{"id":10116,"date":"2021-04-28T00:00:00","date_gmt":"2021-04-27T14:00:00","guid":{"rendered":"https:\/\/isleutilities.com\/isle-utilities-helping-australian-water-utilities-to-reduce-leakage\/"},"modified":"2024-08-27T12:03:45","modified_gmt":"2024-08-27T11:03:45","slug":"isle-utilities-helping-australian-water-utilities-to-reduce-leakage","status":"publish","type":"post","link":"https:\/\/dev.isleutilities.com\/pt\/isle-utilities-helping-australian-water-utilities-to-reduce-leakage\/","title":{"rendered":"Isle Utilities helping Australian water utilities to reduce leakage"},"content":{"rendered":"<section class=\"l-section wpb_row height_large\"><div class=\"l-section-h i-cf\"><div class=\"g-cols vc_row via_flex valign_top type_default stacking_default\"><div class=\"vc_col-sm-12 wpb_column vc_column_container\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"wpb_text_column\"><div class=\"wpb_wrapper\"><p>Whether to sweat, repair or replace water mains is a dilemma facing most water businesses, who have to strike a balance between maintaining an ageing asset base, often with a limited maintenance budget, and increasing customer expectations.<\/p>\n<p>Data extracted from a 2019 Australian Bureau of Meteorology National Performance Report indicates that non-revenue water loss in Australia over a five year period was 1251 GL, averaging out at around 9% of utilities\u2019 system input.<\/p>\n<p>With the price of water rising and the cost of technology falling, it could be time for utilities to start taking non-revenue water seriously.<\/p>\n<p>Isle Utilities Asia Pacific is providing Australian and global water utilities with the expertise required to reduce water leakage and to conserve water through its Leakage Management Benchmark.<\/p>\n<p>Traditionally, a program of leakage reduction is driven by return on investment &#8211; if water-loss reduction activities cost more than the water is worth, reducing non-revenue water will not be a priority. However, as the pressure on water resources intensifies, resource and social considerations are becoming a higher priority in the decision-making process.<\/p>\n<p>Isle\u2019s Leakage Management Benchmark was developed in Australia and has been adopted by nearly 20 participants worldwide, from\u00a0Australia, the United Kingdom and South America.<\/p>\n<p>Paul Harris, Isle\u2019s Head of Business Consulting said \u201cthe Leakage Management Benchmark Program is providing major benefits to local and international water utilities in the fight against water leakage.<\/p>\n<p>\u201cTraditionally, many water utilities have used rough estimates for determining how their Real Losses are distributed across their different asset classes.<\/p>\n<p>\u201cThe Program provides completely objective performance assessment using hard quantitative evidence and information, not only at a business unit level but at an industry level, and then compares these results against a range of world class water utilities, each operating with their own Non-Revenue Water strengths and challenges.<\/p>\n<p>\u201cThe accurate and objective determination of real water loss is crucial, because if you\u2019re a few percentage points out in your calculations, that could represent millions of dollars\u2019 worth of infrastructure that water companies are assigning to their networks that may not be necessary.<\/p>\n<p>\u201cBoard members, CEOs or General Managers of local water utilities are interested in the program because it determines objectively as to where they stand in the realms of benchmarking across the world and more importantly, what are other utilities doing to make them better than they are?<\/p>\n<p>\u201cOnce objective performance assessment has been achieved, we can then create a customised improvement pathway for participating utilities.<\/p>\n<p>\u201cThe process importantly justifies the need to invest in specific innovations and identified improvements and also informs utilities in their leakage management decision-making.<\/p>\n<p>\u201cAnother benefit is that participating utilities legitimately build relationships with people within their own industry, but also with people in other jurisdictions in other countries. The program\u2019s Best Practice Workshop is a perfect forum to set up networking opportunities to share knowledge and to share practices on a world stage.<\/p>\n<p>\u201cThe international network we have created allows program participants to have access to people around the world who have already gone through the process &#8211; they can be contacted directly. What Isle does is to facilitate a network and knowledge sharing process which allows participants to contact their international peers and to ask them how they implemented their best practices.<\/p>\n<p>\u201cWe are basically cutting out the \u201creinventing the wheel step\u201d.\u00a0 There is an opportunity for some businesses to \u2018leapfrog\u2019 and to progress very quickly by utilising other organisations\u2019 experiences, particularly in the technology space, providing a significant implementation advantage.<\/p>\n<p>\u201cThere is also a benefit in brand reputation. Communities, government and customers care about leakage, they care about wasting water and water conservation. As an industry we need to be seen to be promoting water conservation and leakage reduction and improved general asset stewardship to create important increases in water utilities\u2019 community and government image and reputation.<\/p>\n<p>\u201cWater utilities are also under leakage management scrutiny from their respective economic regulators. The objective data being sourced by the program is allowing for successful applications by utilities to their regulator for additional funding for leak reduction programs.<\/p>\n<p>\u201cTwo UK businesses involved in our program who were also involved in a legal dispute on their price determination with Ofwat (the UK regulator) and the Competition and Markets Authority (a non-ministerial government department responsible for strengthening competitive behaviour), were able to use our benchmarking reports and particularly data retrieved from Australian utilities, to build their legal case around needing more money for programs like leakage.<\/p>\n<p>\u201cThere was clear proof in the study that the Australian utilities had younger networks, however, spent more money on leakage per customer in general than was done in the UK.<\/p>\n<p>\u201cThis was a moderately priced benchmarking study that in essence translated to a much larger benefit in terms of extra funding being given to these two utilities in available price determination investment funding. The order of magnitude on the return on investment using this objective performance evidence to substantiate and justify their need for more investment was significant.\u201d<\/p>\n<p>Paul Harris added \u201cby participating in the Water Leakage Management Benchmark Program with a relatively small upfront investment creates the potential to create a significant return on that investment through better asset management and through reduced water loss.\u201d<\/p>\n<p><b>Case Study: Unitywater, South East Queensland, Australia<\/b><\/p>\n<p>Unitywater operates across three Local Government Areas in South East Queensland in Australia. It began operations on 1 July 2010 and services over 350,000 total customer accounts.<\/p>\n<p>Unitywater puts a high priority on water conservation and reducing leakage. The utility has a bulk water provider and has one of the highest costs of water in Australia. They pay $3 per kilolitre for their bulk water and ultimately whatever the amount of water lost between off-take from their bulk water supplier to its delivery to their customers equates to lost revenue and a lost opportunity for them as an organisation. <b>Water loss for last year alone was in excess of $15 million.\u00a0<\/b><\/p>\n<p>Ivan Beirne, Head of Asset Management at Unitywater<b> <\/b>said<b> \u201c<\/b>we have been investing heavily in leakage reduction for the majority of our being \u2013 around 10 years.\u201d<\/p>\n<p>A key finding in the Isle Utilities Water Leakage Benchmark showed that those utilities doing a lot of water main renewals, generally had low leakage, and this is what Unitywater has achieved. What the UK water industry was looking at and what they were impressed by is that Unitywater has a young network, yet they still do water main replacement, while in the UK where some utilities have over 100 year old networks, they are still struggling to justify replacement to their boards and regulator.<\/p>\n<p>\u201cLeakage is a key driver for Unitywater\u2019s asset renewal program\u201d said Ivan Beirne. \u201cOver the past five years we have focused heavily on water main and service replacement to reduce real losses, as well as replacing nearly 50 per cent of our meter fleet to reduce apparent losses.<\/p>\n<p>\u201cThe decision Unitywater made a few years ago was to use customer impact as the primary driver for prioritising our mains replacement program.<\/p>\n<p>\u201cWater main replacement never makes financial sense, if you are looking at pure financials. So you have to set a rule above that to say whilst we would like to have a really good financial reason to replace this asset, if the customer has been impacted a number of times then they are going to continue to be impacted, so Unitywater\u2019s decision will be to replace the asset.<\/p>\n<p>\u201cGeorge Theo our CEO is constantly looking at \u2018what\u2019s next\u2019 for us as an organisation and typically he will ask us some challenging questions if we come to the Executive Committees with new strategies to say \u2018What are they doing in the UK?\u2019 \u2018What are they doing elsewhere in the world?\u2019 \u2018How do we compare to them?\u2019\u00a0 These are the primary answers our CEO wants to know first of all. We focus heavily on fit for purpose strategies and incorporating best practice with local context. This has been delivering results for us for many years.<\/p>\n<p>\u201cObviously we want to implement the best technologies but there is evidence that in the industry right now, technologies are being implemented without real reason for them. We are looking to implement practices that we know will deliver an outcome. We are not going to invest money for the customer without some level of confidence that it will deliver an outcome for us.<\/p>\n<p>\u201cWater conservation is important to our customers.<\/p>\n<p>\u201cThe Millennium Drought is still fresh in people\u2019s minds. Our customers remember the sacrifices they made to conserve water during this time and now they expect and demand a timely response to leaks. Our goal is to resolve all leaks quickly and effectively and we are continuing to invest in technologies that will detect leaks sooner and allow us to deal with them in a more timely manner\u201d, said Ivan Bernie.<\/p>\n<p><b>Testimonials<\/b><\/p>\n<p><b>\u2018<\/b><i>We already undertake national benchmarking around leakage as part of our normal regulatory reporting cycle. However, what makes this project different is the international dimension. Involving utilities from the UK, Australia and Latin America has brought a fresh perspective to traditional benchmarking, especially when we share openly. By working together to identify best practice, all of the utilities involved will improve the service they offer to their customers. This was a really good piece of work and has really driven a change in mindset into Thames Water\u2019s approach to backlog and speed of repair.\u2019<\/i><\/p>\n<p><b><i>Tim McMahon, Head of Water Asset Management, Thames Water (UNITED KINGDOM)<\/i><\/b><\/p>\n<p><i>\u201cWe learned a lot from our involvement in the Isle Leakage Management Benchmarking project, particularly on alternative practices and performance by other companies, which helped us understand our own strengths and weaknesses. I would recommend joining the benchmarking programme to other water companies.\u201d<\/i><\/p>\n<p><b><i>Mel Karam, CEO, Bristol Water (UNITED KINGDOM)<\/i><\/b><\/p>\n<p><i>\u2018Several of us within the water industry had already identified the need to undertake a detailed evaluation of leakage management, particularly in relation to the way we calculate our water balances. I\u2019m certain we have gained important insights from the implementation of new technologies that complement the many years\u2019 experience gained managing leakage at a holistic and tactical level. Isle\u2019s Leakage Management Program offering was exactly what we were searching for, in terms of a balance between strategic insight and in-depth analysis. Urban Utilities are really excited about the learnings we\u2019ve gained from this program.\u2019 \u00a0\u00a0<\/i><\/p>\n<p><b><i>Simon Taylor, Manager Infrastructure Planning, Urban Utilities (AUSTRALIA)<\/i><\/b><\/p>\n<p><b><i>\u00a0<\/i><\/b><\/p>\n<\/div><\/div><\/div><\/div><\/div><\/div><\/div><\/section>","protected":false},"excerpt":{"rendered":"<p>Whether to sweat, repair or replace water mains is a dilemma facing most water businesses, who have to strike a balance between maintaining an ageing asset base, often with a limited maintenance budget, and increasing customer expectations.<\/p>","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[70],"tags":[],"class_list":["post-10116","post","type-post","status-publish","format-standard","hentry","category-industry-insights-and-trends"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Isle Utilities helping Australian water utilities to reduce leakage | Isle Utilities<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"pt_BR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Isle Utilities helping Australian water utilities to reduce leakage | 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