johannesburg water (jw) – prepayment water … · johannesburg water (jw) – prepayment water...
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JOHANNESBURG WATER (JW) –PREPAYMENT WATER METERING AND PROJECT OPERATION GCIN’AMANAZI (OGA) IN SOWETO,
SOUTH AFRICA
16 OCTOBER 2007
Randhir Singh Prepayment ManagerJohannesburg Water
South Africa
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NEWS BRIEFING (Mail and Guardian)
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JW CUSTOMER AND BILLING DATABASE
� Number of Townships/Suburbs 4,522� Number of Registered Properties 590,000� Number of Accounts 650,000� Number of Meters 296,000 (±50%)� Non-Revenue Water
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NON-REVENUE WATER
100 kℓ 91 kℓ
Customer Meter
RAND
WATER
SYSTEM
J WATERSYSTEM
UNACCOUNTED FOR WATER 19%
PHYSICAL LOSSES 9% COMMERCIAL LOSSES 10%
81 kℓ
Bulk Meter
W ATER BILL
81 kl
= R - - - - -
UFW IN METERED AREAS
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NON-REVENUEWATER
65 kℓ 58 kℓ
Boundayof Customer property
RAND
WATER
SYSTEM
J WATER
SYSTEM
UNACCOUNTED FOR W ATER 69%
PHYSICAL LOSSES 11% COMMERCIAL LOSSES 58%
20 kℓ
Bulk Meter
WATER BILL
20 kl
= R - - - - -
DEEMED CONSUMPTION/UFW IN UNMETERED AREAS
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PHYSICAL LOSSES
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BACKGROUND TO JW
� Johannesburg Water purchases 460 000 Ml (Mega-litres) per annum from Rand Water (Bulk Raw Water Treatment Ser vice Provider)
� Average daily purchases of 1 236 Ml per day� 30% of purchased water is supplied to deemed consumptio n
areas (Soweto, Alex, Orange Farm)� 90% of deemed volume is supplied to Soweto� However, deemed consumption is billed at 20Kl per/m /hh (flat
rate) @ USD 23 per/m/hh)� Payment levels of approximately 15% - Commercial Loss = USD
143 Million/Annum� 7 Million kilolitres is lost monthly� Monetary loss of USD 3 Million/month – USD 36 Million/annum � Hence, selection of SOWETO as a priority for the birth of OGA
NB: 1000l = 1Kl = ± 220 galR 1 Million = ± USD 143K
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PROJECT OBJECTIVES
� To reduce non-revenue water through the installation of prepaid meters
� To rehabilitate the water network infrastructure in Soweto
� To change customers from deemed consumption to metered consumption
� To create awareness on water conservation � To increase efficiency around customer
service
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PROJECT SCOPE
32
4
5
6
7a
8
9
10
11
12
13
1
7b
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SCHEMATIC OF RETICULATION INTREVENTION
H O U S E H O U S E
H O U S E H O U S E H O U S E H O U S E
H O U S E H O U S E
T T
T T T T
T T
R O A DR O A D
4
E X IS T IN G Y A R D C O N N E C T IO N
RO
AD
SU
PP
LY P
IPE
OR
SE
CO
ND
AR
Y M
AIN
RE
TIC
ULA
TIO
N
S H O P
C H U R C H
N E W T Y P E H O U S E
6 6
7 7
6 6
7 7
6 6
7 7
6 6
7 7
5 5 5
2 3O R
23
OR
7 7IN S T A L L
8 8
8 8
8 8
8 8
8
8
8
RO
AD
2 3O R
9
R E P L A C E 7R E P L A C E
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TOTAL INTERVENTION
(ISD, TECHNICAL & PREPAYMENT)
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DistributorCash Deposit
Bulk Credits
Customer pays Cash
Credits Downloaded
Into Meter
Credits Used Up
Complaints
Data
Data
CustomerToken
JW Call Centre
1
27
8
6
4
3
JW Satellite Office/COJ Cash
Office
CURRENT PREPAYMENT PROCESS
CDS
5
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TOTAL PREPAYMENTSYSTEMS
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PROJECT CHALLENGES � Total of 169 989 properties in four years � Ideological debate around the concept of
prepayment and user-pay principle� Organised resistance organisations� Project scheduling allowing for multiple
contracting and procurement for Super-Blocks� High staff turn-around� Construction Industry Development Board (CIDB)
Compliance
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PREPAYMENT CHALLENGES � Free-Payment technology
� SANS 1529-9 (Nov 2003) - Strict Compliance…Dec 05 rev� STS enhancement or an urgent aligned alternative (CDS)� User-friendly meter technology for JW Customer � Stimulation of the prepayment market (limited meter suppliers)
� Affordability for the consumer – Communication/Transfer of Ownership
� Vandalism , Tampering and Illegal Connections � VENDING TECHNOLOGY, EQUIPMENT AND ACCESSIBILITY � Customer Service Responsiveness and Complaints Handling� Preventative maintenance programs and KPI Monitoring� Proprietary prepayment systems – Inter-operability
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COMMON DISTRIBUTION
SYSTEM
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BEFORE &AFTER (as of Sept 2007)
USD 23 Million
55%Percentage not topping up (consuming less than FBW)
USD 7Average cost of topping up
USD 23Pre-intervention deemed consumption billing amount
55 Billion litresTotal of Reduction in Bulk Purchase to date (within 36 months w.e.f. July 2004)
*** USD 3 Million
11 Kl per property per month Post-intervention water consumption
85%Percentage reduction in water consumption
66 Kl per property per monthPre-intervention water consumption
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BEFORE &AFTER (as of Sep 2007)
250NO OF PLUMBERS
142,000 of 169,989 (83%)PROGRESS ON METER AGREEMENT SIGNAGE
7,000 out of a target of 50,000(14% of target)
METERS INSTALLED in year to date (07/08)
COJ – 14 (CUSTOMER CENTERS)SMME LOCAL BUSINESS – 66
NO OF VENDORS @ 2.5km radii
USD 8 MillionLOCAL ECONOMIC DEVELOPMENT
15,800 (Since project inception)1,800 (current)
NO OF EMPLOYMENT OPPORTUNITIES
From more than 69% to 10% NON-REVENUE WATER
81,968 out of a total of 169,989(48% of total)
METERS INSTALLED
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REMEDIAL RELFIEF BENEFITS-PREPAYMENT
EFFECTIVE AS OF 1 JULY 2007
81,968EMERGENCY WATER OF 4Kl/ANNUM
AS AND WHENSPECIAL CASES ALLOCATION THROUGH AN APPEALS MECHANISM (UNDER REVIEW APPROVAL)
55,810 FREE BASIC WATER OF 6Kl/MONTH
26158FREE BASIC WATER OF 10Kl/MONTH (ONLY REGISTERED INDIGENTS
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PREPAYMENT CHALLENGES � Project Cost: USD 143 Million (present value)� Monetary savings at the completion of the
Project: USD 23 Million per year (present value)
� Pre-intervention monetary loss of USD 2 Million per month
� External and shareholder funding sources� To date USD 72 Million has been spent
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CHAKDE INDIA!