Are you tracking non-revenue water?

Does your utility track non-revenue water (NRW)? Non-revenue water is the term that replaces what was formerly called water loss reporting.

Graphic courtesy of Tata & Howard –

What is non-revenue water?

Non-revenue water is defined as your total system input volume (either water produced or purchased) less billed consumption.

From the chart below you can see that your system input volume falls into one of two categories – authorized consumption or water losses. Each of these are then further divided into two sub-categories – authorized consumption into billed and unbilled authorized consumption and water losses into apparent and real losses.

Non- revenue water is the total of unbilled authorized consumption, apparent losses, and real losses.

Let’s analyze each of these in more detail…

Billed authorized consumption

This is pretty straightforward – this is what your utility is in business to do! Billed authorized consumption can be either metered or unmetered, but it is accounted for and you (hopefully) get paid for it!

Unbilled authorized consumption

Unbilled authorized consumption can also be either metered or unmetered. Unbilled metered consumption would include your own facilities if you don’t bill yourself. Examples of unbilled unmetered consumption would be flushing lines or the fire department drawing water from hydrants in your system.

Apparent losses

Apparent losses are also broken down into two types – unauthorized consumption and customer meter inaccuracies and data handling errors. Unauthorized consumption is self-explanatory – it’s stolen water or any other consumption without the utility’s authorization.

Customer meter inaccuracies includes meters slowing down over time due to wear and tear. Remember, meters are like people – they slow down, not speed up, as they get older! Metering inaccuracies could also be due to failing to install a compound meter for a multi-unit apartment building and not registering low flows during off-peak times.

Data handling errors would encompass such things as meters that are billed using the wrong billing units. For example, if a meter is read in thousands of gallons but billed in hundreds of gallons, the apparent loss is a factor of 10.

Real losses

Real losses are further defined as leakage in transmission and distribution mains, leaks and overflows from storage tanks, and service connection leaks up to the meter.

Leaks in transmission, distribution, and service lines are what first comes to mind for most people when they think of water loss, but leaks and overflows from storage tanks must also be considered.

AWWA resources

The American Water Works Association (AWWA) offers free water audit software to assist with accounting for non-revenue water. They also offer a concise, three page document describing water audits with definitions and performance indicators to help explain the process.

Need help getting started?

If you need help getting started with performing a water audit, please give me a call at 919-232-2320 or e-mail me at and I can put you in touch with consultants who specialize in this area.

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© 2018 Gary Sanders

Consumer Expectations & Experiences

I’ve written in past years about the Fiserv Billing Household Survey, which describes consumer trends in paying bills. You can read those articles from 2013, 2015, and 2016.

I’ve been checking periodically to see if Fiserv released a similar survey for 2017, but can’t locate one. However, I did find a research paper, Expectations & Experiences | Consumer Payments, from April, 2017. You can download the paper from this link. Downloading requires your name and contact information but, from experience, I can assure you they won’t spam you!

Highlights from the paper

Here are some highlights from the research paper I think utilities would do well to pay attention to:

  • 74% of online banking users use online bill pay (page 3)
  • In the 30 days prior to the survey, the number one reason consumers used online banking was to pay bills (page 4)
  • 79% of consumers are satisfied with online bill pay (page 6)
  • Convenience is the number one reason consumers use either their bank’s online banking bill pay service or online bill pay directly from billers (page 7)
  • 76% of consumers say real-time payment delivery is at least somewhat important (page 9)

What does this mean for your utility?

Clearly, the trend is towards paying bills online, whether that means using your online bill pay site or your customer using their bank’s bill pay service.

If you don’t already offer online bill pay, I recommend you move as quickly as possible to start offering it.

If you do offer online bill pay through a third party, and it’s not fully integrated into your billing system (i.e. you have to import payments the next day), I encourage you to investigate a fully integrated online bill pay solution.

The final takeaway is, if you are still receiving paper checks when your customer pays using their bank’s bill pay service, to consider using a payment consolidator to receive those checks electronically.

Are you offering all the latest payment options?

If you’ve ever wondered if you’re offering the most popular payment options, please give me a call at 919-232-2320 or e-mail me at to discuss how a business review could benefit your utility.

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© 2018 Gary Sanders