Rocky HarrisStatisticianMinistry of the Environment UK

Water Accounts: Examples from Mauritius, Canada

and the UK

World Bank Regional workshop

27 March 2013

Background

• I worked as a consultant in the development of environmental accounts in Mauritius

• I can report on implementation of water accounts in Canada though Michael Bordt is the expert

• I am responsible for the development of water statistics and accounts in the UK

• I am an analyst in a policy Ministry so I may not always use the correct accounting terms!

Contents

• Some background on water accounting in these three countries

• Seven data recording issues and how the three countries have addressed these

• Some results• A review of sources of data

Compare and contrast

• Mauritius – small, rainy but water stressed because of high run-off; initial accounts available

• Canada – huge, water rich, but some areas locally stressed; spatially detailed accounts

• UK – small and rainy with some water stress; disparate data sources and no coherent picture

Maurice ile durable

Environmental-Economic

Accounts and the policy context

Mauritius: some key facts

• Small island 1,865 km2

• High rainfall but steep escarpments => high run-off (60% of precipitation)

• Recently experienced hydrological drought (reserves below statistically defined limit)

• Very high leakage losses• High agriculture and hydro-electric use• But simple industry structure

Freshwater in Canada: Do we have enough?

7

Some data recording issues

• Water supply and sewerage services are provided by the same enterprise

• Losses in distribution• Water supply industry – intra-industry transfers

• Hydro-electric power generators as a water supplier

• Mine ‘de-watering’

• Urban run-off• Cooling water

Enterprises supplying both water and sewerage services

• In many countries it is common for one enterprise to provide both natural water and sewerage services

• In National Accounts they will be coded according to which product generates the highest value output

• If it is natural water then it will be Water Supply (ISIC 36)

• If it is sewerage services then it will be Sewerage (ISIC 37)

• In practice many countries do not separate these industries in the National Accounts

Enterprises supplying both water and sewerage services

• In SEEA-W these enterprises should be split into two establishments• One supplying natural water and coded to Water Supply

(ISIC 36)• The other supplying sewerage services and coded to

sewerage (ISIC 37)• If they are not split then the flows to and from these

industries and to other industries become less clear• If they cannot be split then the line items ‘Use of water from

other economic units’ and ‘supply of water to other economic units’ should be sub-divided to show wastewater to sewerage, re-used water and distributed water separately

Country examples on water industry structure: Mauritius

• One water company (Central Water Authority)

• One single Public Water Supply tariff for all household users and most industry users

• One regulating body (Water Resource Agency)

�Separate information on water supply and wastewater treatment is readily available

Canada

• Large area

• Many water bodies (lakes)

• Municipal water companies report data to Statistics Canada

• Provinces provide regulatory framework

• Irrigation water licensed by a Province

Country examples on water industry structure: United Kingdom

• Four distinct countries (England, Wales, Scotland, Northern Ireland) with separate regulating organisations

• England has multiple water companies in competition with each other, some of which only provide water supply

• The other countries have a more unitary structure

�However, separate information on supply and wastewater treatment is available

Losses in distribution

• This is an important policy area and because they are not shown explicitly in the standard supply and use tables countries should consider preparing the SEEA-W supplementary tables on losses in distribution

Losses in distribution: treatment in standard tables

• Water losses in distribution is the volume of water lost during transport through leakages, theft and evaporation between the point of abstraction and the point of use, and between points of use and re-use

• Water supply within the economy is recorded net of losses in distribution

• Losses are recorded in water abstractions from the environment, leakages are recorded in water returns and may be separately recorded under water consumption

• They are not explicitly identified in the standard tables

Country examples of losses in distribution: Mauritius

• Recorded in Supply table as difference between abstraction and water delivered

Mauritius: Supply table (million cubic metres)Agric Industry Hydro-

elecWater supply

WWTP House-holds

Total

Within the economy

To other economic units

99 40 139

To environ-ment

Total returns

71 26 181 106 40 5 429

Of which Hydro-elec 181 181

Leakages 106 106

Of which To surface water

26 181 40 247

To ground-water

71 106 4 181

Total supply of water 71 26 181 205 40 45 568

Consumption (Use less Supply)

285 7 0 0 0 31 323

Country examples of losses in distribution: England and Wales

Recorded in the ‘Within Economy Use’ table as use by Water Supply industry

Calculated as:Total abstracted from primary water bodies

Less Losses in storage (net)Less Losses in distribution (leakage)

Equals Water deliveredLess unknown recipient

Equals PWS water use allocated to sector

Water use account for England and WalesMillion cubic metres Public Water

SupplyDirect abstraction

Total abstractions

Agriculture including irrigation 144 97 241

Fish farming 1,046 1,046

Industries … 343 663 1,006

Energy production and Utilities 29 4,612 4,641

Water companies - leakage 1,248 1,248

Services … 770 107 877

Households 2,899 13 2,912

Total use 6,119 6,538 12,657

Statistical discrepancy, Water Companies’ own use

686

Water supply industry – Intra -industry transfers (1)

• In some countries different enterprises within the water industry transfer water between themselves

• It is important to understand these transfers:• To avoid double-counting

• For policy analysis and decision-makers, especially where the price of water varies (for example between regions and between water “wholesalers” and water “retailers”)

Water supply industry – Intra -industry transfers (2)

• The standard physical supply and use tables do not record these within industry transfers

• In countries where this occurs a table showing these should be developed to assist the compilation process and could also be presented as supplementary information

Country example on intra -industry transfers

• United Kingdom: Recent White Paper on Water Supply has increased scope for transfers between water companies

�Need to develop information sources to monitor these transfers, especially transfers between different water basins

Hydro -electric power

• Hydro-electric power can be a very large water user in many countries. While the water is used it is not consumed, and may then be available to other users

• Even though the water is not consumed it is important to record these flows because:

• The water is an essential input to the output of hydro-electricity (and hence an important consideration in decision-making and policy analysis

• This may take place at the expense of other users• The water made available by the infrastructure that

supports hydro-electric power and the water available after use are important water sources for industry

Water consumption

• Water consumption: part of water use which is not distributed to other economic units and does not return to the environment (to water resources, sea or ocean) because during use it has been incorporated into products, consumed by households or livestock

• It is calculated as the difference between total use and total supply, thus it may include losses due to evaporation occurring in distribution and apparent losses due to illegal tapping and malfunctioning metering

Hydro -electric power: country examples

• Not recorded yet in the UK accounts

• Recorded within Mauritius accounts, partly because much of the water is lost to other uses in order to maximise energy production (through drop to sea level)

Mauritius: Supply table (million cubic metres)Agric Industry Hydro-

elecWater supply

WWTP House-holds

Total

Within the economy

To other economic units

99 40 139

To environ-ment

Total returns

71 26 181 106 40 5 429

Of which Hydroelec 181 181

Leakages 106 106

Of which To surface water

26 181 40 247

To ground-water

71 106 4 181

Total supply of water 71 26 181 205 40 45 568

Consumption (Use less Supply)

285 7 0 0 0 31 323

Mine de -watering

• In underground mining, water is often pumped out of the mine

• It is important to record these flows as:• This may prevent others from using the groundwater

• The groundwater is usually discharged into surface water and may be of a different quality due to natural processes or because of pollutants added

• In arid areas this may disrupt the ecology of the environment

• Once on the surface it may be available for other uses

No country examples

Urban run -off

• Urban run-off (or storm water) is the precipitation that falls on urban areas that does not evaporate or percolate into the ground but flows or is pumped via channels into a constructed infiltration facility

• When urban run-off is collected by the sewerage or storm water system the supply and use of this water is recorded against the Sewerage Industry (ISIC 37)

No country examples yet

Cooling water

• Cooling water is defined as water which is used to absorb and remove heat

• This discharge may cause thermal pollution or have collected pollutants during use (e.g. if used in metal production)

• In some cases industries using water for cooling recycle it “on site”. In other cases it is abstracted and returned to the environment

• Important to distinguish which situation is occurring, particularly for large users (e.g. coal-fired electricity generators)

Cooling water - Case one: Recycling

Establishment using water for cooling

Environment100

80

Cooling pond of establishment

80Establishment may report an “intake” of 180 rather than an abstraction from the environment for own use of 100. This would be a consumption of 100.

Cooling water - Case two: Recycling

Establishment using water for cooling

Environment

100

80

Water is abstracted from the environment and returned to

the environment. Difference is the consumption: 100

abstracted for own use less 80 returned equals 20

consumption

Water use accounts

• Based on abstraction data and Water Company estimates of use of Public Water Supply

• Linked with National Accounts information on expenditures to estimate use for different subsectors

• Seasonal fluctuations mean that short term changes may not be significant

Mauritius water accounts

Mare aux Vacoas

90

100

110

120

130

140

150

160

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Gross Domestic Product

Water abstractions*

Total water abstraction in Mauritius*Index (2000=100)

*excluding hydropower

90

100

110

120

130

140

150

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Gross Value Added

Public Water

Supply use

No decoupling of water use for hotels in Mauritius yetIndex (2000=100)

90

100

110

120

130

140

150

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Impacts of household consumption in Mauritius(Index 2000=100)

Water use

Household spending

90

100

110

120

130

140

150

2002 2003 2004 2005 2006 2007 2008 2009

Impacts of Government sector in Mauritius(Index 2002=100)

Water use

Gross Value Added

Linking greenhouse gas emissions and water use

Lakes and reservoirs

Water distribution14ktCO2

Agriculture

Direct abstractions

Water supply

treatment 24 ktCO2

Leakage 10ktCO2

Non-domestic

use

Waste water

treatment 50ktCO2

Domestic use

Waste water

collection 5ktCO2

216mcmWater company

admin 5ktCO2

65mcm

45mcm 105mcm

465mcm

Mauritius, Provisional

Water accounts (Canada)

• Three linked accounts:

• renewable stocks (precipitation), use (abstractions) and water quality (drinking water intake)

• Data sources:

• Environment surveys: • Industrial Water Survey

• Agricultural Water Use Survey

• Drinking Water Plant Survey

• Households and the Environment Survey

• Meteorological and hydrological statistics• Uses Water Yield Model to estimate the volume of

renewable surface water by drainage area

Water yield model

• What is it?• Renewable water supply (modelled at drainage area level

taking into account flows between bodies)• Water yield is the amount of freshwater derived from

unregulated flow measurements (m3/area) for a given geographic area over a defined period of time

• Why?• Estimate the volume of surface water nationally and

regionally over time• Provide information on renewable water supply and

compare with the demand• Measure the change in water supply and use

Canada: Prairies use over 40% of renewable freshwat er stock

Canada: Process water accounts for half of industri al intake and one-third is discharged untreated

Water Intake by Source

0 1000 2000 3000 4000 5000millions of cubic metres

Sanitary service & domestic useCooling, condensing & steamProcess waterOther

Water Discharge by Treatment Type

0 1000 2000 3000millions of cubic metres

Not treated Primary or mechanicalSecondary or biological Tertiary or advanced

Source: Environment Accounts and Statistics Divisio n, Industrial Water Survey 2005, 16-401-XIE.

Canada: Prairies are less secure in water supply

Canadian water accounts: Challenges• The Water Yield Model

required original research

• Reporting on the surveys is inconsistent and requires additional edit checks

• There is no complete data on overall “water assets”.

• Canada has a million lakes, 2/3 of which are of unknown depth and volume.

• Much of the water used in Canada is unregulated

• So monetary accounts would be difficult

United Kingdom – development of data sources (1)

Data item Availability Policy priority

Source

Water use balance (stocks)

Some information on reservoir and groundwater levels

High, especially at River Basin level

Environment Agencies

Freshwater sources (precipitation, evapo-transpiration etc)

Research needed on flows into and out of different stocks and recharges

High, especially at River Basin level

To be determined

Freshwater abstraction by industry group

More work on disaggregation needed

High Environment Agency

United Kingdom – development of data sources (2)

Data item Availability Policy priority

Source

Other sources ofwater (marine and brackish)

Some information on abstraction from tidal sources

Low Environment Agencies

Flows within the economy (excluding use of PWS)

None at present –development required

Potentially high, givennew policy to open up water supply market

To be determined

PWS use by sector

Disparate sources with no standardisation

High Water companies

United Kingdom – development of data sources (3)

Data item Availability Policy priority

Source

Generation and discharge of waste (includingbreakdown of contaminants by sector)

Some information from major industrial bodies

Moderate Environment Agencies

Economic data on water supply and sewerage activities

Some information from National Accounts and regulatory bodies

Moderate. It would be useful to link with physical flow data

Office for National Statistics, Office for Water

Thank you for your attention!

Rocky Harris

Rocky.harris@defra.gsi.gov.uk