Project Summary
VIVID will attempt to unlock the full potential of data held by the energy industry, local authorities and the third sector for the benefit for people and communities in vulnerable situations.
We will do this by developing new techniques, using existing data in a safe and secure way to identify which households would most benefit from timely and relevant offers of practical and financial support from their local authority, reputable charities, and responsible energy companies.
VIVID will also investigate the creation and maintenance of a common regional vulnerability reference system, initially for Aberdeen City, but applicable to all GB regions.
Innovation Justification
VIVID will help find people who, until now, haven't registered for the PSR, are missing from Local Authority support databases or who would benefit from receiving the financial and energy efficiency help they are entitled to.
In the Alpha phase, new methods of identification will allow contact with customers who have been previously left out of engagement activities, not realised the support they are entitled to, or have found it hard to ask for help previously. Please see slide 2 in appendix.
VIVID will use innovative techniques to unlock the potential of smart meter data by combining it with social and local information to drive inclusion and engagement in the energy market. During Discovery we worked extensively to identify a viable legal basis for sharing data, the most secure ways for storing and moving data and the methods we would have to use to be fully GDPR compliant. Alpha will put this into practice and ensure full adherence to the relevant data protection legislation and information security protocols.
We will work during Alpha so that VIVID can expand to new local authority areas, more charities, DNOs, and delivery partners from the outset of Beta. This will allow all those using the process to identify the right people to help and support.
The Alpha phase VIVID partners will find ways to structure systems and processes, so they work effectively and securely across all organisations involved. This should allow the VIVID methodology to be embedded into the business-as-usual functions across DNOs, local authorities and the third sector. We will look for opportunities to include other utilities from Beta onwards, including Gas Networks and the water industry.
The Alpha phase of VIVID will build in consumer and stakeholder feedback methods and surveys so we can continuously improve the functionality and usability of the VIVID tool. This will also assess what messages and assurances are needed to build and maintain trust.
These will also help to measure the value delivered by VIVID and the interventions it enables. We envisage this will be measured in four ways; two quantitative and two qualitative:
- Direct savings for customers -- calculating how much customers in total save off their bills from energy efficiency measures, fuel poverty advice, supplier switching, help with tariffs and income maximisation checks.
- Social Return on Investment calculations -- considering reduced carbon emissions, improvements in health from warmer homes in the winter and cooler homes in summer months, and reduced cost of serving customers in power cuts and other emergency situations.
- Engagement -- with stakeholders, partners and end users of the services and support delivered by VIVID.
- Customer satisfaction surveys -- allowing us to benchmark service levels, the perception of the Project and driving continuous improvement.
VIVID will break new ground by combining smart meter data with other information to produce dynamic analysis for vulnerability management, allowing short term changes in behaviour to quickly be interpreted as a potential requirement for consumer assistance like never before.
The work done during Discovery assessed the potential for a unique, GB-wide, vulnerability assessor tool, based on a new and innovative Regional Vulnerability Data Repository, off which use cases can be built, updated, and improved upon.
Impacts and Benefits
Financial - future reductions in the cost of operating the network: DNOs conduct extensive engagement and promotion for the PSR which has significant time and cost implications. Using the VIVID solution would identify households most at risk, and enable rapid offers of financial and practical support, saving time and money. VIVID should reduce costs in engaging, recruiting and maintaining the PSR by using automated data analysis to find previously hidden customers and help them register.
As Discovery progressed it became apparent that creating a Regional Vulnerability Data Repository would lead to faster response times during power cuts and other emergency situations. We will also see consumers accepting help to better prepare for such events, in turn reducing the need for network interventions.
Financial - cost savings per annum on energy bills for consumers: Customers identified by VIVID will get faster and more targeted advice on possible interventions including energy efficiency, switching, financial support, grants, and debt management. The positive impacts will be calculated as a direct savings, Social Return on Investment (SROI) and potentially smart meter monitoring allowing further engagement to achieve further cost reductions.
New to market -- products, processes, and services: As DNOs and suppliers look to use smart meter data for vulnerability identification VIVID will allow this to happen in a consistent, joined up manner by creating a common GB-wide vulnerability assessor tool, using data for societal good.
This would contribute to the idea of a common Consumer Consent Portal being investigated and part of Ofgem's digitalisation projects. Operating a central service would allow consistency and cost reduction as duplication of effort is removed.
VIVID will assess how vulnerable groups experience energy exclusion and trial practical solutions to help people understand and access digital information on energy support and transition.
Environmental - carbon reduction -- indirect CO2 savings per annum against a business-as-usual counterfactual: VIVID will accelerate conversations about Low Carbon Technologies (LCTs), promote energy reduction and carbon savings. Examples include spotting geographical clusters which would benefit from communal LCTs or usage patterns indicating that subsidised PV panels would be more cost effective than debt management. Behavioral impacts of LCTs may also be monitored and combined with information from existing SSEN-D innovation projects, such as Vulnerability Future Energy Scenarios - VFES, Smart and Fair with the Centre for Sustainable Energy, and HOMEflex, brining fairness to Household or Microbusiness Energy flexibility fairness. Quarriers will proactively help less confident or tech savvy customers to understand and adopt LCTs, helping customers who would otherwise be left behind to play an active role in net zero and energy flexibility.
Estimating costs and value for money for a just transition focused innovation can be illustrated with a Cost Benefit Analysis (CBA), SROI, and Social Value Frameworks.
CBA calculations can estimate the savings for networks, carbon savings and use SROI calculations for consumer benefits, bill savings and health improvements etc.
SSEN- D are an active partner in the new Social Value Framework project from ENA and Sirio Partners. This will be ready for October, and we will use this new, industry wide, methodology in addition to UKRI requirements when the tool is available. We will also use qualitative customer surveys to assess the suitability of the offers we're making to different consumers.
For now, we have used existing CBA calculations and estimated the benefits as follows:
Initial CBA/SROI modelling shows a potential £50,000 benefit for consumers, society and networks, based on identifying and helping every 100 additional households.
The potential SROI rises to over £50m of benefit for consumers, society and networks, if 100,000 households can be identified and helped with solutions implemented.
Impacts and benefits
The six key impacts and benefits have remained true from Discovery, through Alpha, and now into Beta:
- Financial - future reductions in the cost of operating the network
- Financial - cost savings per annum on energy bills for consumers
- New to market - products, processes, and services
- Environmental - carbon reduction - direct CO2 savings per annum against a business-as-usual counterfactual
- Environmental - carbon reduction - indirect CO2 savings per annum against a business-as-usual counterfactual
- Others that are not SIF specific - wider societal benefits
Impacts and benefits description
Current Position - Baseline: The counterfactual focuses on the PSR as it currently exists, with an isolated approach to data sharing, and LAs lacking crucial data for customers, meaning advice is general and targeting is non-focused. Without VIVID, it is assumed that 2% of customers will be added to the PSR per year (Ofgem estimates), and only 5% of new customers and 1% of existing customer will receive energy advice (SSEN forecasts). It also assumes a set of costs for PSR promotion, maintenance, and operation for the networks based on current levels of expenditure for these activities.
Preferred Option: GB Scale - Net Present Value (NPV) of £219m to 2035
The CBA scales VIVID from initial trial in Aberdeen to all 371 LAs across GB. It assumes that more coordinated data from VIVID will increase the number of customers added to the PSR (7% increase per year), customers who receive standard energy advice (7.5% of new customers, and 1.5% of existing customers), as well as delivering additional benefits of tailored advice to 10% more customers versus the baseline.
We assessed the following benefits:
Financial - future reductions in network operating cost
Baseline: DNOs must spend to operate, maintain, and promote their PSR, including customer callouts
Solution: VIVID will reduce costs in engaging, recruiting and maintaining the PSR by using automated data analysis to find previously hidden customers and help them register. As VIVID progresses, and with the introduction of SHaRP (Support, Help and Resilience Portal), faster response times during power cuts and other emergency situations are possible. This will allow customers to better prepare for such events, in turn reducing the need and cost of network interventions.
Metrics: Households supported (#), Savings for DNOs (£)
Financial - cost savings per annum on consumer energy bills
Baseline*:* Customers who are on the PSR may be provided advice, but it is general and not tailored towards their specific circumstances.
Solution*:* VIVID will identify households most at risk, and enable rapid offers of financial and practical support, saving time and money. Customers identified will receive more timely and better targeted advice including energy efficiency, switching, financial support, grants, and debt management.
Metrics: Households supported (#), Financial benefits for customers (£)
New to market - products, processes, and services
Baseline: The current PSR does not provide the potential for new to market products, processes, and services.
Solution: VIVID will allow DNOs and suppliers to use smart meter data for vulnerability identification, contribute to the idea of a common Consumer Consent Portal, leading to cost reductions, and provide new methods of assessing vulnerable groups experience of energy exclusion and trial practical solutions, products, processes, and services.
Metrics: New services trialled (#), financial savings for DNOs and customers (£)
These benefits will be tested and quantified during Beta.
Environmental - carbon reduction -- direct and indirect CO2 savings per annum
Baseline*:* Customers on the PSR uptake low carbon technologies (LCTs) but the approach is unfocused.
Solution: VIVID can potentially accelerate uptake of LCTs, especially for those who are less confident or tech savvy and may be left behind in Net Zero transition. It will also help spot specific clusters which may benefit from communal LCTs or usage patterns.
Metrics: Carbon emissions reduced (tCO2e)
These benefits may be tested through trials and are currently unquantified in the CBA.
Others - wider societal benefits
VIVID has the potential to deliver a range of additional societal benefits which will be analysed through Beta. This includes the value of digital upskilling, greater wellbeing for PSR customers and benefits to local authorities and wider stakeholders from access to better information.
