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Norwegian authorities’ AMR ambiguity is proving expensive

Lars Erik Maurud

Teknisk Ukeblad

10 May 2013

 

PA’s Lars Erik Maurud, energy expert, has been extensively quoted in an article in Teknisk Ukeblad about the Norwegian authorities’ ambiguity around the introduction of smart meter readers (AMR) and how this could increase the bill by one billion Norwegian Kroner.

The article explains that in February, Norway’s Ministry of Petroleum and Energy (OED) postponed the deadline for the roll out of smart meter readers (AMR) from 2017 to 2019, and expressed concerns around the significant investment costs and the lack of mature technology.

Lars Erik explains the impact that this hesitancy is having on the energy industry: “It seems as though the politicians are at a distance from the realities of the situation and don’t understand how important this is to the power companies. We have more than 130 network operators that loyally await the political decisions around AMR. They have established large project organisations, hired consultants and invested in the supplier industry.”

He goes on to argue that it would have been better if the authorities had waited to introduce smart meter readers, rather than shifting the deadlines for the roll-out of this technology, and comments on the cost implications of the delay: “If one assumes that the delay will lead to a cost increase of 10 per cent, which is not unlikely when interfering with large machinery like this, the result will be a cost increase of approx. one billion Kroner. That is a lot of money, and the bill will be sent to the consumer.”

Continuing, the article explains that both the industry and suppliers have mobilised to meet society’s demands around smart meters. Implementing the meters on such a large scale requires thorough planning – and these plans should be fixed in order to reduce risk and prevent unnecessary costs.  
 


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