Yorkshire Water has gone out to tender with an AMP8 Smart Meters contract worth an estimated £350 million.

The water company is looking to put a framework agreement in place with a partner(s) who have a proven track record of providing Smart Network Services to support with our move to Smart Metering.

The framework will support the delivery of Yorkshire Water’s AMP8 2025-2030 plan, with the potential to extend to the delivery of our AMP9 2030-2035 plan.

The requirement covers the following services:

• Network provision
• Supply of smart meters
• Install, exchange and maintenance services
• Meter reading activity in support of the AMI contract (Optional)
• Financing of the metering programme (Optional)

All services are as required to meet the utility’s service level agreements (SLAs) for customer meter data.

Yorkshire Water requires a partner(s) to manage all of the IOT infrastructure required to support smart meter SLAs. It also wants the successful partner(s) to take responsibility for all asset management activities relating to the IOT network. The IOT network need not be exclusive to Yorkshire Water.

Yorkshire Water said it is seeking a relationship with a single supplier. Where a partnership, Alliance or similar is required to deliver the end to end service requirements, the water company will require a lead bidder to be identified, whom the contractual relationship will be established with.

Interested suppliers will be able to bid in multiple partnerships.

The contract is being tendered in two separate Lots.

Lot 1 covers the supply of water meters 

Yorkshire Water wants to set up a framework agreement with a partner(s) with a proven track record of providing smart network services to support with the company’s move to smart setering.

Lot 1 covers wide-ranging requirements, including the following services:

Network Provision

• IOT network providing data as a service with SLA regime across the whole Yorkshire Water metered customer base.
• Maintenance of IOT network for uptime and SLA attainment
• Integration of data into Yorkshire Water corporate systems

Supply of smart meters

• Across a range of sizes and fittings types, which can log data to the Yorkshire Water data requirements and transmit data through an IOT network. The solution must be market ready and tested for deployment at the beginning of 2025.
• The solutions must have an excellent asset life, including battery for functionality of ~15 years+, as well as meeting other YW specification requirements.

Meter exchange programme

• Removal and disposal of existing end of life meter and exchange with smart meter, both for externally and internally located meters
• Working with the Non Household retail market to deliver meter exchanges to business customers
• Undertake a limited number of meter installations, where previous metering chambers and ancillaries are not in place
• Data capture and integration into YW corporate databases
• Meter maintenance and reading services (Optional add on service)
• Maintenance of meter assets to achieve SLA's, such as meters which are not connecting to the IOT network as expected
• Undertaking meter reading for AMI Meters where sustained SLA underperformance occurs
• Meter reading capability for a wider Yorkshire Water customer meter asset base

Lot 2 Option - Funding of the meter replacement programme

Under Lot 2, Yorkshire Water want to explore the option for a third party funding the meter exchange programme, with Yorkshire Water repaying the investment over the lifetime of the contract, through a service fee or similar. Offerings such as lease liability, offbalance sheet or similar are expected, minimising the capital outlay by Yorkshire Water.

All services are as required to meet SLAs for customer meter data. Yorkshire Water require a Partner(s) to manage all of the IOT infrastructure required to support smart meter SLAs and for the successful partner(s) to take responsibility for all asset management activities relating to the IOT network.

Significant IOT network coverage to be installed after contract award & ahead of programme of exchanges starting in 2025

The network planning and delivery should be in place to allow for confirmation of network connectivity at the point of meter install. As such, significant IOT network coverage should be installed after contract award and ahead of the programme of exchanges starting in 2025.

Yorkshire Water are looking for a partner to understand its meter exchange and install programme requirements, and optimally design and deliver the required meter volumes.

The meter provider must be able to supply the required specification of meters, to the volume commitments within the meter exchange programme - meters must have high life expectancy standards and be underpinned with a 12 year+ warranty for parts and battery.

The meter hardware provider will work collaboratively with the install/exchange partner to manage meter stock levels and the continued pace of programme delivery.

The meter maintenance and reading supplier must be able to work with Yorkshire Water and IOT network provider data sets to provide the maintenance of AMI meters, where network connectivity is not suspected to be the route cause of asset under performance.

The bidding entity is expected to comprise of one or multiple parties, that form a joint bid, with the Network Provider being the lead bidder within Lot 1.

Interested suppliers are allowed to bid for both the funded and unfunded framework options.

Initial contract term is 5 years with further potential extension options available into ther AMP9 2030-2035 investment period.

Time limit for receipt of tenders or requests to participate is 8 November 2023 – click here to access the tender documentation.