Meter Efficiency - 'Getting the numbers right'
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A Growing Problem
Much has been made in the last 12 months about the integrity of regulatory data in the Water Sector. Leakage has taken a topical position
in the press, reflecting the heightened focus on water resources caused by the water scarcity situation across the south of England.
The need for change
The Regulator is now beginning a fresh review of how leakage targets are set, and will work with a number of bodies and other stakeholders in
this area. The current approach, which requires companies to take account of the operational, environmental and social costs of reducing leakage,
continues to provide effective leakage targets for use in water resource planning. However, the Regulator outlines that there are lessons to be
learnt from the experience of companies managing leakage in the current climate, with particular emphasis on the water scarcity position.
In trying to address this issue, water companies are finding that the problem is not simply limited to one of finding and addressing leaks. The
overall scope actually encompasses a number of key areas:
- Achieving upper quartile status and maximum OPA points
- Leakage levels and the challenges faced by companies to achieve the AMP4 targets up to 2010
- Data integrity around leakage calculations and compliance with regulatory reporting requirements
- Pressures on operating and capital expenditure (proportions in which it is spent) in line with the Asset Management Programme efficiency targets
- The national focus and press coverage on water resources and scarcity
- Income being under pressure both in terms of collections and identification of unbilled revenue
- Ensuring the accuracy of the water balance based on accurate consumption recording
- Delivery of excellent customer service reflected by fairer charges for all customers and the need to ensure that there is no cross-subsidy across measured /
unmeasured customers as part of the tariff basket calculations
- Impact of the Competition Act
Managing the Water Balance
Consequently, rather than adopting the traditional reactive approach to simply finding and fixing leaks at a district meter zone level, water companies
now need to add a strategic line to their leakage calculations. Specifically, they need to step back and consider their overall water balance figures by
proactively validating the accuracy of the meters doing the recording, for example source meters, and distribution meters.
Such an approach can be considered as a number of components, which adopt either a holistic approach to meter efficiency across the entire network or as
a more focused approach to specifically targeting income maximisation and / or leakage and the water balance.
Without proper management and control, leakage will undoubtedly become a more serious issue for companies in the years ahead. However, there is a logical
approach to meter efficiency and a process that underpins it that both detects leakage and manages a programme of measurement and analysis to help ensure
that there is a positive impact on income and water balance accuracy.
Realising the Benefits
Some of the benefits derived from companies using this type of methodology are:
- Additional revenue generated (target of 3% - 5% of gross turnover)
- Significant amounts of leakage detected (potential for 1.5% to 3%)
- Overall enhancement of the water balance
- Positive impact on company water resources
- Improved accuracy of water resource forecasting
- Improved data integrity
- Strategic Business Plan accuracy
- Potential for an improved confidence grade from the Regulator
- Cost effective verification of meter performance in key areas
- Skills transfer to company employees
SECOR Consulting has a wealth of experience in the UK Water and Energy sectors and provide our clients with an end-to-end approach for undertaking a
meter efficiency programme, which can easily be adopted by each company.
Click here to download the "Leakage" article that appeared in the February 2007 edition of Utility Week.
Contact SECOR on +44 20 8942 0252 or email info@secorconsulting.com for more information on our detailed
meter efficiency programme methodology.
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