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Smart  metering for UK water utilities
Smart  metering for UK water utilities
Smart  metering for UK water utilities
Smart  metering for UK water utilities
Smart  metering for UK water utilities
Smart  metering for UK water utilities
Smart  metering for UK water utilities
Smart  metering for UK water utilities
Smart  metering for UK water utilities
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Smart metering for UK water utilities

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Facts and trends about smart metering for UK water utilities.

Facts and trends about smart metering for UK water utilities.

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  • 1. What a major water company in the UK should do in the area of smart metering? What are the key areas of investment and benefit? By Guillaume FERY Guillaume FERY – http://orignal.blogspirit.com August 2010 - p1
  • 2. An introduction to smart metering See impact of football match France-Spain on water supply in Paris 27 june 2006 (3-1) Sources: Eau de Paris Guillaume FERY – http://orignal.blogspirit.com August 2010 - p2
  • 3. Smart metering ? What it is : What it is not • Technology • Information about water and network efficiency • Millions of data • Databases • New operational organisation • Standards • Measure and control • Costs • IT • Customer satisfaction • « Big brother » • Opportunity for New • A new device in the prices & New services living room Guillaume FERY – http://orignal.blogspirit.com August 2010 - p3
  • 4. Waterfacts: it is time to act • Customers – Bills mostly not in line with real consumption – Customer / Changing lifestyle & behaviour / smart homes – Only 1/3 of domestic properties are metered. They are going to be equiped – Demographic changes + transparancy expectations • Ressource : – Climate change and ressource issue are the biggest Introducing threat to the sustainability of water services Smart Metering – Leakage control / Asset management / prioritize is part of investments the answer – Regulate demand in water stress zone • Water companies are « cash negative » and could find new revenues Sources: gfery, Water UK, Ofwat, Water Guide, IWA Guillaume FERY – http://orignal.blogspirit.com August 2010 - p4
  • 5. Smart metering is expensive hardware, software, implementation, maintainance, exploitation CAPEX, OPEX: cost analysis CAPEX Network 5% CAPEX 68% CAPEX Overhead 1% OPEX 32% CAPEX electronic transmiters 49% CAPEX Software CAPEX Meter 13% OPEX IT, licenses 8% OPEX Overhead 3% OPEX Maintenance 13% OPEX Stock, asset management 8% Source : gfery About 15 to 20 pounds/year/customer Smart metering deployment and running can double domestic customer fixed costs. Who is going to pay for it ? What is the value proposition ? Guillaume FERY – http://orignal.blogspirit.com August 2010 - p5
  • 6. … and benefits • Improve customer satisfaction, introducing accurate billing (and firstly a meter sometimes) • Better asset management : monitoring meters running (or not) • Improve network management with real time leakage information and find non revenu water • Improve resource management • Modernise CRM and operations • Create new services from data to information with other stakeholders Guillaume FERY – http://orignal.blogspirit.com August 2010 - p6
  • 7. Where to start ? • Analyse – What is the meter installed base ? Make, age ? – What type of customers ? Who are the bigest ? The ones for who water matters – Is the yield hight enough ? Is there resource monitoring issue somewhere ? – What do you really know today about water consumption in your area ? • Imagine – New services to create value satisfaction: alerting, monitoring, acurate billing, etc. – New tarifs to increase customer satisfaction – New parterships to use data and create relevant information for the city • Evaluate – Ability to implement such a projet. Skills and people availabilty to create a dedicated task force – Impact on front/office and back office and people’s skills to run and maintain the system – Budget available for such strategy. Impact on capex/opex Guillaume FERY – http://orignal.blogspirit.com August 2010 - p7
  • 8. Conclusion: SWOT analysis Strenghts Weaknesses Existing clients Skills (IT, broadband, etc.) Know-how about metering Deep operational impact – Project management skills change management Legitimacy to manage data lifecycle from Capex / added value needed end to end Opportunity Threats No standards Strongs drivers : technology, customer, regulator, « smart grid » Relies strongly on technology and IT issues and « smart city » effect Ability to meet the deadlines (complexity) Starting point for a revolution in the Strong and established business case to business : new offers, new create business models (tarifs, etc.) New competitors Better asset & ressource Privacy issues management Assets owner strategy Guillaume FERY – http://orignal.blogspirit.com August 2010 - p8
  • 9. Thank you Guillaume FERY +44 787 597 4124 feryguillaume@googlemail.com http://uk.linkedin.com/in/gfery http://orignal.blogspirit.com Guillaume FERY – http://orignal.blogspirit.com August 2010 - p9

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