Meter-to-Cash Optimization for Smarter Utilities
By Sanjeev Sharma on Feb 07, 2012
Meter-to-Cash is the primary revenue generating activity for down-stream utilities. Traditionally, there has been little impetus for utilities to strive for cost efficiencies across this activity due to the revenue ceiling imposed by regulated prices. Today, utilities are faced with capital intensive investments in upgrading to smart-grid/metering infrastructures and consumer-centric revenue models e.g. net-metering and time-of-use pricing that could potentially drive down revenues as consumption shifts to off-peak periods. Hence, utilities can no longer afford to neglect efficiencies in their meter-to-cash cycle.
The graphic below depicts the factors that are creating margins and profitability pressure on utilities companies, especially downstream operators.
The business imperative for improving meter-to-cash cycle would stem from the following:
- Roll-out "smart" e-services to consumers
- Manage cost of operations in delivering core utility i.e. electricity, water etc. services
- Lower in-efficiencies in cash collection
The graphic below depicts the key sub-processes of the meter-to-cash cycle and outlines the tangible value of process improvements to those.