1. Metering at Veolia Water Southeast Ian McAthy Metering and Water Efficiency Manager November 2010

2. Why Meter? Statutory Water Resources Management Plan 2009 30 year forecast Water Resource Availability Water stressed area Reliant on groundwater sources – no rivers of sufficient size EA consider area over abstracted – looking to reduce public water supply abstractions Demand For Water Increasing population Rising number of lower occupancy properties – leads to higher per property usage Long term planning shows we need to manage demand Unmeasured / fixed cost – no incentive to reduce demand Metering / paying for what you use incentivises careful use

3. Metering Activities To Date Commercial Customers All main commercials metered Remaining few being swept up during zonal metering Domestic Customers All new properties since 1990’s Free Meter Option since 1995 Change of Occupier April 2005 to March 2007 “Water Scarcity Status” in March 2006 Zonal Compulsory Metering – commenced in Lydd Jan 07 PR09 Final Determination 90% domestic by April 2012

4. Control Area 50% Metered Lydd Pilot Area 100% Metered Veolia Water Southeast Area of Supply

5. VWSE Distribution Input – Metering Impact

6. Zonal Metering Process Original Letter Background to meter programme Work to be carried out Bogus caller awareness Survey Where / how to fit meter Meter Installation Highway / Garden / Internal installation Card and water efficiency advice left with customer VWSE Billing database updated & Southern Water informed 6 monthly meter reading – 3 monthly billing cycle

7. Other Trials – Deferred Metering Deferred Metering  1,000 unmeasured properties are to be part of a Deferred Metering trial – Capel le Ferne, Hawkinge, Ringwould and Kingsdown  Meters will be fitted as normal and manually read every three months  Customers will remain on unmeasured charges until April 2012  Customers will not receive any water efficiency leaflets/guidance  Customers will not be advised of their quarterly consumptions until one year after the meters are installed  Customers can read their own meters and Opt to change to measured charges at any time if they wish  After one year customers will be advised of their water use over the previous four quarters  No retrospective discounts will be given if customers then choose to Opt  The difference will inform the change in consumption on transfer from unmeasured charges to metered charging.

8. Customer protection Abnormal water use: Free 1 st supply pipe repair * Subsidised supply pipe replacement * Domestic leakage allowance * * Conditions apply Customer hardship cases: Veolia Water Trust - by Charis Grants WaterSure – formerly Vulnerable Customer Tariff