The utilities management industry is transforming, facing numerous challenges such as:

• Tenant affordability

• Changing electricity tariff structures

• The National Energy Regulator of South Africa (NERSA) compliance

• The Electricity Regulation Act: Requirements for resellers of electricity to register

Tenants are becoming increasingly burdened by electricity, assessment rates, water and sanitation costs. Such costs range between R70 – R140 per square meter of Gross Lettable Area (GLA), depending on industry or sector and are now the ‘Achilles heel’ of utilities management. The impact thereof has resulted in decreased affordability, rental costs and property sustainability.

Digital transformation is occurring and has increased in recent years within the utilities management industry. The increased digital transformation has shifted the focus onto smart metering electricity, water, and gas, but has up till now been unable to provide adequate answers or solutions to the challenges currently facing the industry.

The usage of smart metering for only meter reading and billing purposes appears pointless. Smart Metering Solutions and intelligence should be used on a case by case basis to make specific informed decisions and bring about the necessary change to facilitate how utility accounts are managed, controlled, charged, and resold.

It has become apparent that there is a disconnect between the commercial objectives of the utilities manager and the property owner, with each parties’ own objectives and interests in conflict. Digital transformation is necessary and key to obtaining a win-win scenario between property owners’ rental growth and utility managers sale of electricity.

Furthermore, the intelligence derived from smart meters should be used over and above the basic functions of meter reading and billing, to inform change asset management, improve operations in commercial and residential property by driving down the cost of utilities and benefiting all.

Whilst the Internet of Things (IoT) has broad value, it also increases the risk of smart metering platforms being exposed to security breaches and compromised hacking of data, which is reason for concern. Ironically, it has also become more expensive to read meters electronically on digital platforms than simply reading meters manually.

Due to the above-mentioned challenges, it has become increasingly apparent that a new skill set is required to adapt to a new IoT technological journey and move existing intelligence beyond billing to serve multiple interests.