Mark Shamley Managing Director Elster Kent Metering South Africa

Reducing Non-Revenue Water by Selecting Good Quality Meters

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

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

Cost Effectiveness of Quality Poor performance of cheaper products ( goedkoop koop is duur koop ) Inaccuracy Actual Usage per Month (kl) 10.0 15.0 20.0 30.0 40.0 50.0 Actual Reading p.m. (kl) -2.0% 9.8 14.7 19.6 29.4 39.2 49.0 Lost Revenue p.a. (R) -2.0% R 13.34 R 31.10 R 56.93 R 110.52 R 154.85 R 236.16 Actual Reading p.m. (kl) -3.0% 9.7 14.6 19.4 29.1 38.8 48.5 Lost Revenue p.a. (R) -3.0% R 20.02 R 46.66 R 85.39 R 165.78 R 232.27 R 354.24 Actual Reading p.m. (kl) -5.0% 9.5 14.3 19.0 28.5 38.0 47.5 Lost Revenue p.a. (R) -5.0% R 33.36 R 77.76 R 142.32 R 276.30 R 387.12 R 590.40 Payback Period (m) at -3.0% 18.0 7.7 4.2 2.2 1.5 1.0 Cost of Elster Meter R 160.00 Cost of Cheap Meter R 130.00

Lost Revenue per Annum Lost Revenue due to Meter Inaccuracy R700 R600 R500 R400 R300 R200 R100 R- 10 15 20 30 40 50 Usage per Month (kl) -2.0% -3.0% -5.0%

ACCURACY % Lost Revenue due to Meter Inaccuracy Meter Accuracy Envelope 1.5 Class C 10 9 8 7 6 5 4 3 2 1 0-1 -2-3 -4-5 -6-7 -8-9 -10 10 100 1000 10000 FLOW RATE l/h

ACCURACY % Lost Revenue due to Meter Inaccuracy Good Revenue Meter (New) 1.5 Class C 10 9 8 7 6 5 4 3 2 1 0-1 -2-3 -4-5 -6-7 -8-9 -10 10 100 1000 10000 FLOW RATE l/h Good Meter

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 10 9 8 7 6 5 4 3 2 1 0-1 -2-3 -4-5 -6-7 -8-9 -10 10 100 1000 10000 Good Meter FLOW RATE l/h Poor Meter

ACCURACY % Lost Revenue due to Meter Inaccuracy At 30m 3 /month consumer consumption, a 9.95% measuring difference equates to a loss of R 45,82 per meter per month Loss covers R30 difference in price in 0.7 months 100,000 units R 55m per annum Tests After 500 Hours with Grit in the Water 1.5 Qp Class C Meter 10 9 8 7 6 5 4 3 2 1 0-1 -2-3 -4-5 -6-7 -8-9 -10 10 100 1000 10000 FLOW RATE l/h Good Revenue Meter Poor Revenue Meter

Measurement Meter Type Jet Meters Operation In Jet Meters, the velocity is measured and converted to a volume Single-Jet Meters Supply water accelerated through constricting inlet and directed onto blades of vertically mounted rotor Multi-Jet Meters Supply water directed onto rotor blades around its whole circumference, through multiple openings in measuring element

Measurement Meter Type Jet Meters Constraints Jet Meters Inlet deposits and filter blockage will change meter performance ( Jetting ) 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

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

Measurement Meter Type - Volumetric 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)

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

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

Accuracy and Measuring Range by Technology 10% 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

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

Case Study Replacement with Good Revenue Meter Water sales: First four months of 2012 (Poor Meters) - R 138 070 per month on average (Summer) Average after installation complete (Good Meters) R410 000 per month Increase in water sales after installation complete - a massive 197% Payback, incl. installation 7.6 months

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

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