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United Utilities launches £630m smart meter contract

United Utilities has begun its search for a smart meter partner.

Worth £630 million, the smart meter contract covers the supply of meters and communications unit, as well as installation and data management.

The contract covers the duration of AMP 8, which runs from 1 April 2025 for five years.

As part of its PR24 business plan, United Utilities has committed to the rollout of more than 900,000 Smart AMI meters during the next asset management period.

The contract notice, published on the UK’s Find a Tender service, adds that smart meters are “a key enabler to reduce water supply volumes (via reductions in per capita consumption (“PCC”), reductions in customer-side leakage (“CSL”) and non-household (“NHH”) demand)”.

It adds: “In order to achieve this UU intend to appoint a single prime contractor to deliver the full scope of services (smart meter supply, meter installation and connectivity services/comms), whether directly or through sub-contract arrangements, for the five year AMP 8 period, with extension options up to the end of AMP 9.

“UU’s strategy to implement and manage it’s smart meter estate is to appoint a single supplier to acquire, deploy, commission, network and maintain the smart meter estate.

“This is being done to provide the necessary feed of data to allow the company and their customers, to make decisions and change behaviours based upon the consist feed of consumption data.”

Scott Green, head of developer services and metering at United Utilities, said: “We have ambitious plans for the roll out of smart metering to household and non-household customers between 2025 and 2035.

“We are now looking for a supplier to partner with us to help deliver this exciting project for the North West.”

Smart meters have been identified by Ofwat as a key driver in reducing water consumption by 4,000 megalitres/day by 2050.

At present, less than 60% of properties are metered and far fewer are on a smart meter.

Each water company set out its metering plans within its water resource management plans (WRMPs) published earlier this year.

Thames Water announced this week that it has now installed more than one million smart meters in its region.

Cath Jones, head of company engagement at the Consumer Council for Water, said: “Water can often be overlooked when it comes to cutting bills but for many households switching to a water meter can unlock annual savings running into hundreds of pounds.

“Metering is not only empowering more people to save money but also helping households to become more aware of how they can easily reduce their use of water and support wider efforts to protect our natural resources.”

Writing for Utility Week last month, Baringa director Will Lewis explained what the water sector can learn from the energy smart meter rollout.