Addressing Non-Revenue Water Losses in Johannesburg: Challenges and Solutions

The City of Johannesburg is losing nearly half of the water it provides on a daily basis, resulting in significant financial losses. Non-revenue water (NRW) at Johannesburg Water is now 44.8%, up from 39.4% in 2020/21. The city lost R3 billion in revenue in the fiscal year 2021/22, accounting for one-third of the reported water revenue. The NRW is comprised of three types of losses: physical losses, commercial losses, and unbilled authorised consumption. Physical losses account for 22.9% of water loss and include burst or leaking pipes, metres, and reservoirs. Commercial losses account for 8.9% of total losses, which include illegal connections and metering errors. Unbilled authorised consumption amounts to 13% and is unique to how the city bills water. NRW is a worldwide issue, with South Africa experiencing average losses of 41%, with this figure rising in recent years. South African Water Research Commission benchmarks for the country classify NRW losses of less than 15% as low and very good performance.

Over the last five years, Joburg’s water consumption has increased by 11%, resulting in water shortages in the metro. If the current rate of increase continues, Joburg will consume nearly half (47%) of Rand Water’s total bulk water allocation of 1.6 billion kilolitres per year by 2032. Because this amount is limited, any additional usage by Joburg must be offset by cuts to other municipalities, such as Eskom and Sasol. Johannesburg Water is investigating the increase in NRW and intends to instal advanced metering for large water users as well as prepaid metres for households. Reducing NRW could slow consumption growth while also benefiting from tariffs.

The cost of reducing waste must remain less than the savings realised, and municipalities must strike a balance between these two priorities, with anything less than 30% considered good performance in the country. Municipal sewerage charges are based on the amount of water consumed per household, and inaccurate billing can have a direct impact on the revenue raised for sanitation. Even with the high water losses, Joburg Water is currently profitable. As a result, the benefit from tariffs—effectively, the absorption of any increase in the following year—could be even greater than five percentage points.