In the second of a series of Expert Focus articles for WaterBriefing, John Lillistone Director of Water at Arqiva, explains that smart meters are just the beginning and takes a look at how water companies can handle the coming data flood.

John Liliston: Water companies are under increasing pressure to reduce leakage and drive efficiencies. They now face an unprecedented challenge: managing an exponential increase in the volume of data. The regulator's latest guidance is clear: get smart, get digital, and get it right. However, many companies are still figuring out how to handle this massive shift from taking occasional meter readings, to a constant flood of information.

AMI meters have outgrown the initial rules that were drafted in 1984. This is because water companies must now build capabilities to handle a minimum of 24 reads per day from each smart meter, compared to the traditional model of just two manual reads per year which is a 4,380-fold increase in data volume. You have near real time data from a larger dataset and do not need to rely upon partial logging data.

It’s critical that water providers get this right, focus on delivering accurate data, as well as properly interpreting it. When this is done well, they can unlock a wealth of benefits while future-proofing their business to evolve as the landscape changes.

The regulatory push for digital transformation

Smart meters must now achieve a minimum of 80% connectivity by the end of the regulatory period and provide 85% of all reads on a weekly basis - a standard that fundamentally challenges the industry's traditional approach to data collection and management. And the financial stakes are significant for those companies that fail to meet smart mode requirements, meaning that they could face penalties of approximately £50 per meter per year.

Beyond simple collection, this data must actively drive decision-making across operations, customer service, and infrastructure management especially with AMP8's influx of metering and sensor technologies. The regulatory framework now explicitly recognises that incomplete or inaccurate data represents a significant risk to both operational efficiency and customer service.

Success in this new regulatory landscape requires companies to push accountability for performance into the supply chain while ensuring sufficient installation capacity, particularly given the anticipated increase in installations during this regulatory period. This involves carefully balancing any requirements and penalties for suppliers while maintaining control over outcomes and sharing any benefits that are reaped through over delivering.

Unlocking the power of data – getting the right people and processes in place

Alongside the logistical challenge of smart meter deployment, water companies must now gear their organisation towards becoming data-driven enterprises. This requires a fundamental shift in how Meter Data Management Systems operate, moving from traditional asset management to near real-time, operational intervention-focused systems. A crucial part of this transformation involves moving away from simple alarm data to continuous flow monitoring, enabling faster and more accurate identification of leaks. By incorporating bulk meters into the smart estate, companies can achieve real-time water balances that optimise abstraction licenses and better quantify network leaks.

For instance, Anglian Water's connected meters have helped fix over 300,000 leaks since their rollout started, with an average reduction of 10 litres per household per day. The impact of these leakage fixes alone means Anglian is now saving 10 mega litres per day (MLD) across its area.

Navigating this data transformation effectively demands strategic technology choices and strong partnership alignment. When selecting partners and solutions, it's crucial to choose based on proven ability to deliver results. This outcomes-based focus allows companies to maintain clarity on their goals while leveraging the expertise of their supply chain partners.

The demand for data scientists and analysts continues to surge, with other industries offering highly competitive salaries for top talent. While water companies may not be at the forefront of attracting these skilled professionals, the supply chain can play a crucial role in bridging this gap. For example, supply chain partners could provide interpreted data alongside raw data. This cost-effective approach will provide a useful stopgap for water companies as they develop their own skills over time.

Transforming customer relationships through data

The nature of smart meter data has fundamentally altered the timeline of leak detection and resolution, while also empowering water companies to connect with their customers in a more personalised fashion. This transformation extends beyond simple communication metrics - it represents a shift in how customers perceive and interact with their water provider, moving from a passive service provider to an active partner in water conservation.

Another instance where Anglian Water has been transforming how customers engage with their water usage is by encouraging customers to use their app, enabling them to monitor their water usage, view bills, and detect any potential leaks. This digital-first approach to customer engagement is proving crucial in driving down per capita consumption, as customers who can easily visualise their water usage are more likely to adopt water-saving behaviors.

Success in managing the increasing data demands will depend on companies' ability to capture and process complete and accurate data at scale, while strategically utilising managed service providers to reduce the risk and deliver tangible outcomes. This must be coupled with organisational transformation to handle real-time insights, extending beyond technical capabilities to encompass new ways of working, decision-making processes, and performance metrics.

Click here to read John Lillistone’s first Expert Focus article Selecting a smart meter contractor: key considerations for water providers exploring how a move to outcomes-based contracting for smart metering can help water companies to reduce costs, streamline operations, enhance efficiency and help to foster innovation.