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Den Haag, 28-11-05

KPN, energy company Oxxio and IT services provider IBM are launching a unique network of wireless energy meters that can be read remotely. All Oxxio’s customers (570,000 at present) can have a ‘smart’ digital meter installed in their homes that automatically transmits information about gas and electricity consumption to a central computer. Customers using the wireless meters can check their energy consumption online, which should help them increase their energy efficiency. This means an end to sending in meter readings, as well as to bills based on incorrect readings. In the more distant future, benefits to customers could even include “tailor-made” energy contracts with variable rates.

KPN is responsible for the network connections. Its GPRS mobile network, designed especially for wireless datacommunications, will be used for this purpose. IBM, in its turn, is providing the IT infrastructure, including the hardware and software for the central system as well as systems management. Oxxio has set up a dedicated company for the new telemetry system, in which it expects to invest around € 130 million over the next few years. The company reckons customers can achieve savings of 10% to 15% on their energy bill thanks to early access to their energy consumption data. By year-end 2007, Oxxio expects to have connected roughly one million households to the system.

The datacommunications contract between KPN and IBM has a term of two years, with an option for another five years. The rollout is planned to start mid-March 2006. In a pilot involving 50 households, the technology was tested and proved successful.

Pieter Verhees, Partner IBM Business Consulting Services, Sector Leader Communications: 'This cooperation between Oxxio (product and service supplier), IBM (solution provider) and KPN (communications technology provider) enables us to offer Oxxio's customers a new and differentiating application, using both proven and innovative technologies.

IBM works together with numerous energy concerns worldwide to realise improvements in reliability, customer service and operational costs. By integrating innovative technologies, IBM helps customers to transform their business and become an 'on demand' company.'

Erik de Heus, CEO Oxxio: "The powerful combination of Oxxio, IBM and KPN means that the 'smart' meter can finally be deployed on a large scale. This will give the liberalised energy market a new boost, as well as allowing consumers to enjoy the advantages smart metering brings. The smart meter is a useful tool for consumers to stay in control of their energy costs as well as usage, helping to promote a more sustainable society."

Guy Demuynck, CEO KPN Mobile The Netherlands: "This unique partnership demonstrates once again the suitability of KPN's advanced mobile data network for innovative applications such as telemetry. The excellent indoor coverage our data network provides is key to success in this field."