SCADA and Smart Metering Systems in Water Companies. A Perspective based on the Value Creation Analysis

Abstract

Considering the invaluable service provided to the society by the water companies, it is imperative to ensure their sustainability. To achieve this objective, these organizations must be allowed to fulfil their Mission with effectiveness and efficiency. Information Technology (IT) solutions are especially important tools in this pursuit of enhanced performance and those with greater visibility in the water sector are: (1) SCADA systems, for operation and maintenance; (2) Smart Metering systems (SM), mainly focused on sales and Customer Relationship Management (CRM). Traditionally, the analysis of the advantages of these technologies has been based on the enumeration of possible and/or desired technical characteristics and functionalities, and not so much on the analysis of the value created through its impact on organizational processes. This communication presents an analysis of the benefits associated with the use of these technologies, or, more precisely, the value created through them. This analysis is based on the processes and activities they subdivide into, because these activities consume resources, hence generate costs, and it is the optimization of these costs that produces efficiency gains. Additionally, these tools generate useful information capable of creating value for the water company. This approach makes it easier to analyse the cost-benefit outcomes the water company may obtain from these technologies. Benefits for society are also taken into account, particularly water use efficiency, energy efficiency, and reduction of CO2 emissions. The quantification of these benefits was used to build the two cost-benefit analysis (CBA) models developed to assess the potential advantages for the water companies from implementing SCADA and SM systems.