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.
