Leakage is the most cited and least well understood number in the water industry. Two things cause most of the confusion: leakage is not measured directly, and it is routinely conflated with non-revenue water.

Leakage and non-revenue water

These are not the same thing. Non-revenue water is everything not billed; leakage is only the part that physically escapes from pipes.

Leakage and non-revenue waterSystem input volume divides into billed authorised consumption, which is revenue water, and non-revenue water. Non-revenue water divides further into unbilled authorised consumption such as firefighting and mains flushing, apparent losses from meter under-registration and unauthorised use, and real losses which are physical leakage from mains, service connections and storage. Only the real losses are leakage.System input volumeeverything put into the networkBilled consumptionrevenue waterNon-revenue watereverything not billedUnbilled authorisedfirefighting, flushingApparent lossesmeter error, theftReal lossesthis is leakageMains burstsSupply pipes
Why the distinction matters
A utility can cut non-revenue water substantially by fixing its meters and billing, without a single leak being repaired.
Percentage is a poor measure
Non-revenue water as a percentage falls when consumption rises, even if physical losses are unchanged. The IWA recommends litres per connection per day instead.
Leakage is a residual
It is not measured directly. It is what remains after subtracting everything else from system input, so it inherits the error of every other term.

The distinction that matters

Real losses (leakage)
Water that physically escapes from mains, service connections and storage. This is what people mean by leakage.
Apparent losses
Water delivered and consumed but not correctly recorded: meter under-registration, unauthorised use, billing and data errors.
Unbilled authorised consumption
Water legitimately used but not charged for: firefighting, mains flushing, street cleaning.
Non-revenue water
All three of the above combined. It is a commercial measure, not a physical one.

A utility can cut its non-revenue water substantially by replacing old meters and fixing its billing system, without repairing a single leak. Reporting that improvement as reduced leakage would be wrong, and it happens.

Why leakage is a residual, not a measurement

Nobody meters the water leaving a burst main. Leakage is calculated as what remains after subtracting all measured and estimated consumption from the total put into the network. It therefore inherits the error of every other term in that balance — and the largest of those is usually the estimate of unmetered household consumption.

This is why leakage figures carry genuine uncertainty and why methodology changes can move a company’s reported number without anything physical changing. Hydrionis records these values at low confidence for that reason.

Why percentages mislead

A utility reporting 20% non-revenue water and one reporting 30% may have identical physical losses, if the first serves customers who use more water. The percentage falls as consumption rises, entirely independently of the pipes.

The International Water Association recommends volume-per-connection measures instead — litres per property per day, or per kilometre of main — precisely because they are not distorted by the denominator. Where Hydrionis presents a percentage, it says what the denominator is.

Reported leakage by company
Absolute daily volume. Note the caveat below: this is not a fair ranking, because it scales with company size.
Reported leakage by companyThames Water: 570.0 Ml/d. Scottish Water: 455.0 Ml/d. United Utilities: 415.0 Ml/d. Severn Trent Water: 400.0 Ml/d. Yorkshire Water: 260.0 Ml/d. Anglian Water: 175.0 Ml/d. Dŵr Cymru Welsh Water: 165.0 Ml/d. Northumbrian Water: 130.0 Ml/d0200400600Ml/dThames WaterThames Water: 570.0 Ml/d570Scottish WaterScottish Water: 455.0 Ml/d455United UtilitiesUnited Utilities: 415.0 Ml/d415Severn Trent WaterSevern Trent Water: 400.0 Ml/d400Yorkshire WaterYorkshire Water: 260.0 Ml/d260Anglian WaterAnglian Water: 175.0 Ml/d175Dŵr Cymru Welsh WaterDŵr Cymru Welsh Water: 165.0 Ml/d165Northumbrian WaterNorthumbrian Water: 130.0 Ml/d130

Absolute leakage scales with the size of the company, so it must not be used to rank utilities of different sizes. Use litres per property per day or leakage per kilometre of main for comparison.

View the data behind this chart
SubjectValue (Ml/d)Notes
Thames Water570.0
Scottish Water455.0
United Utilities415.0
Severn Trent Water400.0
Yorkshire Water260.0
Anglian Water175.0
Dŵr Cymru Welsh Water165.0
Northumbrian Water130.0

Why "just fix the leaks" is hard

  • Most leakage is not dramatic bursts but a large number of small, continuous background leaks that never surface
  • Finding them requires acoustic surveying, district metering and increasingly satellite and sensor techniques — none of which is cheap per leak found
  • Networks are largely buried under roads, so repair cost is dominated by excavation and reinstatement rather than by the pipe
  • Higher pressure means more leakage, but lower pressure means poorer service, so pressure management is a genuine trade-off
  • There is an economic level of leakage below which reducing further costs more than the water is worth — a legitimate concept that is also, understandably, a difficult one to defend publicly

Sources

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