Automated meter reading system in Enemalta : a financial evaluation

Abstract

This dissertation concerns the pricing of electricity in Malta and how the Automated Meter Reading system (AMR) can be used in reducing the high priced electricity rates by decreasing other costs such as theft, non technical losses and debtor days. The AMR system is made up of a "smart meter" which is installed in each household. Such device is directly connected with the power station via electricity cables. In this way the station can monitor how much electricity is being consumed at any point in time by each and every consumer of electricity. The AMR system is defined as the reading of the utility meter in a way that does not require physical access or visual inspection of the meter where all control and monitoring is all done and observed from the power station. The implementation of the AMR system will be outsourced to an International Business Transformation Organisation (ICT). This Organisation will enter into a strategic partnership with the Enemalta Corporation to implement and operate a full-scale Automated Meter Reading system. Consequently payments made to this outsourcing company will represent the initial investment made by Enemalta in order to implement the AMR system This study establishes that the implementation and operation of the AMR system will contribute to increased revenue, improved debt collection; cost savings and reduction of non-technical losses. Consequently such financial factors have a positive financial impact on the Enemalta Corporation's present state of affairs. Furthermore this study determines the general aspects related to the introduction of such a system and the benefits achieved through the AMR system which enable the company to increase customer service, satisfaction and consumption awareness.