In July 2024, Ofwat published its Draft Determinations under Price Review 2024 (PR24), a key mechanism through which the water regulator sets price limits for water companies over the next five years. The review also sets out the performance commitments and service standards that water companies must meet.
One of Ofwat’s objectives in the draft determination is to ensure water companies engage more actively with their customers and local communities. Ofwat stresses the importance of water companies engaging with customers and local communities, including taking into account customer preferences and local priorities when planning investments and service improvements.
In this blog we take a look at how, through our innovative behavioural insights and data-driven technology, Advizzo is uniquely positioned to help water companies not only meet these regulatory targets, but also go beyond them by fostering a culture of water conservation and customer empowerment.
Advizzo’s role: Moving beyond compliance
The draft determination includes ambitious targets for the water sector, such as saving 6 litres of water per person per day, reducing business water usage, and achieving a 13% reduction in leakage by 2030. These goals are backed by a massive smart metering programme and £225 million in demand-reduction activities, which rely heavily on customer engagement.
Our platform leverages big data and behavioural science to provide water companies with the tools to actively engage customers in water-saving initiatives. By offering personalised insights on water usage, Advizzo empowers customers to make informed decisions about their water consumption.
Our successful customer engagement campaigns demonstrate that engaging customers with tailored recommendations leads to measurable reductions in water usage and leak detection.
Severn Trent Water: My Smart Tracker Project
Working with Severn Trent Water, we introduced the “My Smart Tracker” platform, which provides more than 100,000 water customers with access to real-time water consumption data taken from their smart water meters. The platform has revolutionised customer interaction for Severn Trent, resulting in averages of 70+% open rate for communications and a 30+% click-through rate – significantly higher rates than industry averages.
The platform enables customers to better understand their water use, which has led to substantial savings and behaviour changes. The outcomes speak for themselves:
- 7000+ leaks detected per year for every 100,000 smart meters installed
- 1.65 Ml/day in leakage savings
- 3.65 Ml/d reduced consumption
- 7.8% reduction in water consumption per household over 12 months (outside of leak detected)
These results highlight the power of behavioural science combined with digital engagement tools in driving water-saving initiatives.
Wellington Water: Greytown Smart Meter Rollout
We also partnered with Wellington Water and the South Wairarapa District Council in New Zealand to pilot a smart meter roll-out in the Greytown community. Through interactive communication, personalised tips and comparative water use data, customers were empowered to make sustainable water choices.
The trial resulted in a 20.2% reduction in water consumption for properties with smart meters, proving that smart technologies, when paired with customer engagement campaigns, can significantly influence water-saving behaviours. Furthermore, an impressive 80% of portal users completed the pre-trial questionnaire, allowing for deeper behavioural analytics that informed the project’s wider strategy.
The Future: Empowering water companies and customers alike
As Ofwat pushes for greater customer engagement through PR24, water companies are increasingly turning to data-driven solutions to not only meet regulatory requirements, but also build lasting relationships with their customers. Our platform is uniquely positioned to help water companies achieve these goals by fostering proactive customer engagement through personalised insights and behavioural nudges.
The results from Severn Trent Water and Wellington Water demonstrate that customers are willing to engage with water-saving efforts when given the right tools and information. By integrating advanced technologies with human-centred strategies, water companies can drive significant environmental impact while simultaneously improving customer satisfaction.
Conclusion
The focus on customer engagement in Ofwat’s draft determination marks a new chapter in the water industry’s journey toward sustainability. Water companies have an unprecedented opportunity to move beyond mere compliance and create a future where customers are active participants in conserving one of our most precious resources. Through Advizzo’s innovative platform, water companies can turn this vision into a reality – driving meaningful change that benefits everyone – utilities, customers and the planet. Get in touch today to find out more!