Photo description: View looking down at someone’s hands rinsing a metal cup in a sink. Photo by Laura Ohlman on Unsplash 

The rollout and its strategic context 

Water companies across England and Wales are committed to fitting approximately half of all homes with a smart meter by 2030, forming a central component of the sector’s demand management strategy during AMP8. However, new research by the Consumer Council for Water (CCW) identifies a significant communications deficit that risks undermining customer engagement and, by extension, the effectiveness of the rollout as a demand management tool. 

The communication gap 

Almost two-thirds of households surveyed (64%) stated they could not recall receiving any information from their water company about smart meter installation. In some cases, households were unaware that a smart meter had already been fitted at their property. CCW has characterised this as a ‘communication gap‘ that leaves customers without a clear understanding of what smart metering is, why it is being introduced, and what benefits, financial and environmental, it can deliver. This has direct implications for companies seeking to use metered consumption data to support demand management objectives. 

Consumer attitudes and perceptions 

Despite the communications deficit, 62% of households expressed support for the rollout, and around half indicated they wanted more information from their company on the wider benefits of smart metering and its potential impact on water bills. However, customer expectations around billing remain uncertain: 35% anticipate a decrease in bills as a result of smart metering, while over a quarter expect bills to increase. This uncertainty represents a reputational risk for utilities if customers do not receive timely, clear guidance on tariff structures and consumption data access. 

Leak detection: A high-impact benefit being missed 

Awareness of smart metering’s capacity to detect household leaks is low among customers. However, when this benefit is explained, more than 70% identify it as a compelling reason to support the rollout. Given that household leakage represents a meaningful component of overall distribution losses, the failure to communicate this benefit effectively represents a missed opportunity both for customer engagement and for supporting wider leakage reduction targets. 

CCW’s research places an obligation on water companies to develop more structured, proactive customer communications strategies around smart metering deployment. As Ofwat’s performance assessment framework for AMP8 places increasing weight on customer satisfaction and engagement metrics, companies that fail to address this communication gap may face reputational and regulatory consequences. Water sector professionals involved in metering programmes, customer communications, or demand strategy should consider how these findings inform their current rollout plans.