Cost–Benefit Analysis of Leakage Reduction Methods in Water Supply Networks

Abstract

Reducing water loss from water supply systems is often regarded as one of the most important ways to improve the resource efficiency of water supply services. However, the costs and impacts of water loss reduction efforts need to be weighed against the benefits to define the optimal water loss target level. To this end, we conducted a cost–benefit analysis of three investment-based leakage reduction methods: district metering, pressure reduction, and pipe renovations. Furthermore, we conducted uncertainty and sensitivity analysis to determine the most relevant data for leakage analysis and policymaking on a national level. The results indicate that water loss management might not be directly cost-beneficial to utilities operating with moderate leakage levels. Neither leakage percentage nor the Infrastructure Leakage Index (ILI) were suitable for leakage target setting for the Finnish utilities. The costs of investing in district metering or renovations were the most influential factors in the sensitivity analysis, but the results showed that the estimated values were sufficiently accurate for assessing leakage policies.