AI systems switch your energy bills to save you money-Open Field Entrepreneurs Fund - Carnegie Mellon University

Friday, August 23, 2013

AI systems switch your energy bills to save you money

An era is coming in which artificially intelligent systems can manage your energy consumption to save you money and make the electricity grid even smarter

IF YOU'RE tired of keeping track of how much you're paying for energy, try letting artificial intelligence do it for you. Several start-up companies aim to help people cut costs, flex their muscles as consumers to promote green energy, and usher in a more efficient energy grid – all by unleashing smart software on everyday electricity usage.

Several states in the US have deregulated energy markets, in which customers can choose between several energy providers competing for their business. But the different tariff plans, limited-time promotional rates and other products on offer can be confusing to the average consumer.

A new company called Lumator aims to cut through the morass and save consumers money in the process. Their software system, designed by researchers at Carnegie Mellon University in Pittsburgh, Pennsylvania, asks new customers to enter their energy preferences – how they want their energy generated, and the prices they are willing to pay. The software also gathers any available metering measurements, in addition to data on how the customer responds to emails about opportunities to switch energy provider.

A machine-learning system digests that information and scans the market for the most suitable electricity supply deal. As it becomes familiar with the customer's habits it is programmed to automatically switch energy plans as the best deals become available, without interrupting supply.

"This ensures that customers aren't taken advantage of by low introductory prices that drift upward over time, expecting customer inertia to prevent them from switching again as needed," says Lumator's founder and CEO Prashant Reddy.

The goal is not only to save customers time and money – Lumator claims it can save people between $10 and $30 a month on their bills – but also to help introduce more renewable energy into the grid. Reddy says power companies have little idea whether or not their consumers want to get their energy from renewables. But by keeping customer preferences on file and automatically switching to a new service when those preferences are met, Reddy hopes renewable energy suppliers will see the demand more clearly...Read more»

By: Hal Hodson