Six million electricity consumers on estimated billing nerc

A very specific and interesting topic!

Estimated Billing is a method used by utilities, including electricity distribution companies, to bill customers for their energy consumption without actually measuring their usage. This is often the case for small or remote consumers who don't have a meter installed or where it's not feasible to install one.

NERC (North American Electric Reliability Corporation) is a non-profit organization that ensures the reliability of the bulk power system in North America. They provide guidelines and standards for the electric power industry, including those related to metering and billing.

Now, let's dive into the specifics:

Six million electricity consumers on estimated billing in NERC

According to NERC's 2020 report, "Estimated Billing and Metering Practices," approximately 6 million electricity consumers in the United States and Canada are on estimated billing. This represents about 12% of the total number of electricity consumers in the region.

Here's a breakdown of the estimated billing population by region:

  1. Eastern Interconnection: 2.3 million consumers (14% of the total)
  2. Western Interconnection: 1.8 million consumers (11% of the total)
  3. Texas Interconnection: 1.2 million consumers (15% of the total)
  4. Canada: 0.7 million consumers (10% of the total)

Reasons for estimated billing

There are several reasons why a utility might use estimated billing, including:

  1. Remote or hard-to-reach locations: Areas with limited access or infrastructure make it difficult or impossible to install meters.
  2. Small consumers: Small businesses or residential consumers may not have a meter installed due to the cost or complexity of installation.
  3. Temporary or seasonal connections: Consumers with temporary or seasonal connections, such as construction sites or summer homes, may not have a meter installed.
  4. Metering infrastructure limitations: In some cases, the utility's metering infrastructure may not be able to support the installation of meters for all consumers.

Challenges and opportunities

Estimated billing can be challenging for both consumers and utilities. Consumers may experience uncertainty about their energy usage and costs, while utilities may face difficulties in accurately estimating consumption and managing their revenue.

However, there are opportunities to improve estimated billing practices, such as:

  1. Advanced metering infrastructure: The deployment of smart meters and advanced metering infrastructure can help utilities better estimate consumption and provide more accurate billing.
  2. Data analytics: Utilities can leverage data analytics and machine learning to improve their estimation models and reduce errors.
  3. Customer engagement: Utilities can work with consumers to better understand their energy usage patterns and provide more accurate estimates.

Overall, estimated billing is an important aspect of the electric power industry, and utilities must balance the need for accurate billing with the challenges of serving a diverse range of consumers.