SECOR Meter Efficiency

Meter Efficiency - 'Getting the numbers right'

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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