Telegestore

1. Telegestore Paris, February 2003

2. The Telegestore Remote Management Systemfor the Entire Energy Distribution Process Innovation for Customers’ Relationships Enhances the Role of Low Voltage Network as a Means of Communication

3. The Telegestore Project A New Network Linking 30 Million Customers • The Most Extensive Two-Way Communication Network A world-class Italian Technology

4. The Telegestore • It is not a standard electric meter • It is not a simple remote-reading system • It is an innovative system of energy metering and customer management • It is a customer management system able to read, acquire and aggregate customer data remotely

5. Changes in metering services From traditional meter… . … . .to TELEGESTORE™ Solid state Collect all key parameter of electricity distribution Electro mechanic Detect just the energy consumption Reading, verification, contract management only manually w/ dedicated men Most activities performed remotely,w/o impact on Customer Rigid tariff offer Tailored tariffs proposal Enel is the first launching such an innovative reengineering of distribution and Customer management

6. Telegestore – Savings on Utility process costs Purchasing* Self-consumption Revision Transf. Repair.* No-invoicing for thefts-failures Warehouses Checks on operating meters Internal transportation Purchasing and logistics Revenue protection Customer Service Installation and recovery Bad debts Commercial or technical replacement Field operations Customer service Collection Failed accesses Invoicing Reading Activation/ Deactivation Interventions for failures * traditional meter

7. Future Customer Management New Commercial Offers Traditional Commercial Offer Activation de-activation Energy Management Meter reading Curtailment Customer Credit Collection Customer Service Claims Verification

8. Technically the“Telegestore” is a system of electronic interconnected equipments made of: The Meter The Central System An integrated equipment for metering, data transmission and data management A Central System for data aggregation and the management of the whole process The Concentrator A Concentrator of data from the Meters. It is located in secondary distribution substation Metering in compliance with International Standards (CEN 61036, CEN 61268); Data transmission (Both metering and managing customers) in compliance with Actual obbligatory rules (CENELEC EN 50065-1 in the range A)

9. System Architecture • Total: 14 • 2 national • 12 local Commercial System (CRM) Centralised Remote Management System Interface Communication Software Data Communication Centre GSM - Traditional Communication Network MV/LV Substation Intranet Concentrator Total: 345.000 PLC 2.5 Kbps Meters CTGN-CTGT Operation center Total: 30 Millions Indoor services

10. Traditional Information System Web access Data Center Operational centre Enel Distribuzione Enel.it GSM COM ISDN PRI GSM modem BTS CBT CE WIND Secondary substation Enel Distribuzione The Telegestione process (Architecture and figures) The Telegestione operative activitiesstarted in September in pre-exercise mode involving 1.000 customers From the next December the activities will runin definitive mode for the all customerswith electronic meter

11. Standard • Class 1 Active and Class 2 reactivein compliance with CEN 61036, CEN 61268 • Cenelec band A (CEN EN 50065-1), 82 kHz(primary carrier frequency) or 75 kHz(secondary carrier frequency) FSK, 2400 Bps • TCP/IP: ANSI/EIA 709.2-A-2000 • LONTALK ™ANSI/EIA 709.2-A-2000 • Two way authentication Measurement DLC Communication Public Network Communicationprotocol Data transfer security

12. Meters to replace 30 Millions Key figures - Italian program Period of replacement 2001 - 2005 Enel Distribuzione human resources 4.000 / year External resources (managed by Enel.si) 4.000 / year 2.100 Millions Euro approximately Investments

13. State of replacement plan (January 2003) Meters installed:6.000.000 ~ 14.000.000 by year end Concentrators installed: 60.000

14. Production Areas Tiszaujvaros (Hun) Vimercate (MI) Bergamo (Bg) Caluso (TO) Shenzhen (CINA) S.Palomba (RM) Pagani (SA)

15. Something will change in the relationship with customer • Availability of “Time of Use” tariffs and customised tariffs • Deregulated customer could be managed without change of assets • No more estimated bills; real time measure of consumption for each bill • Improvement of quality in commercial activities; In activation or contract changes, time goes from days to minutes • Indicators for Network Quality are strongly monitored • Opening a new communication channel to customers home in order to supply Value Added Services and measure gas, water and heat supply

16. Advantages for customer Improvement of Service Quality and optimisation of Service Cost Billing on real readings No need of customer presence for readings,contract activation, de activationor contractual power modification Flexible tariff structure Simple customer contractualisation Quicker solution of dispute with customer (spot reading on request) No wrong readings and decrease of customer dispute Flexibility (tailored) of billing period Increase of comfort and consumption optimisation

17. Advantages for the market • All customers will benefit from the system even if they are not eligible • Demand side management (see California crisis) • Improvement of losses information, calculation and regulation • Improvement on load forecast • Improvement on new pricing initiatives • Improvement of quality of service information and regulation • Control of fraud • Improve of settlement, invoicing processes and imbalance allocation • Advantages for the Authorities: data collection • Avoiding the need of Load profiling • Improvement of guarantee of supply regulation • New metering services • More selling competition