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The negative economic impact of the Non-Revenue Water

The negative economic impact of Non-Revenue Water (NRW) is a threat to business continuity and the provision of excellent water supply service to customers.

Frequently, the reasons associated with high NRW cases are complex, thus requiring extensive efforts to establish the cause and decisive means to resolve them. Non-Revenue Water is basically water that is sourced, treated, produced, and lost before being billed due to physical or commercial losses resulting from, among other things, pipe bursts, leaks, unauthorised consumption, and poor meter readings. This loss results in a failure to generate revenue. NRW can be further categorised as either accounted for water or unaccounted for water.

Accounted for water is that portion of the water that is produced and traceable but does not generate any revenue for the utility, like water used for fire extinguishers. On the other hand, unaccounted for water is that portion of water produced by a water service provider that is lost and untraceable.

 

The Lesotho Electricity and Water Authority (LEWA) plays an oversight role in assisting the Water and Sewerage Company (WASCO) to reduce NRW to acceptable standards. LEWA uses Key Performance Indicators (KPIs) to monitor WASCO’s compliance, which include a set standard of NRW. The Company’s NRW was 59% in 2021/22, 60% in 2022/23, and 58% in 2023/24 against LEWA’s set target of 46.5%. In addressing the ever-increasing levels of NRW, LEWA directed WASCO to submit a Leakage Reduction Strategy to be used to monitor and reduce the loss of treated water. The NRW target was initially set at 26% but was reviewed to 46.5% following WASCO’s constant failure to reduce it to the minimum set standard.

 

Solutions to resolve high NRW levels are essential, as there are negative consequences of not effectively managing NRW levels; both for the water utility and the consumer. Speaking with LEWANEWS, the Authority’s Performance Analyst – Water, Mr. Matjeketjeke Mokhesi, explained that NRW is attributed to many factors, which include: illegal connections, poor maintenance plans, aging infrastructure, and faulty measurement systems. NRW has an adverse impact on water resources due to the ever-increasing harvesting of water which escalates energy consumption for water treatment and distribution. To prevent high water losses, the water utility should use several strategies, which include but are not limited to the following:

• Leak Detection and Repair: Leaks in the distribution network can be quickly found and fixed by

utilising leak detection technologies, including pressure management systems and acoustic sensors. Physical losses can be reduced to a minimum with proactive repairs and regular maintenance plans.

• Pipe Replacement and Modernisation: Replacement of corroded, inefficient or aging pipes is a must. An upgraded distribution network and infrastructure becomes resilient, lowers leakage rates, and raises system efficiency. By utilising data analytics and remote sensing technology, utilities may pinpoint areas that are vulnerable to unlawful connections or leaks, allowing for focused interventions aimed at reducing NRW.

• Training and Capacity Building: Capacity-building initiatives for stakeholders and employees of water utilities improves knowledge, technical proficiency, and best practices in NRW management whilst promoting efficiency and responsible culture.

• Public Awareness Campaigns: Making people aware of the value of conserving water, spotting leaks, and reporting abnormalities can go a long way in the reduction of NRW.

• Demand-Side Management: Reducing overall water demand and NRW can be achieved by encouraging conservation efforts among customers, putting water efficient devices into place, and promoting water-saving habits.

 

• Key Performance Indicators (KPIs) and Performance Benchmarking: Utilities can monitor progress, identify opportunities for improvement, and promote ongoing optimization in non-renewable water resource management by defining clear KPIs and assessing performance against industry norms.

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