Alexey Mazayev: Power engineering specialists should pay for errors in IT systems

Alexey Mazayev: Yes, dynamics decreased in comparison with what was one-two years ago. It is connected also with the general economic situation, and with a current status of the industry. However it does not mean that information technologies are not interesting to power engineering specialists. Just the situation with budgets of the power companies remains difficult. The problem of non-payments is known to all. Plus the state is focused on accomplishment of social tasks, rules of the market, regulation, rates are in many respects subordinated to them. It is impossible to tell that power engineering specialists have super profits and an opportunity much to invest in IT. But also the good trend is visible: specialized solutions are more and more interesting to power engineering specialists. If it is generation, then to the forefront there is a production management of the electric power and heat, the sales companies have a billing, networks have an asset management, the modes. So IT get into "heart" of business that speaks about revaluation of their role in life of the company.

Of course, it is very difficult to have all range of solutions for different segments in a product portfolio, but the value of the company of the IT partner for power engineering specialists consists in it. For ourselves important we see gain of competence of industry solutions. For example, we became the first-ever owners of specialization in billing systems of Oracle. We offer also other specialized products of this vendor. Our command which totals more than 50 people and is one of the largest in the market is engaged in implementation.

TAdviser: The power remains very mobile industry in terms of establishment of rules of the game and legislative regulation. How does it affect the market?

Alexey Mazayev: Undoubtedly, in an instability situation implementation of IT projects becomes complicated as uncertainty degree is too high. I think, it is one of significant factors which slow down broader penetration of information technologies.

On the other hand, changes stimulate the companies to be more flexible, so, they nevertheless need to use the corresponding IT tools. Let's take, for example, an initiative with introduction of social norms. It means that the IT systems of the power companies which are responsible for accounting and charges should be able to work by new rules – to be flexible, to calculate the price of the provided services in different rates for one consumer. But not all IT systems are able to do it. Or we will take the initiative providing increase in penalties for non-payers. Within it it is going to provide also the return sanctions: will punish also suppliers who charge to consumers more, than it is provided by statutory regulations. Such mistakes are made rather often and no direct responsibility for suppliers was provided earlier. As soon as the companies begin ruble to answer for errors, they immediately will have absolutely other requirements to correctness of data and calculations, so, and requirements to IT systems. All this often stimulates transition from the nonindustrial self-written systems which are still widely used in the industry, to more modern software platforms and for collecting and processing of power data, and for settlings with subscribers.

One more trend which, undoubtedly, influences consumption of IT tools is enlargement and consolidations of players within large holdings. It leads to the fact that projects on unification, standardization of processes, consolidation of data are demanded. Historically developed systems at the same time undergo serious changes: are upgraded, replaced with new, integrate and centralized. There are new opportunities for the analysis, decision-making, increase in efficiency. Let's tell if information is flown down in a single system, then we can watch and compare business indicators of divisions or branches, to carry out such peculiar benchmarking. And then to build processes on a sample of the best, and if necessary to redistribute resources between the divisions/companies for achievement of the best results.

TAdviser: Relatively recently was several state programs which put new reference points before the industry are adopted. Whether they are capable to stimulate interest in IT or, on the contrary, to power engineering specialists will be "not before"?

Alexey Mazayev: In 2013 by the government it was accepted several strategic documents defining development of power in Russia at once. So, in the "Energy Efficiency and Development of Power" state program need of decrease in power consumption of GDP for 40% by 2020 is recorded (in comparison with 2007). It is obvious that achievement of such ambitious plan anyway will demand reorganization of work of the energy sector with implementation of these or those elements of the concept of Smart Grid.

And in such document as "The strategy of development for an electric grid", we already see direct references to need of creation of smart networks in Russia. In other words, the concept of Smart Grid not only was included into a lexicon of professionals of the industry and officials, but also found reflection in white papers. As the concept of Smart Grid assumes change of processes of interaction of players of the market on the basis of total automation and implementation of IT, any initiatives of implementation of its elements will undoubtedly give an impetus to development of IT market in power.

TAdviser: And how you estimate perspectives of this concept? Whether it is capable to get accustomed in Russia?

Alexey Mazayev: Of course, to start transition to use of elements of intelligent networks of only one desire of the government insufficiently. Desire or awareness of inevitable need of changes from players of domestic power supply system is necessary. Also there are trends which stimulate their interest in a subject.

As you know, energy consumption in Russia always had industrial character, the prevailing consumers were large enterprises. All last years we see that the consumption share steadily grows at the private sector, i.e. the nature of consumption changes. One more important factor – growth of interest from consumers in correct electricity metering. Universal distribution of individual metering devices (smart and not really), use of new communication channels – through mail, the SMS, the Internet – increases the number of the arriving information by orders. The industrial sector does not lag behind and also applies more and more ASCAPC advanced system. Thus, necessary premises to go to Smart Metering – the first and very important step on the way to smart networks are created.

However information of the power company and the organization, unusual to such shaft, are not always able to cope with it, first of all, because of insufficient development of the infrastructure – program and hardware. Actually the power companies need to change ideas of the IT infrastructure and, first of all, about a complex of the existing systems. New tools for work with power data, management of consumers and networks are required for them.

TAdviser: What?

Alexey Mazayev: First, the tool which could provide receipt of information from different sources in the company is necessary. For example, in Oracle Utilities line such place is taken by the gateway of intelligent networks Smart Grid Gateway. In fact, it represents the uniform point of communication connecting all types of devices with all applications using data of devices. Application of such universal "translator" allows to receive and transfer information to systems, external in relation to the company, regardless of by whom they are developed and what formats of data use.

The second key link in architecture of IT for intellectual accounting are the systems of a class of management of power data (MDM, Meter Data Management). Specialized high-performance tools, for example, such as Oracle Utilities Meter Data Management, help to increase reliability of power data. Receiving target data array includes verification processes and integration of information, its cleaning and adjustment, carrying out predesigns for detection of false data with the purpose of their further refining. Such tools will be especially necessary in connection with toughening of penalties for the power companies for errors in settlings with subscribers about which we already spoke.

The system core – the functionality responsible for carrying out calculations and accounting of subscribers – also should be executed at the high level. The billing system should have analytical functionality which, for example, is implemented in Oracle Utilities Customer Care & Billing. In terms of functionality all standard operations on calculations and customer service are performed in a billing system, the business intelligence is applied to formation of the summary analytical reporting when the same data from a billing system and external sources need to be presented differently. For example, to take a customer group on any signs (a voltage level, a rate, volume of consumption, debt, etc.) and to look at dynamics of indicators in time.

The complete solution, the including Oracle Utilities Meter Data Management for work with power data and Oracle Utilities Customer Care & Billing as a basis of a billing system, is capable to replace tens of the local systems, having connected together data and business processes. It is even more important that it allows to create the broad and detailed picture of consumption, gives an opportunity to build internal processes of management, to improve settlings with subscribers, to provide support of a paperless technique of work with clients.

On the way of implementation of similar IT tools a row large the companies of the industry among which there is JSC Chelyabenergosbyt, JSC Volgogradenergosbyt and others successfully moves. Helping them to solve relevant business challenges, we see that such active, interested approach to application of modern IT solutions in daily work of the power companies guarantees fast obtaining the most complete information by their management for business development. And at the same time creates all conditions for quality improvement of service of their consumers.