A new report from CCW is highlighting “the very real extent to which smart water metering is an unfamiliar concept to many businesses” and says more is work needed to explain the benefits of smart water metering trechnology.

The consumer watchdog for water carried out the research in association with MOSL, the market operator for the non-household water retail market in England, and on behalf of the MOSL Strategic Panel’s Metering Committee. The research aimed to understand whether business customers themselves find the potential benefits appealing and in particular, whether business customers who already have smart meters perceive the benefits.

The new report follows on from an independent report by Artesia, commissioned by the Strategic Panel’s Metering Committee, which looked at the potential benefits that could be realised by retailers and wholesalers through the wide scale rollout and adoption of smart water meters for business customers.

The CCW study is focused on Advanced Metering Infrastructure (AMI) meters specifically, which enable two-way communication between businesses and water companies. The smart meters automatically transmit water company usage data directly on a regular basis without the need for manual readings. This entails a whole range of potential benefits, from more accurate readings to simplified billing, as well as savings in both time and money.

According to CCW, the findings were encouraging, in that there is a sense among businesses in general of the potential for greater financial and operational efficiencies through the use of a smart water meter. In addition, a clear majority (91%) of businesses that already have smart metering found that it provided useful information.

However, CCW says the research also made clear “the very real extent to which smart water metering is an unfamiliar concept to many businesses.”

Commenting in the foreword to the report, Dr Mike Keil Director of Policy, Research and Campaigns at CCW says:

“Understanding of AMI technology is poor, meaning certain benefits regarding time and cost savings, as well as greater energy efficiency, may be underappreciated or unknown to many.

“If new smarter metering technologies are rolled out across the water system – something that 82% of businesses would support – then there needs to be an emphasis on properly communicating the potential benefits, whether financial, environmental or organisational, particularly to smaller businesses.”

The research gauged business customers’ views on the potential benefits to be gained from the widespread rollout of smart water meters. Key findings include:

• Understanding of the technology is poor, meaning certain benefits regarding time and cost savings, as well as greater energy efficiency, may be underappreciated or unknown to many.
• Smart water meters are understood to help reduce water usage and allow businesses to be more efficient
• Businesses are already aware of smart water meter benefits through awareness of growing popularity of other utility smart meters in domestic use (and business).
• There is strong support (82%) for a broader rollout of new water meter technologies, with businesses expecting smart water meters to become commonplace, with time and financial savings(for businesses and water companies) strongly outweighing any perceived drawbacks.
• The most compelling benefits of smart water meters are found to be increased financial control, savings and time efficiencies
• Greatest value is placed on benefits facilitating greater financial control, potential for cost-savings, and a reduction in time, thought and effort paid to managing their water billing.
• Environmental benefits are often not appreciated as reduced water wastage is more readily associated with cost saving rather than environment which is a more compelling benefit.

Commenting on the monetary value of smart meters, the report says businesses are accepting of installation fees, provided benefits are well-communicated. It also finds that the mean estimated monetary value of receiving data on water usage is £255.12 and it is higher for bigger businesses or those operating from multiple premises. Cost of installation is cause for consideration, although many businesses observed reduced water bills and strongly value increased bill accuracy and time-savings that outweigh their initial opposition to paying if reconciled as an ‘investment for the future’

Next steps

Looking ahead, CCW says businesses need educating on how smart water meters work and how easy installation is.

For example, businesses don’t know how AMI meters differ from AMR and basic water meters, meaning some benefits regarding time savings may be under-appreciated or unknown.

CCW concludes that there are few drawbacks associated with installing smart water meters, although reassuring businesses that installation will not significantly disrupt business operations would alleviate concerns.

Click here to download the full report