NON-REVENUE WATER: The cornerstone in delivering efficient and effective water services by Bambos Charalambous Past Chair of the IWA WLSG Chair of the IWA IWS SG Fellow of IWA
Business as Usual 2
Business as Usual 3
Business as Usual 4
N R W Result of Business as Usual High Passive Approach NRW Increases with Time Low 0 0 NRW= Water which is supplied in to a system but does not produce revenue TIME - Years 5
A Vicious NRW Cycle NRW Increases Inefficient Operations Poor Skills Development Poor service Low Investments Low Willingness to Pay Customer Dissatisfaction 6
The Virtuous NRW Cycle Water Utility Water Utility invests in NRW invests Water in Utility NRW Reduction invests Water Reduction in Utility NRW invests Reduction in NRW Reduction Water Utility has increased Water Utility revenue & has financial increased Water Utility capacity revenue has & increased financial capacity revenue & financial capacity NRW REDUCES NRW REDUCES NRW REDUCES NRW REDUCES The Challenge: How to turn the vicious cycle into virtuous cycle 7
N R W Moving away from Business as Usual High NRW Increases with Time Passive Approach Business as Usual HIGH NRW NON-REVENUE WATER MANAGEMENT LONG TERM STRATEGIC ACTION PLAN Low 0 0 LOW NRW ECONOMIC NRW 24/7/365 TIME - Years 8
The Centrality of Water Loss (NRW) in Good Water Utility Management 9
NRW Constituent Components System Input Volume Authorized Consumption Water Losses Billed Authorized Consumption Unbilled Authorized Consumption Commercial Losses Revenue Water Non Revenue Water Physical Losses 10
The Centrality of Water Loss Management Source: McCormack, 2005 11
Non Revenue Water Key Message REDUCTION IN: Unbilled Authorized Consumption will generate more revenues Commercial Losses will generate more revenues Physical Losses will: result in more water being available for consumption or reduction in operating costs delay the need for investments in source development 12
Key Challenges Way Forward 13
Main Challenges in the MENA Region Intermittent Water Supply few hours water supply per day in many places High NRW attributed to both Physical and Commercial Losses, more than 60% of System Input Volume Lack of proper maintenance Poor pipe network condition - Major replacement needed Lack of finances for CAPEX 14
Main Challenges in the MENA Region Incomplete / inaccurate network data Poor metering and inadequate metering policies Data handling inaccuracies Unsatisfactory bill collection Low water tariffs / Insufficient income 15
Driving Change Management must: understand and accept challenge take ownership show commitment and leadership Supporting elements/conditions: enabling environment employees, customers on board mandate, empowerment, capacity objectives, targets organization and administration financial resources, budget communication inside and outside of the utility 16
Key Message Successful change requires in addition to a structured innovative strategy a strong element of personal leadership. The challenge is how to 'depersonalize' good utility performance and how to anchor the good results of change and reform, and to make them robust and sustainable. 17
Account for all Water Water is either used or it is lost! the first step is to establish how much water is produced and how much is being used WHY METER? Measure the supply / distribution Determine customer consumption Calculate water balance Determine water loss areas equitable basis for charging consumers 18
Network Management 19
Commercial Management Source: Rado Russev 20
NRW Reduction Specifics Reducing leaks vs. Adding supply Pressure management vs. Pipe repair Meter installation / replacement vs. Consumption estimates Costly materials vs. Cheaper materials Prioritization in space: District A or District B Prioritization in time: Action now or in X years 21
Move from Passive to Active Mode Three successive levels of improvement: First, doing the obvious (simple and cheap): -Pick the low hanging fruit, quick wins Second level of action: -Drive the system into an improved performance Third, the long-term and sustainable stage: -Fine tune and sustain gains 22
Thank you Bambos Charalambous Director HydroControl Ltd Tel.: +357 99 612 109 Email: bcharalambous@cytanet.com.cy 23