Beyond Leakage: Non-Revenue Water Loss and Economic Sustainability

Water loss in urban supply systems poses significant challenges for water utility companies worldwide, affecting both sustainable access to clean water and the financial viability of utility operations. This study analyzes the evolution of water losses in high-level supply systems from 2017 to 2021 in Portugal, focusing on its implications for the profitability of water utility companies across NUTs II regions. Drawing on data from various sources, including the National Information System for Water Resources, PORDATA, ERSAR, and ORBIS, this analysis identifies trends, patterns, and potential factors influencing water loss dynamics. Key components of the analysis include calculating average annual losses, examining unbilled water percentages, and conducting regression analysis to quantify the impact of water loss on profit margins. The findings contribute to the literature on water loss management and financial performance in the water utility sector, offering insights for policymakers, water utility managers, and stakeholders to enhance financial sustainability and reduce water losses.