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Service Delivery

Non-Revenue Water & Distribution Losses

Non-revenue water percentage and physical distribution losses against the SDBIP target.

📖 6 min read🎯 Intermediate✍️ Updated 2026

Why non-revenue water is a governance issue

Non-revenue water represents treated water that is produced but never billed, draining municipal revenue and signalling failing infrastructure and weak metering. It is both a service-delivery indicator in the SDBIP and a financial-sustainability concern the AGSA and National Treasury watch under the MFMA. AuditPro Core tracks non-revenue water and physical losses against target with the evidence trail that makes the figure auditable.

The Numbers

AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.

Non-Revenue Water

41%

▲ 3% vs target

SDBIP Target

≤ 30%

Litres Lost

18.4 Ml/day

estimated

Revenue Forgone

R 96 m

annualised

Non-revenue water trend

Losses by supply zone

Supply zoneNRW %Loss Ml/day
Central476.2
North394.8
East353.9
West433.5

Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.

Non-revenue water defined

Non-revenue water is the difference between water put into the distribution system and water that generates revenue, expressed as a percentage. It combines physical leakage, unbilled authorised use and commercial losses such as meter under-reading and illegal connections.

Physical versus commercial loss

Physical losses are real water lost through leaks and bursts, while commercial losses are water consumed but not billed. The two require different interventions, so splitting them is essential for credible reporting.

Water balance method

A defensible figure relies on an IWA-style water balance reconciling system input to billed and unbilled consumption. Without metered inputs the percentage is an estimate that struggles on audit.

Revenue and sustainability link

Every percentage point of non-revenue water is foregone tariff income that undermines financial viability. The indicator therefore sits at the intersection of service delivery and going-concern assessment.

How AuditPro Core Bridges the Gap

  • Water balance reconciliation: AuditPro Core reconciles system input volume to billed and unbilled consumption to derive the loss percentage.
  • Loss decomposition: physical and commercial losses are separated so corrective action targets the right driver.
  • Target tracking: actual loss is tracked against the SDBIP target with variance flagged.
  • Evidence traceability: input meter and billing data sources are linked for audit verification.

Key Takeaways

  • Treat non-revenue water as both a delivery and a financial-sustainability metric.
  • Separate physical leakage from commercial losses to target interventions.
  • Base the percentage on a metered water balance, not an estimate.
  • Link every reported figure to input meter and billing source data.

See This on Your Own Data

AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.