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Commercial Meter Replacement Leads to Revenue Jumps
São Paolo, Brazil

 

Overview


The São Paulo Metropolitan Region is the most developed area of Brazil. Industrial and large commercial customers, as well as large condominium buildings, represent a significant portion of SABESP's revenue base: 28% of total metered consumption and 34% of all revenues. Yet these very customers represent a mere 2% of its customer base.

 

Project Goal


Many of the meters monitoring this key group were significantly under-registering, costing the company millions in unrecoverable revenue. This project aimed to eliminate commercial water losses due to inaccurate metering.

 

Project Scope


To provide a turnkey solution: analysis, engineering, design, supply and installation of 26,490 new meters over a period of 36 months.

 

Given the high daily consumption of SABESP's large customers, proper sizing and calibration of the meters was critical to achieve high accuracy and maximize revenues.

 

Financial Highlights


A non-capital expenditure method using performance-based payments was used: project value was based on the average increase in billable consumption volume.

 

The total value of the project was US$18 million.

 

Results


  • Total volume of metered consumption increased by 20 million cubic meters
  • Commercial water losses from inaccurate metering were effectively eliminated
  • SABESP dramatically increased total billable consumption from its most important customer segment
  • SABESP's revenues increased by US$36 million, double the amount invested
  • Revenues generated from this project continue to accrue to SABESP

 

 

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