As digital water strategies evolve, many Australian utilities still face a familiar crossroads: the case for Advanced Metering Infrastructure (AMI) is clear, but the funding isn’t. Aging infrastructure, siloed data systems and concerns about internal readiness continue to stall progress. 

Yet, a growing number of utilities are discovering that the strongest business case for AMI doesn’t always begin with meter read savings. Contrary to what many industry leaders assume, it can start with the consumer. 

Unlocking ROI Through Demand-Side Value 

Demand response programs, consumer education and leakage reduction are emerging as the strategic levers unlocking AMI’s value. Once internal risks like data fragmentation and capability gaps are resolved, these demand-side enablers form the foundation of AMI’s compelling ROI story. 

Customer-Side Leakage Reduction  

Australian pilots continue to show that leak detection is the first and most measurable AMI win:  

• In Melbourne, Southeast Water’s Digital Metering Program has alerted over 17,000 customers to leaks on their property, leading to AUD 2.9 million saved and 683 ML of water conserved in 2023-24. 
• In Victoria, Goulburn Valley Water’s Intelligent Metering Trial enabled proactive customer contact to resolve leaks before they escalated to large bills. 
• At scale, Iota’s Digital Utility at Scale initiative reported that around 12% of meters triggered leak notifications, resulting in 1,000 ML of water saved and nearly AUD 3.8 million in avoided costs. 

For boards and regulators, these are compelling numbers. Unlike many infrastructure projects where benefits materialize over decades, leakage savings are visible within months. They directly reduce non-revenue water (NRW), lower unnecessary pumping and delay costly upgrades to treatment plants and storage. 

Customer Education as Operational Leverage 

Leak alerts are only the beginning. AMI insights also transform customer education into an operational tool. 

Southeast Water has found that customers respond rapidly when notified of leaks, often acting within hours. This responsiveness is vital: every day a leak goes unaddressed, it adds to water and energy losses. 

International and local evidence reinforces the point. During Australia’s Millennium Drought, efficiency programs combining communication campaigns and digital insights contributed to sustained reductions of up to 30% in per-capita demand. More recently, Sydney Water’s detailed customer logging pilots have demonstrated that access to granular consumption data can highlight savings opportunities and influence behavior. 

Consumer engagement, when powered by AMI data, strengthens the business case by lowering costs to serve and build trust through transparency. 

Water Demand Response 

The concept of demand response (DR) is well-established in the electricity sector, and water utilities are beginning to explore similar approaches. With rising energy prices, greater climate variability and more frequent droughts, the case for water DR is growing. 

Potential use cases include: 

• Seasonal restrictions with usage enforcement and equity 
• Tiered pricing based on hourly consumption 
• Critical peak alerts during droughts or outages 

These programs help defer major capital expenditures, smooth peak loads and reduce emissions, especially when aligned with solar availability. 

Infrastructure Australia’s 2019 Infrastructure Audit highlights that demand-side tools—such as adaptive pricing, granular metering and data-driven user feedback—remain underutilized in the water sector, and calls for a stronger balance between supply and demand strategies. 

The Overlooked Link: Water + Energy Efficiency 

Water operations are inherently energy intensive. From extraction and treatment to distribution, every step consumes electricity—often during peak demand periods when energy costs and grid emissions are highest. 

AMI directly addresses this. By enabling real-time insights and better load forecasting, utilities can: 

• Align pumping with solar generation, reducing peak energy demand and emissions 
• Cut unnecessary pumping through real-time leak alerts 
• Use water consumption patterns to optimize energy use in treatment plants, especially during variable inflows in wet/dry seasons 

According to the Australian Renewable Energy Agency, energy costs can account for 30–40% of operating expenditure in some water treatment and pumping operations. This means every efficiency gain has an outsized impact on the bottom line. In this sense, AMI becomes a climate resilience strategy—not just a digital upgrade. 

Turning the Corner: What Changes the Game 

While customer-side savings are visible, the deeper transformation comes when AMI data is integrated across teams. Traditionally, billing, operations, asset management and customer service have been siloed. This fragmentation slows responses and hides opportunities. 

Utilities begin to see real change when internal barriers are removed, and demand-side value is prioritized: 

When AMI data flows across teams, leak alerts can be linked to billing adjustments, pump scheduling and asset planning. When these conditions are met, utilities achieve: 

• Lower operating costs per household 
• Higher service levels without new infrastructure 
• Improved customer satisfaction and trust 

This turns isolated wins into enterprise-wide efficiency gains, strengthening the ROI case. According to Water Services Association of Australia’s recent reporting and sector submissions, breaking down silos and embedding digital pathways is essential to drive efficiency, resilience and truly customer-centric service in the “utility of the future.” 

Looking Ahead: The Water Utility as a Platform 

As Australia moves toward its 2050 Net Zero targets, water utilities must embrace data-enabled operations as part of their resilience strategies. AMI forms the foundation of a modern, efficient and customer-centric utility. 

Leakage reduction, education and demand response aren’t just added benefits, they are the drivers of this transformation. What gets measured can be managed, and what gets managed can be optimized. 

AMI is not just about reading meters—it’s about rewriting the future of water in Australia.