From impact to action

Considering the impact of  the smart meter life cycle and value chain the Dutch DSO (Distribution System Operators) concluded that they should call for action. Therefore the Fair Meter Initiative was introduced calling for fair and sustainable standards. Four domains are identified as relevant to action from a DSO point of view:

  1. Fair mining and production of raw materials, and the fair production of  smart meters;
    Suppliers make supply chain and the source of materials transparent. Suppliers are willing, together with partner organizations, to actively work on  improvements in the material chain, especially in circularity and production conditions.
  2. Fair use and handling of waste processing;
    The supplier is transparent about the energy consumption of the meter. The aim is an energy neutral meter.
    The meter design meets principles of circularity. The starting point is maximum reuse of the meter at the end of its lifecycle. Meters can be disassembled at the end of their lifecycle with raw materials fully recognizable and separable.
  3. Fair tendering and procurement principles including co-creation with suppliers;
    Supplier is willing to cooperate with DSO, customers and suppliers on innovation giving way to  improvements of the meter.
  4. Fair offer to our customers;
    The reciprocity principle: aspects of the meter, such as EM radiation, privacy and functionality as part of energy management for the customer can be tailored and made consistent with the wishes of  customer. Including the ability to not use certain options (opt-in, opt-out). Packaging of the meters ensures minimal resource consuming and minimum transport volume, package material is fully recyclable.

Initiative-launch

Beyond these domains there is a need for transparency on the whole of the smart meter life cycle and value chain. This includes transparency on social, sustainable and human rights issues and the constituency of the meter itself.  The transparency imperative is also a key element for stakeholder information and the development of fair trade practices within the value chain related to smart meters.

The fair meter not only complies with functional aspects (measuring, communicating, switching, etc.), but also ensures the stakeholders with a proper story. This leads to lower environmental impact and resource depletion in roll-out, better acceptance by the customer and thus a positive impact on energy saving. Parallel to the four areas on which Dutch DSO are calling for action a couple of principles have been formulated in order to provoke focus. These principles are to be further delevoped, in consultation with stakeholders and manufacturers.

Shared vision

The Dutch grid operators have developed a shared ambition. They are willing to make social ánd environmental aspects an integral part in their own processes as well in procurement processes.

  • For a broad audience the smart meter is the most visible component of the grid operators.
  • Demonstrability of social value and lasting quality are key elements in the expansion of smart meters.
  • If parts of the introduction are not in order, then this may increase the social backlash to the smart meter.
  • The smart meter is a necessary part of smart energy networks that support energy transition.
  • Congruence with other sustainability aspects is therefore of great importance.
  • Corporate social responsibility is an important motivation and is part of a business driven approach.

The sequel: Dialogue and co creation as steps in the process

The ambitions of the Dutch DSO depend on the meaning and ambition that stakeholders, experts and manufacturers show towards this initiative. This should lead to a concrete elaboration on the ambitions and principles. We stress the importance of the contribution of knowledge and ideas of stakeholder and (market) parties. Dutch grid operators are open for further ideas and have therefore a preference for a competitive dialogue aimed at implementing Fair Meter principles.

Stakeholder consultation

The vision of the Dutch DSO partners on the Fair Meter has been introduced to several stakeholdergroups. These include smart meter suppliers united with Esmig, and European DSO. The consultation of a random selection of meter suppliers was a first test of the concept of a fair meter. Overall conclusions that were recorded showed clear interest and recognition from suppliers. As this was a first request meant for introduction and opinion this round did not give way to explicit deals or alignment to the initiative.

As it comes to undisputed raw materials suppliers indicate that this is a complex matter at the level of specific country level. Origins of materials often are not clear and there is a lack of evidence. Information on specific countries is not well looked after or is not being used.

With respect to transparency on the supply chain it is said that first and second tier suppliers seem easy to disclose on, other stages in the supply chain seem more difficult to report on. As described in the above paragraph Fair Meter Initiative encourages suppliers to examine all stages of the supply chain and give weight to social and environmental conditions and fair trade principles. For example by actively tracking and tracing as well as auditing on mining and production locations.

Energy neutrality happens to be a theoretical concept rather than an ambition to the industry. Energy efficiency is prefered as a criterium, which of course is easier to attain at a sole company level. Probably this illustrates the need for cooperation and overarching solutions on a sector level. Prevailing European regulation can contribute to the fair concept, as suppliers are working on programmes to comply with these regulations. For example ROHS and WEEE directives are mentioned. From a fair meter perspective we encourage the absence of hazardous materials in order to support a cradle-to-cradle approach.

Suppliers consider the common notion of social responsibility as a normal part of their business. Sustainability criteria have developed last decade and tend to normalise in regular businesses. Standards and certification have become part of many supply chain initiatives. They recognize and value fair aspects and principles as potential new grounds. However, the concept of an integral fair meter and the rethink of the meter design are, of course, new and innovative to the current metering business.