An Innovative Business Model to provide Services to Distribution Companies through an Automatic Meter Reading System

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CIRED 2019
Conference date
3-6 June 2019
Conference location
Madrid, Spain
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Tardio, Marcelo, CESI, Italy
Jallad, Mahmoud, Nama Holding, Oman
Al Hinai, Mansoor, Nama Holding, Oman
Vicini, Pierluigi, CESI, Italy
The Sultanate of Oman is facing a period of strong transformation, characterized by the restructuring of the electricity and water sectors.In this context, the reforms triggered important activities currently on-going, which are the implementation of the Supply Competition at retail level and the privatization of the Distribution Companies (DisCos), with the final goals of improving the efficiency and reduce the costs of the electricity sector. The implementation of Cost Reflective Tariffs since 2017, together with the importance of the customers with highest consumptions in terms of revenues for the DisCos and the opening of the market, pushed for a project to install a centralized AMR. The AMR operation was assigned to Nama Shared Services (NSS)who will provide services to the DisCos under an innovative Business Model and Operational Business Model to make the DisCos business more efficient, simple and cost-effective.The paper describes the Business Model implemented by Nama Group Capitalizing on NSS to provide AMR Services to the five DisCos for their High Value Customers. The paper describes also the Operational Business Model and the processes implemented to guarantee the services provided to the five DisCos, in a cost effective and ringed fenced manner, in line with the current regulatory regime. The services are also monitored by Key Performance Indicators with a credit/penalty mechanism and an appropriate pricing for each service is defined. All these aspects are reflected in Final Service Level Agreements between the Service Provider (NSS) and the DisCos as presented in the paper.
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