Water Meters & Tariff - Analysis from a 165 Unit Apartment Complex
Water Meters• Tariff Setting• OperationsPresenter:Sajin KunhambuOasis Breeze, Bangalore
Tariff Setting1. Log usage at bulk level (at sumps/tanks) – A per month2. Take into consideration following expenses – B per month1. Tanker Charges2. Kaveri/BWSSB Charges3. Borewell - Electricity Charges4. Sump Motor – Electricity Charges5. STP – Electricity Charges6. KSPCB Charges7. Salary (or part thereof)8. Maintenance of equipment (Meter, Motor, STP, etc.)3. Per unit Price – C = B/A (usually in Rs/KL or Ps/L)4. Average this over 6 months or an year
LOGOOperationsStaffing PlanFor 100 connections, every month1. Around 50 hours is required to bill and collect2. Around 20 hours would be required to book-keep3. With the above, you need a full time employee for 200+ connectionsAccounting1. Maintain a separate head in your existing accounts2. Accept payment from Maintenance Account for common area water usage(all unaccounted water will go under this head)Warranty/AMC1. It’s fair to expect 2 years warranty from vendor(for labor & material)2. Post that we plan to get into an AMC, not sure yet * Effort estimates are projected based on maintenance collection data
Show me the moneyROI discussion is rather convincing in this case. Why?Water Expense last year in our apartment from above heads combined is nearly15 lacs, resulting in 4 paise per liter. If our Kaveri supply was slightly lesserand Tanker more, this could go to 5 paise per liter (i.e. 18 lacs pa)Kannan saw a reduction of nearly 50% in their water usage after billing. Let’sconservatively say it will be 30%We’re talking about a saving of 6 lacs pa. If we put extra operational expense ofa lac due to meters, it’s still 5 lacs pa.Our bill for water meter fixing for entire complexis around 12 lacs. That means less than 3 years for ROI.