This consultation was open from:
January 17, 2023
to March 3, 2023
Decision summary
Regulatory changes now enable the Smart Metering Entity (SME) to collect, process and manage bi-directional smart metering data, and provides the SME with exclusive authority as of January 1, 2025. These changes support a centralized billing solution for distributors to bill net-metered customers according to their choice of pricing plan.
Decision details
As required by regulation, distributors in Ontario must offer electricity consumers that are eligible for Regulated Rate Plans (RPP) and have smart meters, their choice of price plans, such as time-of-use, tiered, or ultra-low overnight. At the same time, a growing number of customers are adopting behind-the-meter distributed energy resources (e.g., rooftop solar and battery storage systems), which helps them save money and take control of their electricity bills.
On July 1, 2023, regulatory amendments to Ontario Regulation 393/07 (Smart Metering Entity), made under the Electricity Act, 1998, come into force to expand and clarify the Smart Metering Entity’s (SME) authority to collect data on the electricity conveyed into the grid from a generation or energy storage system installed behind the customer’s meter. This will enable the SME to process and manage bi-directional smart metering data through the province’s Meter Data Management/Repository (MDM/R). These changes support a centralized billing solution for distributors to bill RPP customers, including net-metered customers, according to their choice of pricing plan.
The regulatory amendments provide the SME with exclusive authority for smart metering data through the MDM/R as of January 1, 2025 to allow time for distributors to integrate their systems with the MDM/R changes.
The SME’s enhanced smart metering dataset will help improve energy forecasting and system needs assessments in anticipation of increased electrification. Greater availability of data on generating resources installed behind the meter of RPP customers also supports the integration of more distributed energy resources.
Analysis of Regulatory Impact
The MDM/R solution offers a standardized and cost-effective option to enable local distribution companies (LDCs) to settle net-metered customers on their choice of price plan along with broader system benefits of an enhanced smart meter dataset. The costs and savings resulting from these changes will mainly impact LDCs, with full effect beginning January 1, 2025, when the SME’s exclusive authority over conveyance data comes into force. Costs are anticipated to result from LDCs integrating their systems with the MDM/R. This cost will, however, be offset by LDCs avoiding the cost of creating or procuring their own solutions.
There are no net costs for the SME to enhance the MDM/R as the IESO has accounted for these changes within the Smart Meter Charge fee approved by the Ontario Energy Board.
Overall, expected benefits of the regulatory changes include increased choice for customers, a standardized billing process, and a central repository for data that can be leveraged to inform system forecast, advanced analytics, and policy development. These changes can improve bill savings available to customers under Ontario’s net metering framework, making net metering accessible to more customers which can reduce demand for electricity on the system during peak times.
Effects of consultation
The Ministry of Energy received submissions from seven different entities and met with stakeholders to discuss feedback to the posting. Stakeholders included local distribution companies (LDCs), LDC associations and the Canadian Renewable Energy Association (CanREA).
The proposal posting sought feedback on the following:
- Considerations associated with collection and use of generation data;
- Impacts to LDCs related to updating their customer information systems and other activities; and
- Considerations related to the SME having exclusive authority.
Respondents were generally supportive of the proposal to enable the MDM/R to collect bi-directional smart meter data. Feedback indicated that expected benefits include decreased costs for LDCs, choice for customers, and a standardized billing process. No stakeholders expressed concerns for the MDM/R solution to support LDCs in offering their net-metered customers their choice of price plan.
Overall, timelines for integrating the MDM/R with LDC billing systems was estimated to be between 8-12 months. It was commonly noted that LDCs are concerned about resourcing, given other government priorities such as implementing the ultra-low overnight price plan and Green Button. Costs estimates provided ranged from $20-25K for smaller LDCs, to $6-8M for larger LDCs, but overall feedback noted that the MDM/R would be a more cost-effective solution.
Feedback on the proposal to give the SME exclusive authority over bi-directional smart meter data was mixed, but mostly supportive. Stakeholders noted that some LDCs have already developed systems to offer net-metered customers their choice of price plan and mandating use of the MDM/R now could impose unnecessary costs. Stakeholders that were supportive of the SME’s exclusive authority noted broader benefits such as consistency in billing; consistency in processing, a central repository for data analytics; and maintaining value of MDM/R, which is paid for by ratepayers.
In response to stakeholder feedback, the regulatory changes include a transition period until January 1, 2025, after which the SME would have exclusive authority over bi-directional smart meter data. LDCs already offering customer choice to net-metered customers have until January 1, 2025 to transition to an MDM/R-based solution.
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
77 Grenville St., 5th floor
Toronto,
ON
M7A 2C1
Canada
Connect with us
Contact
Joshua Frame
Original proposal
Proposal details
Bi-directional smart meters measure both the amount of electricity a customer consumes from a distributor’s distribution system and the amount of electricity a customer sends to a distributor’s distribution system from generation or energy storage systems installed behind a customer’s meter.
Enabling the SME to collect and manage bi-directional data from Ontario’s smart meters would support billing and settlement of customers with behind-the-meter distributed energy resources, such as net-metered customers with rooftop solar, and would facilitate customer choice and opportunities for innovation and integration of customer-sited distributed energy resources in Ontario’s electricity sector.
Proposal context
The SME is responsible for the operation of the MDM/R, Ontario’s central repository for smart metering data. In accordance with its objectives, as defined under the Electricity Act, 1998, the SME uses the MDM/R to collect, manage and store information and data related to the metering of consumers’ consumption or use of electricity in Ontario.
The SME conducts validation, estimation and editing and converts the raw smart metering data collected through the MDM/R into Time-of-Use or Tiered Pricing quantity data, which is returned to local distribution companies for billing purposes. The SME also uses the validated electricity consumption data for ongoing and ad hoc reporting to the Ontario Energy Board (OEB), the IESO and other qualified third parties (as per OEB decision EB-2018-0316). The MDM/R collects and processes data from over 5.1 million smart meters in Ontario from Regulated Price Plan customers (primarily residential and small business customers).
Ontario’s IESO has been designated the SME by the Government of Ontario and operates under licence from the Ontario Energy Board. O. Reg. 393/07 (Smart Metering Entity) provides the SME with exclusive authority to process consumption and use data from smart meters for the purposes of producing billing quantity data for local distribution companies. This includes validation, estimation and editing services of smart metering data in a consistent manner for all Ontarians, along with analytical products and services.
The Ministry intends to propose regulatory changes that would facilitate the SME’s collection and management of bi-directional smart metering data, in addition to its current activities related to the collection and management of consumption data from smart meters. Proposed regulatory changes could include amendments to regulations such as O. Reg. 393/07, and if required the Electricity Act, 1998.
These changes would, if approved:
- support customer choice by making it easier for local distribution companies to comply with the requirement to offer all Ontario Regulated Price Plan customers, including net-metered customers, access to Time-of-Use price plans such as the new Ultra-Low Overnight Price Plan (when available)
- improve availability of energy data by enabling access to a more comprehensive smart metering data set that would facilitate advanced analytics, system planning, forecast modelling, policy development, and assessment of new pricing models
- facilitate innovation and support distributed energy resources integration within Ontario’s electricity system, including exploration of distributed energy resources market participation models under IESO’s Distributed Energy Resources Roadmap, by leveraging Ontario’s existing smart metering infrastructure and investments
Input and feedback
To inform development of the Ministry’s proposal, the Ministry is seeking input from individuals, businesses, and other organizations, including local distribution companies, on its approach to enabling the SME to collect, process and manage bi-directional smart metering data. This may include information on the following:
- benefits and other considerations associated with collection and use of bi-directional smart metering data through the MDM/R in the context of Ontario’s electricity system and supporting innovation and distributed energy resources integration
- costs and other impacts to local distribution companies related to updating their customer information systems, metering, billing practices and other activities as a result of the proposed changes; and
- considerations related to decisions about the SME having exclusive authority in respect to bi-directional smart metering data for the purposes of collecting and managing billing quantity data for local distribution companies
Supporting materials
View materials in person
Some supporting materials may not be available online. If this is the case, you can request to view the materials in person.
Get in touch with the office listed below to find out if materials are available.
77 Grenville St., 5th floor
Toronto,
ON
M7A 2C1
Canada
Comment
Commenting is now closed.
This consultation was open from January 17, 2023
to March 3, 2023
Comments received
Through the registry
7By email
0By mail
0