During the last two years, Telenor Cinclus has developed a solution that uses mobile technology to register and compile data relating to the electrical consumption of Norwegian households. The current agreement represents a breakthrough for Telenor Cinclus' technology, and is the largest of its kind in Norway. During the initial phase, Skagerak Energi will install the new solution at 1,000 households in the Vestfold and Grenland region, a work that will commence during the autumn of 2005. Next year, an additional 30,000 households will receive the new meter-reading solution.
To acquire 34 per cent
Telenor Cinclus has completed a private placing that will give Skagerak Energi a 34% ownership share of Telenor Cinclus. The placing estimates Telenor Cinclus to be worth NOK 110 million. Together, Telenor Cinclus and Skagerak Energi will market the solution vis-Ã -vis other network providers in the Nordic region.
"We are seeing strong growth in the market for automatic meter-reading. So far, however, the quality of the communication technology of these solutions has been insufficient. We are now teaming up with Telenor Cinclus because their technology eclipses competitors' alternatives, allowing us to offer meter reading at a considerably lower cost that other comparable solutions," said CEO Hans August Hanssen of Skagerak Energi.
"We are very pleased to team up with Skagerak Energi, and we see this agreement as confirmation that we deliver an attractive product. We believe that our choice of technology will contribute to make us a key player in the Nordic market," said Chairman of Telenor Cinclus, Jan Tore Meren.
A growing market
There are currently approximately 2.2 million electric metering points in Norway today, and approximately 13 million metering points in the Nordic region. Telenor Cinclus aims to capture 30 per cent of the Nordic market.
In Sweden, all households will be required to install automatic meter reading systems by July 2009.
"Sweden is a highly interesting market for us. The technology that our Swedish competitors are using does not resemble ours. Now that automatic meter reading will become a requirement in Sweden, we have reason to believe that Norway will follow suit in the not too distant future," said Chairman Jan Tore Meren of Telenor Cinclus.
As distinct from today, when network providers call on customers to read their meters only a few times every year, the solution from Telenor Cinclus automatically registers power consumption every hour, sending this information to the network provider. This will give energy suppliers' information that will enable them to offer pricing models that are more in line with demand.
"We are now giving energy suppliers a tool that in time will enable them to offer their customers energy prices that vary with consumption. This will make it easier for consumers to consume energy at times when prices are low, thereby reducing their total electricity costs," said Meren.
Telenor Cinclus' meter-reading service uses a technology platform that makes it easier for energy suppliers to also offer additional value-adding services. Such services comprise water-consumption reading and various control systems that manage electrical consumption in the household, home security, and other safety solutions.
"We are seeing that energy suppliers want to offer their customers other products than just electric energy. Our solution enables them to develop new services that can give energy suppliers new sources of income, and consumers a wider range of services at a low cost," said Meren.
To the editorial offices:Images of the product and key personnel
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Chairman of the Board Jan Tore Meren, Telenor Cinclus AS
Phone: +47 67890000
Mobile: +47 90592622
Managing director Ivar Grothe, Telenor Cinclus AS
Phone: +47 67890000
Mobile: +47 90586849
CEO Hans August Hanssen, Skagerak Energi AS
Phone: +47 35935510
Mobile: +47 91619369