Metering-as-a-Service – A Revolutionary Approach to Advance the Water Industry
Metering-as-a-Service – A Revolutionary Approach to Advance the Water Industry
Utilities in the water industry often struggle to reconcile their desire to upgrade to an advanced metering infrastructure (AMI) with what they expect to be a significant capital cost and a long road to a positive cash flow or return on investment. Now, metering-as-a-service (MaaS) provides a means for utilities to transition to, or upgrade existing, AMI with no upfront cost and immediate ROI.
Under this novel approach to infrastructure pricing, utilities pay a monthly per-meter fee and receive a hassle-free service and performance guarantees that deliver accountability – if a meter is defective or malfunctioning, you don't pay. MaaS is appropriate for utilities of all sizes, offering cost predictability and true vendor accountability.
With MaaS, municipalities can redirect their focus and their budget from meter-related concerns to more critical issues. The inventory-managed program eliminates utility concerns over meter maintenance, installation, and uptime. It also leverages system data to transition metering practices from reactive to proactive and greatly helps in stemming non-revenue water losses.
How Optimized Technology Empowers MaaS
Having served utilities for nearly 80 years, Kamstrup is uniquely positioned to deliver on the promise of MaaS. Our deep experience in manufacturing and familiarity with the pain points of traditional infrastructure management led Kamstrup to utilize solid-state technology — namely, ultrasonic water meters — to empower MaaS for our customers.
Unencumbered by internal moving parts, ultrasonic water meters eliminate common faults associated with mechanical meters, such as degradation and reduced reliability. Consider, for example, the impact of consistent low-flow capture on a utility’s bottom line. To that end, a Kamstrup ultrasonic meter capturing 6 to 8 additional gallons a day on a residential meter adds significant additional cash flow to the utility.
Moreover, with acoustic leak detection built into each meter, pinpointing leaks in distribution and service lines has never been more straightforward. Kamstrup meters, with embedded acoustic leak detection, deliver accurate, reliable reads while also eliminating the need for external sensors and problematic wires in the meter pit environment.
Acoustic leak detection has been instrumental in driving greater returns for numerous Kamstrup customers who have aggressively addressed the water loss exposed by the technology. In terms of upstream benefit, less water loss also means less burden on pump stations sending out non-revenue water, as well as less run time for those pumps, saving on electricity.
But I Don’t Want To Lay Off My Meter Readers…
Then don’t! This concern was also prevalent in the late 1990s, when drive-by AMR meter reading became more commonplace and required fewer meter readers. But layoffs were not the answer then, nor are they the answer now. In fact, layoffs typically mean that other problems in the utility do not receive proper attention. There is always work to be done in a utility and hiring/retaining talented technicians is a constant challenge.
Consider that utilities often have a hard time finding meter readers, especially post-pandemic, because those individuals usually can make the same money working a less strenuous job — rather than opening up meter pits, slogging through oppressive weather, bending over all day, sustaining metering pit injuries, etc. Not to mention that smart meters eliminate the possibility of human error in readings.
Utilities that implement MaaS free up their talent to work on other problems and challenges. Invest in those staff members. Train them to do other jobs, such as finding system leaks that drive non-revenue water losses. Kamstrup can help.
What Does Kamstrup Mean By “Immediate ROI”?
With MaaS, utilities pay nothing until meter functionality is confirmed, plus 30 days. Once a meter is installed and functioning (Day 1), all revenue captured above the monthly MaaS fee is retained by the utility. Consider an average MaaS expense of $3 per meter, per month (this number is an estimate; it can be slightly higher or lower). Most utilities make more than $3 per month off any given meter and, if a meter is not working due to a defect, the utility does not pay until it is functional — giving utilities all the benefits of a performance-based contract with none of the shortcomings.
Over the life of the contract, utilities may pay more per meter “as-a-service” than they would to purchase the meter outright. However, additional savings — such as zeroed out installation, maintenance, and downtime costs — counteract that expense. Thus, utilities generate greater overall cash flow while enjoying full vendor accountability.
How Do I Get Started?
MaaS offers a high-quality AMI solution, a superior meter, and embedded acoustic leak detection — a level of security and sustainability that utilities can use to benefit their technicians and pass on to their communities. By teaming up with Sustainability Partners, Kamstrup can offer utilities a predictable monthly usage cost structure that includes maintenance and replacement costs, rather than a large capital expense every 20 years.
Rather than reading, repairing, and replacing meters, utilities are empowered with greater budget control and technician availability to focus on the bigger picture. They can leverage the metering system’s acoustic leak detection to pinpoint where underground infrastructure fixes will have the greatest impact. Or they can shift the budget to rebuilding a drinking water treatment plant, for example.
Whether your utility serves 800 meters or 800,000, Kamstrup offers a solution. For more information, contact the author and visit kamstrup.com.
About The Author
Bruce Bharat is Vice President and Country Manager for Kamstrup North America. In this role, Bruce is responsible for overseeing Kamstrup's growth in the U.S., Canada, Mexico, and the Caribbean. In addition to his leadership role at Kamstrup, Bruce also serves on the Board of The Water Tower in Buford, GA.