What is Non-Revenue Water?
Access to water is a very real challenge, as over 2 billion people in the world today have difficulty obtaining clean and properly treated water. The United Nations saw this concern as vital and pressing, making it a necessary addition to its Sustainable Development Goals, which highlights the aim for all members in global society to have access to clean water and sanitation by the year 2030.
Without factoring in the most severe instances of water scarcity such as those relating to drought and famine, on a global scale, the problem of water loss within water supply systems in both developed and developing countries has indeed been a worrying issue for some time. When we talk about non-revenue water, we are essentially talking about water which is lost in water distribution systems, either due to illegal tampering or from physical damage to water supply infrastructure. The quantity of water bleeding from such disruptions can be substantial, with about 32 billion cubic meters of water lost globally ever year, half of which occurs in developing countries.
A study carried out by the Southeast Asian Water Utilities Network (SEAWUN) determined that among 47 water utilities in countries including Indonesia, Malaysia, Thailand and Philippines, the average amount of water loss was 30% of the water produced in those systems. The study also showed that water loss amounts varied greatly among countries, ranging from anywhere between 4 and 65 percent.
What are the causes of Non-Revenue water?
As mentioned above, Non-Revenue Water includes any event in which water is lost resulting in a discrepancy between the amount of water initially supplied and the amount of water that reaches end users. The disruption of this supply of water can be broadly categorized into three areas which are physical losses, commercial losses, and unbilled authorized consumption. Physical losses refer to disruptions which are caused by physical damage to water supply infrastructure or the malfunctioning of water piping systems, and can include leaks and breaks in transmissions mains, water piping, storage tanks, and distribution pipes.
Commercial losses, also referred to as apparent losses, are where water losses occur due to a deliberate theft of water from distribution networks or in which water meters are tampered with to reflect a different figure. There is also unbilled authorized consumption, which is water used by the utility for operational purposes, water used for firefighting, and water provided for free to certain consumer groups.
By and large, water losses which occur from NRW systems are difficult to identity, primarily because a large portion of these water piping systems are constructed underground and receive very little consistent oversight and monitoring. This also makes it difficult to determine the exact quantity or percentage of water which has been lost. It is equally difficult for authorities to conduct the necessary preventative measures, as determining the specific area which requires attention can be a complex and lengthy process. Generally, it is only when a significant breakage or physical disruption occurs, which is visible on the surface, that authorities can provide any real and effective response.
Quantifying Non-Revenue Water
Getting a solid accounting of NRW is a vital step towards addressing and curbing this prevailing issue of water losses around the globe. The level of NRW indeed varies from country to country, however data collected from WHO shows that losses from NRW were most significant in developing counties, amounting to about 35% of total water input, while losses in Eurasia and developed countries were at 30% and 15% respectively. Figure 1 below shows the distribution of water losses between developed countries, Eurasia and developing counties in 2006.
Figure 1
In terms of the value of losses incurred from NRW, the data indicates that more than $14 billion is lost each year by water utilities from NRW leakages, more than a third of which is attributed to water utilities in developing counties. The same study also indicates that a sizable portion of losses in developing counties ($2.6 billion) can be attributed to commercial losses, likely relating to theft or corruption. Figure 2 below shows the estimated value of losses from NRW between developed countries, Eurasia and developing counties.
Figure 2
The benefits of reducing NRW
The primary benefit from reducing NRW instances would obviously be that there would be better access to treated water and that that there would be a reduction in the associated financial losses that are incurred. In developing counties alone, about 8 billion cubic meters of water per year would become available if physical losses were reduced by half, which is enough to meet the needs of an additional 90 million people deprived of pipe water. This would in turn save about $1.6 billion per year in production and pumping costs for public utilities. Reducing commercial losses in developing countries by half would free up a further $1.3 billion in additional revenues.
Figure 3
Challenges in reducing NRW
Broadly speaking, the challenges inherent in reducing NRW levels are two-fold, with respect to the two different types of NRW, which are physical and commercial. With regards to physical NRW, the challenge of NRW reduction lies in the ability of private and public entities to detect the instances of water supply disruptions and carry out the appropriate repairs and maintenance works accordingly.
This can require a substantial amount of physical work and often calls for well planned, strategic, and consistent efforts for results to be noticeable and effective. With regards to commercial NRW reduction, this requires deliberate political will from the government as well as public institutions and authorities to exert pressure and take corrupt persons to task for the illegal tampering of water supplies.
In terms of the costs involved, the reduction of commercial NRW can be done with little financial expenditure and when implemented, can bring about immediate financial and real gains. Physical NRW reduction, on the other hand, often requires a substantial financial commitment on the part of the government and designated private contractors and must be done at large scale for the investment to show justifiable returns.
The private sector’s involvement in this process can and has been shown to bring about significant improvements in terms of NRW reductions, as private sectors can fill the gaps that utilities providers are unable to resolve. Inadequate incentives as well as a lack of expertise, technology, and the practical experience inherent in putting together large-scale projects and implementations, hinder the capacity of utilities providers to adequately implement effective reduction programs. Through long-term PPP arrangements, service contracts, subcontracting, or some combination of these business agreements, the private sector can bring an added level of competence and efficiency to NRW reduction efforts.
Private companies can improve NRW reduction programs by:
- Introducing effective existing and emerging technologies that improve visibility over water distribution systems and enable more strategic and effective responses
- Creating a more attractive, competitive, and fair incentive framework for project performance
- Developing versatile, creative solutions throughout the design and implementation processes of the program
- Making qualified human resources available for project works
- Allowing for greater flexibility of field work (such as with night crews)
- Attracting investment into NRW reduction activities, under acceptable and legitimate conditions
Solutions to NRW
In terms of resolving the issue of non-revenue water, the first step is to determine where exactly water loss is occurring within a water distribution network. This can be done by conducting an unvalidated water audit, in which desktop studies are carried to determine areas which are potential water loss zones, and which would likely require a more detailed follow up inspection. This is then followed by a validated water audit, in which water meters are sampled and tested, billing errors are resolved, and aerial mapping and field surveys are carried out to identify illegal connections.
Once this is done the utility company can then establish non-revenue water zones where water loss rates are the highest and directly track water loss and usage in these areas by installing additional meters. They can then perform component-based leakage modelling to pinpoint possible loss locations, allowing for easier discovery, repair, and replacement of leaking service connections, with consistent follow up monitoring and pressure management to avoid further leakages.
The use of technology is becoming increasingly relevant towards non-revenue water prevention, whereby computer-based systems that integrate software, sensors, communications, automations, and controls are being introduced to assist in the detection of leakages and the monitoring of water supply networks.
There has been a recent mushrooming of companies that are developing technology-based solutions to help address water loss issues in recent years. Some of the solutions that have been put forward include a digital pressure management system which enables real time dynamic pump scheduling, a system that compares household water usage among similar residents, as well as a smartphone application that provides fast, efficient, and accurate surveying and pinpointing of water leakages.
Such technologies promise to provide greater clarity and oversight over water supply flows and disruptions, allowing for the monitoring of and response to non-revenue water events to achieve greater agility, seamlessness, and effectiveness.
Conclusion
Indeed, this issue of Non-Revenue Water remains a challenge towards achieving greater socioeconomic growth and stability, especially so in developing counties. Globally, as populations continue to increase and as climate change puts further strain on naturally occurring resources, the imperative to ensure that our water network systems are robust and resilient is more pressing than ever.
Governments will need to take a hard line on addressing non-revenue water concerns, particularly with regards to commercial losses and the corrupt practices that are associated with it, while also spurring utilities companies as well as the private sector onwards towards conducting audits and engaging more actively in NRW maintenance, repair, and overall responsiveness.
Current and emerging technologies will certainly play a more central role in non-revenue water reduction as water networks gravitate towards digitalised grids and more connected automation solutions are introduced to improve the quality and efficiency of water management processes and enable quick and effective NRW response times
With deliberate, well planned, and well-structured collaborative programs between utilities providers, the private sector, and governments, NRW reductions can be achieved to allow for the effective and unimpeded flow of clean water within resilient distribution networks. Such efforts will go a long way towards throwing out the bathwater that is NRW, allowing us to strike a steady path towards greater integrity, efficiency and sustainability in our global water supply systems for both present and future generations to come.
References:
- The Challenge of Reducing Non-Revenue Water (NRW) in Developing Countries, How the Private Sector Can Help: A Look at Performance-Based Service Contracting, B.Kingdom, R.Liemberger, P.Marin
- Non-Revenue Water Loss – It’s causes and cures, https://www.waterworld.com/home/article/14070145/nonrevenue-water-loss-its-causes-and-cures, accessed 10/9/2022
