Smart metering for UK water utilities

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Facts and trends about smart metering for UK water utilities.

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Smart metering for UK water utilities

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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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