Digitalisation is transforming processes by leveraging advanced technologies to increase efficiency and maximise revenues of city gas distribution (CGD) companies. The need for digitalisation arises from its ability to facilitate effective process management, reduce operational costs and ease data access and information exchange. In line with this transformative trend, the Haryana City Gas (HCG) Group, with over 15 years of experience in developing CGD networks, has significantly expanded its portfolio. Securing authorisation for Meghalaya state in the 11th licence bidding round of 2024, HCG broadened its CGD portfolio to encompass six geographical areas (GAs) and gained authorisation to supply gas in 21 districts. Notably, over 50 per cent of the projected demand originates from the lucrative industrial and commercial segments. HCG has a robust infrastructure, including over 700 km of gas pipeline network and over 60 compressed natural gas stations across all GAs. Moreover, two of the seven GAs mandate addressing polluting fuels in the commercial transportation and industrial sectors. The company has been at the forefront of embracing digitalisation to enhance its operational efficiency.
Leveraging digitalisation tools and technology
Leveraging technology in the CGD sector significantly enhances efficiency by minimising human interaction. Key digitalisation tools include supervisory control and data acquisition (SCADA), which handles asset monitoring, control and automation, leak detection and response, data analysis and optimisation, and integration with other systems and geographic information system, which supports infrastructure planning, asset management, customer service engagement and regulatory compliance. Data for SCADA is prepared using a quality control management system that captures the data at a national stage, ensures construction quality and addresses compliance issues and asset utilisation parameters. Although pipeline supply is ideal, establishing infrastructure takes time. To prepare the ecosystem, gas stations are built before pipelines are completed, using high-pressure cylindrical vessels or low-pressure cylindrical vessels with gas kits transported by trucks. Previously, monitoring was done manually, but the increased scale of operations has introduced uncertainties in accident management, safety compliance and route management. To address these issues, the Journey Management System is being used for route planning, monitoring, safety compliance, emergency response and performance analysis. Additionally, smart meters in the CGD sector provide accurate consumption data and billing without manual intervention, allowing customers to monitor usage better. HCG has developed mobile applications for customers to easily access services, make payments, track usage and report issues. These apps improve customer convenience and engagement.
Improving efficiency through smart meters
Smart meters in the gas distribution sector offer a range of features tailored to optimise operations and enhance customer experience. They transmit data to customers at scheduled intervals, providing them with monthly usage information. In cases where readings are unavailable, estimated billing can introduce uncertainty for both the CGD company and customers. However, the implementation of smart meters eliminates this uncertainty by avoiding the need for human intervention. This advancement ensures operational excellence and accurate gas reconciliation by consistently delivering precise data at appropriate intervals. The evolution of smart metering systems has been noteworthy. Initially, automatic meter reading (AMR) devices captured readings either through a meter-mounted device or via a walkthrough process that did not require entry into customer premises. Subsequently, drive-in solutions emerged as improved versions of AMR technology. Additionally, gas pressure reducing systems were introduced, although they proved to be less cost-effective.
Prepaid meters offer a range of benefits by allowing customers to pay for their gas usage in advance, which eliminates the need for utilities to spend money and effort resolving issues such as meter reading errors and delayed billing. Users can always check their remaining balance, clearly shown on the meter screen, helping to prevent unpleasant surprises. Prepaid meters allow customers to recharge gas at their convenience and enable them to track their own billing cycles. Consequently, they are consumer-friendly as users avoid receiving bills, having already paid in advance.
The Petroleum and Natural Gas Regulatory Board defined smart meters to address issues such as cost inefficiencies and defaulters. Prepaid meters should include a pre-charging facility and an inbuilt shut-off valve, which can cut off supply from the reported location. Among communication platforms such as radio frequency data, long range, global system for mobile communications (GSM) and narrowband internet of things (NB-IoT), GSM and NB-IoT offer better range in terms of coverage and signal transmission distance. However, GSM leads to more battery drainage, making NB-IoT a more effective communications technology.
Case study: Adoption of gas smart meters
The adoption of smart meters for 100 per cent domestic connections began with an initial implementation in one location within a GA and subsequently expanded to all GAs across the country. This initiative led to several improvements, including timely billing, the elimination of excess payments, the ability to rapidly effect price changes and the introduction of digital payment options that eradicated the need for cash collections. Customer satisfaction was notably enhanced through features such as the ability to recharge in small denominations, recharge options during odd hours and holidays, and increased billing transparency. From an IT perspective, significant advancements were made in communications technology and data management. Scaling the implementation of smart meters helped reduce costs, while training personnel and updating the management information system were essential in supporting this transition.
Key challenges
One of the significant challenges faced by gas distribution companies is selecting the right technological partner for digitalisation. Rapid scaling of operations requires digitalisation to avoid costly workforce expansion. Previously, fluctuating gas prices made consumer communication difficult, but with stable pricing regimes and smart meters, it has become easier to communicate and transfer benefits to consumers.
Another major challenge faced by gas meters is their sole reliance on batteries. To reduce battery drain, the frequency of data transmissions from the meter to the head end system needs to be minimised. In prepaid meters, the head-end system is crucial as it facilitates data transfer between the consumer and the server via mobile. The head-end system performs installation, commissioning, data collection and configuration changes, allowing for the replacement of faulty meters and enabling gas suppliers to disconnect smart meters remotely. This system operates through NB-IoT and GSM platforms, and it can also function through a consumer app and Bluetooth on mobile phones. Overall, the implementation of prepaid meters addresses various inefficiencies and improves user experience by providing transparency and control over gas usage and costs.
HCG, as a CGD company, faces several key issues in implementing new technology. Users resist the new technology, primarily due to the significant cost difference between normal meters and smart meters, with the intangible benefits of smart meters being difficult to quantify. Additionally, there are concerns about data privacy and security, which further complicate user acceptance and trust in the new system. Due to these reasons, the implementation of smart meters has not increased. Further, if the adoption of smart meters does not increase, the cost of smart meters will not reduce. In the gas industry, the market does not grow unless the infrastructure is built. Therefore, addressing these challenges is crucial for the future development and expansion of the industry.
The way forward
Going forward, there is a need to adopt digital platforms to effectively manage day-to-day operations, which can encounter resistance due to unfamiliarity or apprehension towards new technologies. The cost disparity between smart and normal meters poses a significant financial consideration for CGD companies. Software adaptation plays a crucial role in easing the transition and optimising operational efficiency. Implementing a robust digital platform for smart meter operations and ensuring compatibility with network technology are also paramount. Selecting the right software and implementation partner is critical, as success hinges on their expertise and ability to execute digital initiatives effectively. Overcoming these challenges will pave the way forward for CGD companies to realise the full potential of digitalisation, enhancing operational efficiency, customer service and overall competitiveness.
Based on remarks and presentation by Amlan Talukdar, Vice-President (Projects and Operations), Haryana City Gas Group, at a recent India Infrastructure conference
