Frequently asked questions
What is AMR?
Automatic Meter Reading (AMR) allows for an increased understanding of energy consumption on a near real-time basis. AMR allows energy prices to be substantially reduced by eliminating 'estimated billing'. It is conservatively estimated that 2% of annual energy costs can be saved by installing AMR. With subsequent demand side management this can increase to as much as 15%.
AMR is a physical product that replaces the current 'Dumb' electricity/gas/water meter. Currently most buildings have 'Dumb' meters, which need to be read manually, meaning that they are often read irregularly. If AMR is utilised, the 'Dumb' meter would either be replaced by a 'Smart' meter or a data logger which can increase reading frequency and billing accuracy.
One of the main drivers at present for introduction of AMR is to meet the legally binding requirements of the Carbon Reduction Commitment. From April 2010 public sector organisations (and large businesses) will be required to calculate and report on their carbon emissions, and purchase allowances to cover these. Payments received from surrendered allowances are to be recycled to participating organisations (a bonus / penalty arrangement) based on their performance in reducing emissions. Part of the evaluation of performance will give credit for early introduction of AMR, and the quantity of allowances required will depend on the reliability of the supporting data. DECC advise an additional 10% of allowances would need to be purchased where emissions are estimated. AMR provides the means of ensuring sufficiently robust data.
How will the score for the AMR component of the Early Action Metric be calculated?
As per the CRC Order the AMR calculation towards the Early Action Metric (EAM) will be based on electricity and gas supplied and measured through voluntarily installed automatic meters including dynamic supplies during the first year of the phase (i.e. between 1st April 2010 and 31st March 2011).
Supply of electricity measured through settled half hourly meters [1] or supplies of gas measured through a daily meter [2] that a participant has been required to install does not count towards the early action metric.
It is the electricity and gas supplied and measured through voluntarily installed automatic meters which therefore counts. If an organisation installed the meters on the 30th March 2011 they therefore would not get a maximum score under EAM as a whole year’s supplies would not have been measured by the AMR. To be able to get the maximum percentage for the AMR component, an organisation would effectively need to have voluntarily installed automatic meters by the end of March 2010 to measure all of its electricity and gas supplies (ie those not covered by mandatory meters, NB AMR percentage to include dynamic supplies.)
NB: Where all of the electricity is measured by a settled half hourly meter required to be installed and all of the gas supplied is measured by a daily meter required to be installed, the percentage given under the AMR component of EAM is 50%.
[1] Half Hourly Meters (HHM) supply electricity settled on the Half Hourly market and are required in situations where the average peak electricity demand over the three months of highest consumption within a year exceeds 100kW over the previous 12 months. Note: Not all half hourly meters settled on the half hourly market are classed as mandatory. Liaise with your electricity supplier to confirm your mandatory meters.
[2] Daily meters supply gas to sites where the annual consumption level is 58,600,00kWh or more. These meters are billed based on exact consumption using a meter which provides daily readings. Liaise with your gas supplier to confirm your mandatory gas meters.
How will the AMR component of EAM be calculated?
- ADD total supply of electricity (KWh) (including dynamic supply) X1 and total supply of gas Y1 (KWh, uplifted for estimations where appropriate, not including electricity generating credits) to get figure XY1.
- ADD total supply of electricity through mandated meters (ie required to be installed) X2 and total supply of gas through mandated meters (ie required to be installed) Y2 (KWh) to get figure XY2.
- Perform calculation XY1 MINUS XY2 to get figure Z.
- ADD total supply of electricity (including dynamic supply) through automatic meters not required to be installed (X3) and total supply of gas through automatic meter readings not required to be installed (KWh) (Y3) to get figure XY3.
- AMR % calculation = XY3/Z *100
This will then be added to the CTS/equivalent component if appropriate.
Organisations will need to have several figures to perform this calculation ie a figure of the supply before AMR installed, and a figure of supply measured through AMR in order to calculate XY1 and XY3.
What meters are considered to be AMRs recognised under the EAM?
Automatic meter means:
(a) in respect of electricity – i) a settled half hourly meter not required to be installed or ii) a non settled half hourly meter
(b) in respect of gas – i) a daily meter not required to be installed or ii) an hourly meter.
The definitions of these meters is set out in Schedule 2 of the CRC Order:
Dynamic supply will also be recognised under this metric.
What are the key drivers of AMR?
- Enable accurate and prompt energy billing
- Facilitate better supply deals
- Provide data to reduce waste energy and CO2
- Deal with regulation and sustainability issue
How many suppliers are on the Framework?
There are a total of 7 suppliers on the Framework.
How many Lots are on the Framework?
There are a total 5 Lots on the Framework, and each Lot has 4 suppliers.
Lot 1 Electricity billing meter – AMR
Lot 2 Gas billing meter – AMR
Lot 3 Water billing meter – AMR
Lot 4 Sub-meters, utilities, networks, software (data & aM&T)
Lot 5 “One-Stop-Shop”
How do I access the Framework details?
You need to register your organisation on-line at www.buyingsolutions.gov.uk and then fill in the application form and you will then receive a user name and password, which gives you access to all the AMR documents.
How long does it take to register?
Access will normally be within 24 hours if not sooner.
Issues To Consider
- Will your current supplier accept the data for invoicing?
- Will your current supplier charge for use of another AMR solutions?
- Are your meters due for change under the government mandate scheme – if so are there some you may wish to wait to install?
- Can your current supplier invoice for AMR or is a separate invoice required directly with the AMR provider?
- Are there AMR solutions under existing frameworks which need to be considered?
- Do you want ‘smart meters’ with a display?
- Do you understand your current meter inventory? Can your supplier or provider assist? Or do you need a review as part of the specification?
- Do you need HH meter services?
- Do your meters need changing prior to installing any data devices?
Do I have to do a ITQ ( Invitation to quote)?
Yes all organisations need to carry out a ITQ, which will enable all 4 suppliers under each lot to submit their bids which ensures the organisation has a choice of which supplier to award to whilst being fair and transparent. This can be done via the Government Procurement Service portal or via the organisations own portal.
How do I do a ITQ?
There is a step by step guide on the website on how to complete a ITQ
If our requirement is electricity AMR which Lot do I carry out a ITQ?
You need to go out to Lot 1 suppliers
If our requirement is Gas & Electricity which Lot do I carry out a ITQ?
You need to go out to suppliers
in Lot 1 Electricity
in Lot 2 Gas
in Lot 5 One stop shop
Is their Evaluation Criteria for the ITQ (Further Competition)?
Yes there is criteria for ITQ stage:
Procurement law does not allow the criteria to be changed but does allow weightings to be adjusted
e.g. Higher weighting on delivery rather than price
I have just awarded a supplier under Lot 1 electricity for our NHH, can I appoint this supplier for our HH data?
If you mentioned the HH data in your original ITT under Lot 1 then Yes.
If you did not mention HH data you have to do another ITQ under
Lot 4 Sub-meters, utilities, networks, software (data & aM&T)
I would like a copy of the Terms and Conditions of the Contract.
You will find this on the website under
Categories/Energy/AMR framework
Do we have to fill in Schedule 4 when we award a Lot to a supplier?
Yes, this is the call off contract and it is between the supplier and the customer’s organisation. Please complete the relevant areas for your organisation it also helps to protect the organisation.
Can you provide me with a price list?
There are pricing schedules under each Lot they are available to download from the website.
If my organisation specification is complicated and may have to use numerous Lots, how can we proceed?
You could hold a mini workshop, invite all suppliers on the Framework (7 in total) and present your complicated specification with a chance for questions from suppliers; this enables the supplier to have the correct information, so when you post your ITQ they will have all the information needed to submit a bid.
NOTE: If you are still unsure please contact:
AMR Team,
Utilities
Government Procurement Service
3rd Floor Royal Liver Building
Pier Head
Liverpool L3 1PE
Tel. 0345 410 2222
Email: info@buyingsolutions.gsi.gov.uk
Frequently asked questions (Size: 53 KB)