Why Are Water Bills Set to Rise? Is Monitoring Usage the Answer to Save Costs?
- desodell
- Oct 23, 2024
- 3 min read
It feels like it has been raining endlessly, so why are water bills on the brink of rising to record levels? The answer isn’t straightforward. Factors like climate change, underinvestment, increasing housing demand, and aging infrastructure all contribute to this complex situation.
The proposed price increases, negotiated between Ofwat and water companies, signal that within the next five years, water may no longer be the "junior utility" in household bills. As an essential service, opportunities for consumers to save water and reduce costs can seem limited. This calls for innovative thinking from both consumers and water companies to maximise the use of technology. But has this creativity begun, and will it succeed?
The Promise and Challenges of Smart Metering
Smart meter programs are being rolled out by all water companies, often touted as a potential solution to many of these issues. However, there are challenges to consider:
Customer Behavior: Encouraging customers to monitor their usage doesn't always lead to reduced consumption. Behavioral analysis shows that the value of water is often misunderstood; for many, long showers and baths are seen as everyday luxuries, not excessive consumption.
Leak Detection: Identifying leaks can save both water and money while preventing property damage. Yet, rolling out meters on a large scale is a time-consuming and costly endeavor, fraught with adoption hurdles. How do we incentivise efficient usage in such a landscape?
The Case for Prioritising Infrastructure
Should water companies focus on repairing their own networks first—addressing leaks in treated water? This could minimise the volume of water that needs to be treated and transported, reducing operational costs and allowing for lower customer bills or enhanced network capabilities. It sounds like a win-win.
However, network leaks can be elusive, often hidden underground and challenging to trace without disrupting services. Tackling visible leaks alone is already a significant undertaking.
A Digital Approach to Incremental Improvements
An alternative strategy is to embrace cost-effective digital solutions that monitor usage and detect network leaks, enabling targeted improvements. By analysing this data, water companies can prioritise use cases based on benefits versus ease of implementation. Starting with achievable projects, where stakeholder support is clear and the path to delivery is defined, allows for quick testing and learning.
Opting for high-benefit but difficult projects could lead to failure, undermining stakeholder confidence and complicating future funding.
Empowering Users and Maximising Benefits
It’s crucial that data and performance monitoring be managed by those closest to the benefits realised. Developing an operating model that reflects this ensures that insights lead to actionable improvements. Once a solution is in place, avoid creating a dependency on a technology team or third-party services. The test-and-learn process needs to be fully understood by users to maximise benefits.
A prime example comes from my experience at Southern Water, where I implemented remote video triage. The water inspectors closely monitored and refined the solution, discovering new use cases and features almost weekly. Their engagement not only maximised the solution’s potential but also drove continuous improvement.
Conclusion
As we face increasing water bills amidst abundant rainfall, it’s clear that innovative approaches and effective use of technology will be essential. By focusing on infrastructure, embracing digital solutions, and empowering users, we can navigate these challenges and create a more efficient, sustainable water management system.
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