Reducing Non-Revenue Water
The benefits of reducing NRW include:
• need for less water to be produced, treated, and pumped, translating into the postponement of the expansion of capacity—producing less water also translates immediately into cost savings on O&M, due to savings in energy and treatment costs;
• reduction in apparent losses, which will result in more water being billed and more revenue for utilities—it has also been shown that water metering and adequate rates reduce wasteful consumption, which will likely decrease total consumption;
• adequate understanding of consumption patterns, which will allow utilities to optimize distribution systems;
• better knowledge of real consumption, which will improve demand projections; and
• reduced sewage flows and pollution.
These benefits depend on adequate pricing of water resources and services. Subsidies for water extraction, discharge of wastewater, capital investment, and operation of water supply systems lower
the cost of water as perceived by utilities and thus remove an incentive to reduce physical losses. Low water rates for consumers do not encourage utilities to meter their water consumption and detect and deter unauthorized water use. Moreover, low rates fail to provide consumers with an incentive to deal with leaks and wastage beyond their meters. It is often said that there is no point in reducing
NRW below about 20% of production, because the costs outweigh the benefits.
The benefits of reducing NRW include:
• need for less water to be produced, treated, and pumped, translating into the postponement of the expansion of capacity—producing less water also translates immediately into cost savings on O&M, due to savings in energy and treatment costs;
• reduction in apparent losses, which will result in more water being billed and more revenue for utilities—it has also been shown that water metering and adequate rates reduce wasteful consumption, which will likely decrease total consumption;
• adequate understanding of consumption patterns, which will allow utilities to optimize distribution systems;
• better knowledge of real consumption, which will improve demand projections; and
• reduced sewage flows and pollution.
These benefits depend on adequate pricing of water resources and services. Subsidies for water extraction, discharge of wastewater, capital investment, and operation of water supply systems lower
the cost of water as perceived by utilities and thus remove an incentive to reduce physical losses. Low water rates for consumers do not encourage utilities to meter their water consumption and detect and deter unauthorized water use. Moreover, low rates fail to provide consumers with an incentive to deal with leaks and wastage beyond their meters. It is often said that there is no point in reducing
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