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International Conference on Power Engineering-2007, October 23-27, 2007, Hangzhou, China

Research on Power Supply Enterprise CRM based on DSM

Yunyan Li, Ting Wang and Caiqing Zhang
School of Business and Administration, North China Electric Power University, Baoding 071003, China (E-mail: yunyan5501@163.com) AbstractThe implementation of electric power demand side management (DSM) has exerted an extensive influence on power system and customers. To give full play to DSM, it analyzes the relationship of DSM and customer relationship management (CRM) in power supply enterprise, and discusses how power supply enterprise CRM implement DSM project. Then it shows how to exploit electricity saving scheme on DSM, and advises to research on rule of electricity tariff, which can be referenced to decision-making. Keywords: Power demand side management, Customer relationship management, Power supply enterprise, Electricity tariff

1 INTRODUCTION
Customer is the resource of enterprise profit and a kind of scarce market resources. How to use and control customer resources effectively is an issue that power supply enterprises will have to ponder. As twofold nature with public utilities and the main body of making profit, the urgent matter of power supply enterprise is to establish good customer relationship. Demand Side Management (DSM) is a kind of management method of using energy reasonably. It produces with economical development and the constant increasing of electric power demand. It has great significance to utilize resources comprehensively. Its necessary to implement DSM to energy shortage, and electric power organizational reform. It can enhance efficiency of using energy and get double wins with power supply enterprise and power user. For the full display DSM function, we should think about the influence of DSM on power supply customer relationship management. The paper analysis the relationship of power DMS and power supply enterprise, suggests the developing model of DSM in power supply enterprise. It provides a reference for promoting sharing the DSM achievement and benefit between power supply enterprise and its customer.

2 THE RELATIONSHIP OF DSM AND CUSTOMER RELATIONSHIP MANAGEMENT IN POWER SUPPLY ENTERPRISE
Unlike past pure emphasis saving, DSM encourages electric power consume under the market economy condition, which lead customer to using electric power more scientific reasonably by various measure. Meanwhile it highlights the social efficiency of environmental protection and the resource conservation. In this process, the power supply enterprise is playing the vital role. It encourages user to enhance terminal consume electric power efficiency by technical, financial, induction and administrative method. Implementing DSM may reduce electrical grids pressure to adjust the peak in peak time interval and help CRM in power supply enterprise enhancement power supply reliability and service level and analysis customer potential demand and design reasonable electric power price system. 2.1 Power DSM is an important function of customer relationship management in power supply enterprise

Its important for customer relationship management (CRM) to satisfy customers demand and its potential demand, enhance the degree of customer satisfaction and customer loyalty, which helps enterprise develop sustainable. Electric power product is a kind of special product. It should emphasize its public service characteristic to CRM in power supply enterprise. In view of the competition of substitution energy, the new demands of customer service as well as market opens anticipated should be done key research. The primary mission of CRM in power supply enterprise is to study customers consuming electric power characteristic and the rule, which helps to design consume power plan to meet customer satisfaction corresponding. In this stratification plane, the core thought of CRM in power supply enterprise is manifested by the concept of electric power demand side management. The important target of electric power DSM is change consuming power-load characteristic and enhance the efficiency of consuming electric power according to the consuming power characteristic of concrete management object, production craft and habits. On the other hand, the implementing main body of common technical and economical method in power DSM cannot leave the power supply enterprise totally. For example, initiative and encourage user changes power consuming behavior and way by electric power price system. Therefore, power DSM is an important function of CRM in power supply enterprise. 2.2 CRM in Power supply enterprise is benefit from power DSM In the view of surface, the power-saving effect that the user implements DSM may cause the power quantity, even price and economic efficiency of power supply enterprise drops. In fact, it may promote customer relationship management in power supply enterprise in various fields. (1) Implementing power DSM can guide the user to take reducing peak and filling valley, which increases power grid load ratio and utilization ratio of producing and distributing equipment. It improves power grid running condition, enhances the reliability of power product and service, and reduces the line-lost in power distribution network while reducing peak-valley distance, which enhances power grid efficiency and reduces the cost of enterprise. (2) DSM may accelerate electric power instead of oil, gas

Research on Power Supply Enterprise CRM based on DSM and coal through electric power price policy, and eliminate fuel oil unit supplies for oneself, expanding electric power market fully. At the same time, the power supply capacity set aside using the peak meets the other users, which reduces times of brownout and blackout, enhancing customer satisfaction degree. (3) The "one electricity meter in one household" strategy for DSM, which means take residential district to power supply enterprise directly, may cause the CRM department in power supply enterprise in electric power many opportunities to develop various business, enlarging management domain, meeting customers more need.

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3 IMPLEMENTING POWER DSM PROJECT TO PROMOTE POWER CUSTMER RELATIONSHIP MANAGEMENT

As the implementing main body of power DSM, the power supply enterprise must organize power DSM project step by step. In this process, CRM department plays an important roles. 3.1 Enlarge peak-valley sharing-time electric power price in full-scale to guide power consuming scientifically DSM increases energy saved by customer frugal, adjust power load curve, and improves power grid running efficiency, reliability, which lead energy resources save and improvement of environment quality. The technical method of power DSM mainly includes two aspects, that is, to change customer consuming power way (including reduce peak, fills in valley, moves peak to fill in valley) and enhances terminal power consuming efficiency. The CRM department in power supply enterprise uses enlarges peak-valley electric power price, the implementation interruptible load price so on to guide user adjustment production and operating way. The power load ratio of the inhabitant is very low, but influence the power peak load largely whose load characteristic is more sensitive by electric power price. The condition of implementing peak-valley electric power price to inhabitant should be created by effort (e.g. by collecting funds for inhabitant to set peak-valley electric instrument and so on). Using electric power price lever to guide inhabitant evade peak reasonably. 3.2 Carry out energy substitution strategy positively Power DSM must use many kinds of methods. Power product is clean, highly effective and high quality secondary energy. Promoting energy substitution strategy effectively may optimize the proportion of electric power product in energy consumption structure, increase power supply enterprise selling electricity quantity, and enhances sales revenue and profit. The power supply enterprise CRM department can guide the customer making scientific decision through plan of electric energy consumption, economic indicator surveys and contrasts of substitution product. At the same time, it should suggest the local authority formulates the correlation policy, for example, prohibition firing coal in the city and the traveling area, using gathers thermoelectricity boiler, fuel gas boiler and electricity cooking utensils and so on, which may realize environmental protection, promotion society sustainable development.

3.3 Consummating CRM technical support system in power supply enterprise based on power DSM Behinds setting up managing concept of taking customer as central, its important for CRM to create and use an advanced information technology, software and hardware as well as the optimized managing method, which help to collect, track and analyze customer information. The CRM system data originates from sale management system, customer service system and ERP system and other related business dealing system, whose data is an important basis to analyze demand side, which is inseparable with DSM. It can build data warehouse according to DSM subject, dealing with abundant data of different system, to make effective relationship among the information that is disperse and isolation originally. Based on demand side management, CRM technical support system is organic combined by the load management subsystem, consuming power scene service system and the low-pressure user centralism copies instrument system. Various subsystems are constituted by the master station, communication network and scene terminal device. In order to adapt development tendency of DSM, it may design each independent subsystem master station as a distributional network master station system.

4 DEVELOP POWER SAVING PLAN BASED ON DSM TO ENHANCE PRODUCT SERVICE VALUE-ADDED
Grasping the customer demand tendency, finding and managing customer resources effectively, it becomes the key that the enterprise gets competing superiority. CRM department in power supply obtain a higher profit by enhancing the product service increment, which based on the low cost electric power service. 4.1 Using DSM seeking and retention high quality customer The different customer provides different value for the enterprise. 80% profit only come from 20% customer in many enterprises, namely so-called Pareto 80/20 principle. The CRM implementing center must segment customer by customers value, need and preference and so on. It should seek the most valuable customer resources, providing pointed product and marketing pattern. Now, its necessary to consider the factor that customer implements DSM except for power consuming quantity to confirm power customer value. (1) Using of marginal cost-price theory to analyze. After implementing power DSM, the effectiveness is not decreased with the electric power quality, although the distributing electric power quality decreased. It gets profit when the effectiveness arrives its investing cost. (2) Power production and consume must happen simultaneously due to the characteristic that electric power cannot store up. Power supply enterprise must take measures to reshape the loads to ensure the reliability of overall system running. Power DSM includes many kinds of methods to enhance system running efficiency, and reduce running cost. (3) Power grid cost in power supply enterprise has square relations with power consuming load active power. Some technology of DSM may reduce load using power, reduce grid

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International Conference on Power Engineering-2007, October 23-27, 2007, Hangzhou, China who requires high power supply reliability, it should adapt reliable electric power price. For the customer whose require is not high, it can implement the interruptible load electric power price or give some compensates by discussing. Using seasonal floating power price plays a major role in suppresses peak load, which alleviates seasonal contradictory of electric power supply and demand. Aiming at the common situation that the benefit assignment is not balanced between power generation side and selling side, it may consider practicing peak valley period electric power price linkage plan in the electric power generation side and selling side. It means that the way in which power generation side define peak valley time interval is completely consistent with the selling side. It encourages the electric power generation side and selling side carry out the peak valley period electric power price simultaneously. In brief, the power pricing have two functions due to DSM. One is to maintain the electric power industry positive cycle; the other is to promote the electric power demand side management development. Its very important to power supply enterprise CRM to enhance the customer degree of satisfaction, loyalty. Furthermore, it should study reasonably consuming power structure, and discover electric power price rule, which provides basis to make scientific electric power price system by the policy-maker.

cost, and promotion value. 4.2 Analyzing customers consuming electric power pattern, helping them to reduce electrical bill expenditure In the process of DSM in power supply enterprise, it records customer electrical energy consumption data in detail the. After analyzing this data, it can carry customer behavioral analysis to understand the customer degree of satisfaction, customer loyalty and customer responsiveness. Through energy investigation based on the DSM, power supply enterprise CRM can calculate electric quantity of customers, help them understand increased electrical bill which the new electric appliance equipment will produce, and suggest how the customers save electrical bill. Contrasted with normally consume electricity characteristic, the CRM department may obtain the information which the user exceptionally consume electricity. It helps the customer change power consume custom, evade the peak to consume electricity, reduce the electrical bill expenditure, which increases customer degree of satisfaction and the loyalty. Meanwhile, it smooth load carve to the electric power company, reducing purchase electric power the expense in peak period. 4.3 Creates the new opportunity using DSM, enhances the product service increment DSM is helpful to balance these three relations: society sustainable development, power supply company low cost operation, and customer degree of satisfaction. In the foundation of segmentation of customer market, CRM in power supply enterprise designs product value-added service. According to different customers power consuming characteristic, power supply company make various energy price model by DSM principle and get profit. For example, it can formulate different energy price model aiming at different user, or establish DSM consulting and transacting system one on one, which improve the ability of marketing and service totally. In addition, CRM in power supply enterprise may also increase the third party service to get service value-added, e.g., to help the customer to find electric equipment installation business, provide electric appliance the general knowledge to use electricity and promoting the production of energy-saving and electric power-saving product an so on.

6 CONCLUSION
(1) Its necessary to implement power demand side management. Combining power supply enterprise CRM and DSM, it adjusts power demand structure. At the same time, it improves the customer satisfaction and customer loyalty, which increase the value of product service. (2) It blocks the implementation of DSM to make wages and bonus connected with electric quantity. Power supply enterprise must form the idea of power consume rationalization. It advises to constitute the policy, such as make wages and bonus connects with reasonably and saving consuming electric power, to sustain rational income and enthusiasm of power save.

ACKNOWLEDGEMENT
This research was supported by the Science Foundation of NCEPU under Grant 200511012.

5 STUDY ELECTRIC POWER PRICE FORMULATING RULE POSITIVELY, STRENGTHEN SCIENCE MANAGEMENT DECISION-MAKING
DSM must use electric power price lever reasonably. It important to CRM in power supply enterprise to carry out comprehensive peak valley time sharing electric power price. At the same time, it also should formulate the multi-level price system by electric power market supplies and demand condition, to satisfy different demand customer. In the shortage of electric power situation, by evading peak electric power price and interruptible load electric power price, it may reduce the peak load in power grid, alleviates the contradictory of electrical power system supply and demand. To the customer

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