Increased production and testing capacity across three manufacturing sites means Xylem is ready to meet the UK demand for smart water meters in AMP8, writes Adam Parsonage, head of account & commercial for Sensus at Xylem UK.
Around 40% of UK households are expected to have smart water meters by 2030, as the sector moves forward at pace with plans for mass rollouts. According to draft water resources management plans, the figure will reach 65% by 2050.
As Ofwat expects all water companies in England and Wales to consider smart meters as the standard meter type in the 2025-2030 asset management plan (AMP8) period, between eight and 10 million are set to be installed over the five years.
Concern from utilities about availability of smart water meters is therefore understandable. A number of companies that are developing AMP8 installation programmes have asked Xylem how they can be sure to secure the required numbers.
As a leading manufacturer of smart water meters, through its Sensus brand, Xylem has in place a robust forecasting process which provides an accurate view of future demand and enables effective allocation of components and products. The company has already got ahead by investing in additional capacity at Xylem’s three European manufacturing centres of excellence and in May 2023, opened a state-of-the-art test facility for water meters at their factory in Laatzen, Germany.
One of the largest Measuring Instruments Directive (MID) certified facilities in Europe, the site allows Xylem’s engineers to test meters in a range of installation and environmental conditions, including changing water temperatures. The testing and manufacturing expansion has enabled them to increase smart metering production by 50% to an overall capacity of three million a year – and working closely with key suppliers to ensure they can increase demand requirements when necessary.
Strong supplier relationships also means the company can build resilience to temporary disruption. The global microchip shortage from 2020-23, for example, is the kind of logistical issue that can be mitigated by long-term planning and continued review of supply chains to ensure dual sourcing for key components.
Of equal importance is Xylem’s relationships with its water company clients including Thames Water, which is eight years into its smart water meter programme and has installed its one millionth meter. Similarly, Anglian Water’s programme will see installation of 1.1 million smart meters by 2025. Xylem has supplied Sensus smart meters for both these flagship projects, the two biggest smart water meter programmes in the UK.
Of course, all companies are at different stages of their smart metering journeys. Those that are in the earlier stages should now be determining the right rollout strategy for them and their customers.
This includes choosing partners, including meter installers, that are experienced in what it takes to support your programme. These are long-term programmes that require ongoing collaboration and trust, particularly when challenges arise.
Looking at internal teams and stakeholders, data management should be a key area of focus for utilities. Smart meters transmit water usage data in near real-time – companies will be moving from receiving two reads a year from standard meters to somewhere approaching 9,000 reads per year for each property.
The transition to becoming a data-driven utility is major step-change that requires appropriate resourcing and the right mix of roles, including more data analysts and data scientists than most companies have currently. Data captured by smart meters can be used by water companies for far more than just billing.
Real-time network monitoring enables faster detection of leaks and provides a better understanding of consumption patterns and trends. Such insights will be integral to long-term water resource planning and can inform teams working across the business, including leakage, customer service and regulation. However, the right people and systems must be in place to realise the full benefits.
Across the water sector, there is a desire to share smart meter knowledge and insights, and we see high levels of engagement between utilities, suppliers and regulators.
