Addressing smart water metering for the Middle Eastern water utility of the future

25 October 2011Park Hyatt, Dubai, UAE

Speaker’s namePositionCompanyCountry

www.smartenergyme.com

25 October 2011

Case study: Prepaid Water Meter pilot project in the Palestinian Water Sector

Fayez AbuHilou, MS.c Eng.Project Manager

fayezhilou@gmail.com

Palestinian Water Authority / Projects Management UnitPalestine

Water as life foundation

Water as a Human Right

Free Basic Services for All

Population increase

Pollution

Climatic Change

Water as an „Economic Good‟

„Responsible Customer - Citizen‟

Water Supply Management Water Demand Management„ Cost Recovery ‟

Water metering

PWM

Facts

• Palestinian Council of Ministers decision No.13/51/03 dated 16 June 2010.

• Palestinian Water Authority (PWA) approval regarding the 5000 PWM

import for the JWSC, dated 20 June 2010.

And

• Article No. [3] in the Palestinian Water Law No. [3] for the year 2002.

• Articles No. [122 and 106] from the Civil Procedure and the Palestinian

Trade Law No. [2] for the year 2001.

• Consumer Protection Association declared its refusal and rejection on all

levels to use PWM, with some NGOs support ( Palestinian Hydrology

Group PHG).

Facts

The works does not aim to support nor

strengthening resistance to the logic of PWM.

Scope and Limitation

The research is particularly important as the logic of

the prepaid system seems already to have been

accepted by the Government and water service

providers.

The people response to such questions may have been affected (oriented) by

the fact that its PWA assessment.

The effect of the PWM on the socio- economic aspects doesn‟t seem to be

identical crossing the entire study samples.

Case Study Background

Climate classification of the WB (LRC, 2007).

Non-equitable and

Non-reasonable

share of water recourses

•Inefficient Management,

•high % of non-payment and UFW

+ + More challenging

The Institutional Arrangement;

PWA

Relevant Line

Ministries

(i.e. MOA, MOLG)JWC

NWC

WBWD

Wells

PWA

Wells

Municipal Wells

and Springs

Private

Agricultural

Wells

JWU, WSSA, Municipalities,

Village Council Water Departments,

and Joint Service Councils

Mekorot

AgriculturalDomestic IndustrialConsumption

Operation

&

Distribution

Supply

Policy, Planning,

Development &

Regulation

Palestinian SystemIsraeli System

NWC: National Water Council.

JWC: Israeli Palestinian Joint Water

Committee.

PWA: Palestinian Water Authority.

WBWD: West Bank Water Department.

MOA: Ministry of Agriculture

MOLG: Ministry of local government.

Consequence to the late Oslo II agreement and follows the Palestinian Water Law No. [3] for year 2002.

Existing Institutional Arrangement of Water Sector; in the West Bank (PWA, 2008).

1. Alyamoun

2. Silit AlHarthiyyah

3. Al-Tyabah,

4. Al-Hashimiyyah,

5. Kufr Dan,

6. Kufr Qud,

7. Ittnnik ,

8. Zbobah,

9. Romanah,

10. Aneen

11. Araqa

Case Study (JWSC)

• Since the development in the United Kingdom, the use of these meters

have spread through countries like Brazil, Egypt, Uganda, Curacao,

Nigeria, Tanzania, Swaziland, Sudan, Malawi, Namibia, Namibia and

South Africa.

• Extreme example of applying full cost recovery directly to the household

level irrespective of income and ability to pay, making it easier to manage

and budget.

• PWM is special electronic water meter that controls setting a water quota

based on prior payments with the facility of automatic cutting-off supply

when the available credit is not enough ...

• The exception that PWM has a special digital box and keyboard assigned

to control the water bill in advance, with card port to charge through.

Prepaid Water Meters (PWM) - Prepayment or Smart Water Meters

• Create greater awareness for water use.

• Facilitates Cost-recovery and accelerates private sector participation.

• Defeat the so-called „Unwillingness to Pay for Services‟ , improving „Cash flow‟ with 100% revenue, eliminating the risk of late or non-payment of water services.

• Debt is never able to be incurred with the opportunity to be programmed for previous debt rescheduling

• Aims to save customer‟s and providers time and money ;

- They do not have to interact directly as before,

- Can be charged in local kiosks or supermarkets in each location

- Alert of any water leak in house plumbing,

- Prevent them from paying huge bills or even monthly minimum charge

• With the “life line” and flexible programming system, it is liable to maintain specific minimumwater flow to some cases to avoid any conflicts with human rights.

• All customers‟ data will be available on the card and easily followed showing any kind oftechnical problems and warn for attempts to tamper the meter with the possibility to replace foranother card by the customer relation center

The support and approval direction

• The PWM accused as starkest expression of commitment to the profit motive above the

needs of people,

• The fear to run out of water, when no credit is available,

• The fear that PWM does not understand emergencies,

• Affects negatively on the social and environmental conditions in communities, may urges

to water theft and illegal connections. In addition, the social relations in communities may

erode when families run out of water.

• Poor families are forced to decrease their consumption of water, use untreated water,

• Difficult trade-offs between water or food, medicine, school fees, transportation and other

essential goods and services, and possibly will expose the most vulnerable people to

preventable diseases and death.

• Escalates the cost of providing health services and unnecessarily burdens the health

sector, due to increase rates of water-borne diseases resulting of using untreated water

from other sources .

• PWM may not affect the rich and privileged awareness to the importance of

rationalization of water consumption, they are able to consume as much as they please.

The opposition direction

The opposition to PWM based on the statements; ‘Water as a Human Right’

and ‘Meeting Basic Need with Free Basic Services for All’.

• The UKs 1998 Water Act declared prepayment meters to represents a threat

to public health and water cutoffs to be an unacceptable method of

recovering outstanding debt .

• In Madlebe, a rural area in South Africa, a system was implemented,

Between 2000-2002, many people could not afford clean water and

massive cholera outbreak resulted in 259 deaths.

• In the case of Orange Farm Township south of Johannesburg, South Africa,

in 2003 the Anti-Privatization Forum together with some organizations and

individuals came together in the coalition against water privatization to

form what is called „Against Prepaid Water Meter‟ alliance, and in 2008,

the High Court of Johannesburg declared them illegal.

The Opposition Direction

• Deal with a number of collective processes involving;

Wide set of meeting and interviews with stakeholders.

Household and customers interviews (based on questionnaire).

The feedback also comes from the water provider utility ( JWSC).

• The intended assessment aimed to cover basic questions,

Brief socio-economic conditions,

Several inquiries regarding the following; the basic water need, demand and

supply before and after introducing this technology, the problems, attitude,

fear, knowledge about the PWM and people trust in the water utilities. as well

as a number of technical aspects regarding the use of PWM in the Palestinian

Water Sector.

METHODOLGY

• The general profile of respondents and households in the study area comes asreflection to rural area and low to medium income society.

o 88% is living in separate owned houses, on an average of three rooms per house

o 98% of connection to public electricity network..

o The educational attainment for both genders shows a 0.3% of illiterate,

o 58% of school level and 30% of university level.

RESULTS AND DISCUSSION

In the subject of water use:

• The fact that almost 80% are connected to the public water network,

• Dependent on the network water only during the summer period and in such a case

(villages and rural area), where the water accessibility and life style reflects the

nature of water use, the residential (Household) use comes first.

• Agriculture and farming water use does not necessary depends on water from the

network (subject of our study), since wells, rain water collection systems and water

tanks are observed as a major water resource in the study area.

RESULTS AND DISCUSSION

Concerning the PWM first use

• The people at the beginning did not have any contribution, neither did they have

any prior information.

• It is a fact that PWM installed with absent of any pre-construction information

coverage and without consulting the stakeholders.

• Records show one primary pre-construction meeting held in the PWA offices in

Ramallah, with the presence of academic and water researchers to discuss the

PWM concept.

• The PWA with the collaboration with MOLG and the Palestinian Standards

Institution (PSI) started to prepare the special Palestinian PWM Metrological

and Technical requirements. This work is referring to the International

Recommendation OIML R 49-1.

RESULTS AND DISCUSSION

• It was clear that tell this moment, their where no real objection from the peoplein the study area for the use of PWM.

• A percentage of 28% shows highly acceptance for replacing the old situation,while 51%, found to be in opposition to PWM use.

• It was found that the people now do not complain about the water shortage asthey did before, instead a 47% criticized the operational and charging process.

• A percentage of 62% of the sample did not identify or recognize any change intheir water use.

• 40% did not know the water tariff they have been charged with.

• There were no clear trend between the people position and the income .

RESULTS AND DISCUSSION

28 %

51 %

-- The effect here is dominant to the customers earlier water service situation.

-- People who used to get water for free (didn‟t pay for long time) and living in the low-lying

areas used to fill their tanks and wells from the water network leaving the people living in the

upland areas with no water for long time.

• It was clear through the interview with the provider representative at JWSC that they are not

considering any kind of role for the customers in the decision of installing PWM, as an easy

way to solve their financial crisis.

• The finance indicators clearly show with no doubts that the use of PWM will:

RESULTS AND DISCUSSION

Increase the profits,

Decrease the expenditure as both time and money saved.

High percentage of bill payment will be achieved excluding some exceptions that remain

on the old system; governmental institutions, schools and mosques etc..

In addition, a 20% of any PWM charge deducted to cover earlier debt as compulsory

scheduling system.

PWM sold as a high-tech solution and come at a higher price (US$150) compared to the

mechanical water meter. ( 1 to 4 NIS/ month to cover entail cost)

The installation requirements for the PWM are more precaution; PWM should not be

located in dusty and dirty areas, and have to be protected from direct sunlight and rain.

• CONCLUSTION

PWM brings an enormous debate;

• As policies of „Cost Recovery‟ have been extended, the idea of PWM was not an easy, there are no long-

term experiences available in Palestine with this concept, and best practice for the use of PWM yet to be

agreed on, where number of dependent and independent Socio-economic aspects involves heavily with any

intrusion and interference within the water supply system.

• The issue of using PWM subjected to many prospective views, and is yet to be tested before a competent

court to separate and rule between the opponent groups, taking into account the existing laws. Therefore, it

is crucial to implement a non-knows new metering concept without having convincing data, along with the

lake of technical specification for the PWM.

• In our case, using the PWM does not necessary involve the people approval nor imply their agreement, in

this mater, a direct feedback must be obtained from the individual consumers regarding the acceptance and

approval to replace the monthly bill system.

• The authorities are obliges to:

Create a system with clear regulatory legislative framework

Along with monitoring institution that define and record all casesthat deserves financial support and subsidies,.

Compatible with the recommendations of the Palestinian Council ofMinisters decision

Along with the „Water Sector Reform Plan‟ that is being preparedfor nowadays.

CONCLUSTION AND RECOMMENDATION

Free minimum ‘life line’ of household water

supply commensurate with requirements of health,

hygiene and culture should be taken into

consideration to protect the interest of poor family

Emergency Water frequency and amount

Free Basic Water Cost Recovery

Efficient Management

• CONCLUSTION AND RECOMMENDATION

More work is needed

Results from this study cannot be used to make statistical estimates about the wider

community in the Palestine (only cover Jenin districts villages)

The opposition of the consumers in the study area may not be clear, because of the previous

water supply condition influence and to the demographical and socio-economic level of the

inhabitance in the study area.

There is a need for neutral parties‟ involvement; NGOs, Universities and research centers.

Due to the limitation of time, as well as the short time of using the PWM, it‟s highly

recommended to continue this study, to expand the survey including all the cases in the

Palestinian society, to work on the cost benefit analysis and the management scheme needed ,

after organizing the situation and reaching a regular operation and finance scheme of this

PWM pilot project.

Thank you