Wednesday, January 16, 2013

Efficient Billing and Collection - Key to reducing NRW

While exploring the various methodologies used by the water utilities to reduce Non-Revenue-Water (NRW), one of the better avenues available is achieving higher efficiency in the billing and collection processes. This blog explains the ideology behind the principle of higher billing and collection efficiency for reduced NRW.

Now, the main components of losses in the whole water distribution system and the details of the commercial losses are explained in the figure.

Categorization of losses

Billing and Collection efficiency are the customer facing processes of the utilities and are quite independent from the other internal processes. Whatever consumer meter data is read and recorded, is used for billing. Further to that, recoveries from the consumers who are billed, is to be made. And hence, we are talking of Billing & Metering efficiency as a combined package, and area of focus.

Improvements on these parameters are measurable as well as traceable to a bit higher degree than most others. Above all, these are processes which an utility can outsource to a vendor managed process. Optimum service delivery agreements and appropriate process control, guided using a Balanced Scorecard, can be designed and implemented, and therefore, do not burn a hole in the pocket of the operator to set up.

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