Smart water metering 101: the complete guide

A smart water meter is a device that remotely records water usage and sends that information to another device.

Smart water meters can be set up to track usage and alarm data in various ways, transmitting the information to a local receiver within a few feet or over a long-range network spanning tens of kilometres.

Meters can come with built-in transmitters, be attached directly to the meter, or connected to a separate end-point device via wired or wireless means.

Meters are most often installed outside the home or next to the stop tap at the boundary property line.

Smart water metering refers to the systems, services, and solutions that transform a smart meter from a piece of hardware into a valuable source of intelligence.

Smart water metering includes the meters, connectivity networks, and data management systems that monitor water consumption patterns and spot leaks.

AMI (Advanced Metering Infrastructure) offers water companies valuable insights into water consumption patterns by transmitting meter data over a radio network.

AMR (Automatic Meter Reading) sends readings to a nearby device, either handheld or vehicle-mounted, known as a ‘walk by, drive by’ meter reader.

Each meter can be programmed to record data at set intervals, such as once a day, every hour, or every 15 minutes. The meter stores these readings and transmits them over the network. Since each meter has limited memory, AMR saves a single set of readings until the memory is full, while AMI continuously sends data over the network.

For AMR, the frequency of data collection during ‘walk by’ or ‘drive by’ readings determines the amount of data gathered.

By contrast, AMI provides a continuous flow of information. This means that water companies can collect data at a significantly higher frequency – up to every 15 minutes. This level of data detail enables water companies to pinpoint customers’ water usage habits, identify potential leaks, and track water flow accurately. By integrating bulk meters in distribution areas and numerous customer meters, water companies can also detect network leaks more efficiently.

The UK is on the brink of a water crisis. If we don’t act now, and act decisively, we’re on track for a 4,000 mega-litre water daily deficit by the mid 2050s.

To boost water resilience, we first need to understand consumption. If we know exactly how customers use water – and where they’re losing water to leaks – we can encourage them to take positive action.

Smart water meters are considered a key first step in changing water behaviours and reducing water demand. As such, in England and Wales, Ofwat, the water regulator, expects companies to use smart water meters as the standard choice for the next round of asset planning (AMP8).

In AMP8, Ofwat expects water companies to treat smart metering as the standard meter installation type.

They’ve accelerated funding for the 2024 Price Review (PR24) to support seven schemes, allowing for the installation of 462,000 smart meters between 2023 and 2025. These initiatives come in addition to other ongoing smart water metering projects outlined in the UK Government’s green economic recovery plan.

While the smart meter direction statement from Ofwat isn’t a mandate, it strongly encourages all water companies to deploy smart metering programmes. Companies that choose otherwise would need to provide compelling evidence to support their reasons for opting out.

The Environment Agency describes smart water metering as ‘an important enabler’ in improving water resilience and reducing leakage. As such, it also expects water companies to deploy smart water metering programmes in the AMP8 buying cycle.

However, across the UK there are distinct differences in regulatory requirements. The southern and south-eastern regions are labelled as ‘water stressed,’ allowing them to install water meters in all properties, subject to license condition changes. Conversely, in the northern and western parts of the country, water companies must focus on replacing existing meters and customers opting in for meter installation.

The true benefits of smart metering can only be fully harnessed with widespread metering. While individual properties with meters can monitor usage and detect leaks, estimating network-wide leakage will continue until meters become more widely available.

In simple terms, smart water metering infrastructure is made up of the following three components:

Meters monitor the water flow into the property and transmit the information to another device. Meters can be standalone, upgrades to existing AMR meters, or attached to end-point devices.

A network connects meters and transmits data from them to the water company. The connectivity networks can range from radio networks, like FlexNetTM or LoRaWan to mobile networks like narrow-band IoT (NB-IoT).

A data management system pulls data from the meter network and – in the best cases – analyses that information.

The value of smart water metering lies in the continuous flow of high-quality, reliable, and real-time data collected and transmitted from the smart meters.

This accurate and timely intelligence about consumption behaviours empowers water companies to implement effective customer engagement strategies and drive changes in water consumption.

What’s more, the availability of high-quality, reliable, and real-time data is crucial for unlocking new possibilities for AMI networks. These include the monitoring of pressure levels and sewer levels, expanding the potential use cases beyond smart water metering.

Studies by Frontier Economics and Artesia Consulting show that investing in AMI drives significant commercial returns.

For every £1 spent, there’s a £1.73 benefit, with reductions in water infrastructure costs.

Today, most water companies use AMI for smart water meters to track water usage and spot leaks.

But there are many more ways to use this technology. With additional sensors, your communication infrastructure can be used for multiple different purposes, including:

With sensors and loggers, you can use your network to monitor and manage water pressure, preventing pipe bursts and avoiding major service disruptions.

Instead of the time-consuming and labour-intensive manual sampling, AMI allows for automated quality and temperature reads both in clean and river water. This means more accurate reads and better use of internal resources.

Connected IoT devices, AMI can support in the automation of routine manual tasks – such as closing valves or remotely managing distribution systems.

With additional sensors, you can leverage the network to monitor sewer levels and blockages, mitigating the risk of large fines for pollution and sewer flooding.

To excel in smart water metering, organisations need unwavering commitment at every level, backed by dedicated executive support.

This means fostering a culture that champions change and continuous improvement. It also requires a genuine commitment to engaging customers and earning their trust, making sure they understand the ‘why’ behind the smart water metering drive.

For water companies to succeed, they must enhance internal capabilities with strong partnerships and take a long-term view. They should adopt durable, sustainable solutions that address current challenges while remaining adaptable for the future.

In our latest white paper, we highlight foundational factors that make smart water metering programmes successful:

The largest smart water meter manufacturers are:

In the UK, smart water meter installation companies include:

Advanced Metering Infrastructure connectivity companies such as:

Or mobile providers like Vodafone, EE and VMO2.

Selecting the right supplier for your smart water metering needs is a crucial decision. The ideal supplier should offer longevity, quality, and data accuracy in their services.

Critical questions to ask potential suppliers include the cost-per-successful read, data accuracy guarantees, how they ensure the longevity of infrastructure, their experience with large-scale installations, and the connectivity technologies they support. Suppliers should also provide a reasonable return on investment timeline for smart water metering installations, provide solutions to accelerate the value of your investments and offer customised financing plans.

The best partner will bring value, guarantee quality, have a proven track record, support your unique technological evolution and offer practical financing. To learn more about the key questions to ask your suppliers, read our latest article on the questions every water company should ask their suppliers.

With the looming water crisis in the UK, smart water metering stands as a crucial first step towards decisive action. By delivering detailed consumption data, pinpointing leaks, and encouraging positive consumer action, smart water metering is key to preserving our most vital resource.

What’s more, with the opportunity for additional applications, from monitoring sewers to automating processes, smart water metering doesn’t only save water, but it can also streamline operations, optimise infrastructure investments and reduce carbon footprints.

The challenge lies in choosing the right smart water metering provider who can offer a custom-built solution that meets your unique needs. With a proven track record and technological flexibility, Arqiva offers an end-to-end smart water metering service designed for success.

Arqiva provides an end-to-end smart water metering service. This includes the supply and installation of meters, the connectivity network that transmits meter data and data management.

Technology and device agnostic, our smart metering solution is optimised for each customer. This means working with different technology providers, devising different funding models, producing bespoke delivery programmes and creating different network applications for every water company.

Since 2015, we’ve been a leader in the UK’s smart water metering projects. As the only provider with a proven track record in delivering large-scale programmes in the UK, our solution stands out as the most cost-effective over the lifespan of your assets.

We offer LoRaWan, NB-IoT, and FlexNetTM technologies to meet your company’s unique needs.
We collaborate with trusted partners to create personalised financing plans aligned with water companies’ asset management strategies. Our teamwork extends to co-creating specialised applications for your networks.

What’s more, we help customers enjoy the benefits of smart water metering investments faster by providing leakage Identification, quantification, customer engagement apps and other complementary services.