The commencement of 5 Minute Settlements (5MS) is now just a year away. 5MS Metering Data commences in October 2021 and AEMO‘s metering solution will be ready as soon as March 2021.
Innovative retailers able to capitalise on the huge transformations 5MS enables stand to gain most here. With a powerful billing engine in place that can handle this explosion in data, retailers will be able to unlock a wave of new possibilities in how they bill, serve, and manage customers.
Responding to 5MS today
At Agility we’ve partnered with a number of our clients on a development stream that will see them respond to this change efficiently and seamlessly.
Our Interval Read Manager (IRM) is a powerful new solution capable of processing the 6-fold increase in Meter Data Reads, efficiently aggregating these for billing purposes. It also comes with a 5MS client dashboard. This provides everything your business needs to know on how the solution is operating, covering the data volumes being processed and any file errors.
In parallel to the solution implementation we are also helping our IRM clients with AEMO’s Market Trials and Industry Testing, supporting them with this change.
As the largest supplier of billing software for Australian energy retailers we are able to consolidate and pool resourcing requirements to implement this solution. This means we can deliver it at significant value for our clients.
Impacts on your business
Beyond the immediate obvious implications of 5MS, it will also necessitate a raft of wider changes, covering everything from reporting to billing exceptions and bill design.
The key business impacts retailers will need to consider are:
Those clients opting in to our IRM development stream will gain the tools and expertise needed to respond to these efficiently, and Agility is supporting our clients to respond to these changes.
Capitalising on 5MS tomorrow
With all the heavy lifting 5MS is necessitating it’s easy to forget the reasons it is being introduced, and the dramatic transformative opportunities it offers.
Innovative retailers ready to seize this change are going to be the big winners here. They stand a chance to deliver an alternative energy experience for customers, unrivalled by their competitors.
There are 4 key pillars of change customers will expect following 5MS that retailers will need to adapt to:
- More competitive pricing – the more competitive spot market will necessitate a reduction in costs for customers. 1/3rd of a customer bill is wholesale costs, and consumers will expect this to be passed on. Those retailers who respond to change inefficiently will be left behind. Not competing on pricing just isn’t an option.
- Managing demand on the network – 5MS offers opportunities for customers and retailers to better manage and respond to peak/off-peak consumption and save money. Our solutions provide customers with the information they need to better manage their own energy consumption and respond to changing prices. This will only become more important as home network adoption increases, and consumer expectations around automation become more sophisticated. We also provide retailers with the tools to design and offer innovative pricing products for their customers, so they can capitalise on the opportunities here.
- Distributed Energy Resources – homes with smart batteries will be able to earn a high spot price by providing a boost of power when the system needs it. With the largest number of retailer clients in Australia, we are aiming to provide the market coordination and reconciliation necessary to enable your customers to become prosumers – future suppliers across the NEM.
- Unlimited product offers – New technologies made possible by 5MS aligned with increased competition will expand the range of products retailers can make possible for customers. Agility’s platforms can handle multiple different product offerings and price plans mappings. This makes it possible to offer tailored products for your customers or a mass offering applied to segments of customers.
Unlocking these transformative opportunities is going to take the right mindset and the right billing software partner. Our unique and unrivalled position in the Australian energy ecosystem means we can help your business capitalise on these opportunities efficiently and rapidly.
Responding to change with Agility
Agility has more than 20 years experience in the Australian energy market, meaning we are experts in navigating change. Our Professional Services team leverage their deep industry expertise to help you stay ahead of reform, minimise disruption, and take advantage of change.
Get in touch today to find out more about our services and our 5MS solution design.