Background

Smart water meters collect 'real time' water usage information. By providing more information on where and when water is being used, smart water meters help customers manage their water consumption and help water businesses manage their network more efficiently.

Recently there has been increasing debate over the need for smart water meters. To inform the debate, the Victorian Water Trust has invested in the Urban Smart Water Meters Project.  The project considers the potential benefits and costs of smart water meters in the short, medium and long term.

The project engaged with key industry stakeholders to:

• assess the potential impact of smart water meters on customers
• identify any issues related to:
• meter procurement and installation
• communications installations
• process redesign
• customer contact
• billing and accounting
• credit and collections
• meter reading.

Smart Water Metering Cost Benefit Study Report

The Smart Water Metering Cost Benefit Study Report presents six options for providing smart water meters, with differing data collection frequencies, information availability and technology types.

The report found customer benefits would increase with the level of data available. The analysis indicates that customers are likely to become more engaged when they have greater access to consumption information, and that this could lead to customers using water more efficiently or being actively involved in the identification of leaks. 

The report also identified that most benefits of smart water meters will accrue to water businesses and the industry.

Limitations of the report

While the analysis within the report is based upon the best available information, it does contain several assumptions which may affect the validity of the results, including:

• the future price of water
• the reduction of system and household leakage as a result of better information, and
• other associated benefits.

Furthermore, the analysis does not include the costs associated with rectifying identified leaks, nor does it quantify the value of consumer, societal and environmental benefits and costs due to a lack of readily available information.

The findings of this report do not represent Government policy. Nevertheless, the report provides a sufficient basis to commence dialogue with industry and the community regarding the value of smart meters within the water sector.

Access the report

Smart Water Metering Cost Benefit Study: Final Report (PDF ~ 1.1MB)