1. Chapter 8 Water demand Management Prof. Dr. Ali El-Naqa Hashemite University June 2013

2. Course map U nit 1: W DM in context U nit 2: M unicipal W DM U nit 3: W D M options and benefits Unit 4: W DM plan 3. Outcomes By the end of this unit, you should be able to give a brief overview of IWRM and contextualise it within global efficiency, sustainability and equity outline foundational IWRM and WDM concepts in the Southern African context examine various definitions and misconceptions of WDM and outline the motivation behind the approach 4. Outcomes By the end of this unit, you should be able to give an overview of available WDM measures detail the constraints and incentives affecting WDM outline the WDM status in each SADC country discuss the opportunities and goals concerning WDM within SADC 5. Outcomes By the end of this unit, you should be able to formulate ideas for exploiting incentives and overcoming constraints to WDM implementation understand the successes and challenges of some municipal case studies begin to develop your own MWSAs WDM implementation plan 6. Water Demand Management in context What are the links? Sustainable development Integrated Water Resources Management Water resources (stress and scarcity) Water demand Millennium Development Goals 7. 1.1 Sustainable development There are over 60 definitions of sustainable development, including this landmark: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs - both for water supplies and for a healthy aquatic environment 8. 1.1 Sustainable development triple bottom line 9. 1.1 Sustainable development role of water 10. 1.2 Water and water resources hydrological cycle 11. 1.2 Water and water resources a rainbow of water Green water Blue water White water Grey water Brown water Yellow water Black water 12. 1.2 Water and water resources partitioning of rainfall 13. 1.2 Water and water resources the diversion cycle 14. 1.2 Water and water resources dams and development WCD Report on Dams The hydraulic mission (SADC) Inter-basin transfer schemes 15. 1.2 Water and water resources dam purpose in Southern Africa 16. 1.2 Water and water resources shared rivers Fifteen shared rivers Downstream-upstream concerns Hydro-politics 17. 1.2 Water and water resources conflict prevention and resolution SADC Protocol on shared rivers Helsinki Rules on shared watercourses Transparency (equity?) 18. 1.3 Integrated Water Resources Management (IWRM) IWRM is a process which promotes the co- ordinated development and management of water, land and related resources in order to maximise the resultant economic and social welfare in an equitable manner without compromising the sustainability of vital ecosystems 19. 1.3 IWRM: The Dublin Principles (1992) Freshwater is a finite, vulnerable and essential resource Its development and management should be based on a participatory approach, involving all relevant stakeholders Women play a central role in the provision, management and safeguarding of water Water is an economic good 20. 1.3 IWRM: Implications 21. 1.3 IWRM: Cross-cutting issues 22. 1.3 IWRM: Challenges 23. 1.3 Millennium Development Goals (MDGs) Millennium Declaration 2000 (189 countries) Goal 7: Environmental Sustainability Target 10: Halve, by 2015, the population without sustainable access to safe drinking water and basic sanitation 24. 1.4 Water stress and scarcity 25. 1.4 Water stress and scarcity Southern Africa Definitions Deception of numbers Physical scarcity: < 1 700 m3 per person per year Economic and social scarcity No universal scale yet 26. 1.4 Water stress and scarcity Southern Africa Scarcity versus stress 0% 10% 20% 30% 40% 50% 60% 70% 80% 100 1,000 10,000 100,000 Scarcity (w ater availability per capita, m 3 pa) Waterstress (extractionas%available) Angola, DRC, M ozam bique Zam bia Swaziland Botswana, Nam ibia RSA, Tanzania 27. 1.4 Water use versus GDP Southern Africa W ater use per capita versus GD P per capita DRC M oz Tan z Za mb ia A n go la Le so tho Zim ba bwe S wa zilan d Na mibia B o tsw ana S o uth A frica M alawi - 50 1 00 1 50 2 00 2 50 3 00 3 50 - 2,0 00 4 ,00 0 6, 000 8 ,00 0 10, 00 0 G DP pe r ca pi ta a t P P P (20 00 ) Waterusepercapita (excludingirrigation) 28. 1.5 Water demands on MWSAs Categories Domestic Non-domestic Losses Variability due to Average and peak flows Dry and wet season Diurnal flow Drought and non-drought periods 29. 1.5 Water demands on MWSAs factors affecting demand Weather Population Service level Health and epidemiology Political developments Economic growth and decline 30. 1.6 Water Demand Management 1.6.1 Myths and misconceptions 1.6.2.1 Definitions 1.6.2.2 Interpretations Narrow Broader 1.6.2.3 Components 1.6.3 Motivating factors 31. 1.6 Water Demand Management 1.6.4 Measures and interventions 1.6.5 Constraints and incentives 1.6.6 SADC status 1.6.7 The pursuit of WDM Regional National Local 32. 1.6.1 Myths and misconceptions WDM is NOT A luxury that poor countries can ill afford A fashion that will pass A hobby of environmentalists A government conspiracy to make peoples lives more difficult 33. 1.6.1 Myths and misconceptions WDM is NOT A goal in its own right Too vague to implement An approach which does not show tangible benefits Nothing more than tariff increases 34. 1.6.2.1 Definitions Water Demand Management: Aims to increase water efficiency, reducing or postponing the need for more dams and boreholes (Macy, 1999; Arntzen, 2003) Seeks to maximise the usage of water by curbing inessential use through price and non-price measures (SADC-WSCU) 35. 1.6.2.1 Definitions Water Demand Management: Seeks to influence water demand in order to achieve consumption levels that are equitable, efficient and sustainable Is a management approach that aims to conserve water by controlling demand 36. 1.6.2.2 Interpretations Narrow: curbing water demand and consumption Examples: Efficient irrigation Increased water allocation efficiency 37. 1.6.2.2 Interpretations Broader: influencing water demand and using non- traditional water sources to delay or put off new dams and well fields Examples: Rainwater harvesting and desalination Re-use of wastewater 38. 1.6.2.3 Components Enabling policy environment Right institutional set-up Right measures and implementation 39. 1.6.3 Motivating factors Environment: Drought and water scarcity Adverse environmental impacts of dams and well fields Economic: Lower costs, incl. O & M costs Water savings Enhanced competitiveness of industries 40. 1.6.3 Motivating factors Equity: Provide water to more people Better affordability Empowerment and growth: Innovation and technology development Greater competitiveness Use of indigenous knowledge 41. Figure 6: WDM target groups and measures 42. 1.6.4 Measures and interventions Measures target four different stages of the water supply chain: Water resource management Water distribution methods Consumer demand management Return flow management 43. 1.6.4 Measures and interventions Technical measures Planning processes Regulatory measures Economic incentives and restraints Consultative processes 44. Water cycle stages Technical WDM measures WDM in planning WDM in regula-tions WDM in eco- nomics WDM in consul-tative processes Resource management functions Removal of invading alien species Wetland rehabilitation Dam storage optimisation (e.g. less evaporation) Optimisation of dam operation rules Artificial recharge and below surface water storage Water catchment management Protection from over-utilisation Managing land use Water quality management Drought contingencies Allocative efficiency Efficient green water management Best Available Technology (BAT) water practices as compulsory alternative in Environmental Impact Analysis (EIA)/Social Economic Analysis (SEA) procedure in water stressed areas Awareness and education, social marketing Table 6: Examples of the range of WDM measures 45. Water cycle stages Technical WDM measures WDM in planning WDM in regula-tions WDM in eco- nomics WDM in consul-tative processes Distribution and supply functions Infrastructure optimisation Parallel infrastructure for different water classes Loss minimisation Metering Pressure management Prepaid metres Common-property management of standpipes Town planning services Re-use and reclamation WDM in building standards Regulations, norms and guidelines Incentives Higher energy prices make pumping expensive. Volume-based effluent charges Education, awareness, training Covenants for monopolies of WSPs Table 6: Examples of the range of WDM measures 46. Water cycle stages Technical WDM measures WDM in planning WDM in regula-tions WDM in eco- nomics WDM in consul-tative processes End users Metering Different service levels Loss minimisation Retro-fitting existing systems Irrigation scheduling Crop choice Agricultural extension Auditing Minimising institutional use Domestic use guidelines and restrictions Guidelines for private and public sector Drought restrictions Proper level and structure of tariffs Amendment of water irrigation fees (too low and linked to area, not m3) Effective billing and pricing Product standards Differential tax rates (e.g. VAT) Higher energy tariffs make pumping expensive Volume-based effluent charges Tradable water rights Education, awareness, training Table 6: Examples of the range of WDM measures 47. Water cycle stages Technical WDM measures WDM in planning WDM in regula-tions WDM in eco- nomics WDM in consul-tative processes Return flow management Minimising infrastructure Minimising pollution Minimising losses Minimising infiltration Reclamation Infrastructure optimisation Minimising pollution Effluent standards Effluent charges Education, awareness, training Covenants for irrigation sector and public sector Table 6: Examples of the range of WDM measures 48. 1.6.5 Constraints and incentives Constraints: Practical (funds, skills, capacity) WDM benefits not understood Supply bias among stakeholders Inappropriate training of professionals Uninformed or dissatisfied customers 49. 1.6.5 Constraints and incentives Constraints: Lack of understanding of the need for WDM Lack of planning and implementation skills Lack of appropriate institutions and funding Weak policy and legal instruments Negative views towards WDM 50. Activity What does WDM mean in your country and organisation? What are the principal WDM constraints in your country and organisation? 51. 1.6.5 Constraints and incentives Incentives Resource protection Increased production A sound basis for planning Water loss reduction 52. Country Policy/legislation National strategy or programme Applied in urban sector Applied in agricultural sector Angola No/no No No Extremely limited Botswana Developing policy/ legislation to follow Reviewing draft strategy Escalating tariffs, leak detection Extremely limited Lesotho Yes/ in progress Adopted in 1999 Escalating tariffs only Extremely limited Malawi Revising policy/ legislation to follow National programme to follow new act Escalating tariffs only Extremely limited Namibia Yes/ in progress In development Comprehensive in Windhoek Limited Table 7: Status of WDM planning and implementation in SADC countries 53. Country Policy/legislation National strategy or programme Applied in urban sector Applied in agricultural sector Mozambique Yes/no No Escalating tariffs only Extremely limited Swaziland No/no Water Bill 1998 not yet enacted Water Authority to develop Master Plan Escalating tariffs only Extremely limited South Africa Yes/yes Nat. strategy in development Urban providers developing programme Full programme in Hermanus, limited in Durban, Johannesburg and Cape Town Limited application Zimbabwe Yes/no Strategy Policy developed Escalating tariffs only in Harare; new programme in Bulawayo Extremely limited Table 7: Status of WDM planning and implementation in SADC countries 54. Activity Look at the analysis of your country. Do you agree with the synopsis made? Can you provide some examples of the issues mentioned? Would you like to add to or amend it? Use your comments and examples during the development of your WDM implementation plan. 55. 1.6.6 SADC WDM status SADC countries: Are at different stages of WDM preparation and adoption Have seldom integrated WDM into policies and legislation Seldom have institutions charged with IWRM, WDM and shared watercourses Have seldom started with systematic WDM implementation 56. 1.6.7 The pursuit of WDM Regionally Shared or common sustainability commitments Regional Strategy and Action Plan Shared Water Source Protocol Regional challenges and opportunities International donors and non-governmental organisations 57. Activity What do you think about these constraints and benefits? Can you see opportunities for yourself or your organisation to support the regional development of WDM to meet these challenges? 58. 1.6.7 The pursuit of WDM Nationally General approaches that countries may need to adopt: Identifying their own national WDM priority areas Integrating the WDM approach and methods into policies and legislation Hastening the preparation for and adoption of WDM measures 59. 1.6.7 The pursuit of WDM Nationally General approaches that countries may need to adopt: Converting or extending the goals of existing institutions Developing new bodies to act as watchdogs and promoters of IWRM and WDM 60. 1.6.7 The pursuit of WDM Nationally Countries can promote or legislate WDM measures aimed at user groups: Water planners Water providers Productive end-users Domestic users 61. Activity Discussion questions What factors determine the progress made with WDM in countries? Why is WDM not yet integrated in the policies and legislation of most countries? 62. Activity Discussion questions Why are few or no institutions charged with IWRM and WDM, and what are the implications of this? What opportunities for enhanced WDM do you consider possible and necessary? 63. 1.6.7 The pursuit of WDM Local level and municipal initiatives that showcase WDM in Southern Africa Water conservation in Hermanus, South Africa Water conservation in Windhoek, Namibia WDM and irrigation in Southern Africa Can you think of other examples of WDM in practice in your country? 64. Activity Think of examples of WDM in practice in your country Collate the information you already know about your local examples List of the information you need to source from colleagues or documents Prepare your own case study example Present it to your co-learners 65. Summary WDM is an integral part of IWRM WDM is not commonly applied in Southern Africa WDM is in the interest of countries and their people 66. Summary WDM is about efficiency, equity and sustainability WDM needs to target at least four groups: water planners, water, suppliers, end-users and managers of return flows 67. Water Demand Management UNIT 2 Municipal WDM 68. Course map U nit 1: W DM in context U nit 2: M unicipal W DM U nit 3: W D M options and benefits Unit 4: W DM plan 69. Outcomes By the end of this unit, you should be able to contextualise your MWSA within your countrys water supply chain assess the WDM potential for your MWSA and relate this to IWRM and sustainable development 70. Outcomes By the end of this unit, you should be able to map or list the nature of water resources, consumers, users and demand in your own context list constraints and incentives affecting WDM implementation for MWSAs relate these to your own country and situation 71. Outcomes By the end of this unit, you should be able to formulate ideas for exploiting incentives and overcoming constraints to WDM implementation understand the successes and challenges of some municipal case studies begin to develop your own MWSAs WDM implementation plan 72. 2.1 What is an MWSA? Typical MWSAs Vary across Southern Africa Are responsible for supply to domestic, industrial and commercial users Face rapidly growing demand Are under pressure to provide cheap reliable water to more users Have a limited policy-making role 73. Typical MWSAs Operate within a fixed enabling environment Have limited control over water tariffs Implement direct and indirect WDM actions Cover one part of the water management cycle Have significant impact on water management practices in their areas 2.1 What is an MWSA? 74. 2.2.1 WDM in the MWSA The main components of a WDM plan An enabling policy environment for end- users and the MWSA Appropriate institutional setup within the MWSA Appropriate measures and implementation taken by the MWSA 75. MWSAs can make an impact on the enabling environment by altering by-laws introducing water conservation standards and norms showcasing their own implementation of WDM as large water users 2.2.1 WDM in the MWSA 76. A WDM plan for an MWSA should implement WDM measures for the MWSA promote the implementation of WDM measures by end-users and bulk water suppliers promote economic, environmental and social benefits be developed within IWRM and ILCP contexts 2.2.1 WDM in the MWSA 77. 2.2.2 Sustainability in an MWSA context Economic sustainability: the efficiency of water service provision and the ability to continue to provide services in the future 78. Social sustainability: the ability to provide affordable water and to make sufficient water available for all residents and productive activities 2.2.2 Sustainability in an MWSA context 79. Environmental sustainability: the maintenance of economic growth and development within the limits set by ecology Environmental protection and economic development are complementary, not antagonistic 2.2.2 Sustainability in an MWSA context 80. Sustainable service provision: when water continues to be available for the design period of a scheme, programme or initiative, in the quantity and quality that was originally planned 2.2.2 Sustainability in an MWSA context 81. Elements required for sustainability proper design and planning money for recurring expenses and repairs consumer acceptance of the service adequate supply from the source sound construction Sustainability is a key objective of WDM 2.2.2 Sustainability in an MWSA context 82. 2.2.3 Municipal water sources Fresh surface water Fresh groundwater Re-use of return flows Quantity, quality, and reliability are all extremely important 83. 2.3.1 The municipal water supply chain Water resource management Water distribution management End-user efficiency and demand management Return flow management WDM measures need to be targeted at specific stages in the water supply and management chain 84. The South African DWAF has illustrated possible WDM measures at each management level (Figure 1) The line between Water Conservation (WC) and WDM becomes thin Best results are achieved when both are pursued simultaneously. WDM is broader than WC: all WC measures fall within WDM 2.3.1 The municipal water supply chain 85. 2.3.2 MWSA clients Bulk suppliers of raw or treated water government parastatals autonomous suppliers Water management institutions 86. MWSA clients (Cont.) Regulators End-users domestic users industries private and public service sectors 87. Activity What institutions and organisations does your MWSA deal with? From whom do you source water? To whom do you supply water? Which Acts and regulations affect you? Which departments affect or control your MWSA? Which sectors of the economy rely on your MWSA for water supply and/or management? Use this information for your WDM plan 88. 2.3.3 Accountability of MWSAs WDM in municipal areas is a shared responsibility of all stakeholders In most countries, MWSA officials are accountable to their councillors Councillors are accountable to the electorate This may become obscured with privatised and commercialised utilities 89. SA DWAF WDM principles Water institutions should supply water efficiently and effectively, minimising water losses and promoting WDM/WC among end-users Consumers should not waste water and should use it efficiently WDM and WC are integral parts of the water resources and water service planning process 2.3.3 Accountability of MWSAs 90. Activity SA WDM objectives Water resource management Water distribution management End-user efficiency and demand Return flow management Are they relevant to your municipal water supply and management chain? Are there others you could add? 91. 2.4 Integrated Least Cost Planning ILCP is a methodology that determines the effectiveness of infrastructure augmentation decisions a measure of whether or not the right decision is being made 92. The aim: to keep water supply costs to end-users as low as possible by considering the effectiveness of the entire water chain The challenge: to minimise the cost to the end-user as though each party in the water chain were integrated into one body 2.4 Integrated Least Cost Planning 93. Case study: Rand waters ILCP model Rand Water supplies water to 13 municipalities 3 metropolitan areas 10 million people an area of 18 000 km2 94. Figure 2: Rand Water area of supply within South Africa Case study: Rand waters ILCP model 95. Case study: Rand waters ILCP model 96. Causes of premature augmentation of infrastructure Demand projections Difference in the start point and growth rates of projections Case study: Rand waters ILCP model 97. Figure 4: Costs due to difference in start point and growth rate projections 1 2 3 4 5 6 7 8 Relativecost 0 5 1 0 1 5 2 0 T im e ( y e a r s ) E s c a la t io nI n t e r e s t W a s t e d c o s t D e c i s i o n t o a u g m e n t m a d e h e r e E a r l i e r t h a n n e c e s s a r y a u g m e n t a t i o n Case study: Rand waters ILCP model 98. Excessive water loss Inefficient use of water Loss Conclusions Case study: Rand waters ILCP model 99. Institution Water supply costs ILCP issues Bulk water supplier $ 0.75/m3 Cheapest source of supply? MWSA $ 0.50/m3 LC treatment and distribution mechanism Total water costs $ 1.25/m3 Is it possible to reduce the total water costs by improving on any stage in the water chain? 2.4 Integrated Least Cost Planning 100. Ensures that social and environmental concerns are adequately taken care of Requires cross-institutional planning and co-operation 2.4 Integrated Least Cost Planning 101. 2.5 WDM reasons WDM is a tool, not a goal Social, financial and environmental reasons Specific reasons vary from case to case 102. 2.5 WDM reasons: direct incentives Escalating costs of water augmentation schemes Reliance on non-renewable water resources Reliance on shared water sources High water leakages Inefficiencies in end-use 103. 2.5.1 Social reasons Saved water serves those without previous access Improved service delivery Lead by example Good customer service leads to rise in payment levels 104. Raised awareness among end-users Keeps rates affordable Safeguards water resources for current growth and future generations 2.5.1 Social reasons 105. 2.5.2 Financial reasons Flexible and incremental implementation spreads costs over time Lower customer charges Benefit/cost ratio may exceed 10:1 Reduces need for water purification and treatment 106. Reduces expenditure on capital- intensive augmentation schemes Improved affordability increases customer base Reduces UAL and loss of revenues 2.5.2 Financial reasons 107. Ring-fenced revenue retained within departments for Maintenance Service delivery Expansion Better water resource management Increases productive water use Consumers benefit from reduced bills 2.5.2 Financial reasons 108. 2.5.3 Environmental reasons Water for ecological requirements Promotes sustainable use through water efficient practice Reduces pollution through effluent- quality tariffs Increased resource use efficiency 109. Summary WDM serves not only environmental purposes WDM has sound economic and social reasons 110. 2.6 WDM constraints Constraints defer or prevent the adoption or implementation of WDM measures are well documented are powerful vary between authors and studies 111. 2.6.1 Understanding constraints Organise your thinking about constraints Identify Structure Analyse spatially international national district local 112. Analyse by stakeholder Water planners/managers Bulk suppliers MWSAs End-users Resolve or mitigate 2.6.1 Understanding constraints 113. 2.6.1.1 Structuring constraints Information and awareness WDM capacity and infrastructure Habits and attitudes Policy and regulation 114. Costs and benefits Uncertainties Macroeconomic conditions Water scarcity: extent and nature 2.6.1.1 Structuring constraints 115. Information and awareness Lack of awareness about water scarcity WDM contents institutional roles and responsibilities 116. Information and awareness Trends There is confusion and uncertainty about information There is a lack of awareness about water scarcity Awareness about WDM is gradually increasing 117. Human and financial resources Lack of human resources and skills WDM champions financial resources specific WDM funding co-ordination through the water supply and management chain technical know-how 118. Human and financial resources Trends HR and skills are most problematic at local level WDM champions are emerging Funding of WDM remains a problem Co-ordination amongst stakeholders in water supply chain is improving slowly 119. Infrastructure Constraints Lack of metering Old infrastructure Poor maintenance Trends Vary between countries 120. Habits and attitudes Constraints Resistance to change Traditional supply bias and economic interest in supply interventions Lack of political will WDM only for droughts? Trends Most constraints are gradually easing 121. Policy and legislation Constraints WDM only recently incorporated into policies and legislation Low priority for WDM Trends Large differences between countries Gradual improvement in policy adoption and legislation 122. Costs and benefits Constraints Subsidies discourage WDM Costs precede benefits O & M costs are often neglected in water planning No cost-benefit assessment of water management options 123. Costs and benefits Trends Water tariff subsidies are being reduced as a function of applying WDM 124. Uncertainties Constraints WDM results less tangible than water augmentation Full implications of WDM uncertain due to limited experience 125. Uncertainties Trends The availability of case studies is reducing uncertainty over WDM results improving the predictability of WDM implications 126. Macroeconomic conditions Constraints Shortage of WDM funding Style of governance Degree of stability Trends Vary greatly across the region 127. Water scarcity Constraints Degree and nature of water scarcity Trends Varies greatly across the region and may not require WDM intervention 128. Overview Wide range of constraints Substantial differences among countries Most constraints are easing Water-scarce countries with relatively good governance have the most comprehensive WDM approach Constraints change over time WDM strategies must work under different macroeconomic conditions 129. Activity In groups, examine the list of constraints in Table 10 Discuss what trends have taken place over the last ten years in your country Review the solutions given for overcoming the constraints Discuss the greater participation of end- users, particularly women, in overcoming the constraints 130. Activity How could traditional knowledge and water management practices be used to overcome constraints? For each constraint, formulate a specific appropriate strategy for your situation Add any new constraints your group has identified and rank them for your country 131. 2.7.3 Case study: City of Bulawayo Examine the drivers WDM plan WDM approach Constraints Achievements Lessons learnt 132. Average rainfall 500 mm/a Pop. = 1 Million Volume of water supplied = 120 000 m3/day Level of service = 99% full reticulation 106 000 connections 90% are metered Distribution network = 2 100 km 2.7.3 Case study: City of Bulawayo 133. City of Bulawayo - drivers for WDM Water supply constraints Recurrent droughts Water scarcity Water sector reforms 134. City of Bulawayo - alternatives Project Yield (106 m3/a) NPV (US$/m3) Gwayi-Shangani dam 141 0.55 Lower Tuli dam 65 1.24 Zambezi pipeline 57 2.23 Glass Block dam 28 0.77 Mtshabezi pipeline 8 1.17 Umguza well-field 4 0.22 135. City of Bulawayo - WDM alternative In the short term (< 5 years) WDM at various levels Reducing losses from 23% to 15% Cost US$0.04/m3 Cheaper than any new alternative sources 136. City of Bulawayo - water loss reduction plan Establishing economic levels for loss reduction Pilot studies Utility mapping Network modelling Analysis of cost data 137. City of Bulawayo - reduction of UAL 138. City of Bulawayo - other WDM activities Water conservation campaign and public education Reuse and recycling of wastewater Pricing of water to reflect scarcity (highest block US$0.25/m3) Setting up a management information system Metering Review of the implications of sector reforms 139. City of Bulawayo - lessons WDM implementation is usually triggered by severe water shortages WDM should be evaluated and appraised along with other alternative sources WDM is about 50% social engineering Wastewater recycling and reuse is an important WDM option Water pricing to reflect scarcity with subsidies for the poor 140. City of Bulawayo - lessons Computerised management information system is essential Metering is indispensable (bulk, zones, district, consumer) A holistic approach is important (WDM Plans, Strategies: Unit 4) External expertise and financing may be required 141. Water Demand Management UNIT 3 WDM Options and benefits 142. Course map U nit 1: W DM in context U nit 2: M unicipal W DM U nit 3: W D M options and benefits Unit 4: W DM plan 143. Outcomes By the end of this unit, you should be able to explain the costs and benefits of WDM, in financial and social contexts understand various demand projection methods, and the advantages and disadvantages of each analyse to what extent WDM measures have been incorporated into demand scenarios 144. Outcomes By the end of this unit, you should be able to give a broad overview of various WDM measures discuss each measure in detail and be able to select the most appropriate WDM measures for your MWSA understand the need for measures to reduce UAL 145. Options and benefits How does an MWSA decide on a way forward? What means are available for evaluating WDM interventions against other strategies? An MWSAs decision to opt for a particular WDM strategy or measure wont be a clear-cut choice 146. Options and benefits Our focus: The costs and benefits of WDM Ways of evaluating the future demand for water Ways of deciding between the range of WDM options that are available 147. 3.1 Costs and benefits Consider the options for your MWSA What are the costs and benefits? What time horizon should be adopted? Do organisations know about the WDM opportunities? Which constraints need to be addressed before WDM is implemented? WDM should be implemented when the benefits exceed the costs 148. 3.1.1 Financial costs and benefits Your MWSAs financial costs and revenues determine economic performance determine its degree of cost recovery are key concerns 149. 3.1.1 Financial costs and benefits Categorise financial costs by source of supply type of demand intervention (e.g. WDM) Determine net financial benefits or costs of WDM interventions compared to others Financial cost-benefit analysis is required as part of a broader multi- criteria analysis 150. 3.1.1 Financial costs and benefits FINANCIAL COSTS FINANCIAL BENEFITS Investment WDM costs Savings from postponement of large-scale investment schemes WDM operation and maintenance (O&M) costs Lower energy and wastewater treatment costs Lower revenues due to lower demand Decrease in non-revenue- generating UAL Lower revenues due to lower water price 151. 3.1.2 Social & environmental costs and benefits Government must consider social and environmental costs Government and MWSA costs may differ, e.g. UAL may not be a MWSA cost but is always a social cost Water subsidies provide MWSA revenue but are a transfer cost in society 152. 3.1.2 Social & environmental costs and benefits SOCIAL AND ENVIRONMENTAL COSTS SOCIAL AND ENVIRONMENTAL BENEFITS Investments of end-users and water service providers More affordable water WDM O&M costs Fairer distribution of water access Energy savings Decrease in waste flows and treatment costs Protection of the environment Budgetary savings Better resource use understanding and ethics More future options for water use 153. 3.1.2 Social & environmental costs and benefits Comparing financial, social and environmental costs and benefits may show Financial and social benefits. The WDM measure should be implemented immediately without government support. Social benefit only. The WDM measure needs to be implemented with government support or regulation. No social or financial benefit. Such a measure would normally not be implemented. 154. Example: Standpipes and private connections compares communal standpipes dispensing free water with the provision of private paid connections examines social cost-benefit issues of equity, sustainability and water use efficiency attempts to provide objective solutions that provide optimal social benefits at least cost 155. 3.2 Demand projections and analysis Projecting future water demand is part of regular planning activities THEN: demand projections were to ensure that a given quantity and quality of water was available over a specified period NOW:demand projections become integral components of the decision-making cycle 156. 3.2 Demand projections and analysis Analyse past/present water consumption how this consumption might develop in future when existing sources of supply may be exhausted potential of WDM to reduce future demand 157. 3.2.1.1 Urban users Urban water users are the largest sector of the customer base of many MWSAs a mixture of domestic and productive users described in Table 3 158. 3.2.1.1 Urban users Domestic users Households using standpipes Low-income households with own water connection Medium-income households with own water connection High-income households with own water connection 159. 3.2.2 Demand monitoring and projections Key determinants of domestic water consumption Household income and size Living conditions Household plot size 160. 3.2.2 Demand monitoring and projections Key determinants of productive uses Type of product and production process Expected output Employment/manpower levels Technology employed 161. 3.2.2 Demand monitoring and projections - forecasting Different methods Different levels of accuracy Require differing logistical inputs These include Judgemental analysis Trend analysis Component analysis Regression analysis 162. 3.2.2 Demand monitoring and projections - forecasting Suggested criteria for selection of method include: Consistency and transparency Quality of the method Incorporation and explanation of historical trends Inclusion of historically neglected factors Empirical validation Acceptance of method 163. 3.2.2 Demand monitoring and projections - forecasting Trend analysis results: Figure 1 example y = 0.0731x 2 - 288.72x + 285329 R 2 = 0.995 y = 2.0249x - 3961.3 R 2 = 0.959 y = 3x10 -24 e 0.0293x R 2 = 0.984 0 50 100 150 200 250 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 Year Wateruse(millionm 3 ) Second degree polynom ial fit Exponential fit Linear regression Historical water use data 164. 3.2.3 Demand monitoring and projections - uncertainties Any forecasting method is prone to uncertainty e.g. Droughts/floods Changes in macroeconomic conditions Changes in health conditions (HIV/AIDS) Changes in settlement patterns and migration Projected impacts of new policies and programmes 165. 3.2.3 Demand monitoring and projections - uncertainties Steps to be taken Identify and incorporate into the forecasting process Develop scenarios based on major uncertainties Perform sensitivity analysis (e.g. Low, Medium and High population growth) Validate forecasts or adjust them over time Remember: ignorance of uncertainties can lead to major inaccuracies 166. 3.2.3 Demand monitoring and projections - scenarios 2000 2010 2020 2030 Wateruse Year Low population growth scenario M edium population growth scenario High growth population growth scenario 167. 3.2.3 Demand monitoring & projections - forecasting in Masvingo 0 2 4 6 8 10 12 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 Year Totalwaterproduced(millionm 3 /year) Recorded water produced pre-1991 Exponential forecast based on fitting to pre-1991 data Recorded water produced post-1991 y = 2.475x10 -48 e 0.055932x r = 0.939 168. 3.2.3 Demand monitoring and projections - impacts on timing FACTOR TIMING IMPACT Demand projections uncertain and sometimes wrong Variable depending on demand projections Ignoring HIV/AIDS in water planning and management With a projected population growth of only 2.8 % p.a., ignoring HIV/AIDS may lead to infrastructure being available (and therefore underutilised) up to nine years before it is needed. Excessive water losses If the actual loss rate (27 %) could be reduced to a standard of 19 %, augmentation could be delayed by five years Inefficient water use Improving efficiency, through retrofitting and education, by around 25 % would defer augmentation schemes by eight years and save R1.1 billion 169. 3.2.3 Demand monitoring and projections - impacts on timing -8 -4 0 4 8 12 16 20 24 Watersupply/demand(volume) Tim e (years) Four year delay in construction of infrastructure owing to water conservation m easures Original water supply Increased supply Norm al dem and W ater dem and with water conservation m easures im plem ented 170. 3.2.3 Demand monitoring and projections - impacts on timing Important message Use of demand forecasting and monitoring is of paramount importance to MWSAs WDM measures have the potential to significantly defer augmentation schemes Deferred schemes have other benefits like Less wastewater is produced and therefore less treatment is needed Less energy is used Reduced alteration of natural water flow patterns 171. Activity Can you think of any examples where dams or well fields have been prematurely built? Which ones? Why were they built, and what have the implications been? 172. 3.3 Selecting the right WDM intervention Broad spectrum of WDM interventions Careful and consistent application Maximise benefits Phased approach to WDM WDM plan and strategy 173. 3.3.1 In selecting the right WDM intervention - remember Complementary and integrated measures are preferable Awareness raising, training and campaigns are vital Evaluation of WDM interventions Choice of intervention must be informed by sustainability indicators and criteria 174. 3.3.2 Selecting the right WDM intervention - selection tools, methods, rules Tools Benefit-Cost Analysis (BCA) Economic efficiency evaluation Common indicators are the NPV, B/C ratio Decision-making is based on WDM measures with positive NPVs 175. Tools Multi-Criteria Analysis (MCA) Broader Identification of positive and negative impacts Quantification and ranking of impacts Identification of selection criteria Allocation of weights to criteria Ranking of performance or scoring Decision-making based on best performing measure 3.3.2 Selecting the right WDM intervention - selection tools, methods, rules 176. 3.3.2.2 Selecting the right WDM intervention - US EPA method Recommended criteria Economic Social Environmental Contextual 177. 3.3.2.3 Selecting the right WDM intervention - DWAF RSA method Integrated Least Cost Planning criteria: Social impacts Economic impacts Institutional impacts Technical impacts Environmental impacts Risks 178. 3.3.2.4 Selecting the right WDM intervention - pragmatism The 80:20 Rule Picking the low hanging fruit WDM interventions that yield 80 % of the desired results e.g. water savings, with 20 % of the investment Largest results with lowest effort, capacity, burden Tangible immediate results (Watch out!) 179. 3.4 WDM measures/options 3.4.1 Technical options 3.4.2 Financial options 3.4.3 Policies, legislation and regulations 3.4.4 Consumer service and public awareness 180. 3.4.1 WDM measures/options - technical measures Among the most tangible efforts to reduce inefficiencies Easily appreciated by engineers and planners and understood by consumers Results generally measurable and quantifiable (water and money saved) 181. Aim to reduce UAL or UAW Water losses due to leaks Wastage among end-users Illegal abstractions UAL represents loss of revenue Technical measures are not all about fixing leaking taps (Watch out!) 3.4.1 WDM measures/options - technical measures 182. 3.4.1 WDM measures/options - technical measures: levels of UAL City % metered connections UAL (%) Luanda, Angola 40 60 Gaborone, Botswana 100 20 Kinshasa, DRC 76 47 Maseru, Lesotho 97 32 Port Louis, Mauritius 100 45 Maputo, Mozambique 100 34 Windhoek, Namibia 100 11 Victoria, Seychelles 100 26 Mbabane, Swaziland 100 32 Dar es Salaam, Tanzania 10 60 183. Leak detection and repair Passive and active leakage management Pressure management Metering all uses Demarcation of supply area into zones and districts Supply through one point? Measuring Minimum Night Flows (MNF) 3.4.1 WDM measures/options - technical measures 184. Water audits Water balances at zone boundaries Water reaching end user For inexplicable high losses, conduct MNF exercise Supply through one point? Measuring MNF 3.4.1 WDM measures/options - technical measures 185. Installation and maintenance of water meters To promote effective billing An essential requirement for water resources management Provides an idea of the potential for WDM Benefit-Cost analysis of metering is essential 3.4.1 WDM measures/options - technical measures 186. Water supply system maintenance Anticipating failures Predicting failures Preventing failures Detecting and correcting failures Requires excellent record keeping, preferably an Engineering Infrastructure Management System (EIMS) 3.4.1 WDM measures/options - technical measures 187. Features of most EIMSs: Water loss and meter management Customer service requests Notification of pipe leaks Hydraulic pressure and hydrant database Work scheduling and maintenance Asset register and stock inventor Time keeping and cost accounting NOT All EIMSs contribute to WDM (Watch out!) 3.4.1 WDM measures/options - technical measures 188. Types of maintenance: Routine preventative maintenance Corrective preventative maintenance Breakdown maintenance Project maintenance 3.4.1 WDM measures/options - technical measures 189. Pressure management Reduces water loss Prolongs life span of pipe work Recommended in areas with high losses Recommendation: 300 to 600 kPa, 150 kPa in low-cost areas Consider fire fighting and peak demands 3.4.1 WDM measures/options - technical measures 190. Objective Reduction of excessive pressure Situation 70 000 stands Pressure 600 to 800 kPa Very high losses 80 % sewage return flow 3.4.1 WDM measures/options - technical measures: Khayelitsha 191. Action Installation of two pressure control points Result Flow reduction from 2 500 to 1 800 m3/hour 42 % water savings 27 Million Rands per year at a cost of 2.5 Million Rands 3.4.1 WDM measures/options - technical measures: Khayelitsha 192. Activity Do you know the water pressure used by your MWSA? What would be the water-saving potential of pressure reduction? Record you answers for later use in your WDM implementation plan (Unit 4). 193. 3.4.1.6 End user appliances, faucets and retrofitting devices Water saving devices Low volume urinals Waterless urinals and toilets Low volume shower heads Self-closing public taps Size of toilet cisterns Size of bath tubs Water and energy efficient appliances Washing machines Dish washers Water boilers 194. 3.4.1.6 End user appliances, faucets and retrofitting devices Efficient garden irrigation systems Micro sprinklers Wise gardening (Xeriscape) Indigenous versus exotic plants Timing of garden irrigation 195. 3.4.1.6 End user appliances, faucets and retrofitting devices Meter appliances Prepayment meters Use of sub-potable water Reuse of grey water Rain water harvesting 196. Summary Technical options reduce inefficiencies Increase best possible use of water Have measurable and quantifiable results BUT MWSAs need to inform end users Standards Associations need to regulate fittings and fixtures Manufacturers and designers of fittings and fixtures must be aware of WDM 197. 3.4.2 Financial options for WDM Water as a public and economic good Market forces in water supply Types of financial incentives Water subsidies Water pricing or tariffs 198. 3.4.2 Financial options for WDM Water historically treated as a public good No exclusion: use of one does not adversely affect others Paid from general tax revenues Economic good Proper pricing based on true costs (e.g. MOC) What about social aspects? Problems: affordability and access to all Solutions: cross subsidisation, free lifeline entitlement 199. 3.4.2 Financial options for WDM Four issues in market forces and water: Competition among suppliers (including self providers) Demand allocation Price determination Privatisation of suppliers Water markets? 200. 3.4.2 Financial options for WDM Types of financial incentives: Water subsidies Water tariffs Others Tax incentives Property rights Effluent charges Special surcharges 201. 3.4.2.1 Financial options for WDM - water subsidies Subsidies are common, but decreasing adoption MWSA perspective Subsidies are revenues and permit lower water tariffs Decrease in subsidies forces MWSA to decrease revenues from end users 202. National perspective Rising water costs require rising subsidies Subsidies are justified on social grounds (affordability and access) Growing opportunity costs of water subsidies (e.g. health care) 3.4.2.1 Financial options for WDM - water subsidies 203. Environmental perspective Encourage water wastage Examples A leakage in the yard of 20 m3/month would cost the end-user nothing if the water is free, $20 if the water costs $1/m3 but $100 if the water costs $5/m3 3.4.2.1 Financial options for WDM - water subsidies 204. Examples: Botswana (Selebi-Phikwe): A household with an income of P3 000/month that does not receive a water subsidy will consume 22 m3/month. However, water consumption for a household with the same income and access to a water subsidy will increase by 41 m3 to 63 m3/month. 3.4.2.1 Financial options for WDM - water subsidies 205. Common foundations for tariffs Average historical supply costs Replacement costs Marginal supply costs Marginal opportunity costs Water tariff systems Flat rate for certain period Constant unit charge (e.g. 1000 Kwacha/m3) Block or band unit system 3.4.2.1 Financial options for WDM - water tariffs 206. 3.4.2.2 Financial options for WDM - banded water tariff example 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 0 10 20 30 40 50 60 70 80 M onthly w ater consum ption per connection (m 3 /m onth) Tariff(US$/m 3 ) Herm anus (South Africa) W indhoek (Nam ibia) G aborone (Botswana) 207. 3.4.2.2 Financial options for WDM - variations in water tariffs Tariff variations are found among User groups Areas User bands Issues User groups: productive compared to consumptive use Areas: how effective are water tariffs as a locational factor? User bands: free water? Cross- subsidisation 208. 3.4.2.2 Financial options for WDM - impacts of water tariffs as a WDM tool MWSA Direct: water consumption and total revenues Future: delayed capital investments Key variable: price elasticity of demand for water or the slope of the demand curve 209. 3.4.2.2 Financial options for WDM - impact of 10 % tariff increase Original consumption: 100 m3; Price $1/m3 Water consumption Revenues/ costs Pr. El = -0.5 Price: $1.1/m3 Cons: 95 m3 Revenues: $ 104.5 Pr. El.= 1 Price: $1.1/m3 Cons. 110 m3 Revenues: $ 121 Pr. El. = -2.0 Price: $1.1/m3 Cons. 80 m3 Revenues $ 88 210. Activity Update and correct pricing details for your country and MWSA Discuss and determine required changes in pricing mechanisms for your MWSA 211. 3.4.2.2 Financial options for WDM - effect of rising tariffs on consumption Consum ption Tariff level Q 1 Q 2 Q 3 T Increasing level of service H ouse connection Y ard connection Com m unalstandpipes 212. 3.4.2 Financial options for WDM - price elasticity of demand According to HR Wallingford Handbook (2003) The elasticity of water consumption is generally low. The price elasticity is greater when the price is higher. In the household sector, the price elasticity varies between -0.15 and -0.70. With respect to drinking water the demand- price relation will never be elastic (E