• Petrus van Heerden

• Country Manager

• Kamstrup

• South Africa

Beyond Billing

Smart Water Meters as an asset management tool

How much water is lost? • Total cost NRW worldwide

conservatively estimated at $14billion per year

• 45 million cubic meters are lost daily through water leakage in the distribution networks(developing countries)

• Enough to serve nearly 200 million people.

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Source: WATER SUPPLY AND SANITATION SECTOR BOARD DISCUSSION PAPER SERIES P A P E R N O . 8

The Danish water sector • A total of 2,622 water utilities

(2005)

• Highly decentralised water supply

• Drinking water is typically produced and distributed locally

• Wide spread in size – from big

water utilities delivering to 100,000s of people to small

utilities delivering to 10s of people

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Driving Danish water utilities • Non-profit companies by law • Subject to the National Meter Policy

requiring individual metering • Subject to the Water Sector Act

(2010) requiring benchmarking on operational costs

Investments in Smart Water Metering • convert costs to revenue • results in better benchmarking • reduced water loss to average 8.9% • SA 36.8% (WRC 2012)

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Highly regulated pricing (Danva)

Source: DANVA, Vand i tal, 2012

Water company - DKK10,9

Sewage company - DKK30

Tax (Water) - DKK5,4

Tax (Sewage) - DKK0,4

VAT (Water) - DKK4,1

VAT (Sewage) - DKK7,6

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Drill-down on the water price (Source: Danva)

Source: DANVA, Vand i tal, 2012

Revenue - DKK0,86

Production - DKK5,03

Distribution - DKK5,01

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Smart Water Metering • Electronic meters with wireless communication • Mobile or fixed communication network • Intelligent alarms in the meter • Detailed data about water usage

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Non-Revenue Water

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System input Volume

Authorised consumption

Billed authorised Billed Metered Revenue

Water Billed Unmetered

Unbilled authorised

Unbilled Metered

Non-Revenue

Water (NRW)

Unbilled Unmetered

Water losses

Apparent loss Unauthorised

Customer metering inaccuracy

Real loss

Leakage on transmission and/or distribution

Leakage and overflows at storage tanks

Leakage on service connections up to point of

metering

Leakage after water meters

Assessing Non Revenue Water ( Source: IWA)

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System input Volume

Authorised consumption

Billed authorised Billed Metered Revenue

Water Billed Unmetered

Unbilled authorised

Unbilled Metered

Non-Revenue

Water (NRW)

Unbilled Unmetered

Water losses

Apparent loss Unauthorised

Customer metering inaccuracy

Real loss

Leakage on transmission and/or distribution

Leakage and overflows at storage tanks

Leakage on service connections up to point of

metering

Leakage after water meters

Assessing Non Revenue Water ( Source: IWA)

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The Danish Business Case

Short –term benefits • Billing according to actual consumption • Fast track from meter reading to billing • Proactive working with billing disputes • Less disputes due to better documentation • Improved accuracy in meter reading

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“After changing from mechanical to smart meters we document consumption precisely, more than a year back in time. Providing evidence at an early stage

helps settling disputes. Consumers have more trust in our meter readings now.” Eyvind Holst, Chairman, Toerring Water Company, DK

Long –term benefits • Better Customer Service through data analysis • Lower Total Cost of Ownership • Detection of hidden leakages • Extending asset life and delaying investment

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“It used to be extremely difficult to localize leaks. First test reading of 255 new smart meters detected 3 leaks; two hot water tanks and a bath-room pipe.” Dennis Schrøder, Operational Manager, Hjerting Electricity and Water utility, DK

Differences in investment • Same level of installation cost but different TCO • Smart meters typically go through 2 reverification periods • Vanewheel meters typically last 1½ reverification period (based on DK sample testing in the 6th year of installation)

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”After introducing individual smart metering the annual water consumption dropped from 12.000 m³ to just below 6,000 m³, bringing savings of 40,300 EUR per year” Niels Munthe, Energy Manager, Aarhus General Housing Association

Difference in costs for meter reading Example: DK Utility with 6000 metering points read twice a year: Estimated costs using meter reading cards, twice a year 36,940 EUR Estimated cost using smart metering 4 times a year 10,880 EUR

Missing meter data Example: DK Utility with 6000 metering points read twice a year: Approx. 15% of the customers do not submit meter readings > costs for estimated billing No costs for estimated billing with smart metering

” Previously the annual consumptions report could take weeks, in some cases months. Today, we collect annual consumption data from 1,350 customers within a few hours using

smart phone.” Allan Kvist, Chairman, Auning Water Utility, DK

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Start flow registration Smart meters start at lower start flow Result is a higher volume measured Leads to a lower price per m³ Water loss Water loss above 10% is invoiced approximately 0,67 EUR/m³ in penalty

”“After changing to smart meters we document consumption precisely, more than a year back in time. Providing evidence at an early stage helps settling disputes. Consumers have

more trust in our meter readings now.”

Eyvind Holst, Chairman, Toerring Water Company, DK

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”“After changing to smart meters we document consumption precisely, more than a year back in time. Providing evidence at an early stage helps settling disputes. Consumers have

more trust in our meter readings now.”

Eyvind Holst, Chairman, Toerring Water Company, DK

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General findings • Benefits are found both with small,medium-sized and bigger water utilities

• Smart meters are efficient in minimizing non revenue water

• Smart meters can improve customer service as you better

understand the customers unique usage pattern and needs

• The smart meter is a perfect tool for water conservation

More information Stand F12 www.kamstrup.com Thanks for your attention! Petrus van Heerden Country Manager SA pvh@kamstrup.com