The role of high connectivity in water management

The power of smart metering coupled with high connectivity can transform how we manage and conserve our most precious resource – water.

It's well-known that replacing regular/old meters with smart ones provides more accurate billing. For utilities, smart metering data can help with precise billing and identify network leakage, improve efficiency and hit industry targets.

Moreover, smart metering can play a pivotal role in identifying and reducing customer-side leakage and Per Capita Consumption (PCC). With additional data analysis, smart metering can highlight profile usage and encourage water efficiency. This promotes water conservation and sustainability.

With more granular reading and consistent high connectivity, we can harness the power of data to gain deeper insights into what is happening in homes, business and in utilities’ water networks. However, the crux of this lies in the level of connectivity.

At 85% connectivity on a daily basis and 95% over a week, water companies can gather enough information for billing purposes. This is the digital equivalent to sending a meter reader to the door. However, it’s a considerably more expensive alternative. A doorstep meter read adds about £3 to the bill, whereas the equivalent smart meter read adds nearly £20 to the water bill. Is this cost justified?

To extract real value from smart metering, higher connectivity is required to access more detailed information from the meter. At 95% complete data on a daily basis and with minimum night flows, the utility will be able to provide the home or business with their daily consumption and issue leakage alerts.

Estimates suggest that customer-side leakage amounts to 10% of consumption and that network leakage is close to 30% of consumption. This is a pressing issue that needs addressing. Without the data from this higher level of connectivity, will the UK water utilities truly tackle the problem?

At a connectivity level of between 95 and 98% daily combined with night volume data, water utilities will be able to balance the water budget within a zone The higher data completeness will provide them with accuracy regarding how much is delivered and consumed within that district metered area (DMA), indicating the level and, to some extent, the location of network leakage – a fundamental aspect of future water management. Ofwat requires water companies to reduce network leakage by 15% this AMP cycle. Smart metering is a significant tool in achieving these reductions.

With 95-98% daily connectivity, combined with the power of edge computing, which provides additional data (delivered in easy-to-transmit, low power packs), utilities can provide customers with precise information on their consumption habits. The UK targets are that by 2030, PCC needs to be down by 4%, by 2038 by 20% and the national goal is 110 litres per person per day. Without the awareness that comes with this level of data analysis, people will struggle to understand where and how they can reduce their water usage, and where they can transition from inefficient to efficient appliances and consumption. 

As UK utilities are expected to spend £1.5 billion on smart meter rollouts during the 2025-30 AMP cycle in England and Wales, it is important that their investment (aka customers’ money) is spent as wisely as possible; that the return on investment materialises in terms of lower leakage and reduced consumption. 

Recently, Ofwat issued a revised framework that includes a minimum connectivity level of 80%. What connectivity level should water utilities aim for? While a connectivity of 80% might be sufficient for billing, it may not be adequate to reap all the expected benefits of smart metering, especially considering its significant cost.

Smart metering systems, equipped with the right levels of connectivity and suitable analytic capabilities, are crucial for reducing leaks (both within the water network and on the customer's side), and for enhancing the efficiency of water usage in both households and non-household settings.

We must embrace this digital transformation for a more efficient and sustainable water industry.