Active Leakage Control efficiency in the SELL calculation Renamed: Active Leakage Control Efficiency
Project Status - Project Commenced
Category - Water Mains, Sewers and Services
Both Ofwat and the Environment Agency (EA) have said recently that they have some concerns with the current Sustainable Economic Level of Leakage (SELL) process for the setting of leakage targets. The recent EA guidance on leakage for Water Resource Management Planning (WRMP19) says :
“There is increased realisation that SELL may not be the most effective way to plan leakage levels. WRMP19 will be the final time that a leakage figure is derived from SELL. We expect water companies to evolve and move away from SELL for WRMP24 and to innovate to reduce leakage beyond the current levels”.
The Ofwat consultation document on outcomes for PR19 (February 2017) expresses a different view :
“Companies should report their SELL in business plans, explain their assumptions on future improvements in leakage reduction efficiency in the SELL, and explain how its Performance Commitment for leakage is appropriate in relation to SELL”.
There is a strong feeling amongst companies that leakage targets should continue to be based on a sound economic analysis. However, the cost of leakage management relationship for SELL modelling is derived from analysis of the company’s own historical leakage management performance data. It is therefore a valid criticism of this process that if a company has been historically inefficient, then this inefficiency becomes built into the SELL.