Nairobi City Water & Sewerage Company

Business Case for Piloting AMR Solution for Bulk ConsumersPresented by: Mburu Kiemo

Non Revenue Water Department

9th May 2013

2

Objective of the Presentation

Demonstrate Existing Estimates of Revenue Losses

Identify AMR as a Possible Solution

Discussion

3

AMRs: improving efficiencies & increasing revenues

Addressing some Technology challenges including: Clogging and blockages of meters

Under performance of meters - consistency

Under registration of meters - and impact on revenue

Calibration

... and Operational challenges: Human interface

Efficiency in meter reading and billing

Slow response after breakdown of meters

4

Knowledge management and efficiencies on the ground

JKIA: the flow is not consistent with the size of meter; bypass observed.

Iber Africa: Meter observed to be moving at a very slow motion

EPZ: Meter chamber filled up with raw sewerage … meter reading a challenge.

Coca Cola: may be under sized; fittings too close to meter and may cause turbulence.

5

Identifying the needs and understanding the context

Step 1: Resolution & Demonstration of Technology Choices That technology should be used to address some of

these challenges. That technology is available, i.e. electromagnetic and

ultrasonic.

Step 2: First Data Analysis Period: March – August 2012 Consumers: 237 Three levels: High, Middle and Low Level Consumers Assess: accuracy and consistency of data; and

identifying sizing consumption patterns.

Findings: There was inconsistency in readings in all levels, among high end consumers…..

March April May June July August0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

E P ZONES

KENYA BREWERIES LTD

Con

sum

tion

Volu

me

m3

High End Consumers (>100m3/mth)

……..

March April May June July August0

5,00010,00015,00020,00025,00030,00035,000

Other ConsumersBREWERIES LTD AFRICAN EAST

KENYA BREWERIES LTD

KENYA BREWERIES LTD.

IBER AFRICA POWER

IBERAFRICA POWER EA LTD

Con

sum

ptio

n Vo

lum

e (m

3)

.... and zero or very low readings for others over 3-5 months (sample below)

March April May June July August0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

University Students AC Board UON Student Welfare AuthorityVeteran Pharmaceuticals Ltd Vrajlal Kakad Mohanlal

Con

su

mp

tion

m3

9For 237 consumers the cumulated potential loss of KShs 45million upto KShs 194million over a 6 months period

Mar2012

Apr 2012

May2012

Jun2012

Jul 2012

Aug 2012

Total

Volume (million m3)

2.00 1.77 1.67 1.48 1.52 1.52 9.95

Monthly Revenue (millions KShs)

188 166 157 139 143 143 937

Monthly diff (millions KShs)

  -22 -10 -18 4 0 -45

Diff w. March (millions KShs)

  -22 -32 -49 -46 -45 -194

10A second analysis was recommended using updated information

Step 3: Second Data Analysis to assess the challenges and identify focus consumers for a pilot.

Longer Period: January – December 2011

Fewer Consumers: top 100 consumers

Three levels: High, Middle and Low Level

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Findings: with new data, inconsistencies were still observed.

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC -

50,000

100,000

150,000

200,000

250,000

300,000

E P Zones Kenya Breweries Limited

Con

su

mp

tion

m3

Max: 168,528

Min: 71,080

Max: 264,200

Min: 171,100

12Translating to large differences in revenue ….. upto 9 million a month for one large consumer

EP Zones Kenya Breweries Ltd Dir of Aerodromes0

50,000

100,000

150,000

200,000

250,000

300,000

- 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0

264,200

168,528

60,090

171,100

71,080

21,053 2.5

9.2

3.7

Max Min Difference (KShs)

Con

sum

ptio

n m

3

KSh

s m

illio

ns

13Even among the not so large…. with an estimated difference (bet max & min) for all 100 of 64.9 million

KNH New KCC Ltd New KCC Ltd Kenyatta Est MO

United Aryan (EPZ) Ltd

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

1.36

0.79

0.52

1.59

1.87

Max Min Difference (KShs)

Cons

umpt

ion

m3

KShs

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Seven sites proposed based on consumption and random…..

1. Kenya Breweries (main meter)

2. Kenya Breweries (Allsops)

3. EP Zones

4. IberAfrica Power (EA) Ltd

5. Director of Aerodromes (JKIA)

6. Nairobi Bottlers (Coca Cola)

7. Brookside Dairies Limited

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Maximum and minimum readings for proposed sample

KBL Ltd EP Zones

Iber Africa

Nairobi Bottlers

Dir of Aero-

dromes

Brook-side

Dairies

KBL Ltd KBL Ltd EP Zones

Iber Africa

Nairobi Bottlers

Dir of Aero-

dromes

Brook-side

Dairies

KBL Ltd

Max

168528 264200 29960 51420 60090 18402 16685

Min

71080 171100 6898 32070 21053 8465 13103

Dif-ference (KShs)

9.2 2.5 2.2 1.8 3.7 0.9 0.3

25,00075,000

125,000175,000225,000275,000

0.5 2.5 4.5 6.5 8.5 9.2

2.5 2.2 1.8

3.7 0.9 0.3

Max Min Difference (KShs)

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Proposed Solution

AUTOMATED METER READING

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Existing Metering Technology

Bulk Flow Meter

Electronical BFM

Electromagnetic Flow

Meter (EMF)

Ultrasonic Flow Meter

(UFM)

Mechanical BFM

Woltmann Meter (WFM)

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Most common bulk meter is the woltmann meter

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Challenges of Woltmann meters

Situation in Nairobi regarding the Woltmann meters:

• Frequent stalling due to debris blocking impellors• Strainers are not existing or not maintained (periodical

cleaning).• Calibration not done as recommended • Installation and flow conditioning note done as

recommended• It takes time to notice meter is stalled• Limited to high flows• Affected by means of permanent magnets• Not available in metrological classes in BIS• Dial/Glass foggy eg .during rainy season• Meter reading environment not favourable to meter

reader

The further use of WFM for metering of HC-consumers is not recommended.

20Nairobi Water’s business is the supply and distribution of water to consumers – a Contract

Responsibility of NCWSC to determine the correct consumptions are billed – not more not less.▪ Accurately ▪ Legally binding contract

As a business, it is also your responsibility to expand and grow sustainably (time and consistency).

Thus, all utility companies focus on metering as the first step in growing a sustainable business.

Dept of Weights & Measures

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Meter Reading & Billing steps:

STEP 1: Record Cons

• Mechanical Meter

STEP 2: Data Collection

• Meter Reader

STEP 3 : Interface w. billing

• Data Entry Clerks

Electronic Meters

Remote Reading &

Transmission

Seamless Integration

Timely Accurate Mgt

Reports

Proposed Solution

Focus on consistency, accuracy and speed – customer service & growth

Current System

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Advantages of Automatic meter reading

1) Improvement in efficiency of meter reading.2) Reduced operating cost3) Skipping of access problems of meter reading.4) Estimated billing not necessary5) Tampering of meter can be detected.6) Back up to customer information services.

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Ultrasonic Flow Meters

Clamp-on Ultrasonic flow meter

Insertion Ultrasonic flow meter

Inline Flanged Ultrasonic flow meter

Calculator with GSM/GPRS Unit

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Electromagnetic flow meters

Inline Flanged Electromagnetic Flow meter Insertion Electromagnetic Flow

meter

25Depending on needs, they each similarities and differences in features.

TechnologyAccuracy (+/-)

Non-Intrusiv

e

Ease of Installati

on

Approval for Billing

Power Supply

Cost

Inline Ultrasonic

2% YPipe

CuttingY

Battery ~ 10 years

Price cheaper for sizes above DN250

Clamp-On / Insertion Ultrasonic

0.5% Y Easy NBatteryElectricity Solar

One size fits all

Inline Electromagnetic

1% YPipe

CuttingY

Battery ~ 5 years

Price high for sizes above DN250

Insertion Electromagnetic

2% Y Easy NBattery Power ~ 5 years

One size fits all

26Full bore (Inline) Flow MeterAdvantages of full bore magnetic (Inline) flow meter

i) Unobstructed flow passage ii) No moving parts iii) No additional pressure drop iv) Unaffected by changes in temperature, density, viscosity,

electrical conductivity v) Flow range setting can be optimised vi) Suitable for water containing suspended solids vii) Short conditioning section is required as it is insensitive to

flow profile viii) Measures flow both the directions ix) Un- affected by contamination and deposit x) Minimum maintenance xi) Good linearity xii) Smaller diameter flow meter can be used on bigger

diameter pipe with

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Interface with billing system

Open system that integrates seamlessly with common RDBMS dBase e.g. SQL, Oracle

Local integration based on NWSC

requirements

System should fit seamlessly With existing data collection system With central billing system

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Interface with billing system

NWSC Central Billing System

(RDBMS)

MANUAL READING• Existing Manual

Reading clerks Data entry

clerks Self reading

• Semi Manual Reading

Data Terminals and Loggers

Self reading via SMS

AMR Radio Wireless Wi-Fi ZigBee GSM/GPRS

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Sample of meters installed with data transmission

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Risks and Fears (for discussion)

Where has it been done

How is it working Loss of jobs Transmission

security Security of

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Is the investment and return worth all the effort?

Average cost of a meter = KShs 2million.

Out of the 7 customers, we assume that KShs 15 million is lost per month

We project that 2/3 of this is from commercial losses = KShs 7.5 million

If we take half (KShs 3.5million per month) of this figure - Annually = 36million from the seven customers

If we spend 189million changing the technology for all the 237 consumers, the money will be recouped in 5 years

ROI = 1.5 years.

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Thank you for your

attention!