
Advantages of integrating IoT for utility companies

18. For further information
please contact
Raj Anand
+44 208 1333 676
me@rajanand.biz
www.twitter.com/rajanand
www.rajanand.biz