What is Non-Revenue Water and How to Reduce it? 

Non-revenue water (NRW) is a pressing issue faced by water utilities worldwide, leading to significant water losses and challenges in managing water resources effectively. Simply put, NRW refers to water that was produced but never reached consumers or went unaccounted for. As the water utility infrastructure ages, these losses continue to mount, making it crucial to address this problem urgently. With water being a precious and limited resource vital for life and economic growth, reducing non-revenue water is essential. By understanding the causes and implementing solutions, water utility companies can achieve more sustainable and efficient water supply system. 

What are the main causes of non-revenue water? 

The causes of non-revenue water (NRW) are multifaceted, encompassing both physical losses, often called real losses, and commercial losses, known as apparent losses. Real losses stem from leaks, bursts, and other physical issues within the distribution network, while commercial losses predominantly result from meter inaccuracies and unauthorized consumption. These losses can occur due to various factors, including broken or tampered meters, poor meter reading practices, inaccurate record-keeping, and even outright water theft. Despite some NRW originating from legitimate activities such as firefighting or municipal construction, most losses represent a significant challenge for water utilities, impacting both their financial viability and environmental sustainability.  

Physical water losses. This segment represents the most prevalent and financially burdensome challenge for water utilities worldwide. These losses primarily stem from leaks occurring throughout the distribution system and overflows from utility storage tanks. Factors contributing to physical losses include inadequate operations and maintenance practices, the lack of comprehensive leakage control programs, and the deterioration of aging infrastructure. Detecting leaks within extensive networks of pipes, which can span hundreds or thousands of miles, presents a massive challenge for water utilities.  

Often, leaks develop gradually underground, remaining undetected until pipes burst due to aging infrastructure or insufficient maintenance. Physical losses can occur at various points along the distribution system, from storage reservoirs and primary networks to individual service connections. Despite the perception that only visible pipe bursts cause significant leakage, the reality is that most of the lost water remains undetected underground. In fact, most of the leaked water goes unnoticed on the surface, leading to substantial annual water losses. Aging infrastructure aggravates this issue, with older pipes prone to leaks and bursts, disrupting service and posing risks to infrastructure integrity and public health. The ongoing degradation of infrastructure, coupled with the addition of new pipes to expand capacity, underscores the pressing need for effective leakage control measures to mitigate the environmental, financial, and public health impacts of physical water losses. 

Commercial water losses. In the context of non-revenue water, commercial water losses predominantly stem from unauthorized consumption and metering inaccuracies. These losses occur due to various factors such as customer meter under-registration, billing errors, and instances of water theft. Detecting and addressing these losses present significant challenges, including assessing meter accuracy and identifying instances of theft. While commercial losses typically involve smaller volumes compared to physical losses, they are no less important to address. Reduction in commercial losses offers immediate benefits, leading to increased billed volume and revenue. Water theft, a significant component of commercial losses, requires proactive measures to combat, as in some parts of the world consumers use magnets to disable meters. This couldn’t be done with smart ultrasonic meters. 

What are the solutions to reduce non-revenue water? 

To effectively tackle the issue of non-revenue water (NRW), water utilities must employ a multifaceted approach. Identifying and addressing the root causes of water loss is the first step. One method is to divide the distribution system into district metered areas (DMAs), allowing for targeted monitoring and intervention where losses are greatest.  

Smart water meters play a crucial role in reducing non-revenue water. Ultrasonic water meters can measure water flow with ultrasound, which makes the metering of water consumption precise. Extensive capabilities of transmitting data through radio waves, RFID, NFC, the Internet of Things (IoT) and the LoRaWAN technology facilitate data collection, making it possible to analyse data and effectively meter the water. Advanced detection algorithms are installed to identify faults in the water supply system (cracked pipe, leakage, freezing, backflow) – utilities receive fault alerts, can react proactively and prevent losses due to water leakage. 

Data management software monitors water consumption, manage meters, detect alerts and get data for automatic invoicing. Filtering and comparing consumption data provides many insights for the platform users as all abnormalities are seen in one platform. 

Additionally, implementing advanced leak detection technologies such as acoustic sensors, or machine learning algorithms (that some data management platforms already have implemented) can significantly aid in identifying leaks and bursts in the distribution network promptly or provide calculated prognosis. Furthermore, maintaining optimal pressure levels throughout the distribution network is essential.   

Key solutions for reducing non-revenue water include: 

• Leak Detection: Utilizing advanced technologies such as smart meters, sensors and advanced data management platform to successfully detect water leaks 
• Asset Management and Maintenance: Implementing proactive maintenance practices to prevent leaks and ensure the reliability of infrastructure. 
• Metering and Billing Improvement: Installing accurate smart meters and enhancing billing systems to minimize revenue losses. 
• Data Management and Analytics: Utilizing data-driven approaches to identify consumption patterns and prioritize interventions effectively. 
• Investment in Infrastructure and Technology: Upgrading infrastructure and adopting advanced technologies to enhance efficiency. 

These are only a few solutions that could minimize non-revenue water. Dealing with water pipes infrastructure built over hundreds of years is not easy. However, utilities should start somewhere, and taking once step forward could be a good start. 

Non-revenue water impact for consumers 

Non-revenue water (NRW) has significant implications for consumers, directly impacting the quality and reliability of water services. High levels of NRW hinder water utilities’ ability to meet customer demand effectively, resulting in intermittent supply and substandard service. Interruptions in supply could cause health risks, as contaminated groundwater may enter leaking pipes during low-pressure periods.  

Additionally, high leakages increase flow rates in the pipe network, leading to pressure losses and supply interruptions during peak demand hours. Unsatisfied customers are less willing to pay for improved service, discouraging tariff increases necessary for addressing NRW. This perpetuates a cycle of ineffective NRW management and financial weakness within water utilities.  

In the long run, high NRW levels may result in unnecessarily high tariffs or inadequate service provision. This situation often forces consumers to resort to alternative water sources of poor quality and high cost. Addressing NRW is crucial for ensuring reliable, safe, and affordable water services for consumers, as well as enabling the expansion of water infrastructure to meet growing demand. 

Conclusion: 

In a time characterized by increasing worldwide demand for water and decreasing water resources, the widespread problem of non-revenue water (NRW) presents a significant challenge for water management on a global scale.  

Addressing NRW demands urgent attention, given its profound implications for water availability, utility finances, and environmental sustainability. By embracing innovative technologies such as smart water meters, modern data management platform and other advanced technologies, also upgrading infrastructure, and implementing effective policies, water utilities can substantially reduce NRW losses.  

Interested in learning more about smart water meters? Read our article about smart water meters to discover how smart water meters work and the benefits they offer. Alternatively, you can contact us for a consultation on how we can assist you in reducing non-revenue water.