The Financial Case

Overview

The Financial Case sets out how the metering programme will be funded, how costs will be recovered, and whether the investment is affordable and sustainable over time. It brings together the capital and operating cost estimates, funding sources, and budget implications to confirm the project’s financial viability.

Funding Approach

Metering programmes typically require a mix of capital and operational funding. Capital costs, such as meter supply and installation, communications infrastructure, and supporting systems — are usually loan-funded and recovered over time through depreciation, spreading costs fairly across asset life. Operating budgets then cover annual costs for communications networks, software licensing, maintenance, data management, billing, and customer service.

Indicative Budget Development

The Financial Case should include preliminary cost estimates to support value-for-money analysis and long-term financial planning. Key components normally include:

• • Project setup and planning – Business cases, policy development and organisational capacity building.

  • Project and contract management — internal resourcing, procurement, and communications.

  • Meter supply, installation, and contingencies — core delivery and on-site works.

  • Communications and data systems — networks, analytics, and integration platforms.

  • Ongoing operational costs and staff resourcing or third-party license or other support costs.

  • Affordability and Funding Sources

Funding will likely require updates to the Long-Term Plan (LTP) [JF1] and integration with asset renewal and operational budgets. Councils may also consider using targeted rates, borrowing, or partnerships with third-party providers such as Metering-as-a-Service (MaaS) arrangements to spread cost and manage financial risk.

The Financial Case provides confidence that the investment is fiscally responsible — balancing affordability, equity, and long-term sustainability.

The Other Business Cases