Advanced metering infrastructure
The gas DSO shall provide household consumers with smart meters that encourage the active participation of consumers in the gas supply market.
The Government shall prescribe the measures and determine the time-frame for the introduction of smart meters by taking into account an economic assessment of the suitability of the form of smart meters, the relevant time-frame and the interoperability of these systems for the development of the internal gas supply market; such assessment shall be undertaken by the Energy Agency.
In the beginning of 2014, the Energy Agency presented the results of a study Cost-benefit analysis of advanced metering in Slovenia (hereinafter referred to as the analysis). Within the analysis the economic benefits, potential extent and the framework of the roll-out were estimated, as well as qualitative assessments of the models, functionalities and services of the smart metering system, and additional costs and benefits that are difficult or even impossible directly to be monetized.
The analysis showed that that a mandatory roll-out of smart electricity metering in Slovenia can generate significant net benefits for consumers and society as a whole. Costs discounted to their present value will be particularly high at the beginning of a smart metering roll-out, whereas significant discounted benefits will arise over a much longer period. It will therefore take at least one investment cycle for smart meters until discounted costs are outweighed by discounted benefits.
A joint mandatory roll-out for electricity and gas can – in some roll-out scenarios – provide net benefits in the longer term. A break even between discounted costs and benefits will however only be achieved after 25 years, which may be considered too long-term when uncertainty on future developments is considered. Therefore, a joint mandatory roll-out could cause cross-subsidization, the practice of charging higher prices to electricity consumers in order to subsidize lower prices for gas consumers.