Ofgem has given the all-clear to Western Power Distribution (WPD) to access half-hourly consumption data from domestic smart meter customers within its licence areas.
The regulator has approved a data privacy plan submitted by WPD setting out its proposed arrangements for collecting, processing and storing the information.
The distribution network operator (DNO) will be allowed to request the data on a monthly basis via the Data and Communications Company (DCC). The information, covering a period of less than one month, will initially be attributable to individual meters.
However, according to the plan, WPD will immediately aggregate and anonymise the data. The unanonymised information will be “ephemeral”, meaning it is “never stored to disk, and ceases to exist as soon as it is processed”.
The anonymised data will be stored on the company’s server for five years before being deleted permanently.
“By having access to consumption data obtained from smart meters, DNOs will be able to improve the management, safety and efficiency of their electricity distribution networks,” the plan states.
It says the proliferation of small-scale embedded generation and low-carbon technologies such as heat pumps and electric vehicles are undermining existing planning assumptions and could lead to significant increases in loads on localised sections of the low-voltage network.
Smart meter data will enable WPD to better understand and address these challenges. It will give the DNO greater visibility over its networks, helping it to identify where there is spare capacity and where reinforcements are needed.
Explaining the regulator’s decision in an open letter, Ofgem interim deputy director for energy systems transition, Louise van Rensburg, wrote: “The approved plan is specific to WPD, reflecting WPD’s network and business arrangements.
“Thus, while it provides an example framework, we note that there is not an automatic guarantee that other distribution licencees following the same approach will be approved.
“Other companies will still need to demonstrate they meet the requirements of their licence condition, and they may propose other approaches that better fit their own and their customers’ needs.”
Van Rensberg said Ofgem will work with the Energy Networks Association to share lessons learnt from the approval process with other DNOs.