The joint effect of water price changes and pressure management, at the economic annual real losses level, on the system input volume of a water distribution system

2015 ◽  
Vol 15 (5) ◽  
pp. 1069-1078 ◽  
Author(s):  
Vasilis Kanakoudis ◽  
Konstantinos Gonelas

This study attempts to examine the factors affecting the residential water demand level in the city of Kozani in Greece. Based on an 8-year (2005–12) detailed sample of residential water demand panel data, the values of the water price (WP) elasticity of residential demand are identified, and the influence of socio-economic and demographic factors and climate conditions on water-use levels and trends are analyzed. The system's response in terms of system input volume is examined (through the simulation model developed for the network and a pressure management (PM) application) for different scenarios of increased and decreased WP levels. Various scenarios for the real losses were examined, starting from their current level (current annual real losses), down to their economic level (economic annual real losses) after implementing PM measures. The overall objective is to determine and record the overall reaction of consumers to the changing WPs as a result of the full water cost principle implemented.

2015 ◽  
Author(s):  
Κωνσταντίνος Γκονέλας

Framework Directive (WFD) 60/2000/EC and finding ways of Water Distribution System’s (WDS’s) Full Water Cost (FWC) calculation, was the trigger for the preparation of this thesis. An increase in water price is expected to follow the full water costing, so the general objective of the thesis was the documented alleviating of consumers impact by implementing Non-Revenue Water (NRW) strategies. A series of methodologies and tools were developed in order to find the equilibrium level of efficient (in terms of water volume) and reciprocating (in terms of revenue) water uses or otherwise the sustainability level of urban water uses, while a) applying full water costing and b) implementing operating pressure management within the limits of Economic Annual Real losses (EARL). It is demonstrated through the proposed methodology that application of pressure management within the EARL limits can absorb large increases in the water price and lead simultaneously to sustainable levels the various system’s demands. The main tools required for completing this thesis (both for shaping the methodology and for the implementation in a real water network), was the FWC calculation method, the formulation of the residential water demand equation and the price elasticity of residential water demand, the method of calculating the economic level of leakage (ELL - Economic Level of Leakage), the pressure management techniques and the full hydraulic model of the Water Distribution System (WDS). The thesis is divided into the basic methodology and four distinct pillars. The first pillar is the analysis of the water balance terms and strategies to reduce real water losses and in particular the analysis of the operating pressure implementation due to network’s segmentation in hydraulically isolated areas, called District Metered Areas (DMAs) and Pressure Reducing Valves (PRVs) installation. The second pillar is the search for ways of calculating the FWC components (Direct Cost – DC, Environmental Cost – EC, Resource Cost – RC) defined by the WFD. The other two pillars are the calculation of the consumers’ response to water price change and the calculation of water price elasticity of residential demand and the proper hydraulic simulation of WDSs through the use of suitable software.The basic methodology analyzes how to approach the problem and the connection of the four pillars with the broader objective of finding the system's sustainability level by increasing the FWC and by implementing simultaneously pressure management in the limits of EARL. The concerns and the theoretical background of the methodology are initially analyzed. In particular, the reaction (due to elasticity of demand) and the system’s balance achievement by increasing the water price because of FWC implementation was investigated. Subsequently, before the detailed development of the remaining pillars of work, the methodologies that connect the various procedures are presented. EARL calculation mechanisms are developed due to pressure management application. The FWC, the elasticity of water demand, the terms of the water balance and finding of EARL levels were combined, so any increase in the actual FWC to cause implementation of pressure management in the EARL limits and finally all water balance components will balance to the sustainability levels. Major general concerns were finding the variation’s equations of the System Input Volume (SIV) components when the water price varies or when variation of the “water losses”, “illegal use” and “invoiced consumption” water volumes takes place. The application of the proposed methodologies was successfully implemented in Kozani WDS.The main conclusions were the beneficial effect of pressure management, when the water price increases, in all components of the water consumed, the operating pressure and the UARL (Unavoidable Annual Real Losses) and CARL (Current Annual Real Losses) indicators. The real losses water volume decreases rapidly when applying the “increasing water price with simultaneous pressure management (in the levels of EARL) implementation” scenario, while in the “increasing water price without NRW reduction measures” scenario the “real losses” water volume increases slightly. When applying pressure management measures at the level of EARL, there is less decrease of invoiced consumption. In the case of applying pressure management measures (in the EARL limits), the water price is not only increased at a slower rate, but for an initial increase of water price by 100%, the system balances at a reduced water price level compared to the initial. The average network’s pressure and the UARL indicator are increased with little pace water price increases without pressure management measures, while in the case of pressure management are reduced dramatically.


2015 ◽  
Vol 16 (3) ◽  
pp. 756-765 ◽  
Author(s):  
K. Gonelas ◽  
V. Kanakoudis

High non-revenue water (NRW) values as a percentage of system input volume form a serious problem that many water utilities worldwide have to confront nowadays. There are ways to mitigate the effect by adopting strategies with short- and long-term results. Water pressure management (PM) is one of the most efficient and effective NRW reduction strategies. To calculate pressure management of economic level of leakage (ELL), several steps have to be taken, such as full water costing, calculation of economic benefits and losses of PM interventions and definition of the related investment's break-even point. In this paper, the results of these three procedures required to define the ELL level are analyzed, in order to present the way they are linked together. The water distribution system of Kozani city (in Northern Greece) is used as the case study network. The results of both the net present values PM implementation results and the investment's break-even estimation are analyzed.


Water ◽  
2018 ◽  
Vol 10 (9) ◽  
pp. 1162 ◽  
Author(s):  
Arnaud Reynaud ◽  
Giulia Romano

The aim of this Special Issue is to gather evidence on the impact of price policies (PP) and non-price policies (NPP) in shaping residential water use in a context of increased water scarcity. Indeed, a large body of the empirical economic literature on residential water demand has been devoted to measuring the impact of PP (water price increases, use of block rate pricing or peak pricing, etc.). The consensus is that the residential water demand is inelastic with respect to water price, but not perfectly. Given the low water price elasticity, pricing schemes may not always be effective tools for modifying household water behaviors. This is puzzling since increasing the water price is still viewed by public authorities as the most direct economic tool for inducing water conservation behaviors. Additional evidence regarding the use of PP in shaping residential water use is then required. More recently, it has been argued that residential consumers may react to NPP, such as water conservation programs, education campaigns, or smart metering. NPP are based on the idea that residential water users can implement strategies that will result in water savings via changing their individual behaviors. Feedback information based on smart water metering is an example of approach used by some water utilities. There are still large gaps in the knowledge on the residential water demand, and in particular on the impact of PP and NPP on residential water use, household water affordability and water service performance. These topics are addressed in this Special Issue “Advances in the Economic Analysis of Residential Water Use”.


2016 ◽  
Vol 16 (6) ◽  
pp. 1753-1767 ◽  
Author(s):  
Rudy Gargano ◽  
Carla Tricarico ◽  
Giuseppe del Giudice ◽  
Francesco Granata

Residential water demand is a random variable which influences greatly the performance of municipal water distribution systems (WDSs). The water request at network nodes reflects the behavior of the residential users, and a proper characterization of their water use habits is vital for the hydraulic system modeling. This study presents a stochastic approach for the characterization of the daily residential water use. The proposed methodology considers a unique probabilistic distribution – mixed distribution – for any time during the day, and thus for any entity of the water demanded by the users. This distribution is obtained by the merging of two cumulative distribution functions taking into account the spike of the cumulative frequencies for the null requests. The methodology has been tested on three real water distribution networks, where the water use habits are different. Experimental relations are given to estimate the parameters of the proposed stochastic model in relation to the users number and to the average daily trend. Numerical examples for a practical application have shown the effectiveness of the proposed approach in order to generate the time series for the residential water demand.


2015 ◽  
Vol 01 (03) ◽  
pp. 1550007 ◽  
Author(s):  
Oscar Zapata

Climate change is expected to alter the supply and demand for water in the residential sector. Existing studies exploit the differences in climate across seasons mostly in North America and Europe, and identify changes in consumption levels attributed only to households' short-term responses. The results from models that simulate household consumption of water are sensitive to the parameters that govern the behavior of climate variables and household responses in the upcoming decades, and fail to consider short-term determinants of water consumption. The findings in the literature suggest an inexistent or small effect of climate on residential water demand. This paper studies the relationship between climate conditions and residential water consumption that corresponds to households' long-term adaptation to climate, while controlling for the effect of short-term determinants of water demand. I take advantage of the geographic variation in climate conditions across municipalities of Ecuador to identify the effect of temperature, precipitation and humidity on water demand. I adopt average prices and an IV technique to address the endogeneity problem between water prices and quantities that arise from the use of increasing-block water tariffs. I find a large and significant effect of temperature on residential water demand, whereas precipitation and humidity have a small effect. Temperature also has a stronger effect on water demand among low-income households.


2013 ◽  
Vol 59 (4) ◽  
pp. 561-581 ◽  
Author(s):  
Marie-Estelle Binet ◽  
Fabrizio Carlevaro ◽  
Michel Paul

2009 ◽  
Vol 68 (6) ◽  
pp. 1756-1769 ◽  
Author(s):  
Joachim Schleich ◽  
Thomas Hillenbrand

Sign in / Sign up

Export Citation Format

Share Document