Mark Shamley Managing Director Elster Kent Metering South Africa

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1 Mark Shamley Managing Director Elster Kent Metering South Africa

2 Reducing Non-Revenue Water by Selecting Good Quality Meters

3 IWA Water Balance Billed Water Exported Authorized Consumption Billed Authorized Consumption Revenue Water Billed Metered Consumption Billed Unmetered Consumption Unbilled Authorized Consumption Unbilled Metered Consumption Unbilled Unmetered Consumption Water Losses Apparent Losses Real Losses Non- Revenue Water Source: IWA Water Balance Unauthorized Consumption Customer Metering Inaccuracies Systematic Data Handling Error Leakage on Mains Leakage on Service Lines Leakage & Overflows at Storage 36.8% (1.58m m 3 ) R 7bn 2014 Target 15% ±5% of Consumption R 0.95bn

4 Meter Service Life Most local domestic meters are mechanical devices Performance (accuracy) is affected by the volume and quality of water passing through the meter Some meters are designed to cope with South African and African water conditions which contain a relatively high degree of suspended solids Most imported meters do not cope well with suspended solids and accuracy is severely impacted design life 6 years 4

5 Cost Effectiveness of Quality Poor performance of cheaper products ( goedkoop koop is duur koop ) Inaccuracy Actual Usage per Month (kl) Actual Reading p.m. (kl) -2.0% Lost Revenue p.a. (R) -2.0% R R R R R R Actual Reading p.m. (kl) -3.0% Lost Revenue p.a. (R) -3.0% R R R R R R Actual Reading p.m. (kl) -5.0% Lost Revenue p.a. (R) -5.0% R R R R R R Payback Period (m) at -3.0% Cost of Elster Meter R Cost of Cheap Meter R

6 Lost Revenue per Annum Lost Revenue due to Meter Inaccuracy R700 R600 R500 R400 R300 R200 R100 R Usage per Month (kl) -2.0% -3.0% -5.0%

7 ACCURACY % Lost Revenue due to Meter Inaccuracy Meter Accuracy Envelope 1.5 Class C FLOW RATE l/h

8 ACCURACY % Lost Revenue due to Meter Inaccuracy Good Revenue Meter (New) 1.5 Class C FLOW RATE l/h Good Meter

9 ACCURACY % Lost Revenue due to Meter Inaccuracy At 30m 3 /month consumer consumption, a 1.3% measuring difference covers R30 difference in price in 5 months Good Revenue Vs Poor Revenue Meters (New) 1.5 Class C Good Meter FLOW RATE l/h Poor Meter

10 ACCURACY % Lost Revenue due to Meter Inaccuracy At 30m 3 /month consumer consumption, a 9.95% measuring difference equates to a loss of R 45,23 per meter per month Loss covers R30 difference in price in 0.7 months 100,000 units R 54m per annum Tests After 500 Hours with Grit in the Water 1.5 Qp Class C Meter FLOW RATE l/h Good Revenue Meter Poor Revenue Meter

11 Measurement Meter Type Jet Meters Operation Single-Jet Meters Supply water accelerated through constricting inlet and directed onto blades of vertically mounted rotor Number of rotor turns counted, via a gear train, to estimate volume of water passed Forces on rotor are one-sided causing accelerated decline in performance Multi-Jet Meters Rotor encapsulated in its own measuring element within meter body Supply water directed onto rotor blades around its whole circumference, through multiple openings in element

12 Measurement Meter Type Jet Meters General In Jet Meters, the velocity is measured and converted to a volume Constraints Jet Meters Inlet deposits and filter blockage will change meter performance Typically class B (R80) accuracy with individual calibration (velocity to volume) Relies on fine rotor pivot point for accurate lifetime Must be installed horizontally away from flow disturbances

13 Measurement Meter Type - Volumetric Operation Water pressure rotates measuring piston Each drop of water passing through meter goes through piston Each cycle of piston supplies a defined quantity of water to the user

14 Measurement Meter Type - Volumetric General Because volumetric meters actually measure the volume, no calibration is necessary Benefits Sealed wet-dial counter Not effected by upstream conditions Not effected by installation orientation Protects consumer from over registration Exceeds class C performance (R400)

15 Dry-Dial Counters Advantages Less working parts in contact with water Disadvantages Friction of magnet plus resistance caused by metal chips sticking to magnet in water path result in more water escaping measurement Condensation under lens makes meter reading difficult More susceptible to tampering

16 Accuracy and Measuring Range by Technology 10% 5% 2% Single-jet 0% -2% -5% -10% 3 l/h 6.25 l/h 3125 l/h Q3=2.5 : R400 Copyright 2011 Elster Group All Rights Reserved. Elster and its logo, are

17 Accuracy and Measuring Range by Technology 10% 5% 2% 0% Single-jet Multi-jet -2% -5% -10% 3 l/h 6.25 l/h 3125 l/h Q3=2.5 : R400 Copyright 2011 Elster Group All Rights Reserved. Elster and its logo, are

18 Accuracy and Measuring Range by Technology No foreseen mechanical sensor technology can achieve the volumetrics low flow performance is as repeatable and durable can capture revenue from all water usage, whilst protecting consumer 10% (meter can t over-read) 5% 2% 0% Single-jet Multi-jet -2% -5% Volumetric -10% 3 l/h 6.25 l/h 3125 l/h Q3=2.5 : R400 Copyright 2011 Elster Group All Rights Reserved. Elster and its logo, are

19 Case Study Replacement with Good Revenue Meter Secure upmarket estate in Gauteng 1,022 units Replaced poor revenue generation meters with good revenue meters

20 Case Study Replacement with Good Revenue Meter Water sales: First four months of 2012 (Poor Meters) - R per month on average (Summer) Average after installation complete (Good Meters) R per month Increase in water sales after installation complete - a massive 197%

21 12-Jan 19-Jan 26-Jan 02-Feb 09-Feb 16-Feb 23-Feb 01-Mar 08-Mar 15-Mar 22-Mar 29-Mar 05-Apr 12-Apr 19-Apr 26-Apr 03-May 10-May 17-May 24-May 31-May 07-Jun 14-Jun 21-Jun 28-Jun 05-Jul 12-Jul 19-Jul 26-Jul Case Study Replacement with Good Revenue Meter R450,000 Water Sales R400,000 R350,000 R300,000 R250,000 R200,000 R150,000 R100,000 R50,000 R,0

22 Case Study 2 Good Revenue Meter Phase 1 Cost meters replaced at cost of R330,000 (including labour and material) Additional income - +8m³/month x R3.21 x meters = R 109,140 per month Phase 2 Cost - 1,071 meters replaced at a cost of R175,000 (including labour and material) Additional income - +10m³/month x R3.21 x 2,200 meters = R 70,620 per month Payback Total replacement cost = R 505,000 Total income increase = R 179,760 Payback period = 2.8 months

23 Conclusion Good quality volumetric meters, designed specifically for African conditions, yield the highest revenue generation

24 Mark Shamley Thank you 2011 by Elster. All rights reserved. 24

25 Accelerated endurance critical tests The meter must remain within very tight performance limits after 100 hours running at Q4 flowrate 100,000 stop/start tests at Q3 flowrate A very severe test regime +6% +5% Permitted curve position variance after endurance +2.5% +2% Error curve before endurance Q4-2% -2.5% -5% -6% Q1 Q2 Permitted error envelope before endurance Permitted error envelope after endurance

26 Johannesburg Water Tariffs 2012/3 Johannesburg Tariff Rates 2012/13 Johannesburg Tariff Rates From (kl) To (kl) 2012/13 Rate (ZAR) R R R R R R R 19.68

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