Independent research by Frontier Economics and Artesia, commissioned by Arqiva, finds that Advanced Metering Infrastructure (AMI) can generate up to £2.2 billion in net benefits whilst contributing to climate change targets, supporting actions to reduce customer bills, helping to achieve regulatory targets and improving overall customer engagement.
Building on the cost benefit analysis commissioned by Arqiva in 2021, our research concluded that the adoption of AMI technology (which provides near real-time water use data to water companies) will enhance customer engagement and experience, improve company performance, deliver better environmental outcomes and enable greater regulatory compliance. Ultimately it represents a ‘low-regret’ investment.
AMI outperforms other metering solutions such as Automated Meter Reading (AMR), due to the completeness of the data it provides and that this data itself is delivered in near real time. Our findings also show AMI is more cost effective than AMR in achieving consumption reduction, leakage efficiency and carbon abatements, while also being a resilient option in light of potential climate and demand challenges in the future.
Water companies face huge challenges over the coming decades if Water UK’s 2050 vision and the government’s environmental targets are to be achieved. The climate emergency, water scarcity and pressing customer and societal demands brought about by an increasing population are a few examples.
Addressing these challenges and potential solutions will be a key focus as the sector prepares for Ofwat’s Price Review (PR24). PR24 aims to set ambitious targets to drive the performance of the UK’s water and wastewater services. Companies will therefore need to make crucial investment decisions around metering at PR24, for the next 15 years.
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The report will be discussed in detail alongside industry at a webinar hosted by CIWEM on 13 June 2022 from 10am-12noon. Registration is open to all – please click here to sign up.