Revenue augmentation through improved water supply services: a case study of the SMART-WASA team of Faisalabad, Pakistan

Abstract

The Water and Sanitation Agency of Faisalabad has tried to increase its revenue by increasing both its water demands and total number of customers. To this end, a pilot activity was implemented. Two selected pilot areas were hydraulically separated to increase water pressures within the areas. The results showed that the durations of water supply increased from 3.5 to 12 hours and from 6 to 18 hours per day in the pilot areas. The water pressure in each pilot area increased from 2 to 10 m and from 3 to 18 m, respectively. Wastewater contamination was also eliminated after increasing the water pressure. Customers were informed of these achievements through workshops, flyers, and banners on streets, which encouraged them to shift from a flat rate system to a metering system. Consequently, the total billed amounts for two pilot areas in March 2019 increased by 65.0% and 97.0%, compared with those from November 2016. The bill collection ratios also increased from 48.2% to 56.9% and from 48.1% to 60.6% during pilot activities. Improving services of water supply utilities through the formation of a water distribution area with an increase in water pressure is recommended as an effective method for revenue augmentation. HIGHLIGHTS Water supply services were improved in an attempt to augment revenue.; The pilot areas were hydraulically separated as distribution management areas to increase their water pressures.; Water pressure and duration of water supply both significantly increased following service improvements, and wastewater contamination was eliminated.; The total revenues of the two pilot areas increased by 65.0 and 97.0%.;

Keywords

• hydraulic separation
• pakistan
• revenue augmentation
• service improvement
• willingness to pay