Smart Water – Value Chain

Before investigating and procuring a Smart Water Metering service, it helps to understand the water value chain, the stakeholders within it and their desired needs from any new technology driven solution.

Consumer

Water consumption can run out of control if it is unchecked, and issues arising from leaks, empty properties and inappropriate use of water can all affect the quality of supply to homes and businesses in a surrounding area.  A connected, smart water meter goes some way to solving these issues with minimal intervention.

Consumption

Water companies have different drivers for control of water consumption in the home, depending on their location and other factors.

1. Leakage detection and prevention

Leakage is a major concern for water utilities and homeowners.  Water leakage on the supply side can result in large volumes of water being lost, and on the customers property excessive bills and in some cases significant damage and cost to repair.

Smart water meters can highlight potential leaks on customer property through monitoring for excessive meter readings, allowing the water company to contact their customer and highlight the potential issues for them.   Management of excessive water consumption

Smart water meters mean that the household pay for what they consume, so excessive water consumption, particularly from items such as garden sprinklers can be directly discouraged through tariff management.

2. Water demand management

Water follows peak demands patterns in the same way as other utilities, with the majority of water being consumed during morning and evening peaks.  This can create issues with the supply of water in some areas, as water pressure must be maintained even at times of high peak to ensure supply can be maintained.  IoT allows these peaks and related issues to be monitored and managed, and the case for new services such as water storage on site or peak time tariffs, to smooth the demand profile can be introduced.

Installation

Water meters are typically located in hard to reach places – in underground access holes, basements and generally at the boundary to the property to be metered.   New Mobile IoT networks allow collection via a wide area network without having to visit the meter site.  Devices using these networks are battery powered, with a battery life of 10 years or more.

Utility

The Water utility themselves are a core part of the water metering value chain, and smart water meters can help with various aspects of their operations.

Distribution

The water grid used to distribute water is a key part of a water utilities infrastructure.  The IoT, including smart meters are able to simplify the management of this is a number of ways.

1. Granular data provided from connected smart water meters assists with the management of water distribution
2. Water demand can peak in the same way as other utilities, and the use of smart water meters allows supply to be monitored and controlled effectively.
3. Leak detection is important in the distribution water grid. There is significant evidence that finding leaks earlier will result in fewer bursts, reduced costs and improved customer service.

Water Quality

Water Quality is a critical KPI for water utilities.  Poor water quality is a major cause of poor health, and can affect economic progress.   Water quality can be affected by leaks and contamination from various external sources.  In order to maintain water quality IoT sensors can be used throughout the water distribution network.    Water quality can be measured by IoT sensors in both open water environments such as reservoirs and closed water in water mains.

Customer Engagement

Smart water meters and other IoT sensors create a range of new opportunities for water companies to engage with their customers.  Without smart meters, water utilities only contact with customers is when there is an issue or when a bill is due.  With the new data insights that smart meters bring, water utilities can change the way that they communicate with customers and engage with them in new ways.

Regulation

Water companies must operate in a regulated environment in most parts of the world.

Smart water meters and other IoT sensors are key to enabling both measurement of regulated KPIs and enabling certain regulated initiatives within the water market.  It is clear that data from water meters and other IoT sensors can be used to measure and alter behaviour around water consumption, water quality and water distribution.  Water meters can also be used to enable more customer and industry centric mechanisms such as better planning through better data, improved choice and cost comparisons for consumers, reducing water losses from leaks or improving response times to burst pipes.

Customer Choice

Increasingly, regulators are looking at how to bring competition to water markets to ensure that customers obtain value for money.  They want to ensure that new entrants can enter water markets and able to offer new services to customers through innovative models.

IoT and Smart Meters are critical to enabling these new models and letting customers access data to enable to make informed choices.  By allowing water companies and consumers access to detailed, accurate consumption data, new processes can be designed to support new market initiatives.

External Forces

The water industry in under pressure from external forces in many markets, which the water industry needs to adapt to for future success.  IoT sensors and Smart Water Meters will be key to transforming the water industry to meet the challenges that it faces head on.

Climate Change

IoT sensors are able to help water utilities adapt and plan to the changing environment.  Real-time data from the water network combined with other data from external sources such as weather forecasts allow the utility to plan for extreme events, whether that be tighter control over water consumption during periods of drought, or maintaining water quality during times of flood, IoT sensors give water companies unique insight into how the water network and water consumers are adapting and coping with extreme events.

Technology

The IoT is driving significant change within the water industry.  Communications technology and data analytics are now at a point where the water industries needs can be met.  The water industry requirements for smart meter communications – long battery life, taking readings every hour or less and communications coverage for difficult to reach locations such as underground or on property boundaries can now be met by the mobile industry through the use of Mobile IoT networks.