By Matt Thomas
As utilities in areas across the country raise water rates to fund desperately needed infrastructure repairs and replacement, educating consumers on the true value of water can act as a “shock” absorber for rate increases, according to Avoiding Rate Shock: Making the Case for Water Rates, a study sponsored by the AWWA Water Utility Council. The study found that although consumers get upset over rate increases because of misunderstandings about the true value of a safe, adequate supply of water, a consistent, structured communications strategy helps build support for rate increases.
To help build and strengthen customer relationships despite rate increases, utilities should proactively leverage advanced metering infrastructure (AMI) data to educate customers on their water usage, especially in terms of rates and the importance of water conservation. Such a task might sound laborious and costly to utilities; however, consumer portals that integrate with AMI systems can allow customers to access their water usage online in real time. Online access to water usage is a relatively simple tool that utilities can employ to help consumers learn about their rates, improve conservation through leak detection and communicate with their utility.
While adoption of consumer portals in the water industry is still in its early stages, some utilities that have started to provide this service are already experiencing significant results. Since installing an AMI system that integrated with an online consumer portal, The Village of Frankfort, NY, reported that approximately 20 percent of its customers are using the system to view their water usage. As a result of the project, The Village of Frankfort was recognized by the New York State Conference of Mayors and Municipal Officials (NYSCOM) at the conference’s 102nd annual meeting in which it received first place in the Public Works Category of the 24th Annual Local Government Achievement Award Program.
Consumer portals graphically illustrate stored AMI data and present it to customers in charts and graphs that allow them to easily monitor their consumption rates and usage patterns. Online access to this kind of information can be used by consumers to estimate future water costs, better understand their bills and manage their utility budgets. It also enables consumers to notice or be automatically alerted of data anomalies, which may indicate household water leaks they were not previously aware of, which can result in excessively high bills. This example is just one of many that demonstrate how easy access to such information is financially beneficial to consumers.
Providing access to detailed usage information can also help utilities partner with customers to improve water conservation. This is a valuable capability, as industry reports are showing that water conservation has become a significant concern among consumers. A recent Oracle survey found that 76 percent of consumers are concerned about water conservation. According to the report, 71 percent of those surveyed also indicated that having access to more detailed information about their water consumption would help further motivate their conservation efforts.
Consumer portals enable customers to accurately track their consumption in order to curtail water use to help meet personal conservation goals. And, by automatically alerting consumers of potential household leaks, utilities proactively help rectify necessary action to stop water loss. According to the EPA, 5-10 percent of American homes leak more than 175 billion gallons of water annually through old faucets and toilets. These portals not only show consumers that their utility provides them with the data and tools to allow them to better manage their water usage, they also show that utilities take water conservation seriously (the majority of states are predicting water shortages between now and 2013).
These systems can also help improve communication between consumers and their utilities. Besides accessing usage history, customers can view responses to frequently asked questions (FAQ) regarding billing issues, rates and conservation. And, through portals, utilities can easily reach customers with important information alerts such as water bans, leak alerts and budgetary threshold alerts.
FAQ responses and improved communication between utilities and consumers is practical, as it helps to better educate consumers on billing and water conservation while also providing them with a means of staying informed on important service issues. And, portals give customer service departments extra support, which can help them to more quickly and efficiently address customers’ needs and concerns.
Essentially, integrating a consumer portal with an AMI system can give utilities the efficient means they need to help build and maintain customer relationships. As water rates rise across the country, utilities should leverage this kind of tool to provide customers with easy access to detailed usage information. Such a proactive approach can help improve consumer perception of utilities by instilling a better understanding of personal water usage and billing, and by allowing them to take a more active role when it comes to water conservation.
Matt Thomas is vice president, Sales & Marketing, for Cleveland, NC-based Mueller Systems, a leader in advanced metering solutions for water and energy systems. Mueller Systems is a subsidiary of Mueller Water Products, Inc. (NYSE:MWA), a leading North American provider of water infrastructure products and services.
