Wednesday, April 13, 2011

Smart meter security under the spotlight

The saboteurs who struck at Iran's uranium enrichment programme in late 2009 didn't need to set foot inside the heavily guarded underground facility that held the equipment. Instead, the interlopers planted a malicious virus on its computers. The virus, known as Stuxnet, burrowed its way into the the facility's control systems and cranked up the power, causing critical equipment to spin itself apart.

For most people who read about the event, it seems like the plot of a futuristic spy thriller, but Alex Desbarres, a senior analyst with business information provider Datamonitor, sees an immediate threat. Desbarres follows the UK's electricity markets, and he knows something most of us don't: the industrial control systems in Iran are exactly the same as those used in many of Britain's power stations. "I think that utilities could be targeted," he says.

The threat of internet viruses infecting home computers and mobile phones is something we have all learned to live with, but soon many homes' energy supplies could face similar risks. Security experts say smart meters are also potentially vulnerable to hacking and manipulation. Moreover, the masses of data they produce on energy consumption habits could prove valuable to thieves, scammers, or unwanted telemarketers.

Taking the threat seriously

Utility executives and government regulators insist they are taking the potential risks of smart meters seriously. "You've got to have security absolutely at the beginning," says Dean Keeling, who heads the smart homes division of Centrica, the parent company of British Gas.

But with no firm rules yet in place, experts say that not all smart meters are secure and not all utilities take security seriously. The vulnerabilities "would shock you", says Joshua Pennell, the executive director of IOActive, an internet security firm that has consulted on smart meters.

Whether the security is there or not, smart meters are coming. The expected efficiencies created by the smart grid should reduce energy consumption, pave the way for the use of renewable power sources such as wind farms and save consumers money. For all these reasons, the government is hoping to see smart meters installed in 30m homes in coming years.

Smart meters, like any computer on a network, are vulnerable to attack. In 2009, IOActive simulated an attack by a virus similar to Stuxnet that could attack meters in thousands of homes. While it's unclear whether gaining control of the meters would allow a hacker to take down the power supply, the stakes are far higher than your average computer virus, says Purnell. In 2003, an accidental blackout in New York City led to fires and several fatalities. "If the power gets disrupted, there are all sorts of unintended consequences," he says.

Keeling says British Gas is taking measures to prevent this kind of incident. It has already rolled out smart meters to 80,000 homes, with a system using end-to-end encryption identical to that used in mobile phones. In addition, he says the utility is constantly on the hunt for vulnerabilities: "We have a full-time internal team engaged in stress-testing."

But even if the technology used is relatively safe, consumers' data may not be. In the past, utilities collected readings from consumers, often by sending someone around to read the meter on the wall. By contrast, smart meters will generate more than 15,000 pieces of data each year on domestic energy habits and send them automatically to a central database. In 2009, Dutch researchers showed that this data raised a number of privacy concerns.

At the most basic level, a thief could use the data to see when homeowners were around and plan break-ins. It could also be used by governments to spy on citizens, or by insurance companies to set rates. Finally, says Desbarres: "A meter that provides numerous interval reads provides a utility with a great deal of commercially valuable information about how and when consumers use their energy. That really opens the relationship between the utilities and their clients to potential abuse."

Keeling says British Gas has already set up a strict system for monitoring who has access to consumer data and when. In addition, he says consumers will have the option of going to a "minimum standard" of one reading a month if they like. As for selling consumer data, Keeling says British Gas hasn't ruled out the possibility, but that any such programme will be "opt-in", meaning it won't be done without the customer's consent.

Such moves may reassure some, but consumer groups say they are still awaiting official government regulations. "The government is taking this issue seriously and has said it will adopt strong security measures and carry out a full risk assessment of the smart grid system," says Zoe McLeod, energy expert at Consumer Focus. "These steps are welcome but this needs to be done urgently, before the wide-scale rollout, to protect customers and give them peace of mind about the security of their meters."

Ultimately, most experts believe the benefits outweigh the security risks, but they are wary of being too cavalier in their deployment of the new system. Already smart meters have suffered setbacks in the Netherlands and the US, in part because of security fears. Despite the many other challenges, security must stay at the top of the list, Desbarres says. "Failing that, smart metering will suffer a heavy blow in the UK."
Domestic life Homes of the future

From fridges that count the number of times you open the door, to a vacuum cleaner that can feed the cat, a wave of "smart" home appliances are about to go on sale around the world.

Public launches and trials of appliances have already begun. Fridges that can detect when electricity capacity is strained or when there is spare power in the grid, and so switch off or on their motors, are being trialled in the UK. For homes that pay lower rates when there is spare supply, German manufacturer Miele is launching washing machines and driers that can be programmed to come on when demand is lower. Freezers and dishwashers are obvious candidates to join this list.

South Korean electronics company LG's futuristic home appliances, unveiled in January, include "smart ovens" and a vacuum cleaner that can also dispense pet food. Intel also raises the prospect of electric vehicles charging up at cheaper times and downloading battery power when needed. Smart plugs could potentially transform any appliance in the same way.

Many companies are developing smart meters that display details of appliances and their energy use, and can turn them on or off to take advantage of the most economical and energy-efficient times. Appliances could also be controlled remotely by smart phones or computers. Miele, for example, has developed a domestic black box that would allow people to program and remotely control all appliances, lighting and heating – or a more limited system for only their own branded smart goods.

Despite the huge investment, estimates of how much energy is likely to be saved are tentative. GE, which is trialling smart fridges, hobs and washer-driers, quotes a study which suggests that if all US homes were fitted with smart meters, total peak‑time demand would fall by 7%.

Source: http://www.guardian.co.uk

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