7 questions you should ask your suppliers
What’s the cost-per-successful read?
Upfront costs can be an unhelpful measure for smart water metering provider comparison. That’s because lower upfront costs can lead to higher in-life costs, either from remedial actions to source the meter reads or shorter than anticipated battery lives.
Whole-life cost is a better measure for comparison – but sometimes it also presents challenges. In some cases, suppliers’ whole-life costs are estimates based on test conditions, rather than lived experience in a real-world setting.
Both upfront costs and whole-life costs can overlook an important factor – meter read success rate. While Solution A could be half the price of Solution B, if it only captures half the readings, then it’s not a bargain.
The best way to compare providers on cost?
Cost-per-successful read.
This comparison tells you exactly what you’ll be paying for the true value of your asset – accurate, reliable data. It also provides strong insight into the quality of the supplier’s connectivity infrastructure and data transmissions.
Some suppliers are now open to contracting on a cost-per-successful read basis, so make sure to ask them about their guarantees.
What data accuracy can you guarantee?
The latest research from Frontier Economics and Artesia Consulting confirms that the lower your data accuracy, the lower the returns you can expect from your smart water metering investments.
Water companies with high meter coverage (95%), getting hourly reads shared every day with a 90% read accuracy can generate benefits of £4,137 million over a 30-year period. These benefits include:
- More efficient leakage delivery
- Lower consumption costs
- Avoided capacity costs
- Lower carbon emissions
- Reduced meter reading costs
- Improved infrastructure management
- Improved forecasting data
By contrast, water companies with low meter coverage (30%), with daily reads shared every month at a low read accuracy (50%) can generate benefits of just £2,058 million over the same period.
This is because reliable, timely, accurate data is essential for effective customer engagement. Without rich data, you can’t segment communications to curb water use or tackle leaks. You also limit your options for future network applications and innovations.
Ask your suppliers for their data accuracy statistics.
How can you guarantee the longevity of your infrastructure?
To prolong the lifespan of your metering devices, your network needs to perform at its best for the long haul.
This means your network needs to be built to stand the test of time. For example, check with your supplier about connecting your devices to public buildings or utilities like lamp posts. If they plan to use this approach, ask if they have any guarantees from local councils that these public assets won’t be moved or changed over the coming years. Any alterations will impact your communications infrastructure – and your investments.
Find out from your suppliers what safeguards they have in place to protect your infrastructure.
How resilient is your supply chain?
According to the experts at Baringa, the number of smart water meter installations in the UK will jump from 2.5 million over five years (AMP7) to 2.5 million every year in AMP9.
To cope with the surge in demand, it’s important to work with suppliers who have strong global supply chain relationships. They should have strong partnerships with all the main meter manufacturers – and they should be collaborating to optimise processes and guarantee asset delivery.
Your suppliers should also have access to a skilled installer workforce with a proven track record of large-scale delivery. They need ample UK experience – and a solid understanding of the different installation challenges in urban and rural locations.
What connectivity technologies do you support?
Smart water metering technology is evolving and maturing. With the technological landscape in flux, UK water companies are, understandably, worried about selecting the right solution.
Water companies are all striving towards a future where consumers can easily monitor their water usage and make changes to reduce their consumption. However, the paths to achieving this goal technologically will vary from company to company.
The solution you choose during this buying cycle might need adapting in the future to match your evolving smart metering requirements. In AMP8, it’s key to select a provider who can support you for the long haul, adjusting your solution as your needs change.
When will our smart water metering investments pay back?
Installing smart meters is resource-intensive and costly. With this in mind, water companies should think about the ‘lifetime’ of their network, and what guarantees suppliers can make to ensure its longevity.
For example, investing in a higher upfront priced meter with a 15-year battery life can save money in the long run compared to a meter requiring earlier installation due to its shorter battery lifespan.
To make sure you’re making the best decisions for your business, ask your suppliers about the long-term viability of their technology and the benefits it can bring you over the next 15-20 years. We also recommend double checking the details of suppliers’ maintenance guarantees to protect your investments. Exclusions related to network quality, installation temperatures and water immersion can prevent water companies from fully benefiting from the meter before the warranty expires.
While total cost of ownership is important, we understand that water companies also want to maximise their investments and see immediate results once the meters are deployed. Talk to your suppliers and find out if their technology allows you to start reaping the benefits right away. For example, can they help you speed up the value you can get from your assets? Ready-made services or solutions like advanced analytics support or customer engagement apps can help you accelerate behavioural change.
Finally, we recognise that not all water companies have the same opportunities to install meters easily. Some companies can swiftly roll out meters in entire areas and reap the benefits quickly. For those relying on replacing existing meters and encouraging opt-ins, the story is different. Metering in these cases is less about driving high penetration and more about modern meter replacement. In these circumstances, it’s tempting to opt for lower-priced options.
However, mandatory metering will eventually cover all customers in the UK. The meters you install now will have a large role to play in a mass metering future, so it’s best to make sure those meters deliver you maximum value, without needing replacements or remedial action soon.
What financing plans are on offer?
Many water companies are facing tough budgeting decisions – balancing major infrastructure spending with reasonable customer tariffs.
Under these conditions, lots of UK water companies see their AMP8 smart water metering investments as a forced choice between low upfront costs and low whole-life costs.
But this isn’t the case.
Flexible financing is available, helping you spread the cost of your smart water metering investments over the lifetime of your assets. That means that you can benefit from a higher-quality solution for longer, without crippling CAPEX costs or unwelcome bill increases.
The best suppliers should demonstrate commitment to your business by crafting a financing plan tailored to your specific goals and constraints. They should be working with trusted partners, designing innovative, sustainable funding methods that will deliver for your business over AMP8 and beyond.
Ask your suppliers for a customised financing solution that matches your business needs.
Such solutions can be set-up on a ‘per read’ basis, which we consider the most accurate method for comparison. This approach also lets you focus on your metering benefits, rather than the rollout management.
The right partner is the first step to success.
Selecting the right partner for your smart water metering projects is an essential step towards success.
The best choice is a supplier that promises great value over the lifespan of your assets, guarantees quality and data accuracy, has a proven track record in large-scale installations, and offers maximum flexibility in technology and financing.
Ask your suppliers the right questions to unlock the real benefits of smart water metering.
