Percentage of Non-Revenue Water

Percentage of Non-Revenue Water (NRW) is a critical KPI that measures the efficiency of water utilities in managing their resources.

High NRW levels can lead to significant financial losses, impacting operational efficiency and overall financial health.

By tracking this metric, organizations can identify leakage points, optimize resource allocation, and enhance customer satisfaction.

Reducing NRW not only improves cash flow but also aligns with sustainability goals, making it a key figure in strategic planning.

Effective management of NRW can directly influence ROI metrics and long-term business outcomes.

Percentage of Non-Revenue Water Interpretation

High NRW percentages indicate substantial water loss, often due to leaks or inefficient systems. Conversely, low NRW values reflect strong operational controls and effective maintenance practices. Ideal targets typically fall below 15% for most utilities.

• <10% – Exemplary performance; minimal losses
• 10–15% – Acceptable range; consider improvement initiatives
• >15% – Urgent attention required; investigate causes

Percentage of Non-Revenue Water Benchmarks

We have 6 relevant benchmark(s) in our benchmarks database.

Common Pitfalls

Many utilities underestimate the impact of NRW on their financial health and operational efficiency.

• Ignoring regular maintenance schedules can exacerbate leakage issues. Without proactive measures, small leaks can escalate into major losses, affecting service delivery and costs.
• Failing to invest in modern technology limits the ability to detect and address NRW. Outdated systems often lack the capability for real-time monitoring, leading to delayed responses to leaks and inefficiencies.
• Neglecting staff training on NRW management practices can create knowledge gaps. Employees may not be equipped to identify issues or implement best practices, resulting in persistent inefficiencies.
• Overlooking customer feedback on service quality can mask underlying NRW problems. Without insights from users, utilities may miss critical indicators of service failures linked to water loss.

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Improvement Levers

Reducing NRW requires a multifaceted approach focused on technology, training, and process optimization.

• Implement advanced metering infrastructure to enhance monitoring capabilities. Smart meters provide real-time data, enabling quicker identification of leaks and inefficiencies.
• Conduct regular audits of water distribution systems to pinpoint vulnerabilities. Systematic assessments help prioritize repairs and upgrades, reducing long-term losses.
• Invest in employee training programs to build expertise in NRW management. Knowledgeable staff can better identify issues and implement effective solutions, driving performance improvements.
• Enhance customer engagement initiatives to gather feedback on service quality. Actively seeking input can reveal areas for improvement and foster trust in the utility’s commitment to service excellence.

Percentage of Non-Revenue Water Case Study Example

A regional water utility faced a staggering NRW rate of 30%, resulting in substantial revenue losses and customer dissatisfaction. The executive team recognized that addressing this issue was critical for both financial stability and community trust. They initiated a comprehensive NRW reduction program, focusing on technology upgrades and employee training.

The utility invested in a state-of-the-art leak detection system, which utilized acoustic sensors to identify hidden leaks in real time. Additionally, they implemented a training program for field staff, equipping them with the skills to effectively manage and respond to NRW issues. Over the course of 18 months, these initiatives led to a significant reduction in NRW, dropping it to 15%.

As a result, the utility recovered over $2MM in lost revenue, which was reinvested into infrastructure improvements. Customer satisfaction scores improved markedly, as residents experienced fewer service interruptions and better water quality. The successful NRW reduction program not only enhanced operational efficiency but also positioned the utility as a leader in sustainable water management practices.

Related KPIs

KPI Categories

This KPI is associated with the following categories and industries in our KPI database: