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CHAPTER 14
Controlling Apparent Losses
from Systematic Data
Handling Errors in Customer
Billing Systems
George Kunkel, P.E.
Julian Thornton
Reinhard Sturm
14.1 Compiling Billed Consumption in Customer Billing Systems
There is a tendency of many in the drinking water industry to assume that their sys-
tem’s apparent losses are solely due to customer meter inaccuracy, leaping to the con-
clusion that replacement of the entire customer meter population is the appropriate
remedy. This publication clearly defines that apparent losses occur in a number of dif-
ferent manners. It is important that the auditor first assemble the water audit and iden-
tify the nature, quantity, and cost-impact of each of the apparent loss components, and
only then develop a rational loss control strategy. Flowcharting the process of the cus-
tomer billing system is a recommended first step. It is a very expensive and inefficient
proposition to implement comprehensive customer meter change-out if the bulk of the
apparent losses are actually due to billing system data error or unauthorized consump-
tion. Yet, many water utilities have done just this, and are perplexed when, after spend-
ing up to millions of dollars on new meters, their apparent loss standing remains
unchanged. Conversely, apparent losses in the data handling process of the customer
billing system may be addressed by relatively inexpensive computer programming or
procedural improvements. In this way, a quick payback can be earned by additional
revenue recovery. Planning the apparent loss control strategy based on the results of the
water audit is the best way to start, followed by flowcharting, or otherwise investigat-
ing, the workings of the customer billing system.
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