The deployment of smart meters and an increasing use of sensor technology and communication devices will require utilities to improve their data management efforts – particularly in the EU, where utilities are facing strict regulatory restrictions.
The massive deployment of smart meters used to measure electricity, gas, and water consumption remotely in real-time provides a range of benefits for both consumers and utilities. As smart meters enable two-way communication between suppliers and end users, utilities can utilize smart meter data to gain better insight into infrastructure operations, to improve grid reliability and customer satisfaction, and to develop new revenue sources. According to Accenture estimates, utility customer data may be a multi-billion market in the US alone.
For consumers, on the other hand, smart meters can help them optimize their energy consumption patterns to cut costs, enable automatic energy management, and open up for additional smart home services.
Despite the significant benefits of smart meters, many consumers are legitimately concerned about how their data will be used. After all, energy consumption data may reveal intimate details about consumers, including whether householders are away from home, when they go to sleep or when they wake up. Unauthorized access to customer-related data could have severe consequences.
Read also our guide to efficient power grid operations for the digital age.
Data protection has always been important. As the General Data Protection Regulation (GDPR) comes into force on May 25, 2018 for all European Union members, it becomes vital. As McKinsey explains, the GDPR seeks to ensure that personal data are protected against any misuse or theft and to give EU citizens control over how their data is used. To handle an increasing amount of customer-related data in compliance with GDPR, it’s imperative that utilities familiarize themselves with the new legislation.
The Norwegian Data Protection Authority provides a valuable summary of the guiding principles of the GDPR:
Utilities that fail to comply risk fines of up to four percent of turnover or €20 million.
How, then, do you maintain the security of the data you manage on behalf of your customers? Above all, you should ensure you have an IT infrastructure that allows you to safely process, store, and make use of customer-related data. Microsoft highlights several features required for such an infrastructure:
Although the technological transformation of the utility sector opens up a range of new opportunities, increasing digitalization is not entirely unproblematic. The more detailed the customer-related data you collect is, the higher the risk of unauthorized access to critical information. The more data collected, the more stringent the requirements for security and privacy are. As a utility, you have a great responsibility to manage security and privacy.