Artículos

Characterization of Energy Portability Tools to Implement in Colombia

Caracterización de herramientas de portabilidad energética para ser aplicados en Colombia

Caracterização das ferramentas de portabilidade energética a serem aplicadas na Colômbia

Martha-Eliana Mendoza-Becerra
Universidad del Cauca, Colombia
Hugo-Armando Ordóñez-Erazo
Universidad del Cauca, Colombia
Miguel-Ángel Niño-Zambrano
Universidad del Cauca, Colombia
Carlos-Alberto Cobos-Lozada
Universidad del Cauca, Colombia
Rodolfo García-Sierra
Enel Codensa, Colombia

Characterization of Energy Portability Tools to Implement in Colombia

Revista Facultad de Ingeniería, vol. 31, no. 60, e205, 2022

Universidad Pedagógica y Tecnológica de Colombia

Received: 22 January 2021

Accepted: 15 June 2022

Published: 30 June 2022

Abstract: Electricity is one of the fundamental components that drive the economy, i. e. the higher the economic growth, the higher the energy consumption and vice versa. Therefore, the energy market must be able to cover the increase in energy demand and establish strategies for efficient energy use. In the United Kingdom, the implementation of modern technologies in the electric system has been boosted with an automatic energy supplier switching process known as auto-switching. In this strategy, users are not exclusively bound to the local supplier and have the freedom to switch. On the other hand, Colombia could liberalize the energy market through an auto-switching pilot program to increase competition among energy suppliers by deregulating the tariffs. This would facilitate the supplier selection process for new clients by allowing them to choose the supplier with the lowest rate, best quality, and desired energy source, among others. This paper presents a characterization of the attributes and functionalities of the main auto-switching tools in the United Kingdom. Additionally, it proposes an adapted auto-switching tool for the Colombian energy market considering information from Enel Codensa related to the registration of new potential customers, affiliation with energy suppliers, offers views, and notifications for customers, among others. To liberalize the Colombian energy market, it is necessary to promote these types of tools that provide greater benefits to users and suppliers.

Keywords: auto-switching, characterization, energy portability, suppliers, tools, users.

Resumen: La energía eléctrica o electricidad es uno de los componentes esenciales que impulsan la economía, es decir, a que mayor crecimiento económico mayor consumo energético y viceversa. En consecuencia, el mercado eléctrico debe estar en la capacidad de cubrir el incremento en la demanda de energía, y de la misma forma, establecer estrategias para el uso eficiente de la energía. En el Reino Unido se ha potencializado la inclusión de nuevas tecnologías en el sistema eléctrico, a través de un programa de cambio automático de comercializador de energía conocido como AutoSwitch, en el cual, los usuarios ya no están sujetos a un vínculo exclusivo con su comercializador local y tienen la libertad de cambiar de comercializador de energía. En Colombia se abre la posibilidad de liberalizar el mercado de energía a través de un programa piloto de AutoSwitch, buscando inducir mayor competencia entre los comercializadores de energía por medio de la desregulación de las tarifas y facilitar a los clientes la selección del comercializador que le ofrezca un menor costo, mayor calidad en el servicio, la fuente de energía deseada, entre otros. En este artículo, se presenta una caracterización de los atributos y funcionalidades de las principales herramientas de AutoSwitch del Reino Unido. Además, la adecuación de esta caracterización a una herramienta de AutoSwitch para el mercado eléctrico colombiano, teniendo en cuenta información suministrada por la empresa Enel Codensa, relacionada con el registro de potenciales usuarios, vinculación con el comercializador de energía, visualización de ofertas, notificaciones a los usuarios, entre otros. Para llegar a la liberación del mercado eléctrico colombiano, se hace necesario promover este tipo de herramientas, con las cuales, usuarios y comercializadores puedan llegar a tener mayores beneficios.

Palabras clave: AutoSwitch, caracterización, comercializadores, herramientas, portabilidad energética, usuarios.

Resumo: A energia elétrica ou eletricidade é um dos componentes essenciais que impulsionam a economia, ou seja, quanto maior o crescimento econômico, maior o consumo de energia e vice-versa. Consequentemente, o mercado de eletricidade deve ser capaz de cobrir o aumento da demanda de energia e, da mesma forma, estabelecer estratégias para o uso eficiente da energia. No Reino Unido, a inclusão de novas tecnologias no sistema elétrico foi promovida por meio de um programa de troca automática de fornecedores de energia conhecido como AutoSwitch, em que os usuários não estão mais sujeitos a um vínculo exclusivo com seu fornecedor. mudar de fornecedor de energia. Na Colômbia, abre-se a possibilidade de liberalização do mercado de energia por meio de um programa piloto AutoSwitch, buscando induzir maior concorrência entre os comercializadores de energia por meio da desregulamentação das tarifas e facilitar aos clientes a escolha do comercializador que oferece menor custo, maior qualidade de serviço, a fonte de energia desejada, entre outros. Este artigo apresenta uma caracterização dos atributos e funcionalidades das principais ferramentas AutoSwitch do Reino Unido. Além disso, a adaptação desta caracterização a uma ferramenta AutoSwitch para o mercado de eletricidade colombiano, levando em consideração informações fornecidas pela empresa Enel Codensa, relacionadas ao registro de usuários potenciais, links com o comerciante de energia, exibição de ofertas, notificações aos usuários, entre outros. Para alcançar a liberação do mercado de eletricidade colombiano, é necessário promover este tipo de ferramentas, com as quais usuários e comerciantes podem obter maiores benefícios.

Palavras-chave: AutoSwitch, caracterização, comerciantes, Ferramentas, portabilidade de energia, usuários.

I. INTRODUCTION

Electricity is one of the fundamental components that drive the economy and supports many of the services on which people depend. There are different energy sources, but they can be classified mainly into two categories, non-renewable and renewable [1]. Non-renewable sources include oil, natural gas, and coal. Renewable sources include hydroelectric, wind, and solar. These have the advantage of not emitting greenhouse gases [2-3]. Some of the challenges related to the energy system that any country faces (including Colombia) are finding low-cost, large-scale energy storage, slowly decreasing the use of non-renewable energy sources, integrating all the energy sources available in the national energy system, and making it easier for users to choose the energy source and supplier.

Energy and economy are directly related [4], i. e. the higher the economic growth, the higher the energy consumption and vice versa. Therefore, the national energy market must be prepared to cover the increase in energy demand and establish strategies for efficient energy use [5]. Concerning the last point, according to [6], in Colombia, the energy efficiency policy has been reassessed, focusing on the inclusion of new technologies in the energy system and the promotion of good consumer habits to optimize the management and use of the energy resources available and the active participation of the different stakeholders of the system (generators, shipping companies, distributors, suppliers, high-consumption customers, residential customers, among others). All of this is in the context of a more flexible market that enables the reduction of costs.

Similar to the United States [7], Europe [8], and other countries, Colombia is considering the liberalization of the energy market through a pilot program known in other places as auto-switching or automatic energy supplier switching. In this program, users (consumers or clients) are no longer subject to an exclusive affiliation with the local supplier (monopolistic) and have the freedom to switch the energy supplier. This new market aims at increasing competition among energy suppliers by deregulating the tariffs and facilitating the supplier selection process for new clients by allowing them to choose the supplier with the lowest rate, the best service quality, the energy source desired, among others. Currently, according to [9-11], households in Europe can save a considerable amount of money per year by changing their energy supplier.

A market liberalization policy can be complemented with an energy efficiency policy, which can motivate users to make effective use of the energy while saving money due to its low price in the auto-switching market. Thus, the country makes better use of the energy produced and prepares to respond to economic growth or tolerate periods of crisis.

Digital tools have been built to support users in the automatic energy supplier switching process. These tools select the best tariff currently offered in the energy market based on an algorithm that finds the best option in the market for a contract with an energy supplier according to specific preferences [12]. These tools are immensely helpful since they reduce search costs and ensure users do not forget to change their contracts. Additionally, they scan the market regularly to benefit the users and inform them when and how much they can save by switching energy suppliers. Most tools can indicate at any moment which would be the best supplier switch for the user. If the user accepts the switch, all the details about the new energy plan are sent through email or the communication method selected by the user. Moreover, they guarantee the right of withdrawal; if the user does not want to switch for any reason, they have 14 days to withdraw. With these tools becoming increasingly available, the questions of when and under what circumstances users are willing to use them become extremely important.

Despite the relevance of the auto-switching tools, the literature on their impact on users and how to use this technology in a new energy market is scarce at the moment. On the other hand, there are studies related to the state of development of the electricity retail markets [13], alternative policies that can complement the electricity retail markets’ liberalization [14], policies and strategies to make the electricity retail market more competitive with a continuous price regulation [14], the value of the switch in the electricity retail market and the effects of the users’ choice [15], and how to regulate the electricity costs [16], among others.

This paper presents the attributes and functionalities of the main energy portability tools in the United Kingdom. This study seeks to serve as a basis for identifying and defining the attributes and functionalities suitable for an energy portability tool in the Colombian electricity market. Moreover, we expect to contribute to the definition of critical aspects of the energy market liberalization process in the country.

While exploring the auto-switching tools, we found publications in portals such as Forbes [17] and Energy Switching [18], which allowed us to identify the top-rated tools by users and their major features. Subsequently, the top 20 tools were selected and studied, including 11 tools with OFGEM’s Confidence Code1.

The paper is structured as follows: Section two describes the methodology implemented to study and analyze the selected tools. Section 3 presents the results in detail of the characteristics of the studied tools. Finally, section 4 presents the conclusions and future work the research group expects to develop in the field.

II. METHODOLOGY

This study is based on the adaptation of the documentary research method proposed [19], which intends to establish the conceptual basis of projects that seek to make scientific contributions. This method is divided into four stages: preparatory, descriptive, global theoretical construction, extension and publication.

A. Preparatory Stage

In this stage, the documents of the different tools available on the web (see Table 1) and the energy regulation websites in the United Kingdom were identified to extract their characteristics.

The most relevant concepts on the energy markets topic, which are directly related to the automatic energy switching tools, were extracted from the analyzed units.

General concepts [20]

Types of tariffs

Payment methods

Types of meters

B. Descriptive Stage

In this stage, a review of the current state of knowledge of the energy switching process was conducted, emphasizing the conditions and considerations that clients need to meet to switch suppliers or meters.

➢Conditions

➢Considerations

C. Global Theoretical Construction Stage

In this stage, we present a balance of the results in this study; identify gaps, limitations, and trends; and analyze the tools, which were considered in this paper as the research units according to the documentary research method. We analyzed 20 tools, and 11 of them have OFGEM’s confidence code. The names and URLs of each tool are presented in Table 1.

Table 1
List of auto-switching tools
List of auto-switching tools

The analysis evidenced that most tools do not charge the user for the energy supplier switch (see Table 2). However, they receive commissions from the supplier when a user switches. Only two tools charge the user, but only when they find a better offer. These do not receive commissions from the suppliers and state this gives the clients more freedom to choose the offer. A gap or limitation was that the tools do not provide information on their business model to remain competitive in the market, since some do not charge the user nor receive commissions from the suppliers.

Table 2
Number of tools that charge the user for the service
Number of tools that charge the user for the service

After analyzing the fees, the functionalities are divided into three study items for each tool: 1) Data entry, 2) Functionalities (processes), and 3) Best offer (output).

D. Data Entry

It includes the initial data the user submits to the tool to identify them and define the plans or offers that each supplier registered in the tool can make. The data are related to the country of operation, the residence information, the personal data of the potential user, and the current service (if there is one). Fig. 1 shows that most of the tools require an email (14 out of 20 tools, which becomes the main communication channel), the name (9), the phone number (9), and the date of birth (7). This information from the user is considered basic or essential. Additionally, most tools require the postcode (17) or the address (14), leaving aside the phone number.

Number of tools by data entry (residence, personal).
Fig. 1
Number of tools by data entry (residence, personal).

It is worth mentioning that most tools require only the postcode or the address for the service as data entry. With this information, they automatically find the current supplier (tariff and payment method), type of meter, current discounts, and consumption. Moreover, these tools only work in the United Kingdom, and most houses, flats, factories, and others, have some type of smart meter.

Regarding the data entry of the current service, Fig. 2 presents the data considered to define the plans or offers. The majority of the tools considered relevant the communication channel with the user (email, phone, SMS or mail), the type of service the user currently has (18), the supplier (18), and the current consumption, which is measured by some tools in money or kilowatts per period (year, quarter or month). If the user does not know the consumption, it can be expressed as Low, Medium, or High. The information on the current consumption (18) is a reference in the calculation of the new tariff. Likewise, the payment method is required by 17 tools. This information can be expressed as: monthly or quarterly direct debit, variable direct debit, payment upon receipt of the quarterly or monthly bill, prepayment, and monthly payment in advance with direct debit. In addition, the type of meter (15) can be prepayment, economy 7 or smart.

Number of tools for the data entry of the current service.
Fig. 2
Number of tools for the data entry of the current service.

E. Functionalities (Processes)

In the tools’ functionality analysis (see Fig. 3), we found that most tools focus on the savings estimate functionality (15) since it is particularly interesting for the users. Moreover, many tools provide details regarding the new tariff (14). They show the tariff’s name, the contract’s cost, the payment methods available, the billing cycle, the amount of money the user can save by selecting the tariff, and they send an email with the contract’s terms and conditions in detail. Ten tools inform the user about the time required to make the energy supplier switch, making this process transparent for the user. Some tools allow establishing a time frame for cancelling the switch, which can be from 21 to 35 days. Finally, eight tools allow to issue an online bill; the rest send the bill to the user’s email.

Number of tools that have Estimate, Payment, and Restrictions functionalities for making the switch.
Fig. 3
Number of tools that have Estimate, Payment, and Restrictions functionalities for making the switch.

Fig. 4 presents the functionalities related to the transition to the new supplier. Some of them allow the user to set up an online account for the new supplier and display the bills. However, there is not a history of the payments made to the supplier, and only some tools allow downloading those bills. Usually, the tools do not specify if they have the bills stored in their systems or if they are linked to the suppliers’ to display them.

Number of tools that have Transition to new supplier and Bill management functionalities.
Fig. 4
Number of tools that have Transition to new supplier and Bill management functionalities.

F. Best Offer (Output)

It was found that the tools can look for an annual or monthly savings estimate or even a specific amount. To make the estimate, they use the data from the current supplier, the type of tariff, the current consumption, the type of meter and if there is a discount. However, most tools do not specify how they estimate the best offer. Table 3 presents some additional aspects considered by certain tools.

Table 3
Aspects considered by certain tools to estimate the best offer.
Aspects considered by certain tools to estimate the best offer.

Most of the tools offer a series of filters that allow users to calculate the best tariff according to their preferences. These filters can be changed dynamically to select the best option. Figure 5 shows that the most recurrent ones are the name of the tariff (17), the type of switch (17), the update on the type of tariff (16), the estimated savings per year (15), the billing or payment method (15), the personal projection per year (15), additional data on the tariff offered (15), and the comparison between the current cost and the cost of the offer.

Number of tools in output filters for best offer.
Fig. 5
Number of tools in output filters for best offer.

III. RESULTS

A. Extension and Publication Stage

In this stage, the results obtained in the study for the characterization of energy portability tools to use in the Colombian market are disseminated [19]. Thus, the information provided by the company Enel Codensa was analyzed, emphasizing how an energy supplier in Colombia should operate regarding registering potential users and creating offers, among others. The characterization focused on the attributes and functionalities an auto-switching tool has to have, considering the data entry from a potential customer, the creation and visualization of the offers, the client’s affiliation to the new supplier (supplier switch) and the payment of the bills.

The first step was the study of the electricity models in Colombia, which is divided primarily into: 1) Non-regulated market: Where natural and legal persons with high energy consumption (the regulating entity, CREG, defines a minimum and maximum) participate voluntarily and freely agree with their supplier the cost for the energy they consume. 2) Regulated market: It includes the rest of the industrial, commercial, and residential users with energy demands below a certain amount established by the regulating entity. The majority of the customers in the country are part of this market, and the tariff structure is established with a formula (based on the generation, transmission, distribution, commercialization, loss, and restriction costs) defined by CREG.

B. Key concepts in the Colombian Energy Market [20],[21]

Next, there is a description of the attributes and functionalities an auto-switching tool should have to operate in the Colombian market.

C. Potential User Registration

To register a potential user, it is necessary to enter the general information that allows identifying the type of user to request additional information later.

Table 4
Basic data entry.
Basic data entry.

Table 5
Consumption data entry.
Consumption data entry.

D. Offer generation

We propose two alternatives for this functionality: 1) Having an auto-switching tool with an integrated simulator based on artificial intelligence (machine learning algorithms) that allows predicting the consumption depending on the user, and the energy tariffs depending on the possible suppliers so it can generate the offers suitable for the user. 2) Having the tool send the consumption information to the suppliers so they can use their own simulators to generate the offers that will be received by the tool and displayed to the user.

The data sent by the tool to the suppliers or used for the simulation are those previously presented in Table 4 and Table 5, except for the Email and Current supplier fields.

Table 6 shows the data sent by the suppliers to the tool regarding the offer(s) for the regulated users. In the case of non-regulated users, the data are the same as in Table 6, except for Type of tariff and Fixed rate. Additionally, the name of the Annual Projection attribute is changed to Cost of annual contract. As the market liberalizes in Colombia, variable tariffs can be integrated. They can be based on the time of the day the energy is consumed (morning, afternoon, evening), the high-consumption periods (weeks or months) and the low-consumption periods, among others.

Table 6
Data of the offer generated for a regulated user.
Data of the offer generated for a regulated user.

E. Visualization of the Tariffs Offered to the User

The information of the offers received by the tool from the suppliers, or the simulation is presented to the potential users ordered by the money saved (monthly, bimonthly, yearly) and with graphics.

Table 7
Supplier rating attribute.
Supplier rating attribute.

Table 8
Comparison and filters attribute.
Comparison and filters attribute.

F. Affiliation with the Supplier

When the user decides to accept one of the offers proposed by the suppliers in the tool, additional information will be requested to formalize the negotiation.

Table 9
Data entry attributes for the affiliation of a regulated user with the supplier.
Data entry attributes for the affiliation of a regulated user with the supplier.

G. Change of Meter

This is an additional service contemplated when there is a contract between the supplier and the tool. Table 10 presents the entry attributes necessary to do a meter change process.

Table 10
Change of meter for regulated and non-regulated users.
Change of meter for regulated and non-regulated users.

H. Billing

The user can decide whether to receive a physical or digital bill. If the user wants a physical bill, the supplier sends it directly to the user at the registered address. Otherwise, the supplier sends the digital bill to the user’s email and the auto-switching tool.

● Information required from the supplier

Article 42 of Resolution CREG 108, 1997 [8], establishes the minimum information that the bills for the energy and gas services must include. The modifications in the Resolutions CREG 015, 1999 [9], and CREG 058, 2000 [10], have to be considered as well.

Every time the user requires a bill, the tool will make a request to the API of the supplier, which will respond with the minimum information specified in Table 11 for a regulated and non-regulated user, in JSON or XML format, in addition to the bill in PDF format.

Table 11
Attributes of the bill.
Attributes of the bill.

For the billing of non-regulated users, the same attributes of Table 11 are used, except for: Prepayment identification for the supplier, Cost applied to the debt and Amount prepaid. Additionally, the columns REGULAR and IDENTIFICATION are not considered.

I. Payment Gateway

After obtaining the information on the bill, the user can make the payment through the auto-switching tool if this option was selected in the contract. The basic information sent to the payment gateway is shown in Table 12. This information is based on the requirements to make payments by integrating the PSE API.

Table 12
Information sent to the payment gateway.
Information sent to the payment gateway.

In response to the PSE service, the values specified in Table 13 must be returned.

Table 13
Information received by the payment gateway.
Information received by the payment gateway.

J. Additional Services

These additional services aim at earning the user’s loyalty and usage of an auto-switching tool with increasing value for its users.

Table 14
Notifications of payments and services.
Notifications of payments and services.

IV. CONCLUSIONS

This paper analyzed and characterized the auto-switching tools (automatic energy supplier switching) used in the United Kingdom. Eleven of them have OFGEM’s confidence code, an independent energy regulator in Britain. After this analysis, and considering the contextualized information of the Colombian energy market (using as a basis Enel Codensa’s data), we presented a proposal with the characteristics and functionalities necessary to implement an auto-switching tool in Colombia after adapting the current regulatory system, which is a work that the CREG should lead.

By studying the auto-switching tools included in this paper, we found that most of them use the email as the main engagement, communication, and information management method. In addition, some of them provide REST API services that can be used by third parties to compare the rates between suppliers. Moreover, some tools only require the postcode to retrieve the complete information about the property and the current energy consumption. Others offer alert services for tariff changes, and the user can allow the automatic switch. Finally, they include suppliers that offer renewable energy sources.

The attributes and functionalities proposed in this article for an auto-switching tool suitable for the Colombian energy market contribute to the user’s freedom to change the energy supplier automatically. This aims at obtaining better rates and service, and having the possibility to choose renewable energy sources that have less impact on the planet. To estimate the offer, which includes a prediction of the user’s consumption and the supplier’s tariff, there are two options: an estimation done by the auto-switching tool or direct communication with the prediction system used by the supplier.

The functionalities proposed here allow having regulated and non-regulated users in the Colombian energy market. Additionally, they include automatic notification services when there is an offer that would generate savings compared to the current rate, the supplier ceases operation, the due date of the bill is getting closer, or the contract is about to expire.

An alternative to contribute to the liberalization of the Colombian energy market is to create and promote energy portability programs using auto-switching tools. These allow users to select the supplier most suitable for their needs and benefit economically.

Future work will describe in detail each step of the process (customer acquisition, offer comparison, billing management, payments, additional services) and support the consumption estimate and energy cost predictions to define possible tariffs based on smart applications (deep learning). Finally, it would include the integration of the internet of things based on smart objects such as domotic on/off controls for appliances to reduce energy consumption.

ACKNOWLEDGMENTS

The authors thank Enel Codensa for its participation in the research project called “AutoSwitch - Portabilidad Energética” which was approved under Resolution 2820 of December 20, 2021, issued by the Direction of Transfer and Use of Knowledge - Ministry of Science, Technology, and Innovation. We additionally thank the Vice-Rector’s Office for Research of the Universidad del Cauca for the support to the research group during the execution of this project. VRI code 5685.

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Notes

1 OFGEM is an independent entity that works with the government, the industry, and the clients to regulate the energy market in Great Britain.
Citation: M.-E. Mendoza-Becerra, H.-A. Ordóñez-Erazo, M.-Á. Niño-Zambrano, C.-A. Cobos-Lozada, R. García-Sierra, “Characterization of Energy Portability Tools to Implement in Colombia,” Revista Facultad de Ingeniería, vol. 31 (60), e14487, 2022. https://doi.org/10.19053/01211129.v31.n60.2022.14487
Martha-Eliana Mendoza-Becerra: Formal Analysis, Investigation, Writing - review & editing.
Hugo-Armando Ordóñez-Erazo: Formal Analysis, Investigation, Writing - review & editing.
Miguel-Ángel Niño-Zambrano: Formal Analysis, Investigation, Writing - review & editing.
Carlos-Alberto Cobos-Lozada: Formal Analysis, Investigation, Writing - review & editing.
Rodolfo García-Sierra: Formal Analysis, Investigation, Writing - Original Draft.
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