Meralco smart meters to enable predictive repairs, rich consumption data

MANILA, Philippines – Technological demise awaits organizations that fail to disrupt itself, or least be disrupted by competitors. That was the core message of Meralco president and CEO, Oscar Reyes, at the third Meralco Technology and Innovation (MTECH) Summit held at the Meralco Lopez Building in Pasig. 

“Customers are changing, and changing very fast, and we have to keep in step to be sure that we transform as our customers, our businesses, and our industries transform. This is the reason for MTECH,” Reyes said. 

One of the ways that the company is digitally transforming is with its use of data in its operations. 

“Data science and analytics could benefit customers in a number of ways,” said Gavin Barfield, chief technology advisor of Meralco.

First, the more information Meralco has on its grid – collected through smart meters, sensors, its networks and other third party sources – the better that Meralco can manage the grid.

“If we are able to use sensors and other data to accurately predict equipment failure that is likely to fail before it happens, then we can perform routine maintenance. This could reduce customer outages and increase reliability,” he says.

There is big potential in using data from Meralco’s grid to improve operations. They are looking into predictive and preventive maintenance where the company can use advanced data analytics and machine-based learning to identify what component is likely to fail before it breaks down.

“We can then maintain and ensure issues are fixed as part of routine maintenance instead of when an issue occurs,” he adds.

Energy consumption data monitoring

Barfield said if the company was able to gather data from its smart meters at an hourly level and combine this with data from appliances, and other electrical devices, then Meralco would be able to provide customers tailored energy saving tips.

“For example, Meralco could tell you your fridge is using more power this month than last so if may need servicing, or make suggestions on other products that are more efficient.”

With the new technology, the company will also be able to monitor consumer’s energy consumption every day and consumers have the option of receiving alerts if they exceed their target daily consumption.

Barfield said Meralco has already rolled out 80,000 smart meters. Coming up soon, he added, is the roll out of 145,000 more smart meters approved by the Energy Regulatory Commission (ERC). The program is part of Meralco’s Advanced Metering Infrastructure or AMI, which allows for near real-time information on customers’ power consumption.

Meralco started transforming its network into this smart grid this year. Helping the company leverage the data they acquire is its Business Intelligence Group (BIG) whose main objective is to apply data science in all facets of decision-making.

BIG’s supporting objectives include adding value to the organization through data science; advocating the use of data science; identifying and developing in-house talents who will take on data science projects; and helping identify areas in need of data science to support the business decisions.

With regards to ensuring data security, Barfield said that Meralco is careful with how it uses customer data, and is committed to following data privacy laws in the country. 

“The use of customer data obviously needs customers’ consent and we will do it within the data privacy laws. But we hope that customers will provide us with data on what appliances they use and details of their household we can break down their bill to show exactly how they are using electricity. Then they can change their behavior and become more energy efficient,” Barfield says.

“Data is the lifeblood of digital,” he emphasizes.

The costs of upgrading

Reyes, on the other hand, conceded that going on a digital journey is not easy, it’s a not a free ride, and everybody must be on board and arm themselves with strong commitment and conviction. They must realize there’s no other way to go but to transform and to innovate.

“Yes, there are costs, unfortunately. We have to explain this to policy makers and to our grid regulators and they are seeing the benefit of a change.”

Meralco and, perhaps, other business organizations are faced with a dilemma posed by digital transformation because it could reduce one’s volume of business.

“But, you know, this is what the customers want and we are an energy solution and services company, over and above being just a public utility. We look to the  customers, what the customers want. And that’s what he have to do to be able to deliver.”

Barfield said Meralco’s digital transformation is turning into a reality as it adopts new technologies to deliver enhanced customer experience and improve grid reliability.

He said the energy distributor continues to invest heavily on new technologies, including a focus on new digital customer experience tailored to today’s digital natives, as well as mobility solutions as it adds more sensors, automation and smart meters.

Among others, the company is looking into are new disruptive technologies, such as blockchain, augmented reality (AR), virtual reality (VR), edge computing, robotics, internet of things (IoT), and artificial intelligence to realize its objective of delivering the next wave of improvements for its customers.

As Reyes declares, “We might be disrupted, but we might as well be part of our own disruption.” – Rappler.com