Non-Revenue Water (NRW) Course for Water Service Providers ...€¦ · Wave Training Programme...

Non-Revenue Water (NRW) Course for Water Service Providers (WSPs) in KenyaTrainers Manual

On behalf of In collaboration with

Trainers Manual

Wave Training ProgrammeKenya

May 2010

Non-Revenue Water (NRW) Course for Water Service Providers (WSPs) in Kenya

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Background

Water Service Providers were created under the provision of

Water Act 2002 to supply the clients with water and a result

the services of water provision have improved. However, One

of the major issues affecting Urban Water and Sanitation

Providers (WSPs) in Kenya is the considerable difference

between the amount of water put into the distribution sys-

tem and the amount of water billed to consumers commonly

referred to as “non-revenue water” (NRW). In general, many

of the Kenyan towns have 40–65 percent non-revenue water.

It seriously affects the financial viability of water utilities

through lost revenues and increased operational costs. A high

NRW level is normally a surrogate for a poorly run water

utility that lacks the governance, the accountability, and the

technical and managerial skills necessary to provide reliable

service to their population.

Revenue collection and cost recovery are as low as 20–30

percent of operation and maintenance (O&M) costs. This

leads to limited funds for routine maintenance, infrastruc-

ture coverage and poor quality of services. The inability to

cover operational costs affects the financial status of WSPs

negatively.

It’s also worth noting that many WSPs lack internal con-

trols for timely, accurate, and transparent billing and collec-

tion practices. Sometimes they do not have updated, accurate,

and complete computerized listings of the customers they are

serving, making accurate billing almost impossible.

Reducing NRW is not just a technical issue but also one

that goes to the heart of the failings of public water utilities

in developing countries. These water utilities often operate

under a weak governance and financial framework. , They

have to provide some form of service to customers on a daily

basis with mostly deteriorated infrastructure. In addition,

they often lack the proper incentives—as well as the special-

ist management and technical expertise—necessary to carry

out an effective NRW program.

In her endeavour to meet these challenges, the Kenya

Water Institute in collaboration with inWEnt – a Germany

government funded, internationally recognized Capacity

Building Institution has developed this Training Manual to

address and implement these challenges of non-revenue water

in urban Water Utilities in Kenya.

In this context, non-revenue water training endeavours at

minimizing operational costs and ensuring that more water

is available to customers to meet their demand. It will lead to

water utilities efficiency, effectiveness and profitability.

Target Group

The training programme aims to train middle level manag-

ers, supervisors and skilled operatives in Water Service Pro-

viders/Companies.

Outcomes

Participants will be able to:

• Explain the components of non-revenue water and assess

the impact of NRW on service delivery

• Explain the components of the water balance and its appli-

cability in water supply management systems

• Understand and identify the different causes of commer-

cial water losses

• Explain the various procedures for accurately assessing the

volume of NRW contributed by commercial water losses

• Appreciate the significance of NRW to water service delivery

• Develop systems for efficient and effective metering and

billing

• Develop a strategy for NRW reduction

Contribution to InWENT Wave Goal

The InWEnt Wave goal is to improve the performance of Water

Service Providers [WSPs] through a set of tailor made capacity

building training programmes in Kenya, Uganda, Tanzania and

Zambia. All these countries are in the process of implementing

water sector reforms and InWEnt has intervened by funding

human resources capacity building programmes by encourag-

ing regional learning and networking approaches.

It is expected that by training the human resources of

selected WSPs, their management will improve and contribute

to the sustainability of the water sector programmes. In this con-

text, this manual aims at improving the operations and man-

agement of Water Service Providers in Kenya. It is expected to

assist WSPs achieve efficiency and effectiveness by embracing

and applying the principles of reduction non-revenue water in

their day-to-day operations.

Training Duration

Face to face training is expected to last at least four and a half

working days with the remaining time being devoted to field

training exposure where the participants are expected to have

a real life experience on the happenings in a water utility.

Contents

BACKGROUND.......................................................................................................................................................................................................................................5

INTRODUCTION.TO.THE.TRAINING.MANUAL.ON.NON-REVENUE.WATER.......................................................................................................................130.1.Background.to.the.Training.Manual......................................................................................................................................................................................130.2.Purpose.and.Focus.....................................................................................................................................................................................................................130.2.1.Specific.Training.Objectives.................................................................................................................................................................................................130.3.Planning.and.Implementation.of.the.NRW.Reduction.Training...................................................................................................................................140.3.1.Learning.Cycle/Sequence.....................................................................................................................................................................................................140.3.2.Preparatory.Works.................................................................................................................................................................................................................140.3.3.Face.to.Face.Training.............................................................................................................................................................................................................140.3.4.Training.Methods....................................................................................................................................................................................................................150.3.5.COURSE.EVALUATION...........................................................................................................................................................................................................150.4.Participatory.Adult.Learning.Approach...............................................................................................................................................................................160.5.Organization.of.the.Training.Manual...................................................................................................................................................................................17

COURSE.UNITS...................................................................................................................................................................................................................................19

UNIT 1 INTRODUCTIONS AND EXPECTATIONS ........................................................................................................................................21Session.One.........................................................................................................................................................................................................................................211.0.INTRODUCTION.AND.EXPECTATIONS...................................................................................................................................................................................211.1.NOTES.TO.INTRODUCTION.AND.EXPECTATIONS...............................................................................................................................................................23

UNIT 2 INTRODUCTION TO NON-REVENUE WATER ...............................................................................................................................25Session.Two.........................................................................................................................................................................................................................................252.0.Introduction.to.Non-Revenue.Water...................................................................................................................................................................................252.1.Notes.on.Introduction.to.Non-Revenue.Water.................................................................................................................................................................262.1.1.Background................................................................................................................................................................................................................................262.1.2.Challenges.................................................................................................................................................................................................................................262.1.3.Impacts.of.Non-Revenue.Water.........................................................................................................................................................................................262.1.4.Addressing.NRW......................................................................................................................................................................................................................28

UNIT 3 WATER SECTOR REFORM ..............................................................................................................................................................29Session.Three......................................................................................................................................................................................................................................293.0.The.Concept.of.Water.Sector.Reform..................................................................................................................................................................................293.1.Notes.on.the.Water.Sector.Reform.......................................................................................................................................................................................303.1.1.Introduction..............................................................................................................................................................................................................................303.1.2.Impacts.of.Water.Sector.Reforms......................................................................................................................................................................................303.1.3.Guiding.Principles.of.Successful.Reforms.......................................................................................................................................................................313.1.4.Cost/Benefit.Ratio.of.the.Reforms.....................................................................................................................................................................................313.1.5.Implementation.of.the.Reforms..........................................................................................................................................................................................313.1.6.Roles.and.Responsibilities.of.Institutions........................................................................................................................................................................323.1.7.Do.the.reforms.have.a.timeline?.........................................................................................................................................................................................333.1.8.Clustering...................................................................................................................................................................................................................................353.1.9.Lessons.Learnt..........................................................................................................................................................................................................................35

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Water.Balance....................................................................................................................................................................................................................................36Session.Four........................................................................................................................................................................................................................................364.0.Components.of.the.Water.Balance.......................................................................................................................................................................................364.1.Notes.on.the.Water.Balance...................................................................................................................................................................................................374.1.1.Components.of.the.Water.Balance....................................................................................................................................................................................374.1.2.Definitions.of.Water.Balance.Terms..................................................................................................................................................................................38

Session.Five.........................................................................................................................................................................................................................................415.0.Computing.the.Water.Balance...............................................................................................................................................................................................415.1.Notes.on.Conducting.Water.Balance...................................................................................................................................................................................425.1.1.Key.Steps.for.Conducting.a.Water.Balance.....................................................................................................................................................................425.1.2.Improving.the.Accuracy.of.Water.Balance.Results..................................................................................................................................................... 435.1.3.Key.Messages.......................................................................................................................................................................................................................... 44

Session.Six.......................................................................................................................................................................................................................................... 456.0.Zoning.Concept.......................................................................................................................................................................................................................... 456.1.Notes.on.Zoning.Concept........................................................................................................................................................................................................ 466.1.1.Introduction..............................................................................................................................................................................................................................476.1.2.The.Design.of.a.Leakage.Monitoring.System..................................................................................................................................................................476.1.3.The.Advantages.of.Zoning................................................................................................................................................................................................... 486.1.4.Pressure.Management.......................................................................................................................................................................................................... 486.1.5.Using.DMA.Results.to.Reduce.NRW.Levels.................................................................................................................................................................... 486.1.6.Estimating.Physical.Water.Losses..................................................................................................................................................................................... 486.1.7.Determining.Commercial.Water.Losses........................................................................................................................................................................... 496.1.8.DMA.Management.Approach............................................................................................................................................................................................. 496.1.9.Key.Messages.......................................................................................................................................................................................................................... 50

UNIT 4 PHYSICAL WATER LOSSES ............................................................................................................................................................51Session.Seven.....................................................................................................................................................................................................................................517.0.Physical.Water.Losses.and.their.causes...............................................................................................................................................................................517.1.Notes.on.Physical.Water.Losses.and.their.Causes............................................................................................................................................................527.1.1.Definition.of.Physical.Water.Losses...................................................................................................................................................................................527.1.2.Components.of.Physical.Water.Losses.............................................................................................................................................................................527.1.3.Sources.of.Physical.Water.Losses......................................................................................................................................................................................527.1.4.Causes.of.Physical.Water.Loses..........................................................................................................................................................................................52

Session.Eight...................................................................................................................................................................................................................................... 538.0.Quantifying.Physical.Water.Losses...................................................................................................................................................................................... 538.1.Notes.on.Quantifying.Physical.Water.Losses................................................................................................................................................................... 548.1.1.Main.Components.of.Physical.Water.Losses.................................................................................................................................................................. 548.1.2.Principle.of.Physical.Loss.Components.Analysis.......................................................................................................................................................... 548.1.3.Component.Analysis.............................................................................................................................................................................................................. 548.1.4.Calculating.Volume.of.Water.Lost.for.Individual.Components................................................................................................................................ 548.1.5.Interpretation.of.Physical.Loss.Component.Analysis.Data........................................................................................................................................ 56

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8.1.6.Characteristics.of.Leakages................................................................................................................................................................................................ 568.1.7.Key.Messages.on.Leakage................................................................................................................................................................................................... 56

Session.Nine........................................................................................................................................................................................................................................579.0.Reduction.of.Physical.Water.Losses.....................................................................................................................................................................................579.1.Notes.on.Reduction.of.Physical.Water.Losses.................................................................................................................................................................. 589.1.1.Controlling.Technical.Losses............................................................................................................................................................................................... 589.1.2.Techniques..of.Reducing.Physical.Water.Losses........................................................................................................................................................... 589.1.3.The.Physical.Loss.Reduction.Checklist............................................................................................................................................................................ 589.1.4.Benefits.for.Reducing.Physical.Water.Losses................................................................................................................................................................ 60

Session.Ten..........................................................................................................................................................................................................................................6110.0.Leak.Detection..........................................................................................................................................................................................................................6110.1.Notes.on.Leak.Detection....................................................................................................................................................................................................... 6210.1.1.Benefits.of.Leak.Detection.and.Repair.......................................................................................................................................................................... 6210.1.2.Locating.Non-visible.Leaks............................................................................................................................................................................................... 6210.1.3.Leak.Detection.Policy......................................................................................................................................................................................................... 6210.1.4.Leak.Detection.Equipment................................................................................................................................................................................................ 6310.1.5.Types.of.Leak.Detectors..................................................................................................................................................................................................... 63

UNIT 5 COMMERCIAL WATER LOSSES .....................................................................................................................................................65Session.Eleven................................................................................................................................................................................................................................... 6511.0.Causes.of.Commercial.Water.Losses................................................................................................................................................................................. 6511.1.Notes.On.Causes.of.Commercial.Water.Losses.............................................................................................................................................................. 6611.1.1.Definition.of.Commercial.Water.Losses......................................................................................................................................................................... 6611.1.2.Causes.of.Commercial.Water.Losses.............................................................................................................................................................................. 66

Session.Twelve................................................................................................................................................................................................................................... 6912.0.Managing.Commercial.Water.Losses................................................................................................................................................................................ 6912.1.Notes.Managing.Commercial.Water.Losses.....................................................................................................................................................................7012.1.1.Introduction............................................................................................................................................................................................................................7012.1.2.Effective.Billing.System......................................................................................................................................................................................................7012.1.3.Reducing.Levels.of.Free.Water..........................................................................................................................................................................................7112.1.4.Customer.Metering.Policy..................................................................................................................................................................................................7112.1.5.Avoiding.Meter.Inaccuracies.............................................................................................................................................................................................7112.1.6.Effective.Metering................................................................................................................................................................................................................7112.1.7.Unauthorized.Consumption...............................................................................................................................................................................................7112.1.8.Data.Handling.and.Billing...................................................................................................................................................................................................7212.1.9.Managerial.Capacity............................................................................................................................................................................................................7312.1.10.Cost.Efficiency.....................................................................................................................................................................................................................7312.1.11.Key.Messages.......................................................................................................................................................................................................................73

UNIT 6 STRATEGIES TO REDUCE AND MANAGE NON-REVENUE WATER...........................................................................................75Session.Thirteen.................................................................................................................................................................................................................................7513.0.Strategies.to.Reduce.and.Manage.Non-Revenue.Water.............................................................................................................................................7513.1.Notes.on.Strategies.to.Reduce.and.Manage.Non-Revenue.Water...........................................................................................................................7613.1.1.Establishing.the.Strategy.Development.Team..............................................................................................................................................................7613.1.2.Raising.Awareness.on.the.Strategy.................................................................................................................................................................................7613.1.3.Gaining.High-Level.Approval.............................................................................................................................................................................................7713.1.4.Building.Staff.Awareness.and.Consensus......................................................................................................................................................................78

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13.1.5.Reaching.out.to.customers................................................................................................................................................................................................7813.1.6.Key.Messages.........................................................................................................................................................................................................................78

UNIT 7 MONITORING PERFORMANCE OF NON-REVENUE WATER MANAGEMENT .........................................................................79Session.Fourteen...............................................................................................................................................................................................................................7914.0.Monitoring.Performance.of.NRW.Management.............................................................................................................................................................7914.1.Notes.on.Monitoring.Performance.of.NRW.Management......................................................................................................................................... 8014.1.1.Characteristics.of.Performance.Indicators................................................................................................................................................................... 8014.1.2.Performance.Indicators.for.Physical.Water.Losses................................................................................................................................................... 8014.1.3.Performance.Indicators.for.Commercial.Losses......................................................................................................................................................... 8314.1.4.Implementing.a.Monitoring.Programme....................................................................................................................................................................... 8414.1.5.Who.Needs.the.Performance.Indicators.and.for.what:........................................................................................................................................... 8414.1.6.Key.Messages........................................................................................................................................................................................................................ 84

Session.Fifteen...................................................................................................................................................................................................................................8515.0.Institutional.Self-Assessment..............................................................................................................................................................................................8515.1.Notes.on.Institutional.Self-Assessment............................................................................................................................................................................8615.1.1.Using.the.Matrix....................................................................................................................................................................................................................86

References.......................................................................................................................................................................................................................................... 90Annex.I:.Course.Programme.Non-Revenue.Water..................................................................................................................................................................91

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List of Tables

Table.1.0-1:.The.Preparatory.Activities.......................................................................................................................................................................................14Table.1.0-2:..Face.to.Face.Training..............................................................................................................................................................................................14Table.1.0-3:.The.arrangement.and.Content.of.the.Manual..................................................................................................................................................17Table.1.0-4:.Summary.of.Time.Plan.............................................................................................................................................................................................18Table.1-1:.Time.Plan.-.Introduction.and.Expectations...........................................................................................................................................................22Table.2-1:.Time.Plan.-.Overview.of.Non-Revenue.Water......................................................................................................................................................25Table.3-1:.Time.Plan.-.Concept.of.National.Water.Services.Strategy...............................................................................................................................29Table.3-2:.Responsibilities.of.Water.Institutions.....................................................................................................................................................................32Table.3-3:.Milestones.and.Timelines.for.the.Water.Sector.Reform...................................................................................................................................34Table.4-1:.Time.Plan.–.Components.of.Water.Balance..........................................................................................................................................................36Table.4-2:.Water.Balance.Showing.NRW.Components.........................................................................................................................................................38Table.5-1:.Time.Plan.–.Components.of.Water.Balance..........................................................................................................................................................41Table.5-2:.WB.Easy.Calc................................................................................................................................................................................................................. 43Table.5-3:.Indicative.Example.of.Meter.Accuracy................................................................................................................................................................. 44Table.6-1:.Method.of.Delivery.-.Zoning.Concept................................................................................................................................................................... 45Table.7-1:.Time.Plan.–.Physical.Water.Losses.and.their.causes..........................................................................................................................................51Table.8-1:.Time.Plan.-.Quantifying.Physical.Water.Losses................................................................................................................................................. 53Table.8-2:.Components.of.Physical.Water.Losses.................................................................................................................................................................. 54Table.8-3:.Flow.Rates.for.Reported.and.Unreported.Bursts............................................................................................................................................... 55Table.8-4:.Calculating.Background.Losses............................................................................................................................................................................... 56Table.9-1:.Method.of.Delivery.-.Quantifying.Physical.Water.Losses................................................................................................................................57Table.10-1.Time.Plan.-.Leak.Detection.......................................................................................................................................................................................61Table.10-2:.Leak.Noise.Quality..................................................................................................................................................................................................... 63Table.11-1:.Time.Plan.-.Causes.of.Commercial.Water.Losses............................................................................................................................................. 65Table.12-1:.Method.of.Delivery.–.Managing.Commercial.Water.Losses......................................................................................................................... 69Table.12-2:.Revenue.Collection.Efficiency.Benchmark..........................................................................................................................................................71Table.12-3:.Metering.Ratio.Benchmark......................................................................................................................................................................................71Table.13-1:.Method.of.Delivery.for.Strategies.to.Reduce.NRW..........................................................................................................................................76Table.13-2:.Establishing.Strategy.Development.Team...........................................................................................................................................................77Table.14-1:.Time.Plan.-.Performance.Indicators......................................................................................................................................................................79Table.14-2:.Recommended.Indicators.for.Physical.Water.Losses.and.NRW...................................................................................................................81Table.14-3:.Physical.Loss.Target.Matrix.................................................................................................................................................................................... 83Table.15-1:.Time.Plan.-.Institutional.Assessment...................................................................................................................................................................85

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List of Figures

Figure.2-1:.Viscous.Circle................................................................................................................................................................................................................27Figure.2-2:.Vicious.Circle................................................................................................................................................................................................................27Figure.2-3:.Reducing.NRW.is.everyone’s.responsibility........................................................................................................................................................28Figure.3-1:.Growth.in.Sector.Budget.2004/5.t0.2008/09...................................................................................................................................................31Figure.3-2:.Water.Service.Boards.Coverage.............................................................................................................................................................................33Figure.3-3:.Institutional.Setup.and.Linkages...........................................................................................................................................................................33Figure.5-1:.Faulty.Meters.............................................................................................................................................................................................................. 44Figure.6-1:.Typical.DMA.Layout....................................................................................................................................................................................................47Figure.6-2:.Typical.Layout.showing.Zone.Meters.and.Data.Loggers.................................................................................................................................47Figure.6-3:.Typical.24.Hour.DMA.Flow.Profile........................................................................................................................................................................ 49Figure.7-1:.Burst.Main.....................................................................................................................................................................................................................52Figure.9-1:.Change.Management.Focus.................................................................................................................................................................................... 59Figure.9-2:.Visible.Leak.................................................................................................................................................................................................................. 60Figure.10-1:.Leak.Detection.Equipment.................................................................................................................................................................................... 62Figure.10-2:.Sounding.Rod.Method........................................................................................................................................................................................... 63Figure.10-3:.Leak.Noise.Correlator............................................................................................................................................................................................. 63Figure.11-1:.Pillars.of.Commercial.Water.Losses.....................................................................................................................................................................67Figure.12-1:.Water.Meter................................................................................................................................................................................................................70Figure.12-2:..Water.metering.in.informal.settlement............................................................................................................................................................72Figure.12-3:.Data.Loggers..............................................................................................................................................................................................................73Figure.14-1:.The.ILI.Concept..........................................................................................................................................................................................................82

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List of Abbreviations

AWWA American Water Works Association

CAPL Current Annual Volume of Physical Losses

DMA District Meter Area

IWA International Water Association

l/c/d Litres per service connection per day

l/c/d/m Litres per service connection per day per meter

ILI Infrastructure Leakage Index

KEWI Kenya Water Institute

Kshs. Kenya Shillings

LNF Legitimate Night Flow

MAPL Minimum Achievable Annual Physical Loss

MNF Minimum Night Flow

MWI Ministry of Water and Irrigation

NNF Net Night Flow

NRW Non-Revenue Water

NWWS National Water Services Strategy

PALA Participatory Adult Learning Approach

PI Performance Indicator

WAB Water Appeals Board

WARMA Water Resources Management Authority

WASREB Water Services Regulatory Board

WRUA Water Resources Users Association

WSP Water Services Provider

WSTF Water Services Trust Fund

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Introduction to the Training Manual on Non-Revenue Water

n This Manual is an outcrop of the initiative by InWEnt

Capacity Building International to develop the capacity of water

services providers in the four countries of Kenya, Uganda, Tan-

zania and Zambia.

This training manual has been designed to guide trainers in

conducting a training course on approaches to reduce non-

revenue water. The training course focuses on both hardware

and software aspects of NRW management and will therefore

mainly target the water service providers.

0.1 Background to the Training Manual

n The main purpose of this Manual is to provide guidance

to trainers or facilitators to enable them to impart knowledge

and skills, by utilizing Participatory Adult Learning Approach

(PALA) techniques. The ultimate aim is to improve efficiency

through reduction of water losses and maximising revenue.

The Manual shall serve as a reference material for both trainers

and water services providers (participants); the Manual main

objectives being:

• Participants improve on their performance in the man-

agement of water supply schemes.

• Trainers/facilitators deliver practical short courses on

NRW using appropriate methods for learning.

The primary focus of the Manual is on improvement of the

performance of water service providers through the applica-

tion of practical management skills aimed at reducing water

losses and maximising revenue.

0.2.1 Specific Training Objectives

The specific training objectives of the course are that partici-

pants:

• Understand and appreciate NRW as a water sector chal-

lenge

• Describe the challenges and effects experienced in the

management of NRW with specific reference to their areas

of operations.

• Develop strategies to address the challenges identified in

the management of NRW in their areas of operation

• Conceptualise water as a commercial good by understand-

ing the relationship between water production costs, cost

recovery mechanisms through minimizing water losses

and efficient data management.

• Share knowledge and experiences on general trends and

acceptable performance standards to manage NRW in their

various areas of operation.

0.2 Purpose and Focus

14

0.3.1 Learning Cycle/Sequence

The training course is organized into three pillars in order to

enhance the realization of the expected training outcomes that

is participants being encouraged to apply the knowledge and

skills acquired during the training.

The first pillar is preparations where trainers and participants

orient themselves to the training objectives, methodology and

outcomes. This stage may take up to two weeks. It is during

the preparatory stage that the relevant officers in the respective

WSPs can make commitment to support changes in managing

NRW. With support from the senior management it is possible

to expect that actions plans formulated by participants during

the training can be implemented afterwards.

The second pillar is the face-to-face training, which is sched-

uled for five days including a one day field visit to a WSP which

can offer lessons to the participants on how they can reduce

NRW in their utilities.

The third pillar is the participants’ action plan implementa-

tion that is monitored by the team of trainers. It is at this stage

where the skills generated from the training can be applied.

The course requires that each participant is guided, during

the face to face training, to identify what in his capacity and

own powers can be changed to improve the situation of NRW

in the WSP. Selection of participants must therefore take into

account the possibility to bring change to the section or the

utility. The action plan implementation and follow up may

take a minimum of one month. While the action plan must

be agreed upon with the trainers, participants should also

know the follow up mechanism.

0.3 Planning and Implementation of the Nrw reduction Training

0.3.2 Preparatory Steps

Table 0-1: The Preparatory Activities

Identification of WSP The WAVE Pool identifies the Water Service Providers who will nominate partici-

pants to the course

Screening of nominated

participants

The Focal Point and the lead trainer verify that the nominated candidates qualify for

the course

Sending of Training Manuals The Focal Point invites the participants and sends them training manuals

0.3.3 Face to Face Training

Table 0-2: The Preparatory Activities

Course Duration: The training course will take five days, which covers lecture sessions, working group

sessions, discussions, and half a day of fieldwork. The fieldwork will involve visiting

and practically experiencing non-revenue water losses and their management in a

utility operated by a water services provider.

Session Times: The training will be starting at 8.15 a.m. and end at 5:00 pm. No work is sched-

uled after 5:00 pm, though the trainers can extend session if there are few things

to wrap up.

Beginnings: The day’s sessions will start with a 15 minutes recap and feedback on evaluation

results of the previous day. Participants will use their logbooks to reflect and air out

their views on the previous day’s activities.

15

Breaks: There will be two 30 minute break sessions, one in the morning and the other in

afternoon for coffee/tea. For the sessions that are longer than one hour, the session

trainer, at his discretion can allow a short break

Endings: Each day, other than the field trip day will be ending with 10 minute wrap up and

evaluation session of the day’s programme and activities. An evaluation format (log

book) to be followed is attached.

Material: Marker pens, flip charts, flip chart stands, writing pads, pens, and file folders are the

basic materials that are provided for the training. Additional materials such as com-

puters, LCD projector, and handout notes are also provided for this training.

Set Objectives: The overall objective of this training is to equip the participants with skills to enable

them identify and remedy water losses and put in place effective NRW management

strategies that are applicable to their various working environments. The participants

will be given both the theoretical background to the various components of NRW and

the practical approaches to NRW reduction.

Participants: The participants to take part in this training are selected based on the fact that they

are directly involved in water supply services and therefore can be effective in man-

aging NRW.

Trainers and Resource Persons: The trainers will be drawn from WAVE pool members who have in addition to under-

going a ToT in participatory training approaches, also had an input in developing the

training Manual. Where the required expertise does not exist in the pool, resource

persons with the requisite expertise in specific subject areas will be sourced from the

sector and key training institutions.

Field Follow Up The trainers make up a follow up to access the implementation of action plans by

the participants.

0.3.4 Training Methods

The Manual provides guidance to the facilitators on the train-

ing methodology to be employed in each session. In as much

as possible, the training methodology adopted by the Manual

is participatory and learner centered approaches that aim at

greater involvement of the participants in the learning process.

Through guided discussions on topics being presented, group

work and exercises, participants are presented with practical

cases based on real life situations in their areas of operations,

and guided to come up with tangible solutions that can easily be

replicated to the working environment. The Manual also incor-

porates field visits to water schemes to enable the participants

experience real life situations in the management of NRW.

To ensure effective learning, several factors that affect learn-

ing, such as the training venue, possible diversity of the par-

ticipants in terms of character, background, educational levels

and experience in water service provision shall be taken into

consideration. In addition, special attention has been given to

the quality of the facilitators by ensuring that they all have basic

knowledge and skills in participatory learning and the InWent

approaches to training.

0.3.5 Course Evaluation

The course will be evaluated at the reaction, learning and job

behaviour/intermediate outcome levels.

• At the reaction level, evaluation will seek to establish the

feelings of the trainees about the general aspects related

to the course administration and delivery of the sessions,

including the environment. The evaluation will establish

feedback on specific areas such as session/course objectives,

course contents, facilitators, course organization and venue.

This will be done through verbal questions and answer ses-

sions by the facilitators during the delivery of learning, as

well as reaction questionnaires or response sheets and, at

the end of the days’ program. However, in order to encour-

age objective thinking and increased participation by the

learners, facilitators are encouraged to organize group

debriefing at the end of each unit or day.

• The second evaluation is at the learning levels. Evaluation

at this stage will be aimed at assessing the learning that has

taken place in terms of knowledge, skills and attitudes. This

will be carried out through questionnaires, and these shall

be administered before and after the training.

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The participatory Adult Learning Approach (PALA) some-

times referred to as adult active learning, is a process of train-

ing adapted in InWEnt. PALA departure point from tradi-

tional teaching comes from the understanding that adults

learning process is different from children. They have a moti-

vation to learn when they are involved in the process. They

have to see the benefits of learning for them to involve them-

selves.

PALA is based on the strong belief that adults bring with

them a ‘treasure’ of experiences, which has to be tapped as

the basis for further learning. Participants, therefore, become

the main subjects and objects of their own learning and the

role of the facilitator/trainer is only to facilitate their learning

and create a conducive environment for learning to take place.

As a result the whole training has to be participants centred

and the trainer is just playing a catalytic role.

0.4 Participatory Adult Learning Approach

Principles of PALA

• Nobody knows everything

• Everybody knows something

• Every resource person is a participant and

• Every participant is a resource person

• All ideas/contributions are equally important

• Mutual respect amongst all

• Agreeing to disagree is more than welcome

Interactive training and visualisation because:

• What we hear we forget

• What we hear and see, we remember

• What we hear , see and say, we understand

• What we do, we know

Group workGroups.are.the.sharing.and.learning.grounds.in.PALA

• Group work task must be introduced in the plenary

• Each group has to select a leader or chairperson and a

scribe.

• It is also advisable to have a time keeper to always sen-

sitize the group to time dimension.

• The group has to choose a presenter right from the

beginning.

Visualisation

• Write legibly that it can be read from the back of the

training room

• Print letters

• Use only key words

• If using cards use one card one idea

- Write only the key words

- Use different colours or shapes for different catego-

ries of issues or functions

Methods for interactive learning include:

• Lectures are interactive, involves discussions and evaluative

• Different kinds and sizes of work: buzz groups, CU groups,

Mixed CU groups, small groups, triads and individual reflec-

tions

• Games: Simulation games, Role plays, real situation, video

clips and feedback

• Field trips: exposure and reality checks

• Field work: post training and follow up

• Finally, the course will be evaluated at the job behaviour/

inter mediate outcome level to establish the apparent change

in behaviour arising from the participation in the course.

17

0.5 Organization of the Manual

The Manual is divided into eight (8) Units. Part One discusses

the background to the course, over all course objectives, par-

ticipants’ expectations and water balance. Parts two to seven

focus on physical water losses, commercial water losses, strat-

egies to reduce and manage NRW, monitoring performance of

NRW management, water sector reforms in relation to NRW

and capacity building.

Each of the Units start with specific learning outcomes. It

is then broken down into sessions based on topics relevant to

the achievement of the unit objectives.

Table 0-3: The Arrangement and Content of the Manual

Training Units Outcome Training Sessions

I II III IV

Unit 1: Introduc-

tion and expec-

tations

Participants have introduced

themselves and discussed their

expectations for the training.

Introduction

and expec-

tations

Unit 2: Intro-

duction to Non-

revenue water

Participants understand the general

concept of non-revenue water

Introduction

to non-reve-

nue water

Unit 3: Water sector

reform in relation

to NRW

Participants appreciate the

significance of NRW to water

service delivery

The concept of

the water sec-

tor reform

Unit 4: Water

balance

Participants are able to explain

the components of the water bal-

ance and its applicability in water

supply management systems.

The compo-

nents of the

water balance

Computing

water bal-

ance

The zon-

ing con-

cept

Unit 5: Physical

water losses

Participants have shared experiences

on NRW and analyzed its impli-

cations to their businesses

Physical water

losses and

their causes

Quantify-

ing physical

water losses

Reduction

of physi-

cal water

losses

Leak

detection

Unit 6: Commercial

water losses

Participants have understood and

identified the different causes of com-

mercial water losses; they can explain

the various procedures for accurately

assessing the volume of NRW con-

tributed by commercial water losses.

Causes of

commercial

water losses

Managing

commercial

water losses

Unit 7: Strategies to

reduce and manage

non-revenue water

Participants have developed a

strategy for NRW reduction.

Strategies to

reduce and

manage non-

revenue

water

Unit 8: Monitoring

performance of

non-revenue water

management

Participants have understood the

importance of performance indi-

cators in management of NRW.

Monitor-

ing perform-

ance of NRW

management

Institu-

tional self-

assessment

18

Table 0-4: Summary of time plan

Unit Session TopicDuration in

Minutes

Unit 1 Session 1 Introduction and expectations 90

Unit 2 Session 2 Introduction to non-revenue water 60

Unit 3 Session 3 The concept of water sector reform 90

Unit 4 Session 4 The components of water balance 80

Session 5 Computing the water balance 80

Session 6 The zoning concept 90

Unit 5 Session 7 Physical water losses and their causes 120

Session 8 Quantifying physical water Losses 110

Session 9 Reduction of Physical Water losses 110

Session 10 Leak detection 90

Unit 6 Session 11 Causes of commercial water losses 120

Session 13 Managing commercial water losses 80

Unit 7 Session 14 Strategies to reduce and manage non-revenue water 80

Unit 8 Session 15 Monitoring performance of NRW management 70

Session 16 Institutional self- assessment 90

Field trip and

case studies

Presentation of case study and Field trip 480

Total 1840

Course Units

21

Unit 1

Introductions and Expectations

Session One

1. Session Outcomes

By the end of this session the participants will have:

• Introduced themselves.

• Discussed their expectations for the training.

• Understood the course objectives and learning methods.

2. Session Outputs

By the end of this session the facilitators will have:

• Guided the introduction process.

• Generated participants’ expectations for the training.

• Presented course objectives and the learning process.

3. Method of Delivery

• Brief presentation by trainer

• Group discussions

• Plenary presentations

1.0 Introduction and Expectations

a) Session Overview

22

b) Session Guide

In order to facilitate interactions and generate conversations

amongst the participants, the facilitator cuts pictures of a bird,

flower, car and a girl into pieces, mixes them and asks each

participant to pick one piece. Participants are then required to

look for their colleagues who have the other parts of the same

picture and piece them together into one whole. Having made

a complete set of each object mentioned, the members con-

stitute themselves into a group and name their group after

the object selected. The facilitator then asks them to intro-

duce each other first within their groups, and later to the rest

of the participants. Thereafter, the facilitator circulates cards

and requests the participants to list at least two expectations

about the course.

Later as a bigger group, the participants agree on the ethi-

cal code and norms during the training, as well as select a team

leader. The facilitator then wraps up the session with a pres-

entation of the course objectives, training methodologies to

be used and administrative arrangements during the course.

The facilitator then runs through the expectations, together

with the participants, and clarifies the extent to which organ-

izers have planned to address each of the expectations raised

Note:

The purpose of this session is to enable participants

interact freely and already begin to talk amongst them-

selves. The method also allows participants to express,

share and reduce the misconceptions they may have

brought with them to the training course. The facilita-

tor may however select another method that achieves the

same objective

4. Time Plan

Activity Duration in Minutes

Introduction to the methodology for self introductions 10

Participants select an object and locate the other members to constitute a group 10

Participants introduce themselves within the group and get to know each other better and discuss

their expectations

40

Group presentation and plenary discussion 25

Wrap up 5

Total 90

Table 1-1: Time Plan - Introduction and Expectations

5. Materials

• Power point projector (LCD)

• Laptop

• Flip charts and stands

• Pin boards

• Masking tapes

• Cards

• Pins

• Pictures of selected objects

• Marker pens

23

1.1 Notes to Introduction and Expectations

Some of the expectations that are read out and listed on the

flip chart may include.

• To learn new ideas on managing NRW

• Learn new measures of solving NRW

• Expect training allowance

• Acquire knowledge and skills to manage NRW and

improve performance.

• To learn knowledge from other members

• Acquire skills on reduction of water losses

• Mobilize communities to fight NRW

• Knowledge to deduct Physical Water Losses

• Design Manuals to fight NRW

• Sharing of knowledge and experiences

• More knowledge of controlling of NRW

• To know the components of NRW

• Ways to minimize NRW to improve tax collection

25

Unit 2

Introductions to NRW

Session Two

1. Session Outcomes

By the end of this session the participants will have:

• Understood the general concept of the non-revenue water.

• Defined the term non-revenue water.

2. Session Outputs

At the end of this session the facilitators will have:

• Explained the general concept of non-revenue water.

• Defined the term non-revenue water.


• Questions and answers

4. Time Plan


Presentation on the general concept of non-revenue water 15

Questions and Answers 35

Wrap up 10

Total 60

Table 2-1: Time Plan - Overview of Non-Revenue Water

5. Materials


• Laptop


• Pin boards

• Cards

• Pins

• Marker pens

• Masking tapes

2.0 Introduction to Non-revenue water

a) Session Overview

26

b) Session Guide

• The facilitator introduces the session title and outlines its

objectives

• Using the lecture training method, the facilitator intro-

duces the general concept of non-revenue water.

• The facilitator may prompt the participants with questions

such as:

› What is the difference between non-revenue water and

unaccounted for water?

› What is the percentage of non-revenue water in your

water utilities?

• The facilitator wraps up by explaining the impacts on non-

revenue water to a water utility

2.1 Notes to Introduction to Non-revenue water

2.1.1 Background

One of the major issues affecting Urban Water and Sanita-

tion Providers (WSPs) in Kenya is the considerable difference

between the amount of water put into the distribution sys-

tem and the amount of water billed to consumers commonly

referred to as “non-revenue water” (NRW). In general, many

of the Kenyan towns have 40–65 percent Non-revenue water.

This seriously affects the financial viability of water utilities

through lost revenues and increased operational costs. Saving

just half of this amount would supply water to additional con-

sumers without further investment.

Other benefits from reducing NRW include the following:

• Water utilities gain will generate additional revenue.

• More efficient and sustainable utilities improve customer

service.

• New business opportunities create additional jobs.

2.1.2 Challenges

Many Water Service Providers are struggling to ensure that

customers receive a reasonable water supply to sustain health

and life. However, they encounter the following challenges:

• Dilapidated infrastructure with high leakage levels

• Poor operations and maintenance policy, including inef-

fective record-keeping systems

• Poor governance

• Limited skills in non-revenue water management and tech-

nology

• Financial constraints, including ineffective and inefficient

revenue collection

• Weak enabling environment and performance incentives

• Political, cultural, and social influences

• A higher incidence of commercial water losses, particularly

illegal connections

These factors all influence the scope for managing losses and

demand. At the same time, continued NRW limits the finan-

cial resources available to tackle these challenges facing water

utilities.

2.1.3 Impacts of Non-Revenue Water

The ‘Vicious Circle’ of NRW (Figure 2-1) illustrates the key

reasons for poor company performance, which results in water

losses. The losses divert precious water from reaching cus-

tomers and increase operating costs. They also result in larger

investments than necessary to augment network capacity.

27

Expenditure is

concentrated on

meeting increasing

customer demands

Revenues

decreases and

operational costs

increases

Operational

budgets are

reduced especially

in areas of net-

work maintenance

NRW

increases

Figure 2-1: Viscous Circle

The challenge for water utility managers is to transform

the Vicious Circle into the ‘Virtuous Circle’ (Figure 2.2). In

effect, reducing NRW releases new sources of both water and

finances. Reducing losses results in a greater amount of water

Expenditure is

increased to

include operational

improvements

Investments are

made in further

NRW reduction

programmes

Revenues

increase and

operational

costs decrease

NRW

decreases

Figure 2-2: Virtuous Circle

available for consumption and postpones the need for invest-

ing in new sources. It also lowers operating costs. Similarly,

reducing commercial water losses generates more revenues.

28

2.1.4 Addressing NRW

Water utilities should use a diagnostic approach, followed by

the implementation of solutions that are practicable and achiev-

able to reduce NRW. The first step is to learn about the net-

work and operating practices. Typical questions during this

process include:

• How much water is being lost?

• Where are losses occurring?

• Why are losses occurring?

• What strategies can be introduced to reduce losses and

improve performance?

• How can we maintain the strategy and sustain the achieve-

ments gained?

NRW management is not a one-off activity, but one requiring

a long-term commitment and involvement of all water util-

ity departments. There is need for utility managers to have

access to information on the entire network, which would ena-

ble them to fully understand the nature of NRW and its impact

on utility operations, its financial health, and customer sat-

isfaction. Successful NRW reduction is not about solving an

isolated technical problem, but is instead tied to overall (refer

to Figure 2-3)

• Asset management

• Operation and maintenance of the infrastructure

• Customer support

• Financial allocation to support NRW strategy or efforts

• Management support

• Capacity know how – network and non-revenue water

• Commercial operations

In addition, a number of tools are emerging to support sus-

tainable NRW reduction:

• New methodologies that quantify physical and commercial

water losses more accurately

• More effective technical approaches to manage leakage and

reduce system pressure

• New instruments for engaging the private sector, such as

performance-based contracts.

Information

Data

Management

Support

Capacity

Knowhow

Financial

Allocations

Commercial

Operations

Operation and

Maintanance

Customer

Support

Asset

management

NRW

Figure 2-3: Reducing NRW is

everyone’s responsibility

29

Unit 3

Water Sector Reform

Session Three

1. Session Outcomes

By the end of this session the participants:

• Understood the concept of National Water Services Strategy

• Identified the root causes of poor service delivery and utility performance in the water sector in their areas of work

• Understood the implications of NRW on water policy and water reforms

2. Session Outputs


• Explained National Water Services Strategy

• Discussed linkages between NWSS and NRW;

• Discussed the implementation of the National Water Services Strategy.


• Brief presentation



4. Time Plan


Introduction to the session 10

Presentation on the concept of NWSS 15

Presentation on linkages between NWSS and NRW 15

Group discussion in the plenary 40

Wrap up 10

Total 90

Table 3-1: Time Plan - Concept of National Water Services Strategy

3.0 The Concept of water Sector reforma) Session Overview

30

5. Materials


• Laptop


• Pin boards

• Cards

• Pins

• Marker pens

• Masking tapes

b) Session Guide

• The facilitator introduces the subject and the objectives

of the session.

• The facilitator then leads a brainstorming session to iden-

tify the major challenges facing the water supply schemes

today.

• The participants to discuss in their respective water serv-

ice provider group the implementation of NWSS in their

water companies.

• Thereafter discuss in the plenary.

3.1 Notes on the water Sector reform

3.1.1 Introduction

Water sector reform refers to the process of implementing

changes in the sector to ensure better water service delivery

and resources management.

The water sector reform involves the development of new

policies, new legislation (Water Act, 2002) and new sector insti-

tutions. The reforms are intended to achieve:

• Better services (water resource management and water sup-

ply and sanitation)

• Better customer care/improved customer satisfaction

• Increased development/investments

• Improved professionalism

3.1.2 Impacts of Water Sector Reforms

• It has attracted more resources to the sector – from an

annual budget of KShs. 2 Billion in 2002 to about KShs.

24 Billion in 2009. Refer to Fig. 14-1.

• Improved service levels, access to water and sanitation and

customer satisfaction.

• Enhanced dialogue and resolution of conflicts among vari-

ous users (humans, wildlife and bio-diversity) by ensuring

participation of users

• It is enhancing consumer involvement thus helping to

enforce the human right to water and sanitation (Water

Action Groups)

• Improved awareness/knowledge/behaviour relating to con-

servation

• Improved regulations for equitable access/pro-poor focus

and adherence to quality standards

• Better participation of women in decision-making (Water

Resources Users Associations - WRUAs, water kiosk opera-

tors, community-based water points).

• Improved living conditions and health

• Improved livelihood and human dignity especially for

women leading to substantial savings and enabling a large

proportion of citizens to step out of the poverty trap

31

Figure 3-1: Growth in Sector Budget 2004/5 to 2008/09

3.1.3 Guiding Principles of Successful Reforms

In order to keep reforms on track the following guiding prin-

ciples must always be observed:

• Improved governance and transparency (e.g. in the selec-

tion of board members, recruitment, annual audited

accounts, holding annual general meetings, procurement)

• Participation and empowerment of stakeholders (e.g.

through Water Action Groups, Water Resources Users

Associations)

• Improved communication internally and externally (e.g.

regular reporting to the public, newsletters, etc)

• Affordability and equitable access (e.g. pro-poor tariffs, low-

cost outlets/kiosks)

• Improved performance of institutions/systems (e.g. moni-

tored performance contracts, minimise unaccounted-for-

water)

• Users and Polluters Pay Principles to ensure sustainability

(e.g. metered consumptions, public education)

3.1.4 Cost/Benefit Ratio of the Reforms

The benefits of reforms far outweigh their cost in that:

i. Reforms lead to reduced production costs

ii. Reforms help to distribute costs equitably

iii. Reforms enable the poor to access water at a lower cost

iv. Reforms result in efficiency

v. Reforms results in reduced non-revenue water

3.1.5 Implementation of the Reforms

Once the Water Act was gazetted, a road map (transfer plan)

was drawn. National strategies for the sub-sectors (WSS and

WRM) were developed including implementation plans. Imple-

mentation plans are operationalised and are being monitored

through annual performance contracts.

32

3.1.6 Roles and Responsibilities of Institutions

The responsibilities of institutions are summarized in table 3-2.

Table 3-2: Responsibilities of Water Institutions

Institution Roles and Responsibilities

Ministry of Water and Irrigation (MWI) Legislation, national policies and strategies

Coordinate and guide the sector

Monitor and evaluate progress

Plan and mobilize finances for the sector

Water Services Regula-

tory Board (WASREB)

Regulate and monitor performance of WSBs and WSPs

Issue licenses to Water Services Boards

Set standards for provision of water services

Develop guidelines (on water charges, etc.)

Water Services Trust Fund

(WSTF – acts as the water poverty fund)

A basket fund through which the Government, donors and

other organisations can fund water and sanitation to benefit the poor

Water Resources Manage-

ment Authority (WRMA)

Planning, management, protection and conservation of water resources

Allocation and monitoring of water resources

Catchment protection for improved quan-

tity and quality of water resources

Enforce regulation and control of water use

Water Services Boards (WSBs)

- eight in total

Provide water services efficiently and economically

Develop water/sewer facilities

Plan investments and implementation

Rehabilitate and where necessary replace infrastructure

Enforce regulations on water services and tariffs

Procure/lease water and sewerage facilities where necessary

Contract Water Service Providers (WSPs)

Water Service Providers (WSPs) Provide water and sanitation services

Ensure good customer relation and sensitization

Maintain assets and reach the performance

level set by regulation body (WASREB)

The Water Appeals Board (WAB) Arbitrate in water-related disputes that may arise between the

sector institutions and customer or other organizations

National Water Conservation and

Pipeline Corporation (NWCPC)

Construct dams and drill boreholes

Kenya Water Institute (KEWI) Training and research for water and sanitation services

33

Water Services Boards Linkages

There are eight Water Service Boards:

• Athi Water Services Board,

• Tana Water Services Board,

• Tanathi Water Services Board,

• Northern Water Services Board,

• Lake Victoria South Water Services Board,

• Lake Victoria North Water Services Board,

• Coast Water Services Board and

• Rift Valley Water Services Board

Figure 3-2:

Water Service Boards Coverage

Source: MWI, Study for the Establish-

ment of a Sector-Wide Approach to Plan-

ning (SWAP) in the Water and Sanitation

Sector in Kenya, Final Report, May,

2006.

The linkages of Water Services Boards,

Water Service Providers and customers

are shown in Figure 3-3.

Figure 3-3:

Institutional Setup and Linkages

3.1.7 Do the reforms have a timeline?

Reform is an ongoing/continuous process. However crucial

changes leading to certain milestones have to take place within

some time frame in order to avoid complacency.

34

Table 3-3: Milestones and Timelines for the Water Sector Reform

Milestone Year

1 Enactment of Water Act 2002 and commencement in 2003 2002/03

2 Gazettement of new institutions by Minister 2004

3 Establishment and operationalisation of new institutions 2005

4 Development of strategies and national concepts for sub-sectors

National Water Services Strategy (NWSS) 2007

Pro-poor implementation plan 2008

Water Resources Management Strategy (WRMS) 2007

Catchment Management Strategies (CMSs) 2008/09

Implementation Plan for Sanitation – Water Sector Sanitation Concept (IPS-WSSC) 2009

Community Project Cycle (CPC) 2007

Urban Project Concept (UPC) 2009

WRUA Development Cycle (WDC) 2009/10

5 Incorporation of commercial providers 2005/06

6 Development of viable WSPs through clustering 2009/10

7 Transfer of human resources 2009 onwards

8 Transfer of assets 2009/10

9 Capacity building ongoing

10 Development of information and monitoring systems

WARIS ( Water Regulation Information System) 2007

WRMIS( Water Resources Management Information System) 2009

WaSBIT (Water Services Board’s Investment Tool) 2010

PROMIS ( Project Management Information System) 2007

11 Establishment of baseline data

MajiData/Urban poor 2009/10

12 Development of regulation and standards in the sector

WSS by WASREB 2006, ongoing

WRM Rules for Water Use Regulations 2007

Water Resources Permit database 2009

These principles are intended to fulfil the human rights to water and sanitation and achieve the MDGs and Kenya’s Vision 2030.

35

3.1.8 Clustering

Clustering is grouping water supply and sewerage services in a

number of local government areas under one statutory/autono-

mous body in order to achieve commercial viability. It is a rec-

ognized and internationally accepted concept.

Other Rationale for Clustering is to:

• Lower unit costs of production

• Improve performance by attracting highly qualified profes-

sionals

• Enable WSPs to have the right skills/personnel mix

• Improve enforcement/regulation/information-monitoring

of the sector through ensuring a manageable number of

WSPs by reduced no. of SPA, input in WARIS, etc.

• Realise and enforce the Government’s pro-poor policy

through ensuring cross-subsidies from bigger to smaller

towns and within towns.

• Support knowledge transfer/capacity building from big-

ger to smaller towns leading to overall/nationwide quality

increase

• Reduce risk of political captures on the local/regional level

thus improving overall corporate governance

The benefits of clustering are:

• Improved efficiency of service delivery and quality through

economies of scale

• Increased capacity to serve the poor (extending formal serv-

ice provision to the poor – moving faster towards the Mil-

lennium Development Goals - MDGs) through cross-sub-

sidisation

• Reduced unit cost of production and service delivery lead-

ing to ability to repay investment costs and to lower tar-

iffs (lower No. of personnel/1000 connections, higher pur-

chase power, etc)

• Higher retention of qualified staff by reducing turnover

and offering better incentives

• Attracting increased investments (both donors and the pri-

vate seek viable partners)

• More effective regulation by Water Service Boards (WSBs)

and the Water Services Regulatory Board (WASREB)

improving overall performance

3.1.9 Lessons Learnt

• It is important that the drive to reform (through commer-

cialization, regulation, etc) is also used to improve sanita-

tion

• The success of the water sector reform shall be determined

by viability/sustainability of service provision

• Clustering is about ring fencing performance and leverag-

ing professional management to respond to the ‘non per-

forming units’. The key issues to be addressed once the

cluster is established are: revenue/cost, operation efficiency

and level of service.

36

Session Four

1. Session Outcomes


• Understand the various components of a water balance and its applicability in a water supply system.

• Understand and are able to apply the concept of the water balance as a basis for utility performance and comparisons.

2. Session Outputs


• Explained various components of a water balance and their applicability in water management systems.

• Described the concept of the water balance as a basis for national and international performance comparisons.



• Group exercise

• Plenary presentation

4. Time Plan


Presentation on the concept of the water balance and its applicability 15

Group exercise on completion of the water balance diagram 50


Wrap up 15

Total 120

Table 4-1: Time Plan - Components of Water Balance

5. Materials


• Laptop


• Pin boards

• Water Balance Diagram

• Cards

• Pins

• Marker pens

• Masking tapes

4.0 Components of water Balance

a) Session Overview

37

b) Session Guide

• The facilitator introduces the session title and then out-

lines the objectives of the session with the help of the

Power Point Projector (LCD).


duces the concept of water balance and emphasizes the

need to understand the concept. Using question and

answer sessions, he/she then lists with explanations, the

components of the water balance.

• The facilitator then divides the class into groups. In their

groups, the participants are tasked to complete the Water

Balance diagram using the list of components on another

piece of paper also given out with the assignment.

4.1 Notes on the water Balance

The concept of NRW and its application is best understood by

understanding the water balance.

4.1.1 Components of the Water Balance

Non-revenue water comprises three components (Figure 2.1)

namely:

Unbilled authorised consumption includes the water used by

the utility for operational purposes, water used for fire fighting

and water provided for free to certain consumer groups. That’s

to say unbilled authorised consumption reflects the public pol-

icy decision to allocate water without monetary compensation.

a... Physical.(real).losses

• Leakages from all parts of the

transmission and distribution

mains

• Leakages on service connections

up to the point of customer

metering

• Leakages and overflows at

utility’s storage tanks

b..Commercial.(apparent).losses

• Unauthorized consumption

(eg. illegal connections)

• Customer metering Inaccuracies,

estimations and data handling

errors

c... Unbilled.authorised.consumption

• Unbilled metered consumption

• Unbilled unmetered consumption

38

Table 4-2: Water Balance Showing NRW Components

System Input

Volume

(corrected for

known errors)

Authorized

Consumption

Billed Authorized

Consumption

Billed Metered Consumption Revenue

WaterBilled Unmetered Consumption

Unbilled

Authorized

Consumption

Unbilled Metered Consumption

Non-

Revenue

Water

(NRW)

Unbilled Unmetered Consumption

(eg. flat rates not billed)

Water Losses

Commercial

(Apparent)

Losses

Unauthorized Consumption (eg. illegal connections)

Customer Metering Inaccuracies,

Estimations and Data Handling Errors

Physical (Real)

Losses

Leakage on Transmission and/or

Distribution Mains

Leakage and Overflows at Utility’s Storage Tanks

Leakage on Service Connections up

to Point of Customer Use

4.1.2 Definitions of Water Balance Terms

Terms used in Table 4-2 are listed in hierarchical order below

– as one would read the water balance form from left to right.

Some of the terms are self-explanatory but are still listed and

briefly explained in order to have a complete list available.

System Input Volume The volume of treated water input to that part of the water supply system to which

the water balance calculation relates.

Authorized Consumption The volume of metered and/or unmetered water taken by registered customers,

the water supplier and others who are implicitly or explicitly authorized to do so

by the water supplier, for residential, commercial and industrial purposes. It also

includes water exported across operational boundaries.

Authorized consumption may include items such as fire fighting and training,

flushing of mains and sewers, street cleaning, watering of municipal gardens,

public fountains, frost protection, building water, etc. These may be billed or

unbilled, metered or unmetered.

Water Losses The difference between System Input and Authorized Consumption. Water losses

can be considered as a total volume for the whole system, or for partial systems

such as transmission or distribution schemes, or individual zones. Water Losses

consist of Physical (Real) Losses and Commercial (Apparent) Losses.

39

Billed Authorized Consumption Those components of Authorized Consumption which are billed and produce rev-

enue (also known as Revenue Water). Equal to Billed Metered Consumption plus

Billed Unmetered Consumption.

Unbilled Authorized Consumption Those components of Authorized Consumption which are legitimate but not billed

and therefore do not produce revenue. Equal to Unbilled Metered Consumption

plus Unbilled Unmetered Consumption.

Commercial (Apparent) Losses Includes all types of inaccuracies associated with customer metering as well as

data handling errors (meter reading, estimates on flat rates and billing), plus unau-

thorized consumption (theft or illegal use).

Note: Over-registration of customer meters, leads to under-estimation of Physical

(Real) Losses. Under-registration of customer meters, leads to over-estimation of

Physical (Real) Losses.

Physical (Real) Losses Physical water losses from the pressurized system and the utility’s storage tanks,

up to the point of customer use. In metered systems this is the customer meter,

in unmetered situations this is the first point of use (tap) within the property.

The annual volume lost through all types of leaks, breaks and overflows depends

on frequencies, flow rates, and average duration of individual leaks, breaks and

overflows.

Note: Although leakage, after the point of customer use, are excluded from the

assessment of physical water losses, this does not necessarily mean that they are

not significant or worthy of attention for demand management purpose.

Billed Metered Consumption All metered consumption which is also billed. This includes all groups of custom-

ers such as domestic, commercial, industrial or institutional and also includes

water transferred across operational boundaries (water exported) which is metered

and billed.

Billed Unmetered Consumption All billed consumption which is calculated based on estimates or norms but is

not metered. This might be a very small component in fully metered systems

(for example billing based on estimates for the period a customer meter is out of

order) but can be the key consumption component in systems without universal

metering. This component might also include water transferred across operational

boundaries (water exported) which is unmetered but billed.

Unbilled Metered Consumption Metered Consumption which is for any reason unbilled. This might for example

include metered consumption by the utility itself or water provided to institutions

free of charge, including water transferred across operational boundaries (water

exported) which is metered but unbilled.

Unbilled Unmetered Consumption Any kind of Authorized Consumption which is neither billed nor metered. This

component typically includes items such as fire fighting, flushing of mains and

sewers, street cleaning, frost protection, etc. In a well run utility it is a small com-

ponent which is very often substantially overestimated. Theoretically this might

also include water transferred across operational boundaries (water exported)

which is unmetered and unbilled – although this is an unlikely case.

40

Unauthorized Consumption Any unauthorized use of water. This may include illegal water withdrawal from

hydrants (for example for construction purposes), illegal connections, bypasses

to consumption meters or meter tampering.

Customer Metering Inaccuracies and

Data Handling Errors

Commercial (Apparent) Water Losses caused by customer meter inaccuracies and

data handling errors in the meter reading and billing system.

Leakage on Transmission and/or Distri-

bution Mains

Water lost from leaks and breaks on transmission and distribution pipelines.

These might either be small leaks which are still unreported (e.g. leaking joints)

or large breaks which were reported and repaired but did leak for a certain period

before that.

Leakage and Overflows at Utility’s Stor-

age Tanks

Water lost from leaking storage tank structures or overflows of such tanks caused

by e.g. operational or technical problems.

Leakage on Service Connections up to

point of Customer Metering

Water lost from leaks and breaks of service connections from (and including)

the tapping point until the point of customer use. In metered systems this is the

customer meter, in unmetered situations this is the first point of use (tap) within

the property. Leakage on service connections might be reported breaks but will

predominately be small leaks which do not surface and which run for long peri-

ods (often years).

Revenue Water Those components of Authorized Consumption which are billed and produce rev-

enue (also known as Billed Authorized Consumption). Equal to Billed Metered

Consumption plus Billed Unmetered Consumption.

Non-Revenue Water Those components of System Input which are not billed and do not produce rev-

enue. Equal to Unbilled Authorized Consumption plus Physical (Real) and Com-

mercial (Apparent) Water Losses.

41

Session Five

1. Session Outcomes


• Can compute a water balance

• Can apply software for computing a water balance.

2. Session Outputs


• Described the steps for conducting a water balance.

• Explained the software for computing a water balance.



• Group exercise


4. Time Plan


Presentation on the key steps of conducting a water balance 15

Group exercise on identifying the key steps 30


Wrap up 10

Total 80

Table 5-1: Time Plan - Computing the Water Balance

5. Materials


• Laptop


• Pin boards

• Water Balance Software

• Cards

• Pins

• Marker pens

• Masking tapes

• Calculators

5.0 Computing the water Balance

a) Session Overview

42

b) Session Guide

• The facilitator introduces the steps required in conduct-

ing a water balance.

• The facilitator then divides the class into groups. In their

groups, the participants are requested to discuss the key

steps for computing a water balance.

• The facilitator introduces software for computing a water

balance

5.1 Notes on Conducting water Balance

5.1.1 Key Steps for Conducting a Water Balance

5.1.1.1 Information Required

The utility manager needs to have certain information about

the network to conduct a water balance:

• System input volume

• Billed consumption

• Unbilled consumption


• Customer metering inaccuracies and data handling errors

• Network data

• Length of transmission mains, distribution mains and

service connections

• Number of registered connections

• Estimated number of illegal connections

• Average pressure

• Historic burst data

• Level of supply service (24-hour, intermittent, etc)

5.1.1.2 Steps for Conducting a Water Balance

The four basic steps to conduct a water balance are summa-

rized below

Step 1: Determine system input volume

Step 2. Determine authorized consumption

• Billed—total volume of water billed by the water utility

• Unbilled—total volume of water provided at no charge

Step 3. Estimate commercial water losses

• Theft of water and fraud

• Meter under-registration

• Data handling errors

Step 4. Calculate physical water losses

• Leakage on transmission mains

• Leakage on distribution mains

• Leakage from reservoirs and overflows

• Leakage on customer service connections

Confidence limits of 95% should be applied to all water bal-

ance data. These define the boundaries within which utility

managers can be 95% sure that the true value for that partic-

ular component lies. Although the water balance is an impor-

tant tool for understanding inflows, consumption, and losses,

the general lack of data leads to problems. Data gaps make it

difficult to quantify commercial water losses and to pinpoint

the nature and location of physical water losses. However, the

water balance can be improved using two other methodologies:

• Component analysis of physical water losses, using the net-

work information required listed in Table 2.

• Measurement of leakage, using analyses of night flows into

District Meter Areas (DMAs)

43

5.1.1.3 Water Balance Software

Table 5-2: WB Easy Calc

WB-EasyCalc is one example of a tool to support water

balance calculations in addressing NRW. Utility man-

agers can use this spreadsheet-based software, devel-

oped by Liemberger and partners and supported by the

World Bank Institute (WBI). The picture below shows the

homepage of the software for ‘getting started’.

One advantage of EasyCalc is that the software not

only asks for physical data, but also for an assessment of

the accuracy of that data. For example, when entering the

production volume, the user must also estimate the accu-

racy of this data based on the type and age of production

flow meters, if any, and the amount of maintenance car-

ried out on the meter. Using these estimates, the software

calculates NRW volume and its various components, in

addition to the accuracy of these volumes. For example,

EasyCalc may determine that NRW is 21% with an accu-

racy of +/- 66% – meaning that the actual NRW ranges

between 7% and 35%.

5.1.2 Improving the Accuracy of Water Balance Results

The accuracy of production meters, customer meter reading,

and billing are the main factors affecting the NRW volume

calculation.

5.1.2.1 Production Meter Accuracy

The accuracy of production flow meters is critical to calculat-

ing system NRW. Generally, the number of production flow

meters is relatively small, meaning that each meter measures

a greater proportion of the flow. This means that an error on

one of these meters has a great impact on the total production

measurement. Different meter types have different accuracies

as shown in Table 5.3.

44

1 Note that meter accuracy depends on flow profile, calibration, meter installation and maintenance

and has to be verified case by case.

Table 5-3: Indicative Example of Meter Accuracy

Equipment / Method Approx. Accuracy Range1

Electromagnetic

Flow Meters

< 0.15-0.5%

Ultrasonic Flow Meters 0.5-1%

Insertion Meters <2%

Mechanical Meters 1.0-2%

Venturi Meter 0.5-3%

Meas Weirs in

open channels

10-50%

Volume calculated

with pump curves

10-50%

Source: World Bank Institute, 2007

5.1.2.2 Customer Meter Accuracy

The accuracy of customer meters is equally important, with

the main difference being that there are many more customer

meters in operation—and each measures a relatively smaller

flow—than production meters. The accuracy of customer

metering depends on several factors, including meter type,

brand, replacement policy, maintenance, and water quality. The

water utility should establish guidelines for all of these factors

to ensure accuracy of customer consumption data.

Figure 5-1: Faulty Meters

5.1.2.3 Customer Billing Cycle

When calculating the NRW value, many water utilities sim-

ply subtract customer consumption data from the production

meter volume, and then are satisfied with the low result. How-

ever, this is often a false measurement of NRW because, unlike

with the production meters, which are usually read on the same

day of every month, customer meters are read over the full

month. Information on the average billing cycle, or the time

in days between meter readings is critical. Utility managers

should then factor the total consumption down to get the true

consumption volume for the exact time period as the produc-

tion meter volume measurement.

Addressing the above issues greatly improves the accuracy

of the NRW calculation, which utilities will use as the baseline

in developing an NRW reduction strategy.

5.1.3 Key Messages

• NRW is an indicator of water utilities’ operating efficiency.

• Ensuring the accuracy of the NRW calculation is essen-

tial in understanding the full problem.

• The IWA standard water balance is an excellent method of

breaking down the components of NRW, and tools are avail-

able to help utility managers calculate the water balance

• Accurate production and customer metering ensure that

the true NRW level is measured

• The average billing cycle must be factored into NRW cal-

culations to ensure that time period used for the con-

sumption volume measurement matches the production

meter volume measurement.

45

Session Six

1. Session Outcomes


• Understand the concept of zoning a water distribution system.

• Will be able to determine NRW through zoning.

2. Session Outputs


• Explained the concept of zoning

• Explained the procedure for determination of NRW through zoning.





4. Time Plan


Introduction to the topic on district zoning system 15

Group discussion on district zoning system 40

Presentation in plenary 25

Wrap up 10

Total 90

Table 6-1: Time Plan - Zoning Concept

5. Materials


• Laptop


• Pin boards

• Cards

• Pins

• Marker pens

• Masking tapes

• Calculators

6.0 Zoning Concept

a) Session Overview

46

b) Session Guide

• The facilitator introduces the session title and then out-

lines the objectives of the session with the help of the

power point projector.


duces the concept of zoning. Using an arbitrary zoned

water distribution system, the facilitator outlines how

NRW is estimated. Thereafter, the participants will be

divided into groups to discuss how to develop district zon-

ing in their respective water companies.

6.1 Notes on Zoning Concept

6.1.1 Introduction

Zoning is dividing water network in smaller components for

monitoring water flows, leakage and pressures. Such compo-

nents are usually referred to as District Meter Area (DMA).

The DMA meters are sometimes linked to a central control sta-

tion via telemetry so that flow data are continuously recorded.

Leakage monitoring requires the installation of flow meters

at strategic points throughout the distribution system, each

meter recording flows into a zone, which has a defined and

permanent boundary.

Zones may follow either administrative or hydraulic boundaries.

i. Administrative boundary zoning:

This approach may be convenient for general administra-

tion of the municipality but may be inconvenient for water

distribution and pressure controls

ii. Hydraulic boundary zoning

This approach may not be convenient for general adminis-

tration of the water service provider but is very convenient

for water distribution and pressure controls.

6.1.2 The Design of a Leakage Monitoring System

The design of leak monitoring system involves:

i. Dividing the distribution network into a number of zones

or DMAs, each with a defined and permanent boundary,

so that night flows into each district can be regularly moni-

tored, enabling the presence of unreported bursts and leak-

age to be identified and located.

ii. Managing pressure in each district or group of districts so

that the network is operated at the optimum level of pres-

sure depending on the characteristics of the network.

A DMA may be:

• Supplied via single or multiple feeds;

• A discrete area (i.e. no flow into adjacent DMAs)

• An area which cascades into an adjacent DMA

It therefore follows that a leakage monitoring system will com-

prise a number of districts where flow is measured by perma-

nently installed flow meters as in Fig. 6-1. In some cases the

flow meter installation will incorporate a pressure reducing

valve.

47

Figure 6-1: Typical DMA Layout Source: The Manager’s Non-Revenue

Water Handbook, A Guide to Under-

standing Water Losses by Malcom

Farlley, Gary Wyeth, Zainuddin Bin

Md. Ghazali, Arie Istandar and Sher

Singh, 2008 Published by Ranhill.

Figure 6-2: Typical Layout showing Zone Meters and Data Loggers

48

6.1.3 The Advantages of Zoning

i. Easy to isolate problematic areas

ii. Easy to determine and reduce NRW

iii. Convenient pressure regulations and controls

6.1.4 Pressure Management

Leakage and bursts are related to pressure. Excessive pressure

is a major source of leakage and bursts. Managing pressure in

low-pressure systems is likewise beneficial. Reducing pressure

has direct impact on existing leaks with immediate results.

Leakage Increases with pressure and burst frequency increases

with pressure.

6.1.4.1 Benefits of Pressure Management

• Less expenditure for network maintenance

• Fewer breaks in water main pipes

• Reduced water losses through leakage

• Fewer customer complaints

• Slower deterioration of the network

• Fewer unplanned shutdowns of water supply

• Reduced maintenance on domestic plumbing fittings

• The flow rate from taps and fittings is reduced when pres-

sure is turned down – this means customers have been

using less water,

• Energy savings

6.1.5 Using DMA Results to Reduce NRW Levels

Once the DMA has been established, it becomes an operational

tool for monitoring and managing both of the major compo-

nents of NRW, physical and commercial water losses. The cal-

culation for NRW within a DMA is defined as follows:

DMA NRW = Total DMA Inflow - Total DMA Consumption

After flow meters are installed on all inlets to the DMA, the

Total DMA Inflow can be measured using the increase in the

totaliser, or the meter counter measuring the volume of water

passing through the meter for the calculation period.

The Total DMA Consumption will depend on the customer

meter coverage. If the DMA has a 100% domestic meter cov-

erage, meaning all customers within the DMA have a meter,

then the Total DMA Consumption can be calculated through

a simple summation of all meter measurements for the cal-

culation period.

If 100% domestic meter coverage does not exist within the

DMA, then the Total DMA Consumption can be estimated by

using per capita consumption figures. Initially, a survey of all

properties within the DMA should be undertaken; this sur-

vey may be limited to counting the number of properties and

estimating the average number of occupants per property. For

a more detailed estimate, surveyors will interview all house-

holds and ask how many occupants live within each property.

6.1.6 Estimating Physical Water Losses

Most DMAs will not contain any reservoirs or trunk mains,

so these components are not usually considered when analyz-

ing physical water losses within a DMA. Physical water losses

within a DMA are effectively pipe leaks on the main pipes and

customer connections. Leakage occurs through holes or cracks

in the main pipes or at pipe joints, which will leak water con-

stantly over a 24-hour period. In contrast, leaks from customer

connections fluctuate with customer demand throughout the

day, with peak demand in the morning and evening, and a

minimum demand at night when most customers are asleep

and not using water.

Because leakage from the main pipes is continuous, while

customer demand is minimal at night, water operators should

monitor leakage during the night period. Figure 6-2 shows the

flow pattern into a typical DMA with mainly domestic cus-

tomers.

To estimate the level of leakage in the DMA the operator

needs to calculate the system’s Net Night Flow (NNF), which

is determined by subtracting the Legitimate Night Flow (LNF)

from the Minimum Night Flow (MNF).

The MNF is the lowest flow into the DMA over a 24-hour

period, which generally occurs at night when most consumers

are inactive. This MNF can be measured directly from the data

logging device or the flow graph. Although customer demand

is minimal at night, water operators still have to account for the

small amount of legitimate night flow, i.e. the night-time cus-

tomer demand, such as toilet flushing, washing machines, etc.

In a system with 100% metering, LNF is calculated by

measuring the hourly night flow for all nondomestic demand

and a portion (e.g. 10%) of domestic meters within the DMA.

The utility will then estimate the total LNF in terms of litres

per hour and litres per second.

For systems without 100% customer metering, water oper-

ators can approximate LNF based on estimated per capita night

consumption. Utility managers should conduct a customer

survey of all the properties, both domestic and non-domes-

tic, within the DMA, and then determine the total number

of connections per demand group (domestic, industrial, com-

49

mercial, or others). Based on data from other areas with 100%

customer metering, the utility can estimate a night-time flow

rate for each demand group and multiply that by the number

of connections within the demand group to get the total LNF.

To determine the level of Net Night Flow (NNF) or the por-

tion of night flow directly attribute to leakage, subtract the LNF

from the recorded MNF.

NNF = MNF - LNF

Leakage is proportional to the pressure in the system. Similar

to water flows into the DMA, the DMA average pressure will

change over a 24-hour period. Pressure is directly proportional

to flow due to frictional headlosses within the system, and thus

when the DMA has its lowest inflows, the pressure will be at

its highest. This is because frictional headloss is proportional

to velocity, so when flows are low, the velocities in the pipes

are also low and less headloss occurs.

Therefore, the NNF or leakage calculated for the minimum

night flow period will not be a true representation of leakage

across a 24-hour period. Utility managers must also deter-

mine a pressure factor, or T Factor, that creates a true average

24-hour leakage value when applied to the NNF. The T Factor

is calculated by using a data logger to record pressure over a

24-hour period and then using those measurements to calcu-

late the average 24-hour pressure. This average 24-hour pres-

sure is compared to the system pressure during the minimum

night period and a factor applied.

Figure 6-3: Typical 24 Hour DMA Flow Profile

6.1.7 Determining Commercial Water Losses

The level of NRW within a DMA can be calculated by sub-

tracting the recorded consumption from the inflow as follows:

Commercial loss = NRW – NNF

Once utility managers identify the DMAs with significantly

high commercial water losses, they should investigation for

faulty meters, tampered meters, and illegal connections. They

may also conduct a series of customer surveys of each property

within the DMA to verify the property’s inclusion in the billing

database, interview the occupants, and assess the water meter.

6.1.8 DMA Management Approach

When a DMA is first established, water utility managers should

undertake the initial calculations of NRW, NNF, and commer-

cial losses, and identify the main areas of concern. If the DMA

has high leakage or high commercial losses, then NRW reduc-

tion activities should be implemented.

Once NRW is reduced to an acceptable level, the operations

staff should set up a monitoring regime for DMA inflows. In

its simplest form, this consists of a monthly reading of the

flow meter totaliser. However, the installation of a data log-

ger to record flows will reveal more detailed data, including

the daily NNF, which enables more precise corrections to the

50

system. Eventually, the NNF effectively becomes NRW with

minimal levels of commercial loss.

For most water utilities, it is inefficient for leakage detec-

tion and customer survey teams to work in the DMA continu-

ally. Therefore, the monitoring team should set an interven-

tion limit, or the level at which NRW becomes unacceptable.

Once the intervention limit is reached, the teams should be

sent in to detect and resolve losses. Generally, once the utility

manager deploys teams into the DMA, they can reduce the

NRW level within two to four weeks. Afterwards, the man-

ager should ensure that the NRW level is monitored until the

intervention level is reached again. This process is the opti-

mal management cycle of an established DMA.

Water utilities should maintain a record of the time

taken for NRW to return to the intervention level. If this

time decreases between detection exercises, it indicates that

losses within the DMA are occurring more frequently and

that the system’s assets are deteriorating. For such a case,

water utility managers should consider asset rehabilitation

such as pipe rehabilitation, relining, or replacement, rather

than continual leak.

6.1.9 Key Messages

• Dividing the open network into smaller, more manage-

able DMAs enables utility managers to manage the sys-

tem more effectively in terms of pressure control, water

quality, and NRW.

• Criteria in establishing DMAs include the size (or number

of connections); number of valves that must be closed;

number of flow meters; ground-level variations; and vis-

ible topographic features that can serve as DMA bounda-

ries.

• Utility managers use the minimum night flow (MNF) and

legitimate night flow (LNF) to calculate the net night flow

(NNF), along with commercial losses, to determine NRW

in a DMA

• Establishing DMAs helps to manage pressure, improve

water quality, and enable continuous water supply.

51

Unit 4

Physical Water Losses

Session Seven

1. Session Outcomes


• Understand the causes of physical water losses

• Have shared their experiences on the main factors that contribute to physical water losses.

• Compiled data on physical water losses and analyzed the implications to their companies.

2. Session Outputs


• Explained the causes of physical water losses

• Facilitated exchange and sharing of experiences on physical water causes

• Analysed the causes of physical water losses



• Group discussions and presentations

• Video show

4. Time Plan


Introduction to the topic on physical water losses 20

Discussion in groups to identify sources and courses of physical water losses 40

Group presentation 40

Wrap up 20

Total 120

Table 7-1: Time Plan - Physical Water Losses and their Causes

7.0 Physical water Losses and their Causesa) Session Overview

52

5. Materials


• Laptop


• Pin boards

• Video Documentary on NRW

• Pins

• Marker pens

• Masking tape

• Cards

b) Session Guide

• The facilitator introduces the session and its objectives.

• The facilitator divides the participants into groups accord-

ing to their water utilities.

7.1 Notes on the Physical water Losses and their Causes

7.1.1 Definition of Physical Water Losses

Water losses occur in all distribution networks, even new ones.

Physical water losses, sometimes called ‘real losses’ or ‘leak-

age’, includes the total volume of water losses minus commer-

cial losses.

7.1.2 Components of Physical Water Losses

The three main components of physical water losses include:

• Leakage from transmission and distribution mains

• Leakage and overflows from the utility’s reservoirs and stor-

age tanks

• Leakage on service connections up to the customer’s meter

The first and second types of leakage are usually quite visible

to either the public or utility staff, so they are easy to detect and

are repaired relatively quickly. The third type is more difficult

to detect and can therefore lead to a greater volume of physical

water losses. This chapter describes these three types of losses

and solutions for reducing them.

7.1.3 Sources of Physical Water Losses

• Leakages in valves

• Overflows at the collection and

treatment tank

• Back flow of pumped water that

has remained in the trans-

mission main

• Burst on distribution mains

• Leakages on service lines

• Leakages on transmission

and distribution pipes

• Faulty ball valve

• Leakages at the joints as well as on the pumping main

• Evaporation

7.1.4 Causes of Physical Water Loses

• Malfunction of the ball valves

• Heavy traffic

• Poor quality of pipes

• Lack of technical support

• Pipe diameter small compared to the pump capacity hence

causing burst

• Leakage at customer point

• Back washing of filters

• In groups the participants may be asked to identify physi-

cal water losses and their causes in their respective water

utilities

Figure 7-1: Burst Main

53

Session Eight

1. Session Outcomes

By the end of this session the participants will be able to:

• Quantify physical water losses.

• Identifiy the different information/data sources for NRW management.

2. Session Outputs


• Explained approaches to quantify physical water losses

• Explained the different information / data sources for NRW management

• Discussed quantification of physical water losses from pre-gathered information / data.



• Group exercises


4. Time Plan



Group discussions 40

Group presentations 30

Wrap up 20

Total 110

Table 8-1: Time Plan - Quantifying Physical Water Losses

5. Materials


• Laptop


• Pin boards

• Calculators

• Pins

• Marker pens

• Masking tapes

• Cards

8.0 Quantifying Physical water Losses

a) Session Overview

54

b) Session Guide

The facilitator introduces the topic on quantifying physical

water losses and proceeds to elaborate the objectives of the

session as indicated above. The participants are then divided

into groups and given the following assignment.

• Describe your water scheme (design)

• How do you quantify physical water losses?

• (If not, why?)

8.1 Notes on Quantifying Physical water Losses

8.1.1 Main Components of Physical Water Losses

Table 8-2: Components of Physical Water Losses

Main Components of physical water losses

Leakage and Overflows at Storage Tanks

Background Losses

Reported Bursts

Unreported Bursts

8.1.2 Principle of Physical Loss Components Analysis

a. Estimate individual loss components

• Background leakage (very small leaks)

• Reported bursts (visible leaks)

• Unreported bursts (detected through leak detection

teams)

• Losses from storage tanks

b. Hidden losses: Difference between total physical water

losses and sum of the above components = leaks yet to be

detected.

8.1.3 Component Analysis

• Leakage and Overflows at Storage Tanks

• Background Losses

• Reported Bursts

• Unreported Bursts

• Hidden Losses

8.1.4 Calculating Volume of Water Lost for Individual Components

Volume of Leakage = Leak flow rate x

Leak duration x Number of leaks

Data required:

• Length of pipe network, number of service connections

• Average pressure

• Number of reported and unreported bursts – on mains

and on service connections

• Average leak flow rates for leaks on mains and connec-

tions

• Repair time for leaks on mains and connections

• Average supply time (intermittent supply)

• Information on leakage control policy (to estimate aware-

ness time)

• Estimates of storage tank leaks and overflows

• What challenges/problems do you encounter in quantifi-

cation?

• What measures will you propose to overcome the chal-

lenges and to improve quantification?

The groups then interact in discussion under the supervision

of the various facilitators around. At the end of the discussions,

the groups give a presentation in the plenary.

55

8.1.4.1 Leakage from Transmission and Distribution Mains

Because of their size and visibility, the bursts are reported

quickly, and are then repaired or shut off soon afterwards. By

using data from repair records, utility managers can calculate

the number of leaks on mains repaired during the reporting

period and estimate an average flow rate of the leaks

Volume of Leakage = Leak flow rate x

Leak duration x No. of leaks

If no detailed data are available, utility managers can use

approximate flow rates from Table 8-3

Table 8-3: Flow Rates for Reported and Unreported Bursts

Location of BurstFlow Rate for Reported Bursts

[l/hour/m pressure]Flow Rate for Unreported Bursts

[l/hour/m pressure]

Mains 240 120

Service connection 32 32

Source: IWA Water Loss Task Force

8.1.4.2 Leakage from Reservoir Overflows

• Utility managers should observe overflows then estimate

the average duration and flow rate of the events.

• Most overflows occur at night when demands are low

and therefore it is essential to undertake regular nightly

observations of each reservoir. These observations can be

undertaken either physical or by installing a data logger

which will then record reservoir levels automatically at

preset intervals.

• Leakage from tanks is calculated using a drop test where

the utility closes all inflow and outflow valves, measures

the rate of water level drop, and then calculates the vol-

ume of water lost.

8.1.4.3 Leakage on Service Connections

• This type of leakage is usually more difficult to detect and

results in the greatest volume of physical water losses.

• Utility managers should calculate the approximate vol-

ume of leakage from service connections by deducting

the mains leakage and storage tank leakage from the total

volume of physical water losses.

8.1.4.4 Background Losses

Background losses are individual events (i.e. small leaks and

weeping joints) that flow at rates too low for detection by an

active leak detection survey. They are finally detected either by

chance or after they have worsened to the point that an active

leak detection survey can discover them. Table 8-4 shows back-

ground losses from various components of the network with

average infrastructure condition.

56

Table 8-4: Calculating Background Losses

Location of Burst Litres Unit of Measure

Mains 9.6 Litres per km of mains per day per metre of pressure

Service connection: mains

to property boundary

0.6 Litres per service connection per day per metre of pressure

Service connection: property

boundary to customer meter

16.0 Litres per km of service connec-

tion per day per metre of pressure

Source: IWA Water Loss Task Force

Excess losses include the water lost from leaks that are not

detected and repaired under the current leakage control policy:

Excess Losses = Physical water losses from water

balance - known physical loss components

If this equation results in a negative value for excess losses,

the assumptions for the physical loss component analysis (e.g.

values for leak durations) should be rechecked, and if neces-

sary, corrected. If the value is still negative after rechecking

the assumptions, this indicates that faulty data was used in the

water balance calculation. For example, utility managers may

have underestimated system input or overestimated commer-

cial water losses, and all the components should be checked.

8.1.5 Interpretation of Physical Loss Component Analysis Data

Scenario A:

High Losses but Comprehensive Active Leakage Control

Unreported bursts are more and hidden losses are less.

Scenario B:

High Losses and No Active Leakage Control

Hidden losses are more and unreported bursts are less

8.1.6 Characteristics of Leakages

The type and location (e.g. main or service connection) of a

burst influences the total run time:

Reported bursts:

Visible and usually quickly reported by the public or observed

by water utility staff. They have a short awareness time.

Unreported bursts:

Commonly occur underground and are not visible at the sur-

face. They are usually discovered during leak detection surveys

and often have a long awareness time.

Background leakage:

An accumulation of very small leaks that are difficult and not

cost effective to detect and repair individually.

8.1.7 Key Messages on Leakage

• Most leaks are invisible

• The majority of leaks do not come to the surface

• Managers need to be aware that most leaks are on service

connections

• The absence of an active programme to detect invisible

leaks is an indication of high levels of leakage

57

Session Nine

1. Session Outcomes

By the end of this session the participants will be able to:

• Understand the techniques of reduction of physical water losses;

• Use their individual experiences to identify factors that cause physical water losses

2. Session Outputs


• Explained the techniques of reducing physical water losses

• Described and discussed factors that cause physical water losses





4. Time Plan


Introduction to the topic on reduction of physical water losses 15

Group discussion 50

Group presentations 30

Wrap up 15

Total 110

Table 9-1: Time Plan - Quantifying Physical Water Losses

5. Materials


• Laptop


• Pin boards

• Pins

• Marker pens

• Masking tapes

• Cards

9.0 reduction of Physical water Losses

a) Session Overview

58

b) Session Guide

The facilitator introduces the topic on reduction of physical

water losses and proceeds to elaborate the objectives of the ses-

sion as indicated above. The participants are then divided into

their traditional groups and given the following assignment:

a) Develop physical loss reduction checklist

b) Discuss physical loss reduction techniques with respect

to their water schemes

9.1 Notes on reduction of Physical water Losses

9.1.1 Controlling Technical Losses

Designing an effective leakage reduction and maintenance

strategy helps in reducing physical water losses and in improv-

ing management of the network.

The approach for reducing water losses includes a set of

programs and activities aimed at the optimization of water

supply by:

• Controlling leakages in pipelines, distribution mains, and

networks,

• Controlling overflows in the storage tanks,

• Improved operation and maintenance of water networks

and

• Sound management practices.

It is always the small leaks that leak for a long time that are

responsible for the biggest volume of water lost. The big bursts

that come to the surface are normally repaired quickly and the

volume of water lost is therefore small. In general, more than

90% of all leaks do not come to the surface and can only be

detected with various types of leak detection equipment.

Another important aspect is zoning of the distribution net-

work. Especially if the infrastructure is in poor condition it

is extremely difficult to successfully manage physical water

losses at low levels in large network zones. Small zones are

needed (called DMAs – District Metered Areas) to keep leak-

age levels low and these small zones are also useful for pres-

sure management.

9.1.2 Techniques of Reducing Physical Water Losses

This involves developing a Sustainable Leakage Control Strat-

egy. The Challenge for Water Service Providers is to move from

passive to a pro-active mode! This involves three levels of deci-

sion making:

First Level of Action:

Doing the obvious (simple and cheap): Identifying, locating

and repairing visible leaks

Second Level of Action:

Localizing and repairing non-visible leaks (listening devices)

Third Level of Action:

The advanced and sustainable stage: establishing district

metered areas (DMAs) and introducing pressure management

9.1.3 The Physical Loss Reduction Checklist

• Change management focus

• Improve speed and quality of repairs

• Introduce active leakage control

• Review, improve operating practices

• Introduce network zoning and DMAs

• Practice pressure management

• Apply good asset management

The groups then interact in discussion under the supervision

of the various facilitators around. At the end of the discussions,

the groups give a presentation in the plenary.

59

Figure 9-1: Change Management Focus

9.1.3.1 Change Management Focus

Often, leakage reduction is ignored or not taken seriously:

Misconceptions: it’s a one time, technical effort!!!

Non-prestigious, invisible work politically sensitive; digging

up streets, limited management attention. The level of effort

underestimated, manpower intensive, often night work. Insuf-

ficient allocation of vehicles, tools and equipment, under-fund-

ing, job can’t be done in ‘spare time’. Management to under-

stand and accept challenge. There is need for ownership,

commitment and leadership by management. The need for

supporting elements/conditions: enabling environment—poli-

ticians, customers on board, mandate, empowerment, capacity

objectives, targets organization and administration financial

resources, budget, communication inside and outside of the

utility and incentives for staff.

9.1.3.2 Speed and Quality of Repairs

“Detecting leaks is pointless, unless they are repaired!”

• Time is of the essence – How Quickly do You Repair a

Small Leak? Improving speed and quality of repairs

• Ensure clear repair policy and procedures

• Efficient organization from call through repair

• Ensure availability of equipment and materials

• Source for sufficient funding

• Appropriate standards, inspections for materials and

workmanship

• Committed management and staff

• Consider outsourcing

• Ensure proper supervision during repair

60

9.1.3.3 Quality of Repairs

Too often leaks are repaired at sub-standard quality—with

sub-standard materials wrapped-around plastic bags (or pieces

from rubber tubes of tires) wooden plugs, sub-standard, non-

stainless steel repair clamps, mark/map such repairs – they

are important for leak location in near future!!!

9.1.3.4 Quality of Service Connections

Service connections are the weakest parts of the system. A

leaking service connection (e.g. corroded GMS pipe) should be

entirely replaced and not repaired PVC is not an appropriate

material for service connections (better use copper, stainless

steel ...). High quality pipe and fittings are the most cost effec-

tive long term solution due to lower life cycle costs

Reported Bursts

• visible, often phoned in by public

• Unreported Bursts - non-visible, located through leak

detection survey.

Background Leakage

• very small; difficult and uneconomic to detect and repair

individually

• Most leaks do NOT come to the surface, are mainly caused

by leaking service connections

• Fix the visiblelLeaks!

9.1.3.5 Improving Operating Practices

This is an important but often overlooked issue. It involves:

• Reviewing and Improving operation and maintenance

practices

• Avoid wide pressure fluctuations

• Intermittent supply: try to (re)establish 24 hour supply in

some areas

• Inspect and maintain valves and hydrants regularly

• Operate reservoirs and pumping stations properly

• Keep network drawings or a GIS continuously up to date

9.1.3.6 Suggestions for Immediate Actions

• Do you “talk” more than you “do”? Perhaps talking makes

you feel better, but does it actually move you forward? If

not, act now - and do those things you’ve been meaning

to do

• Locate and repair visible leaks!

• Improve response time and capacity to repair

• Repair; replace leaking pipes and connections based on

common sense judgment:

• Age of pipe alone is not a criterion for replacement, but

burst frequency may be. Leaking service connections

should generally be replaced.

• Initiate DMAs and pressure management.

9.1.4 Benefits for Reducing Physical Water Losses

• Increased access: more water available especially for the

poor

• Payment according to consumption perceived as fair

• Fewer consumer complaints

• Increased revenue for operation and maintenance (O&M)

due to improved management

• Improved efficiency of investment due to the shift from

supply to demand management

Figure 9-2: Visible Leak

61

Session Ten

1. Session Outcomes


• Appreciate the benefits of leak detection and repair

• Will be able to described and use the various equipments for detecting leaks.

2. Session Outputs


• Explained the benefits of leak detection and repair

• Described and demonstrated common leak detection equipment.



• Role play



4. Time Plan



Role play on the need to repair burst and leaks within a given period 30

Group discussion on leak detection equipments 25

Group presentation and plenary 20

Wrap up 5

Total 90

Table 10-1: Time Plan - Leak Detection

5. Materials


• Laptop


• Pin boards

• Pins

• Marker pens

• Masking tapes

• Cards

10.0 Leak Detection

a) Session Overview

62

b) Session Guide

The facilitator introduces the topic and outlines the benefits of

leak detection and repair and the various techniques of detect-

ing leaks. The participants are then divided into groups to dis-

cuss the best equipment, which can be used to detect leakage

in their respective water providers.

The facilitator may also organize a role play depicting the

response time to leak repairs in a water utility

10.1 Notes on Leak Detection

Utilities can no longer tolerate inefficiencies in water distri-

bution systems and the resulting loss of revenue associated

with underground water system leakage. Increases in pump-

ing, treatment and operational costs make these losses pro-

hibitive. To combat water loss, many utilities are developing

methods to detect, locate, and correct leaks.

10.1.1 Benefits of Leak Detection and Repair

The economic benefits of leak detection and repair can be eas-

ily estimated. For an individual leak, the amount lost in a given

period of time, multiplied by the retail value of that water will

provide a dollar amount. Remember to factor in the costs of

developing new water supplies and other “hidden” costs

Other benefits of leak detection and repair that are diffi-

cult to quantify include:

• Increased knowledge about the distribution system,

which can be used, for example, to respond more quickly

to emergencies and to set priorities for replacement or

rehabilitation programs;

• More efficient use of existing supplies and delayed capac-

ity expansion;

• Improved relations with both the public and utility

employees;

• Improved environmental quality;

• Increased fire fighting capability;

• Reduced property damage, reduced legal liability, and

reduced insurance because of the fewer main breaks; and

• Reduced risk of contamination.

10.1.2 Locating Non-visible Leaks

This involves a routine program for finding and locating leaks.

Many techniques and instruments are currently in use such as:

• Listening sticks

• Ground microphone

• Leak noise correlator

• Noise loggers

10.1.3 Leak Detection Policy.

The WSP should make a policy decision on this. Should it be

after every 4, 6, months or 2, 3 years etc? The decision should

be based on the volume of physical water losses as compared

to the cost of controlling the leakage.

Figure 10-1: Leak Detection Equipment

63

10.1.4 Leak Detection Equipment

In well-managed systems, reported (visible) leaks accounts for

less than 10% of annual physical water losses. Consequently,

more than 90% of leaks are invisible. Therefore, there is need

to use leak detection equipment to locate leaks. Acoustic Leak

Detection,

10.1.4.1 Acoustic Leak Detection

Causes of Noise in water pipelines:

• Consumption

• Pressure reducing valve

• Partial obstruction of the pipe

• Change in pipe diameter

• Partially closed valves

• Pumps

• Electrical interference

• Gas compressors

• Leakage

Factors Affecting Acoustic Leak Detection

• Pipe material

• Pipe diameter

• Pressure

• Background noise

• Usage

The best time to carry acoustic leak detection pressure is at

the maximum.

Figure 10-2: Sounding Rod Method

Leak Noise Quality

Good Quality Poor QualityHigh water pressure Low water pressure

Hard backfill Soft backfill

Small rapture Split mains

Clean pipe Encrusted pipes

Metallic Pipes Non metallic pipes

Small diameter Large diameter

Table 10-2: Leak Noise Quality

Acoustic noise transfer relies on the energy generated from the

leak, which is transmitted within the pipe through water. The

energy from the leak is also transmitted through the pipe wall.

10.1.5 Types of Leak Detectors

10.1.5.1 Noise Loggers

Noise loggers narrow down areas of a DMA that contain sus-

pected bursts or number of leaks. A cluster of loggers, usu-

ally 6, 12, or 18, is deployed in the survey area, with each log-

ger placed on a hydrant, meter, or other surface leak is located

using other location equipment as described below.

Some noise logger systems also incorporate data from multiple

points to ‘instantly’ locate leaks.

10.1.5.2 Leak Noise Correlators

Rather than locating a leak based on the noise level, this instru-

ment uses the velocity of sounds made by the leak as they travel

Figure 10-3: Leak Noise Correlator

64

along the pipe wall toward each of two microphones placed

on fittings either side of the suspected leak. The effectiveness

of this process is dependent on the strength of the leak noise

and the sound conductivity of the pipe material. Hydrophones

placed in the water column can also enhance the leak sounds

in plastic or large pipes and other pipes where the noise con-

ductivity is known to be poor. These hydrophones work by lis-

tening to the leak noise travelling through the water, which is

a better conductor, than most pipe materials, of sound.

The latest correlator versions have the capability of fre-

quency selection and filtering, to quickly locate leaks to within

0.5 metres in most sizes of pipe, provided there are sufficient

contact points along the line of the main. Low-cost basic mod-

els are available, which are adequate for most situations

10.1.5.3 Ground microphones

The ground microphone electronically amplifies the sound of

a leak. It can be assembled for use in either contact or survey

mode. Contact mode is for sounding on fittings, similar to an

electronic listening stick. Survey mode is for searching for

leaks on lengths of pipeline between fittings. The technique

involves placing the microphone on the ground at intervals

along the line of the pipe and noting changes in sound ampli-

fication as the microphone nears the leak position. When the

leak noise loggers or leak noise correlator detects a leak, the

utility manager may use either mode to locate the leak.

10.1.5.4 Sounding Sticks

The sounding stick, or ‘stethoscope’, is an inexpensive, simple

rod made of wood or metal with an earpiece attached to amplify

sounds. Utility managers use it to listen to leak sounds on the

surface of the highway or on directly exposed pipes and fit-

tings. The sounding stick is invariably used to confirm a leak

site that is first identified by a correlator.

• Localize

› Hydrant and main valves survey

› All fittings survey

› Step testing - used

› Noise loggers

› District Metered Areas (DMAs)

› DMAs combined with noise loggers

• Locate – Correlator

• Pinpoint – Listening Device

10.1.5.5 Step Testing

• Step test - a technique that requires the progressive isola-

tion of sections of pipe by closing line valves, beginning

at the pipes farthest away from the meter and ending

at the pipe nearest the meter. During the test the flow

rate through the meter is observed and the time when

each section of pipe is isolated is noted. A large decrease

in flow, or “step”, indicates a leak in the section of pipe,

which has just been isolated.

• May cause water quality problems

10.1.5.6 Noise Loggers

• Listen to all noise not just leaks

• Long battery life

• Easy to install

• Programmable for intermittent supply

• Can be installed during the day

• Easy to interpret – flashing lights

• Ideally deployed up to 250 m apart on metallic mains but

up to 750 m.

• Deployed up to 80 m apart on non metallic mains

• Basic loggers only record noise level and show which one

is closest to the leak

• Advanced loggers can correlate between units when leak

noise is identified.

65

Unit 5

Commercial Water Losses

Session Eleven

1. Session Outcomes

By the end of this session participants:

• Understand the different causes of commercial water losses in their water supply schemes.

• Can explained the various procedures of connections / disconnections.

• Understand set up procedures for accurately assessing the volume of NRW contributed by commercial water losses.

2. Session Outputs


• Described the different causes of commercial water losses in a water supply scheme

• Demonstrated how to measure the water losses in a selected water scheme based on water supply data.

• Facilitated participants to share field experiences and related the observations to their respective environments.





4. Time Plan


Introduction to the topic on commercial water losses 20

Group discussion on the causes of commercial water losses in their respective water supply schemes 45

Group presentation 40

Wrap up 15

Total 120

Table 11-1: Time Plan - Causes of Commercial Water Losses

11.0 Causes of Commercial water Lossesa) Session Overview

66

5. Materials


• Laptop


• Pin boards

• Pins

• Marker pens

• Masking tape

• Cards

b) Session Guide

The facilitator introduces the session title and outlines the

specific objectives. Making reference to the session on water

balance earlier presented, he/she explains the meaning of

commercial water losses. Then using the existing groups he/

she gives each group a discussion question. Later the groups

report back to the plenary and their reports are discussed as

they are presented with each participant adding his/her sug-

gestions. The facilitator also gives his/her views as each pres-

entation is made.

On the right are the questions to given to each of the group

and the expected discussions.

Group 1 What forms of illegal connections do you have

in your water supply systems?

Group 2 What forms of metering inaccuracies do you

encounter in your water supply systems and

what are their causes?

Group 3 What forms of data handling errors do you

encounter in your water supply systems and

what are their causes?

Group 4 What measures can we take to eliminate

unauthorized consumption?

Group 5 What measures can we take to eliminate

metering inaccuracies and data handling

errors?

11.1 Notes on Causes of Commercial water Losses

11.1.1 Definition of Commercial Water Losses

Commercial water losses, sometimes called ‘apparent losses’,

include water that is consumed but not paid for by the user.

In most cases, water has passed through the meters but is not

recorded accurately. In contrast to leaks or reservoir overflows,

the lost water is not visible, which leads many water utilities to

overlook commercial water losses and concentrate instead on

physical water losses.

Commercial water losses can amount to a higher volume

of water than physical water losses and often have a greater

value, since reducing commercial water losses increases rev-

enue, whereas physical water losses reduce production costs.

For any profitable utility, the water tariff will be higher than the

variable production cost – sometimes up to four times higher.

Thus, even a small volume of commercial loss will have a large

financial impact

An additional benefit in reducing commercial water losses

is that it can be accomplished quickly and effectively. This

chapter reviews the four main elements of commercial water

losses and presents options to address them.

11.1.2 Causes of Commercial Water Losses

• Customer meter inaccuracy


• Meter reading errors

• Data handling and accounting errors

67

Water utilities should aim for commercial water losses that

are no more than 4-6% of authorized consumption. Reducing

commercial water losses requires a low level of investment with

a short payback period, but it needs sustained management

commitment, political will, and community support. Utilities

should focus on commercial water losses in the beginning

of an NRW reduction programme since the activities can be

undertaken in-house with little effort and the payback is imme-

diate.

The four pillars of commercial water losses are: (Figure 9-1)

• Meter errors

• Meter under registration

• Water accounting errors

• Water theft

Economic target for commercial losses

Existing commercial losses

Water accounting errors Meter under registration

Met

er e

rror

sW

ater

the

ft

Figure 11-1: Pillars of Commercial Water Losses

11.1.2.1 Illegal Connections

• Meter bypass

• Illegal connection from the mains to the house

• Illegal connections ending up in the garden

• Illegal reconnection by people who have been discon-

nected

• Putting illegal flexible pipes which they bury in the gar-

den during the day and unfold at night so as to fill a

domestic tank

11.1.2.2 Meter Inaccuracies

a Meters getting stuck. This is caused by among others;

• Meter tampering

• Soil getting into the meter (poor water quality)

• Poor quality meters and materials

b Negative reading caused by;

• Poor installation and layout

• Reversal of meters by consumers

c Meter under registering caused by

• Poor installation

• Low water pressure

• Quality of water (water which contains debris directly

affects the gears. water with a lot of solvents eventually

coats the pipes and the inside of the meter.)

d Meter over registering;

• Air in the system

68

• Unsuitable meter size, meter flow profile

• Lack of proper maintenance and replacement.

11.1.2.3 Data Handling Errors and their Causes

• Mixed figures

• Poor handwriting

• Corruption of meter readers

• Estimates due to inaccessibility of meters

• Employing relatives –incompetent employees

• Wrong computation

• Older contractor goes with all the data

• Fatigue on the part of the meter readers

• Faulty equipment –meters

• Meter maintenance and management policy

• Wrong reading

69

Session Twelve

1. Session Outcomes


• Understand the need for an efficient billing system

• Understand the effect of metering consumption

2. Session Outputs


• Discussed the need for an efficient billing system

• Described and discussed the effects of metering consumption



• Group exercise


4. Time Plan


Introduction to management of commercial water losses 15

Group discussion 30

Presentation in the plenary 25

Wrap up 10

Total 80

Table 12-1: Time Plan - Managing Commercial Water Losses

5. Materials

• Power point projector

• Laptop

• Overhead projector (OHP)


• Marking pens

• Cards

• Chalk Board and chalk

• Calculators

• Transport

• Hand outs

12.0 Managing Commercial water Losses

a) Session Overview

70

b) Session Guide

The facilitator introduces the session and outlines its objec-

tives. Using the existing groups he/she gives each group a dis-

cussion question. Later the groups report back to the plenary

and their reports are discussed as they are presented with each

participant adding his/her suggestions. The facilitator also

gives his/her views as each presentation is made.

A possible discussion topic may be to identify causes of

commercial water losses in your respective water utilities and

recommend remedial measures.

12.1 Notes on Managing Commercial water Losses

12.1.1 Introduction

Commercial water losses results from unbilled authorized con-

sumption, unauthorized consumption, and metering inaccu-

racies. They can be managed by focusing on controlling losses

from:

• Overestimation of water production,

• Underestimation of consumption,

• Theft of water through illegal connections,

• Free water, wasteful water use, and

• Water lost from metering inaccuracies.

The key to managing commercial water losses is the imple-

mentation of a proactive and robust metering practice. Besides

keeping track of system water flows, a metering policy helps in

improving operational accountability within the utility down

at all levels. In this case, every WSP staff involved in network

management is held accountable for their share of water pro-

duced and sold.

Effective metering is necessary if the service provider is aspir-

ing to provide continuous water supply. This means that:

• WSPs need to check their own bulk meters to keep track

of how much water is being supplied to the water network

and

• Check all consumption meters through regular tests and

repairs.

12.1.2 Effective Billing System

An efficient billing system is essential for charges levied by the

WSP since it ensures timely serving of demand notice and col-

lection of dues from customers thereby enabling efficient cash

recycling. It serves the following objectives:

• Timely rising of bills for the water dues;

• Establishing clear cut time schedules between the rais-

ing of bills, serving it to the consumers and payment by

them;

• Collection from the consumers of the right amount and

on due date;

• Make it easy for willing consumers to pay at convenient

collection centres most ideally at the door step;

Figure 12-1: Water Meter

71

• Accounting for daily collections and their remittances

• Clear accounting of dues of consumers;

• Elimination of avoidable delays;

• Minimizing the cost of collection;

• Paying adequate attention to disputed cases and default-

ers;

• Rigorous follow-up of defaulters and incentive mechanism

for workers involved in dues collection from consumers

Table 12-2: Revenue Collection Efficiency Benchmark

Metering Ratio

Benchmark

Percentage

Good >90

Acceptable 85 – 90

Not Acceptable < 85

Source: A performance Report of Kenya’s Water Service

Sub-Sector Issue No. 2

12.1.3 Reducing Levels of Free Water

Reducing the levels of free water could also control commer-

cial water losses. This means tapping illegal connections by

implementing credible penalties and disconnection policies.

Free water results from authorized consumption – for instance,

for operational use, fire fighting, among others – which needs

to be controlled. Some amount of free water is also available

through public stand posts.

12.1.4 Customer Metering Policy

Customer metering involves:

• The cost effectiveness of meters, if tariffs are very low?

• The cost of maintenance and replacement of meters?

• Can we afford to buy, maintain and read meters for all

customers?

• Corrupt meter readers?

• Multi-storey buildings: where to meter and whom to bill?

• Adopt 100 percent metering ratio. Refer to Table 12.3 for

benchmarking

Table 12-3: Metering Ratio Benchmark

Metering Ration Bench-

mark

Percentage

Good 100

Acceptable 95 – 100

Not Acceptable < 95

Source: A performance Report of Kenya’s Water Service

Sub-Sector Issue No. 2

12.1.5 Avoiding Meter Inaccuracies

Adopt appropriate metering policy/capacity:

• Meter ownership should be by the utility

• Choose the right meter, ensure proper installation, conduct

random testing

• Pay special attention to large customers

• Have clear manuals, instructions, specifications to avoid

causes of inaccuracies and allocate sufficient funding

• Enlist competent management and staff and

• Provide management/customer support

12.1.6 Effective Metering

It’s not enough to install; reaping the benefits of metering

requires:

• An appropriate commercial system: meter reading, billing

and revenue collection

• Competent management and staff support

• Tariffs high enough to induce customer response

• Credible policy - threat of disconnection for non payment

• Communication with customers

12.1.7 Unauthorized Consumption

Elements of unauthorized consumption:

• Illegal connections

• Meter tampering, bypasses

• Illegal use of water from hydrants (e.g. tanker filling, con-

struction works)

• Irrigation by breaking mains

• Illegal commercial and industrial consumption

• Corrupt meter readers

72

12.1.7.1 Illegal Connections

Reducing theft and fraud: this should be a permanent war:

• There should be an enabling regulation to punish theft/

fraud

• Penalize illegal connections and disconnect for non-pay-

ment

• Regular spot checks at large customers, construction sites

• License and regulate water trucks

• Instil a culture of accountability and honesty on meter

readers

• Always maintain good and up to date records

12.1.7.2 Water “Theft”

Ensure safe (life line) service to the poor

• Find creative and innovative ways for charging the poor

• Government may pay through subsidies

• Introduce district / sample metering

12.1.7.3 Informal Settlements

• Poor quality of installations encourages water losses

• Informal settlements can be measured as a whole (district

meter)

• Think about working with communities to improve and

regularize service. This can be witnessed in Nyalenda

urban settlement in Kisumu where Kisumu Water and

Sanitation Company collaborates with residents to improve

water service provision.

12.1.7.4 Meter Tampering

Enforce regular visual inspection

• Look for red flags / anomalies in billing records

• Comparison of consumption to average values

• Meter tampering, by-passes

12.1.7.5 Water Theft and the Community

• Enlist the help of customers and civil society to combat

theft

• Create enabling environment, “educate” community and

politicians

Message to get across:

• Piped water is a commercial good and therefore cannot be

free

• The supply of water depends on customers willing and pay-

ing their bills

• Misuse and stealing of water hurts the community at large

12.1.8 Data Handling and Billing

• Ensure effective meter readers supervision, rotation of

meter readers, introduce spot-checks

• Introduce electronic meter reading devices i.e. data loggers

• Enforce periodic auditing of the entire meter reading, data

processing, billing and revenue collection chain

• Apply statistical analysis, monitoring and verification

• Ensure the billing system is operated by a competent team/

personnel and supported by management

Figure 12-2: Water metering in informal settlement

73

12.1.8.1 Updating Customer Data Base

• Detect and register illegal connections

• House to house, customer surveys

• Work with community; create awareness campaigns

• Keep customer records up to date

12.1.9 Managerial Capacity

Tackling commercial water losses is not so much a technical /

financial problem. It requires:

• Management commitment

• Political support / will for unpopular decisions / measures

• Creative solutions to socio economic issues like poverty and

illegal settlements

• Training and capacity building for more knowledge

• Additional funding / resources

• Community support

• Patience and perseverance

Figure 12-3: Data Loggers

12.1.10 Cost Efficiency

There is need for immediate focus for controlling costs of serv-

ice delivery. Cost inefficiencies may result from:

• Inadequate processes,

• Outdated technology,

• High energy costs and

• Excessive staff etc, all of which have high cost implications.

Some WSPs in Kenya spend over 75 percent of their opera-

tional costs on energy and staff. This leaves very little for main-

tenance of water infrastructure and preventive maintenance.

Poor maintenance has lead to decaying infrastructure that has

eventually failed to deliver quality services. To alleviate this

situation, WSPs will need to ensure that services are delivered

in a cost-efficient manner to meet specific service standards

and obligations.

12.1.11 Key Messages

Key elements of a programme to reduce commercial water

losses

• Improve the customer database

• Improve estimates used for billing

• Introduce / improve customer metering

• Detect illegal consumption, theft and fraud

• Control meter reading and eliminate / minimize billing

corruption

• Communicate with customers

• Reduce wastage at public taps

75

Unit 6

Strategies to Reduce and Manage Non-Revenue Water

Session Thirteen

1. Session Outcomes


• Understand, initiate and lead teams in the effort to reduce NRW

• Identify the governance challenges affecting reduction of NRW

• Understand management processes for the implementation of NRW reduction strategies.

• Know the importance of information and data management on NRW in their water supply systems

2. Session Outputs


• Described and initiated teams in the effort to reduce NRW

• Identified with the participants the governance challenges affecting reduction of NRW

• Explained management processes for the implementation of NRW reduction strategies.

• Discussed the importance of information and data management on NRW in their water supply systems


• Brief lectures


• Plenary discussions

13.0 Strategies to reduce and Manage Non-revenue water

a) Session Overview

76

5. Materials


• Laptop

• Or Overhead projector (OHP)

• Flip charts and flip chart stand

• Marking pens

• Cards


• Calculators

• Transport

• Hand outs

b) Session Guide

The facilitator using an OHP introduces the topic of the ses-

sion, the objectives, and the learning outcomes and why it is

important for reducing NRW. Using a prepared Power Point

(PP) presentation the facilitator gives an overview of the con-

13.1 Notes on Strategies to reduce and Manage NrwThe NRW challenge can only be properly understood after

NRW and its components are quantified, the appropriate per-

formance indicators calculated, and the lost water volume is

translated into its corresponding economic value. Development

of the water balance reveals the magnitude of each NRW com-

ponent.

13.1.1 Establishing the Strategy Development Team

The NRW reduction strategy team ensures that all compo-

nents of NRW are covered and that the proposed strategy is

feasible in terms of physical application and financial require-

ments. The team should comprise of members from each

operational department, including production, distribution,

and customer service. It may also include members from the

finance, procurement, and human resource departments.

Choosing the right members promotes ownership by the util-

ity’s various departments involved in the strategy’s implemen-

tation, and also ensure consensus by senior management.

The teams could be established using the table 13.2.

13.1.2 Raising Awareness on the Strategy

Effectively addressing NRW requires a combined effort from

management and staff throughout the utility. However, the

number of staff with a good knowledge of NRW is usually

limited to engineers or others working at an operational level.

Everyone, from the Chief Executive Officer to the meter read-

ers and crew, should understand the importance of NRW and

how it affects their daily work and the utility. More specifi-

cept of planning and the importance of planning for NRW

reduction. The facilitator further conducts a plenary discus-

sion on key issues and questions to consider in the plan for

the reduction of NRW.

4. Time Plan


Introduction to the session and the concept of planning 30

Plenary discussion on key issues to consider in the plan for NRW reduction 40

Wrap Up 10

Total 80

Table 13-1: Method of Delivery for Strategies to Reduce NRW

77

cally, the following groups should understand NRW and their

role in reducing water losses:

• Top decision-makers, including the Board of Directors,

mayors, or political leaders

• All levels of the utility’s management and staff

• The general public, or consumers

The public’s perception of NRW is shaped by information pre-

sented through the media, which often does not include full

explanations of the complex issues involved. During the ini-

tial implementation period of the NRW reduction strategy, the

public will be greatly affected when water supply is stopped to

install meters, repair leaks, or undertake other work.

The utility must ensure that the public is aware of the strat-

egy and understands that service interruptions will result in

long-term benefits for all.

This chapter describes the roles and responsibilities of each

type of stakeholder in implementing the NRW reduction strat-

egy. Outreach programs will help build awareness and consen-

sus regarding the importance of reduction activities and the

benefits of reducing NRW.

Category Activity How to Address By Whom Resources When

Commercial Illegal Connections Legal Illegal

connections

Metering

Manager

New Meters Immediately

Faulty Meters

By Passes

Data Issues

Aged Meters

Meter Reading Corruption

Meter Tampering by consumers

Wrong Installation

Physical Leakages

Bursts

Pressure Management

Overflows

Network Issues

Underground Leakages

Table 13-2: Establishing a Strategy Development Team

13.1.3 Gaining High-Level Approval

Top decision-makers, such as the Board of Directors, the

mayor, or other political leaders, are responsible for review-

ing and approving the strategy. A general presentation and

discussion on NRW will help ensure that they understand

the value of minimizing NRW. The decision-makers should

be informed of the present NRW level, the benefits of reduc-

78

ing NRW, operational activities required achieving reduc-

tions, and the budget required to carry out activities. Lack of

approval at the highest levels or inadequate funding support

has led to the failure of many NRW strategies.

Securing approval for the NRW reduction strategy from top

decision-makers underscores its importance among staff. At

the same time, the senior management will be accountable to

the decision-makers for achieving results, and will report back

on improvements to the strategy and any additional budget

requirements.

13.1.4 Building Staff Awareness and Consensus

The utility’s staff need to understand NRW and how the NRW

reduction programme will improve the organization. In cer-

tain cases, savings from the NRW reduction programme may

be shared with the staff through bonuses or other incentives.

All staff, from senior management to the crew, should

understand the NRW reduction strategy and their role in

achieving the NRW target. Middle managers should partici-

pate in briefing sessions to raise their NRW awareness and to

provide input to strengthen the strategies. Managers should

then brief their operational staff on upcoming activities and

changes in policies and practices. Some examples of how indi-

viduals in various departments are involved in the strategy’s

implementation include:

• Meter readers must provide accurate readings, as this will

immediately affect the NRW calculation.

• Purchasing officers must complete equipment orders as

quickly as possible, since delays in the purchasing process

will then hinder these necessary installations and upgrades

in the system. As a result, district meter areas (DMAs),

which can play a key role in reducing NRW, will not be

established in a timely manner.

• Financial officers must not delay payments to suppliers, as

this may disrupt future equipment or meter supplies.

• Crew must repair burst pipes as quickly as possible so that

water losses and water supply disruptions are minimal.

Fast repairs increase the utility’s efficiency and promote

customers’ willingness to pay their water bill

13.1.5 Reaching out to customers

One of the goals of reducing NRW is also to provide better

and more efficient services to the public. To accomplish this,

the public must also understand how they can help manage

NRW by reporting burst pipes, faulty valves, leaks, or other

problems that limited utility crews may not detect. The ear-

lier the utility becomes aware of a burst pipe or leak, the

faster it will be repaired, thus reducing the losses (on the

relationship between awareness, location, and repair times

and water losses).

Awareness programmes should be organized with a variety of

stakeholders from the public, including politicians, commu-

nity leaders, and household and industrial consumers. Pro-

grammes generally focus on basic NRW concepts and how

reducing NRW helps ensure that communities receive better

water supply and services

After awareness programmes are conducted in each commu-

nity, all staff should work to ensure that customer confidence

in the utility’s services is maintained. A key element in this

is open communication. For example, the public should be

able to easily contact the utility to report burst pipes, leak-

ages, or other concerns. The utility should establish a sys-

tem to receive information or complaints from customers,

and then to disseminate it to the relevant operational units

so action is taken quickly.

13.1.6 Key Messages

• Awareness at all levels, from top decision-makers to the

end consumer, is critical to improving NRW.

• Building the understanding of top-level management on

NRW and the budget required to reduce it supports the

financial sustainability of the strategy.

• Middle management and staff must understand their roles

and responsibilities in reducing NRW, since it requires a

long-term, combined effort from all departments in the

utility.

• Reaching out to customers helps to increase their aware-

ness of NRW and how reducing water losses will result in

improved water supply and quality.

79

Unit 7

Monitoring Performance of Non-Revenue Water Management

Session Fourteen

1. Session Outcomes


• Know the value of precise performance indicators.

• Have worked out precise performance indicators for NRW in their utilities.

2. Session Outputs


• Explained the importance of NRW performance indicators.

• Explained the weakness of traditional performance indicators.

• Described and discussed IWA recommended NRW performance indicators and their advantages over traditional perform-

ance indicators.


• Brief lectures

• Plenary discussions

4. Time Plan


Introduction to the session and the key concepts. 15

Plenary discussion of performance indicators 40

Wrap up 15

Total 70

Table 14-1: Time Plan - Performance Indicators

14.0 Monitoring Performance of Nrw Managementa) Session Overview

80

5. Materials


• Laptop

• Or Overhead projector (OHP)

• Flip charts and flip chart stand

• Marking pens

• Cards


• Calculators

• Transport

• Hand outs

b) Session Guide

• The facilitator introduces the topic, objectives, and out-

comes of the session. Using two or three examples, the

facilitator also explains the meaning of the concept of per-

formance indicators (PIs) and its relevance to NRW reduc-

tion.

• The facilitator then guides a plenary discussion on char-

acteristics of good performance indicators and why some

of the PIs in use are misleading.

14.1 Notes on Monitoring Performance of Nrw Management

NRW is a measure of a utility’s efficiency in terms of both

operational performance and financial performance. Manag-

ers, policymakers, regulatory agencies, and financing institu-

tions use NRW performance indicators (PIs) to rank the util-

ity’s performance against industry standards and other water

utilities. This chapter reviews common performance indicators

for physical and commercial water losses and briefly describes

monitoring programmes.

14.1.1 Characteristics of Performance Indicators

Performance indicators help a utility:

• Better understand water losses

• Define and set targets for improvement

• Measure and compare performance

• Develop standards

• Monitor compliance

• Prioritize investments

A good NRW PI should be clear and easy to understand and

have a rational basis. It should also be easy to calculate using

data that the utility gathers regularly. Finally, utilities should

include standard performance indicators to measure perform-

ance to facilitate comparisons with other utilities. Tools such

as decision trees are available for managers to select appro-

priate performance indicators for their utility’s needs and

operating context.

14.1.2 Performance Indicators for Physical Water Losses

14.1.2.1 Expressing NRW as a Percentage

NRW has traditionally been expressed as a percentage of

input volume. Although this is preferable to setting no targets

at all, it is misleading as a PI because it favours utilities with

high consumption, low pressure, and intermittent supply. In

addition, it does not differentiate between Physical and com-

mercial losses. Nevertheless, NRW as a percentage of input is

sometimes useful for its ‘shock value’—a high result can be

a spur a utility to initiate a study of the network’s operational

performance and to conduct a water balance calculation. It

• The facilitator uses some examples to explain how key PIs

are calculated. He also guides the participants in trying

out these calculations.

• Using a question and answer session, the facilitator invites

questions on the topic and wraps up the session with a

summary.

81

is also useful as a measure of the utility’s year-on-year finan-

cial performance, as long as the measurement principles are

consistent. In that case, it should be expressed as the value,

not the volume, of water lost.

14.1.2.2 Other Performance Indicators for Physical Water Losses

Appropriate indicators of physical water losses include:

• Litres per service connection per day (l/c/d)

• Litres per service connection per day per metre of pressure

(l/c/d/m pressure)

• Litres per kilometre of pipeline per day (l/km/d)

• Infrastructure Leakage Index (ILI)

Table 14.2 shows the Infrastructure Leakage Index (ILI) and

other recommended NRW and physical loss performance

indicators based on the IWA’s “Performance Indicators for

Water Supply Services, IWA 69 Monitoring Performance of

NRW, Management Manual of Best Practice”. L/c/d gives a

more accurate picture than NRW as a percentage of input vol-

ume, but taking system pressure into account (l/c/d/m pres-

sure) is an even better indicator. The PIs are categorized by

function and level, defined as follows:

• Level 1 (basic): A first layer of indicators that provides a gen-

eral management overview of the efficiency and effective-

ness of the water undertaking.

• Level 2 (intermediate): Additional indicators that provide

a better insight than the Level 1 indicators; for users who

need to go further in depth.

• Level 3 (detailed): Indicators that provide the greatest

amount of specific detail, but are still relevant at the top

management level.

Function Level Performance Indicator Comments

Financial:

NRW by volume

1

(Basic)

Volume of NRW

[% of System Input Volume]

Can be calculated from simple

water balance not too meaningful

Operational:

physical water losses

1

(Basic)

[Litres/Service connection/day]

or

Best of the simple traditional per-

formance indicators, useful for

target setting, limited use for

comparisons between systems[Litres/km of mains/day]

(only if service connection

density is <20/km)

Operational:


2

(Interned)

[Litres/Service connection/

day/m pressure]

or

Easy to calculate indicator if the

ILI is not known yet, useful for

comparisons between systems.

[Litres/km of mains/day/m pressure]

[only if service connec-

tion density is <20/km]

Financial:

NRW by cost

3

(Detailed)

Value of NRW

[% of annual cost of running

system]

Allows different unit costs for NRW

component, good financial indicator

Operational:


3

(detailed)

Infrastructure Leakage Index (ILI) Ratio of current annual physical

water losses to unavoidable annual

real losses, most powerful indicator

for comparisons between systems

Source: Alegre H., Himmer W, Baptista J. M. and Parena R. (2000) Performance Indicators for Water Supply Services IWA

Manual of Best Practice ISBN 900222272

Table 14-2: Recommended Indicators for Physical Water Losses and NRW

82

14.1.2.3 The Infrastructure Leakage Index (ILI)

The Infrastructure Leakage Index (ILI) is an excellent indi-

cator of physical water losses, one that takes into account

how the network is managed. The IWA, which developed the

index, and the American Water Works Association (AWWA)

Water Loss Control Committee both recommend this indica-

tor. The ILI is particularly useful in networks where NRW is

relatively low, for example below 20%, as the ILI can help to

identify which areas can be reduced further.

The ILI is a measure of how well a distribution network

is managed (i.e. maintained, repaired, and rehabilitated) for

the control of physical water losses, at the current operating

pressure. It is the ratio of Current Annual Volume of Physi-

cal Losses (CAPL) to Minimum Achievable Annual Physical

Losses (MAPL).

ILI = CAPL/MAAPL

Being a ratio, the ILI has no units and thus facilitates compari-

sons between utilities and countries that use different meas-

urement units. The complex initial components of the MAAPL

formula have been converted to a format using a pre-defined

pressure for practical use:

MAAPL (litres/day) = (18 x Lm + 0.8 x Nc + 25 x Lp) x P

Where Lm = mains length (km); Nc = number of service con-

nections; Lp = total length of private pipe, property boundary to

customer meter (km); and P = average pressure (m).

Figure 17 illustrates the ILI concept with the factors that

influence leakage management. The large square represents

the CAPL, which tends to increase, as the distribution networks

grow older. This increase, however, can be constrained by a

successful leakage management policy. The black box repre-

sents the MAAPL, or the lowest technically achievable volume

of physical losses at the current operating pressure.

Figure 14-1: The ILI Concept

83

The ratio of the CAPL to MAAPL, or the ILI, is a measure of

how well the utility implements the three infrastructure man-

agement functions - repairs, pipelines and asset management,

and active leakage control. Although a well-managed system

can have an ILI of 1.0 (CAPL = MAAPL), the utility may not

necessarily aim for this target, since the ILI is a purely techni-

cal performance indicator and does not take economic consid-

eration into account.

Calculating the ILI

Step 1. Calculate the MAAPL

Step 2. Calculate the CAPL (e.g. from the Water Balance)

Step 3. Calculate the ILI (CAPL/MAAPL)

Step 4. Adjust for intermittent supply (divide MAAPL by the

average number of supply hours per day)

Step 5. Compare ILI with physical loss target matrix

(Figure 11-2)

The physical loss target matrix shows the expected level of ILI

and physical losses in l/c/day from utilities in countries at dif-

fering levels of network pressure.

Utility managers can use the matrix to guide further network

development and improvement:

Category A Good further loss reduction may be uneconomic

and careful analysis needed to identify cost-effec-

tive improvements.

Category B Potential for marked improvements. Consider

pressure management, better active leakage con-

trol, and better maintenance.

Category C Poor. Tolerable only if water is plentiful and

cheap, and even then intensify NRW reduction

efforts.

Category D Bad. The utility is using resources inefficiently

and NRW reduction programmes are imperative.

Technical

Performance

Capacity

ILI

Physical Losses [litres/connection/day]

(when the system is pressured) at an average pressure of:

10 m 20 m 30 m 40 m 50 m

Dev

elop

ed

Cou

ntr

ies

A 1-2 <50 <75 <100 <125

B 2 – 4 50-100 75-160 100-200 125-250

C 4 – 8 100-200 150-300 200-400 250-500

D >8 >200 <159 >400 >500

Dev

elop

ing

Cou

ntr

ies

A 1 – 4 <50 <100 <150 <200 <250

B 4 – 8 50 – 100 100-200 150-300 200-400 250-500

C - 16 100 – 200 200-400 300-600 400-800 500-1000

D >16 >200 >400 >600 >800 >1000

14.1.3 Performance Indicators for Commercial Losses

The IWA Water Loss Task Force is also developing a perform-

ance indicator for commercial losses similar to the ILI.6 The

indicator uses a base value of 5% of water sales as a reference,

and the actual commercial loss value is calculated against this

benchmark. This is the Apparent (Commercial) Loss Index (ALI).

Apparent Loss Index (ALI) =

Apparent loss value ÷ 5% of water sales

A commonly used indicator that expresses commercial losses

as a percentage of water supplied is misleading because it does

Table 14-3: Physical Loss Target Matrix

Source: World Bank Institute

84

not reflect the true value of lost revenue. Currently, the best

indicator is to measure commercial losses as a percentage of

authorised consumption.

14.1.4 Implementing a Monitoring Programme

A water utility embarking on the implementation of an NRW

strategy needs to monitor its progress using some or all of

the indicators detailed above. Since it is a utility-wide under-

taking, an independent team should be established to audit

progress. This NRW audit team should not be responsible for

any physical activities to reduce NRW, but should be dedicated

to auditing all of the departments involved with NRW strat-

egy activities.

The implementation of the NRW strategy is a long-term

process, often requiring four to seven years to complete. Dur-

ing this time, staff changes will occur, and the NRW audit

team should train all incoming staff on the NRW strategy and

its importance to the company.

The NRW audit team should also establish yearly targets

for each department using one or more of the indicators, and

monitor progress on a monthly progress. The number and type

of indicators depends on the department and its activities. For

example, the Network Department may be responsible for leak-

age detection and repair; in this case, the physical loss indica-

tors of litres/connections/day and litres/connections/km can

be used. A monthly NRW strategy progress meeting should

include representatives from all departments, with discussions

on progress and hindrances. A senior member of the manage-

ment team should chair the meeting, to stress the importance

of the NRW strategy implementation. The head of the NRW

audit team will support the chair by providing technical details

and progress reports.

14.1.5 Who Needs the Performance Indicators and for what

The following Agencies require standardized Water Loss Indi-

cators:

Utility Management •.. To understand losses better

• To set targets for

improvement

• To measure performance

• To communicate

with customers

• To use in PPP contracts

Policy Makers • To develop standards

• To compare performance

Regulating Agencies • To define targets

• To monitor compliance

Financing Institutions • To measure utility

efficiency

• To set targets

• To prioritize investments

• To measure project success

Water Industry • To communicate

• To compare performance

Characteristics of a good indicator are:

• Clear and easy to understand

• Have a rational basis

• Easy to calculate

• Standardized so that they allow comparisons

14.2.6 Key Messages

• Utility managers use performance indicators to measure

progress in reducing NRW, develop standards, and priori-

tize investments.

• The best performance indicator for physical losses is the

Infrastructure Leakage Index (ILI).

• A commonly used performance indicator for commercial

water losses is the Apparent Loss Index (ALI). Currently,

the best commercial loss indicator is to measure it as a per-

centage of authorized consumption.

• Utility managers must establish an independent NRW

audit team to monitor progress in the NRW strategy imple-

mentation.

• Performance targets should be set on a yearly basis with

progress monitored and reported monthly.

85

Session Fifteen

1. Session Outcomes


• Have established where their utilities stand in terms of technical and management measures for the reduction of NRW.

• Discussed the immediate steps that they have to take on the path to NRW reduction.

2. Session Outputs


• Described institutional NRW self-assessment tool/guidelines.

• Explained best practice management and technical measures in the management of NRW.





4. Time Plan


Introduction to the session and the importance of organisational self assessment 15

Guide to completion of self assessment form in the plenary 15

Group Exercise on assessing the level of NRW management 45

Wrap up 15

Total 90

Table 15-1: Time Plan - Institutional Assessment

5. Materials


• Laptop

• Or overhead projector (OHP)

• Flip charts and flip stands

• Marking pens

• Cards


• Calculators

• Transport

• Hand outs

15.0 Institutional Self-Assessment

a) Session Overview

86

b) Session Guide

The facilitator introduces the topic, the objectives and the out-

comes of the session as well as the rationale for self-assessment

in the effort to reduce NRW. The facilitator then introduces a

tool for the self-assessment called the self-assessment matrix.

Using a sample of data from one of the represented WSPs

or even a case study, the facilitator then guides the participants

through a hands-on exercise to complete the self-assessment

form as an example. The assessment is done on the flipchart

or with the help of a power point projection image with con-

tributions from all the participants in a plenary.

15.1 Notes on Institutional Self-Assessment

These variables have been conveniently captured in a self-

assessment matrix to guide managers and technocrats in mak-

ing a precise assessment of where the utility is and also to have

an idea of where it might go.

The matrix breaks down each of the variables into five lev-

els. Level 1 is the most basic and corresponds to the situa-

tion where operations in relation to that variable are still very

poor and therefore needing a lot of improvement. Level 5 is the

most advanced and corresponds to a state of NRW management

where nearly all-possible measures have been taken and the

utility is at the cutting edge of NRW management.

Assessing a utility using this matrix is very simple as the levels

of the variable at which any utility is at present is easily known.

In other words, no detailed data is needed.

15.1.1 Using the Matrix

Any manager or technocrat in any utility can easily plot the sta-

tus of the utility on the matrix. Once this is done, it is then easy

to know what next steps the institution has to take to improve

in the management of that NRW variable. Precise planning of

relevant investments can then be undertaken.

Issues and

questions

Level Basic 1 2 3 4 5 High

1 Water Balance, Flow and Pressure Monitoring, Mapping

1.1 Water balance We do not

establish

water balance

We tried to

establish a

water balance

but gave up

since we do not

know the split

in physical and

commercial

water losses.

We establish

water balance

following our

own format

We establish an

annual water bal-

ance in accord-

ance with the

international

format

We establish an

annual water bal-

ance in accord-

ance with the

international for-

mat and also use

95% confidence

limits to indicate

accuracy bands.

87

Issues and

questions


1.2 System input

metering

Most of

our system

input is not

metered

Not all but

>50% of our

system input

is metered.

Our system

input is

metered but

we are not

sure about the

accuracy of

these (partly

old) meters.

Our system input

is metered with

mechanical and/

or magnetic flow

meters that are

rarely calibrated.

Our system input

is metered with

mechanical and/

or magnetic

flow meters that

are regularly.

1.3 Pressure monitoring We do not

have any

pressure

recorders

installed.

We have a

few pressure

recorders at

pumping sta-

tions and treat-

ment plants

installed.

We have a

few pres-

sure record-

ers at pump-

ing stations

and treat-

ment plants

installed

and sporadi-

cally measure

pressure in

the distribu-

tion network

with pres-

sure gauges.

We have a few

pressure record-

ers at pump-

ing stations and

treatment plants

installed and spo-

radically measure

pressure in the

distribution net-

work with pres-

sure loggers.

We have perma-

nently installed

pressure loggers

and continuously

monitor pressure

in the distribu-

tion network.

1.4 Maps/ GIS We do not

have maps

at all.

The maps we

have are not

updated.

We have

started to

update our

maps.

Our maps are

updated but do

not include GIS

We use GIS based

on updated maps.

2 Leak Repair Records

2.1 Leak repair records We have no

record of

leak repairs

The only way

to know the

number of

leaks repaired

is to look

into the cus-

tomer com-

plaints book.

We keep basic

leak repair

records that

only tell us

whether the

leak was on

a main pipe

or a service

connection.

We keep detailed

records that indi-

cate location, pipe

diameter, mate-

rial and type of

leak as well as

date of detec-

tion and date and

duration of repair.

We keep detailed

records that indi-

cate location, pipe

diameter, mate-

rial and type of

leak as well as

date of detec-

tion and date and

duration of repair

and have linked

this to our GIS.

3 Performance Indicators (PI)

3.1 Performance

indicators

The only

PI used is

% NRW

We have tried

to calculate

water loss PIs.

We regu-

larly calcu-

late physi-

cal loss PIs.

We regularly

calculate physi-

cal and commer-

cial loss PIs.

We regularly cal-

culate physical

and commercial

loss PIs and pub-

lish them in our

annual report.

88

Issues and

questions


4 Active Leakage Control.

4.1 Active leakage control We only

repair vis-

ible leaks

We have leak

detection

equipment

but we do

not use it.

We do leak

detection

occasionally if

there is a spe-

cific problem

in the area.

We have started

to do regular

leak surveys.

We cover the net-

work by leakage

survey at least

once a year.

4.2 District Meter

Areas (DMA)

We have no

DMAs and

have no plans

to estab-

lish DMAs.

We have

started to

establish the

first DMAs.

The first

DMAs are

established

and we have

already the

first results.

We have several

DMAs and check

and analyze in

flow data spo-

radically.

We have several

DMAs and moni-

tor flow and pres-

sure on a reg-

ular basis.

4.3 Leak repair dis-

tribution pipes

(repair time)

We have no

records and

therefore do

not know how

fast our leaks

are repaired.

Our average

repair time

is more than

7 days.

Our average

repair time

is between 7

and 3 days.

Our average

repair time is

between 3 and

1.5 days.

Our average

repair time is less

than 1.5 days.

4.4 Leak repair house

connections

We have no

records and

therefore do

not know how

fast our leaks

are repaired.

Our average

repair time

is more than

14 days.

Our average

repair time is

between 14

and 7 days.

Our average

repair time

is between

7 and 2 days.

Our average

repair time is

less than 2 days

5 Customer Metering

5.1 Customer metering We have no

customer

metering

Only large

customers

are metered

We have

started with

universal

customer

meters but at

present, not

all customers

have meters

installed

Nearly all of our

customers are

metered, except

public foun-

tains, stand pipes

and similar.

100% of our

customers are

metered.

89

Issues and

questions


5.2 Customer meter

replacement and age

We have no

reliable infor-

mation on

the age of our

Many of our

customer

meters are

more than

10 years old,

we have not

yet intro-

duced a regu-

lar replace-

ment policy.

We only

change

meters if they

are obviously

not function-

ing anymore.

We have a meter

replacement

policy but have

not been able to

change all meters

so some of our

customer meters

are still older

than 10 years.

We strictly follow

our customer

meter replace-

ment policy and

replace all meters

every 5 to 7 years.

5.3 Customer meter class All customer

meters are

class B.

All customer

meters are

class B and C.

All customer

meters are

class C.

All customer

meters are class

C and D.

All customer

meters are

class D.

5.4 Customer database Our cus-

tomer data-

base has

not been

updated for

a long time.

We sporadi-

cally update

our customer

database.

We are in

the process

of updating

our customer

database

We regularly

update our cus-

tomer database

by house-to-

house checks

and surveys.

We have updated

our customer

database that is

linked to the GIS.

5.5 Customer meter

reading

We have no

special sys-

tem of con-

trolling meter

readers.

We only rotate

meter read-

ers if we are

suspicious of

inaccuracies.

We regularly

rotate meter

readers.

We regularly

rotate meter

readers and

often make

spot checks.

Our meter read-

ers use hand

held meter read-

ing devices.

5.6 Illegal connections,

meter tampering and

illegal by-passes

We have not

made any

assessment

and have not

program to

deal with

water theft.

We occasion-

ally detect

illegal con-

nections

We occasion-

ally detect

illegal con-

nections and

other forms

of fraud.

We have a thor-

ough illegal con-

nection detec-

tion program.

We have a thor-

ough illegal con-

nection detection

program and

also try to iden-

tify bypasses.

90

references

• IMPACT, Performance Report of Kenya’s Water Service Sub-Sector, Issue No. 2

• Kenya Water Act 2002

• MWI, Study for the Establishment of a Sector-Wide Approach to Planning (SWAP) in

the Water and Sanitation Sector in Kenya, Final Report, May, 2006.

• Malcolm Farley and Stuart Trow (2003) “Losses in Water Distribution Networks, A prac-

titioner’s Guide to Assess, Monitoring and Control” AIWA.

• Farley, M. and Trow, S (2003) ‘Losses in Water Distribution Networks - A Practitioner’s Guide to Assessment, Moni-

toring and Control”. London: IWA publishing http://www.iwapublishing.com/template.cfm?name=isbn1900222116

• Laville, G and Hutchinson, L (2003), “Non-Revenue Water Reduction Strat-

egy The Bahamian Experience”, Conference Paper

• Lambert, A. (2001), “Comments on Non-Revenue Water Reduction Strategy: Baha-

mas Water & Sewerage Corporation”, ONTAP Partnership, UK.

• Lyn P Wallace (1987), “Water and Revenue Losses: Unaccounted for Water”, AWWA

Research Foundation and American Water Works Association. Pp 16, 23, 41.

• Kevin Sansom et al, “Serving all Urban Consumers: A Marketing Approach to Water Services in Low and Middle

Income Countries. Water, Engineering and Development Centre, Loughborough University, UK, 2004. Pp 58-80.

• WHO (1990), Handbook of Financial Principles and Methods, World Health Organ-

ization Working Group on Cost- Recovery. WHO/CWS/90.10

• Boatright R.J(1999): Ethics and the conduct of Business, Prentice Hall, USA

• Farley, M. and Trow, S (2003) ‘Losses in Water Distribution Networks - A Practition-

er’s Guide to Assessment, Monitoring and Control”. London: IWA Publishing

• Office of Water Services (2000). Leakage and the Efficient Use of Water.

ISBN 1 874234 69 8 Website www.open.gov.uk/ofwat/

91

Annex I: Course Programme Non-revenue water

Day 1 Time Session content Facilitator

Mon

day

08.00 Registration

08.30 Welcome Address

WAVE Kenya introduction

Statement from the WAVE Pool Kenya

WAVE regional Issues

09.15 Opening Remarks

09.30 The Role of WASREB in Water Services Delivery:

Functions, regulatory tools and challenges

10.00 Role of KEWI in Capacity Building

10.30 Group Photo / Tea/Coffee Break

11.00 Participants Introductions & Expectations

(Group work and presentations)

12.00 Objectives, Methodology, Training Sequence

(Presentation)

12.15 Water Sector Reforms:

Overview, achievements, challenges, lessons learnt and

NRW status in Kenya

(Presentation, questions and answers)

13.15 Lunch

14.00 Introduction to NRW (Presentation)

14.30 Water Balance: Definition and components of water

balance (Presentation and exercise)

15.30 Tea/Coffee Break

16.00 Computing Water Balance:

(Group exercise and presentation)

17.00 Wrap of Day 1 & Evaluation

17.15 Trainers Consultative Meeting

92


Tues

day

08.15 Recap of Day 1 & Feedback on evaluation results

08.30 Physical water losses and Their Causes

(Presentation, group work and plenary)

10:30 Tea/Coffee Break

11.00

Quantifying physical water losses - infrastructural leakage index

(ILI)

(Presentation & group exercise)

13.00 Lunch

14.00 Leak Management

(Role play, presentation and video show)

15.00 Managing Physical Losses



16.30Commercial water losses and Its Causes

(Group discussions & presentations)

17.30 Wrap up of Day 2 & Evaluation



Wed

nesd

ay

08.15 Recap of Day 2 & Feedback on Evaluation results

08.30 Estimating Commercial Losses



10.15 Managing commercial water losses

(Presentation, demonstrations and discussion)

13.00 Lunch

14.00 Institutional Assessment

(Presentation, group discussion)


15.30 Case Study on Nairobi Water Company

Managing NRW

Billing and revenue collection

16.30 Field Trip Preparation



93


Thur

sday

07.00 Departure for Ngethu treatment works

09.15 Ngethu Water Treatment Works

System input and flow measurement

11.00 Departure from Ngethu T/W to Kampala Road

12.30 Nairobi Water Company

Demonstration on leak detection equipment

Meter testing bench

14.00 Return trip to training venue

14.30 Lunch

15.30 Group Discussions on the Field Trip

16.30 Group Presentation on the Field Trip

17.00 Introduction to Action Planning

(Short presentation)




Frid

ay

08.00 Recap of Day 4 & Feedback on Evaluation results

08.30 Group/ Individual Action Plans


11.00 Presentation of Action

13.00 Lunch Break

14.00 Revision/ Submission of Action Plans


16.00 Course Evaluation

16.15 Official Closing

Imprint

Non-Revenue Water (NRW) Course for Water Service Providers (WSPs) in Kenya Trainers‘ Manual

Wave Training Programme Kenya

Implemented in collaboration with:Kenya Water Institute

Peer review: Ing. Hans Hartung

Supervision: Dieter Anders (InWEnt)

Reproduction:

The manual may be reproduced in whole or in part in any

form for educational purposes with prior permission from

the copyright holder.

Published by:

InWEnt - Internationale Weiterbildung and Entwicklung

gGmbH. Capacity Building International, Germany

Division Natural Resources and Biodiversity

D-04519 Rackwitz (Zschortau), Germany

Layout: Nicole Fritsch

Photography: InWEnt

Germany, November 2010

Mon

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Capacity Building International, Germany

Friedrich-Ebert-Allee 40

53113 Bonn, Germany

Phone +49 228 4460-0

Fax +49 228 4460-1766

www.inwent.org

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worldwide operations dedicated to human resource development, advanced train-

ing, and dialogue. Our capacity building programmes are directed at experts and

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By offering exchange programmes and arranging scholarship programmes,

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Our OfficesInWEnt gGmbH is headquartered in Bonn. In addition, InWEnt maintains 14

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