Alteration in Business Models of Electricity Distribution Companies - A Case of Smart Metering

Smart metering is currently implemented in many countries. The change from traditional metering is significant and impacts many of the Distribution system operator´s (DSO’s) activities. This dissertation aims to provide a structured model for analysing the impacts of Smart metering on a DSO´s business. Research was conducted by gathering a theoretical framework for understanding how the business operates. The concept of business model has been presented. It is used as a framework of metering business. Detailed studies on specific parts of the business model have been carried out. These concentrate on finding a theoretical background of what Smart metering can provide. Cost analyses were conducted to better understand resources required by Smart metering. Problems related to ICT resources have also been studied based on the DSO´s experiences. Partner network was studied based on DSO´s experiences related to service purchasing and finally experiences in working with IT services provided to the DSOs has been presented. This dissertation presents a development trend that has taken place regarding Smart metering in implementation and operation. Results are presented in a business model framework to provide a more structured view on issues related to Smart metering. Also non-technical issues should be analysed to fully understand the extent of the changes taking place when implementing Smart metering. The information presented can be utilized when significant change factors to the DSO´s business models can be recognized.