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Ms. Dorothy Mabuza
Divisional head: Water Quality and Revenue Management
Ekurhuleni Metropolitan Municipality
South Africa
THE EVOLUTION OF WATER METERING
TECHNOLOGY AND THE SELECTION PROCESS
Contents of presentation
• Introduction
• Water business value chain
• Vaal river system: EMM Status quo
• Principles of a WDM strategy
• Metering value chain
• Catalysts to metering
• Evolution of metering technology
• Selection process mapping
• An approach to adopting new meter technologies
Introduction
• The South African Constitution states that everyone has the right to have access to sufficient water (RSA, 1996).
• South African households with access to potable water increased from 84,5% in 2002 to 89,5% in 2011 (Stats SA, 2011).
• To reach NRW acceptably “good” levels as per the IWA barometer; water losses and unbilled authorised consumption must aggressively be addressed.
• Meters are deemed to be cash registers for Water utilities with the premise that revenue is generated through efficient billing.
Water business value chain extract from TCTA
VAAL RIVER SYSTEM: EMM Status quo
• Current water demand exceeds supply
• RW has exceeded its license quotas and can’t be extended further (at least for now)
• Reduction of demands by Municipalities recommended
• High water losses
• Technical losses
• Non Technical losses
• Ageing and continuously ageing meters
• Revenue projections more than actual
• Interim readings: remains a challenge
• Non-payment of services in low income HH
• NRW @ 36.8% (Feb 2015)
VAAL RIVER SYSTEM: EMM Status quo
• The cost of procuring water from Rand Water (including the water
research levy) is R6.00 / kiloliter, and EMM’s water demand is
357 640 839 kiloliters per annum (2013/2014). Therefore the cost to
EMM of procuring water is R1.981 billion / annum (2013/2014).
• Income from water tariffs is R2.669 billion / annum (2013/2014
financial year).
• By-laws for water meters to be read at least 4 times a year.
• A provision is made to bill on interim consumption calculated at a
fixed tariff rate and later on in the cycle, same is reconciled using
actual readings and billed accordingly.
• In 2013/2014 a total of 470 714 meters were accounted for in the
Municipality’s asset register.
• The percentage of meters billed on a monthly basis …. 93.94%.
• Interim readings made on a monthly basis …………… Avg. 6% .
• The percentage of no-readings …………………………… 5%
• The payment level of accounts sent out …………………. Avg. 92%.
VAAL RIVER SYSTEM: EMM Status quo EKURHULENI ANTICIPATED FUTURE DEMAND (WITH & WITHOUT WDM)
GENERIC PRINCIPLES OF A WDM STRATEGY
Water conservation •Water loss minimisation
•Care protection of the water resource
•Effective use of water
Water Demand Management “The adaptation and implementation of a strategy by a water institution or consumer to
influence the water demand and usage of water in order to meet any of the following
objectives: economic efficiency, social development, social equity, environmental protection,
sustainability of water supply and services, and political acceptability.”
Integrated resource planning
“A way of analysing the change in demand and operation of water institutions that
evaluates a variety of supply-side and demand-side management measures to
determine the optimal way of providing water services”.
Metering value chain
• Vaal river
Source
• Water quality
Treatment • Infrastructure
• Energy consumption
Distribution & Storage
• Metering
End user
• Tariff model
• Revenue enhancement
Meter reading & Billing
Purpose of water meters “If you can’t measure; you can’t manage”
• A Water Utility must account for every drop of water it
purchases as bulk and then passes it on to the ultimate
consumer.
• To optimally account for “every drop” purchased and
then sold, a Utility must, therefore, have a very reliable
system and instruments to measure the amount of water
that goes into its water system and the amount of water
that goes out of its system: Water Balance
• A Meter plays a pivotal role in this regard – without it the
ability to account for water-in and water-out would not
even remotely exist.
Purpose of water meters “If you can’t measure; you can’t manage”
• The primary purpose of a meter is to measure the quantity (volume) of water used at a given time.
• The secondary purpose of a meter is to determine the efficiency within which a Utility distributes (via pipes) and retails water to its customers
• The tertiary purpose of a meter is to protect the quality of water supplied to end users by preventing backflows into the main pipes.
• The quaternary purpose of a meter is to assist customers to detect water leaks within their premises or properties.
Catalysts to metering
• Equity
• System efficiencies and losses
• Economic benefits
• System management
Catalysts to metering
Equity
End users accounting for
their own consumption
Billing of end users
Accurate accounts
System efficiencies and losses
Infrastructure integrity &
performance
Water conservation
Maintenance management and planning
Economic benefits
Accuracy in meter reading
and billing
ROI
Revenue enhancement and
protection
Sound and cost reflective tariff
structure
System management
Demand management
Water balancing
Bulk purchases and distribution
Accounting
Evolution of metering technology Traditional water meters Types of existing traditional meters
• Displacement
• Velocity
• Electromagnetic
Mainly used for:
• Measuring flow
• Volume of water consumed by classes of end users
The use depends on:
• Flow measurement
• Method of measure
• Type of end user
• Required flow rates
• accuracy
Evolution of metering technology Smart meters
• Above ground installation: easy access
• Accurate meter reading
• Automated Meter Reading (through a network
communication smart grid)
• Proactive leak detection
• Restriction functionality
• Monitoring and management of consumption by
consumers
Evolution of metering technology Smart meter
• Reduce non revenue water
• Improve meter reading performance
• Improve the accuracy of billing for water services and provide realistic revenue projections
• Tamper resistant
• Restore trust and credibility to our customers - brand equity
• Improve the revenue generation and collection capability
• Meter can be read remotely
Benefits to a Water Utility
Evolution of metering technology Smart meter
• Paying for actual consumption
• Reliable and predictable data
• Empower the customer by helping them to budget for water consumed & to be consumed
• Ownership of water consumption (free basic and actual consumption)
• Reduction in credit control action
• Prompt reaction to any leaks within property
Benefits to consumers
Selection process mapping
Business case
Legal & policy framework
Operational landscape
Metering costs
Selection process mapping
End user classification
Market readiness
Cost benefit
analysis Funding
Selection process mapping
Lega
l & p
olic
y fr
amew
ork
The Constitution of the Republic of South Africa (Act 108 of 1996 as amended)
Water Services Act (Act 108 of 1997 as amended)
Municipal Systems Act (Act 32 of 2000 as amended)
Regulations under Section 9 of the Water Services Act (Act No. 108 of 1997) Norms & Standards for Quality Water Services
• Regulation 10
• Regulation 11
Draft National Water Resource Strategy 2 (NWRS-2)
Water Supply By-Laws
Water and Waste Water Tariff Policy
Pricing Policy
Annual schedule of tariffs for the supply of water and waste water services as promulgated annually.
Bu
sin
ess
case
Long term strategic goal
Technology fit (e.g. Pulse output)
Sustainability
Value-add: resources allocation
Business appetite
• NRW reduction
• Improvement & accurate billing
Op
erat
ion
al E
nvi
ron
men
tal Socio economic
landscape
Political buy-in
Economics
Economies of scale
Institutional readiness
• Smart grid
• Communication infrastructure (Back end)
Selection process mapping
Met
eri
ng
cost
s Meter specifications
• Customer type (Domestic/Commercial)
• Meter size
• Meter class (measuring ability) A/B/C/D
• Meter design and operational life span
• Battery life
• Meter type
• Meter ability to fit with any improved technology
Staffing costs
O & M costs
Mar
ket
read
ine
ss
Technology maturity levels
Market saturation: lead time
Accessibility of technology
End
use
r cl
assi
fica
tio
n
Tariff structure
Tariff model
Consumption regime
Quantification of end users in terms of economical activeness (Revenue generation)
Selection process mapping
Fun
din
g Funding model
• Provider’s funded initiative
• Sharing of costs (Water utility & Provider)
• Water utility’s funded initiative
• Incentive based
Funding mix
• Bonds/Loans
• Water utility’s reserves
• Grants
Funding strategy
• On or off balance sheet
Co
st b
en
efit
an
alys
is
Unit cost of water
• Bulk purchases and sales
Unit cost of metering
• Cost of providing infrastructure
• Staffing costs
• Meter management and administration
Income/Revenue
Return on Investment
R
isk
man
age
me
nt
Risk planning
Risk register
Risk assessment
Risk ownership
Risk mitigation
Risk remedies
An approach to adopting new meter technologies
• Smart water metering is at an infancy level globally.
• Research has proven such.
• Some countries are yet anticipating to adopt the technology
due to pressing reasons such as Water scarcity and
Conservation efforts.
• The delay with either adoption or implementation is as a
result of a host of factors:
• Technology maturity
• Stakeholder and end user buy-in
• Institution readiness
• Technology sustainability
• Always recommended that a technology is piloted prior to
adoption and commitment.
• Pilot must include financial analysis, impact and viability &
environmental factors.
An approach to adopting new meter technologies
examples….
California:
• A law was passed in 2014 which calls for cities to cut their
water use by 20% over the next ten years.
• The state has endorsed smart meters
• To date; around half of the state's water utilities have some
smart meters in their service areas and the number is likely to
grow
Mexico:
• Serious challenges with aging infrastructure, rising demand for
water and funding constraints.
• The city adopted various strategies, including recharging of
aquifers and other projects. This; however, didn’t yield
anticipated results and hence the adoption of smart meters.
• To date, 50 000 smart meters are installed across a total
supply area of 200 000 metered connections.
THANK YOU!
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