We’ve been promoting time-sensitive tariffs to the Public Utilities Commission of Sri Lanka since 2013. They were available to commercial customers, but we wanted them made available to residential customers as well. Three years down the road, it looks like the dam has broken. CEB is offering a low-user tariff effective from 2230 to 0530. This will help address CEB’s baseload problem but of course it will also help those who run electric cars.
We’ve been arguing that electricity is up for a major change and that the change is going to be driven by the infusion of ICTs into all aspects of electricity generation, transmission, distribution and supply. Here’s another example. Hopefully this does not require smart meters and that high consumption devices in our countries can work with the gizmo. IT’S July, and it’s starting to get hot. This month last year — on Friday, July 19, 2013 — New York City broke its electricity usage record.
As part of electricity work LIRNEasia has made recommendations on the importance of DSM in Sri Lanka. Effective DSM is not possible without smart meters and that was an important part of the message, when we were invited by the Colombo Electricity Board (CEB) to share our research with their senior management. So it was with great interest that I perused the research of one of the winning finalists from a Big Data Challenge conducted by Telecom Italia (and partners) with data pertaining to the territories of Milan and of the Autonomous Province of Trento in Italy. The datasets covered telecommunications, energy, weather, public and private transport, social networks and events. The researchers utilized smart meter data and behavioral data extracted from the Telecom Italia’s transaction generated data to predict peak daily energy consumption and also the average daily energy consumption for each line through the electrical grid of the Trentino Province.
About a year back, we predicted that the new electricity tariff will shock people into changing behavior: “the currently proposed tariff structure will create “bill shock” among consumers, and nudge a certain percentage of consumers to voluntarily reduce demand. But this will be insufficient.” The evidence is in. It has happened. The 2013 Sri Lanka Central Bank Report states: Electricity consumption in the ‘Domestic’ sector decreased by 1.
LIRNEasia’s dissemination workshop on Improving Service Delivery for e-Inclusion was held on 18th February at the Hilton Residencies (Jaic Hilton), Colombo. The workshop was attended by the senior management of Sri Lankan telecom and electricity companies. Rohan Samarajiva led the theoretical discussion on service quality addressing how incentives for service quality differ under different market conditions. Helani Galpaya, CEO and Ranjula Senaratna Perera presented the quantitative and qualitative findings on how low-income, urban micro-entrepreneurs (MEs) are being served by their electricity and telecom service providers. Research Managers, Shazna Zuhlye and Nilusha Kapugama proposed some solutions/ designs for improving service delivery in the two sectors.
Earlier this year (April 2013) we pushed for Demand Side Management (DSM) in Sri Lanka to managing the burgeoning electricity demand in the country. Hence we were quite happy when the Public Utilities Commission of Sri Lankan (PUCSL) recently released draft regulations for the institutional framework conducting DSM activities in the electricity sector. Today, at a consultative workshop on the draft regulations, we recommended the following: Coordinate the market research design that each of the 5 distribution licensees have to conduct prior to initiating DSM activities. Make use of behavioral economics and Randomized Control Trials (RCTs) for high impact since it is the most effective way to understand consumer behavior and “nudge” them to more energy-efficient and energy-conserving behavior. The impact could be even higher if Sri Lanka were to quickly scale up the use of smart meters.
LIRNEasia’s current cycle of research focuses on how mobile platforms can help improve customer relationship management in utilities. I have been contributing to the current debate on rationalizing the electricity tariffs in Sri Lanka based on the work Partha Mukhopadhyay and I did in relation to the recently concluded SAFIR core course and laying the foundation for disseminating the results of the research project when completed. Many of my interventions have been over electronic media, but here is a summary piece in LBO that is also being published in Sinhala in Ravaya next week. Tariff design must contribute to bring down peak demand by around five percent. This is a policy objective pursued in many countries, especially in light of climate-change concerns.
As part of the “Inclusion in the Information Society” project commenced September last year we have been studying how electricity utilities can use the almost universal mobile devices to improve the services provided to consumers. The research is ongoing, but we have not let that stop us from making use of the policy windows that open up. Early this week, the Public Utilities Commission of Sri Lanka announced that it would be accepting comments on a proposed tariff increase from the public. Based on our research, we plan to make submissions. Even before that, when a leading economic analysis program aired by Sirasa TV, asked us to speak on the subject, we gave a taste of what would be coming.