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Case Study

A Strategy to Assess Water Meter Performance


Clara Cordeiro 1; Ana Borges 2; and M. Rosário Ramos 3

Abstract: Apparent water losses can be problematic to water companies’ revenues. This type of loss is very difficult to detect and quantify
and is often associated with water meter anomalies. This study was motivated by a water company’s challenge that links a decrease in water
consumption to water meters’ malfunction. The aim is to develop a strategy to detect decreasing water usage patterns, contributing to meter
performance assessment. The basis of the approach is a combination of statistical methods. First, the time series of billed water consumption
is decomposed using Seasonal-Trend decomposition based on Loess. Next, breakpoint analysis is performed on the seasonally adjusted time
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series. After that, the Mann–Kendall test and Sen’s slope estimator are used to analyze periods of progressive decrease changes in water
consumption, defined by breakpoints. A quantitative indicator of this change is proposed. The strategy was successfully applied to eight-time
series of water consumption from the Algarve, Portugal. DOI: 10.1061/(ASCE)WR.1943-5452.0001492. This work is made available under
the terms of the Creative Commons Attribution 4.0 International license, https://creativecommons.org/licenses/by/4.0/.

Introduction meters is crucial in reducing any uncertainty affecting the water


balance and has significant technical and economic implications
A recurring problem that troubles water companies is that of timely (Pacheco et al. 2020). A cubic meter consumed but not measured
detection of malfunctioning water meters. Indeed, defective water reduces the company revenue in quantity equal to the selling price of
meters impair the management of water supply and diminish water the last cubic meter of water consumed by that consumer (Arregui
companies’ revenues. The management of nonrevenue water (NRW) et al. 2018).
is one key issue for improving water use efficiency, reducing gaps The water companies’ awareness for the responsible use of
between water supply and demand (Ncube and Taigbenu 2019). water has gained importance, with climate changes emphasizing
Water losses in the distribution system can be categorized as either this need. In the context of water scarcity, Oviedo-Ocaña et al.
real (leakage) or apparent (commercial) losses (Mutikanga et al. (2020) alert to the importance of assessing losses in water distri-
2011). Water meter under-registration resulted in apparent losses bution systems since the compensation of water losses represents
and lost revenue (Moahloli et al. 2019; Fourie et al. 2020), being an increase in the source’s water supply. Enhancing that water use
apparent losses one of the components of NRW. As Criminisi et al. efficiency and conservation are priority alternatives to ensure, for
(2009) explain, apparent losses are caused by unauthorized con- example, universal access to drinking water and reducing the num-
sumption and meter inaccuracies, corresponding not to physical ber of people suffering from water scarcity. Furthermore, Pacheco
but rather to financial losses. Since they are water volumes taken et al. (2020) emphasize that water measurement will become an
from the network and consumed but not accounted for, as a con- even more critical aspect in the near future because of the increase
sequence, the company will be jeopardized by the unaccounted in the world’s water supplies due to population growth. In this con-
water volume, resulting in an important impact on the utility’s text, one form of water companies to be aware of its important role
water and economic balances. is to steer the effective water consumption and guarantee an effi-
A long-known fact is that reducing apparent losses caused by cient manutention of its equipment, namely the water meters.
meter inaccuracies can result in substantial short-term increases in Current research confirms that several factors affect a water
utility revenue and lead to increasingly equitable service charges meter’s accuracy, particularly water meterage and total registered
for long-term water consumers (Richards et al. 2010; Kadenge volume (Moahloli et al. 2019; Pacheco et al. 2020). Detecting
et al. 2020). The accurate measurement of the water collected by the point in time in which water meters should be replaced implies
that they can be substituted proactively to minimize the impact of
1
Assistant Professor, Faculdade Ciências e Tecnologia, Universidade do water consumption nonregistration and under-registration on NRW
Algarve, Faro 8005-139, Portugal; Centro de Estatística e Aplicações, (Moahloli et al. 2019). There seems to be no specific determination
Faculdade de Ciências, Universidade de Lisboa, Lisboa 1749-016, Portugal and/or agreement on a water meter lifespan or optimal replacement
(corresponding author). ORCID: https://orcid.org/0000-0002-1026-6078.
period. Water meter producers only give a limited warranty against
Email: ccordei@ualg.pt
2
Assistant Professor, Centro de Inovação e Investigação em Ciências manufacturing defects but do not specify the meters’ lifetime
Empresariais e Sistemas de Informação, Escola Superior de Tecnologia (Moahloli et al. 2019). It is believed that the premature replacement
e Gestão, Politécnico do Porto, Felgueiras, Porto 4610-156, Portugal. of water meters will result in a higher average life-cycle cost due to
ORCID: https://orcid.org/0000-0003-4244-5393 the initial fixed costs. However, if a meter is replaced too late, a
3
Assistant Professor, Dept. of Sciences and Technology, Universidade significant loss of revenue caused by meter nonregistration and
Aberta, Rua da Escola Politécnica, 147, Lisboa 1269-001, Portugal; Center under-registration will also increase the average life-cycle cost
of Mathematics, Fundamental Applications and Operations Research, (Fontanazza et al. 2015). The main studies on this problem have
Faculdade de Ciências, Universidade de Lisboa, Lisboa 1749-016, Portugal.
adopted approaches based on laboratory studies, which may impli-
Note. This manuscript was submitted on July 29, 2020; approved on
September 13, 2021; published online on November 18, 2021. Discussion cate two significant issues: (1) the high costs inherent to the labora-
period open until April 18, 2022; separate discussions must be submitted tory, and (2) the conditions in which the tests are taken upon are far
for individual papers. This paper is part of the Journal of Water Resources from the real scenario. As Moahloli et al. (2019) recently identified,
Planning and Management, © ASCE, ISSN 0733-9496. several methods can be used to determine water meter accuracy,

© ASCE 05021027-1 J. Water Resour. Plann. Manage.

J. Water Resour. Plann. Manage., 2022, 148(2): 05021027


such as laboratory testing or installing a master meter in series to the Furthermore, two new formulas estimate the maximum number of
meter on the ground and the net present value analysis. However, breakpoints and the minimum number of observations in a segment.
although accurate, the authors also indicate that the first two meth- In the analysis of hydrological and meteorological variables,
ods tend to be expensive and time-consuming. Malfunctioning water (Gocic and Trajkovic 2013) and (Sharma et al. 2016) conclude that
meters impair water supply management and diminish water com- there is an interaction between trends and breakpoints. The signifi-
panies’ earnings, justifying the need for a detailed data analysis of cance of the trend and its decreasing rate are analyzed through
water consumption. Mann–Kendall testing [Mann (1945) and Kendall (1975)] and
Past research on water consumption in Portugal has shown that Sen’s Slope (Sen 1968). The negative slope means that there is a
the Algarve region has the highest value (Reynaud 2015). The offi- decrease in water consumption. The water company must investi-
cial statistics on water distributed/consumed per inhabitant for 2017 gate this situation because it could be related to an anomaly in the
[from FEMS (2021)] reveal higher values for this region. The aware- water meter, and it might be the ideal time to replace it. A water
ness toward the responsible use of water has increased significantly consumption indicator named relative magnitude of the change
and, in recent years, periods of drought attributed to climate change (RMC) is proposed to provide some guidance in this decision anal-
emphasized that need. Aware of this problem, water utilities such as ysis. The idea is to quantify the change of the decrease in water
Infraquinta and the Loulé Municipality feel the need to improve and consumption for each consumer and identify which ones the water
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develop mechanisms for predictive water planning based on data company should investigate.
analysis. In particular, a mechanism able to detect abnormal de- The paper is organized as follows: the first section presents a
creasing trends in water consumption, which they believe is asso- brief description of the problem and the dataset analyzed. The next
ciated with a possible water meter malfunction. section explains the methodologies applied, followed by a descrip-
This paper aims to develop a procedure capable of detecting tion of the water consumption analysis’s main results on a case
study of seven households and one hotel, ending with the discus-
decreasing water consumption changes, contributing to meter per-
sion and conclusion and future work.
formance assessment. The decrease in water consumption (pro-
gressive or sudden) is, as explained by Monedero et al. (2016),
associated with water meter malfunction—one of the possible
causes for apparent losses. Thus, it should be investigated by water
Methodologies
utilities in order to mitigate this type of loss. The proposed ap- In this section, the methods that constitute the strategy proposed are
proach intends to contribute and provide a helpful tool for the water described in detail.
utilities within decision analysis on water meter replacement. The
strategy developed uses several statistical methods to detect signifi-
cant decreases (changes) in water consumption after removing the STL Decomposition
seasonal pattern. A time series is a sequence of observations indexed by time t,
In this case study, an empirical analysis of billed water con- t ¼ 1; : : : ; n, usually ordered in equally spaced intervals. Often,
sumption data from seven households and a hotel from the Algarve, time series exhibit seasonal behavior and adequate control for a sea-
Portugal, was performed. Analyzing data on the real conditions on sonal component is essential before using any statistical model. Let
which the water meters operate should provide more precise results consider that a time series is a combination of three components:
than those obtained through laboratory analysis. Time series de- trend-cycle, which represents an upward or downward movement
composition is frequently used in many areas, such as in electricity over the time horizon; seasonality, which is a repetitive pattern over
consumption to evaluate electrical meter data [e.g., Miller and time; and the irregular, which is remaining after the other compo-
Meggers (2017) and Miller (2019)], in hydrological studies to nents have been removed (Hyndman and Athanasopoulos 2018).
understand groundwater behavior [e.g., Lafare et al. (2016)], and Both trend and seasonality components are potential confounding
to predict or detect changes in water consumption [e.g., Ohana- features in analysis, so their identification and removal are impor-
Levi et al. (2020), Quesnel and Ajami (2017), Hester and Larson tant. Additionally, this characteristic impacts the computation of the
(2016), and Gelažanskas and Gamage (2015)]. Seasonal-Trend trend-cycle term T t that bears the time series’s interannual variations
Decomposition of time series based on Loess [(Seasonal-Trend de- but excluding possible variations related to interannual changes in
composition by Loess (STL)] (Cleveland et al. 1990) has been suc- seasonality.
cessfully used in studies of water consumption (Hester and Larson Seasonal-Trend Decomposition of time series based on Loess
2016). Researchers often use the STL default smoothing parameters (STL) is used to decompose the time series fY t ; t ¼ 1; : : : ; ng into
because specifying these parameters can be subjective rather than a trend (T t ), seasonal (St ), and irregular (I t ) components using non-
objective. To overcome this issue, the procedure stl.fit (Cristina et al. parametric regression and is described as
2016) is used to obtain a more accurate decomposition based on the
error measure mean absolute error (MAE). Y t ¼ T t þ St þ I t ; t ¼ 1; : : : ; n ð1Þ
In the context of water consumption analysis, some recent stud- STL was chosen over other decomposition methods in the liter-
ies have adopted the methodology of time series decomposition and ature because it has attractive modeling features. Such as a nonlinear
breakpoint detection, such as Quesnel and Ajami (2017) and Hester trend component, the seasonal component is allowed to change over
and Larson (2016). The latter points out that decomposition meth- time and is robust in the presence of outliers. Note that these
ods have been applied in several hydrological studies, and structural observations are problematic since it influences the estimation of
change models have been used in water quality. Also, the opinion of parameters (e.g., in ARIMA models) that will mislead any statistical
these authors is that the breakpoint analysis appears underutilized in conclusion. STL is an iterative nonparametric procedure that repeat-
water management. Therefore, the procedure developed in this case edly uses a Loess smoother to refine and improve estimates of the
study uses breakpoint analysis (Zeileis et al. 2003) to find points trend and seasonal components [see Cleveland et al. (1990) for more
in time at which statistical patterns change after the seasonal pat- details]. In common with all nonparametric regression methods,
tern was removed. These breakpoints are associated with segments STL requires the subjective selection of smoothing parameters.
where the increases or decreases of the trend are more pronounced. The two main parameters are the seasonal (s.window) and trend

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(t.window) window widths. The Loess smoothing parameters must and Kendall (1975)] as a nonparametric counterpart. The test takes
be defined in advance and set according to the user’s knowledge Kendall’s Tau coefficient to assess the correlation between the var-
about the data or as default values. The function stl() (R Core iable of interest and time. Related to MK’s rationale, Sen (1968)
Team 2021) is commonly used setting by default the s.window developed a nonparametric estimator for the slope of a linear trend
parameter as periodic. The algorithm proposed in Cristina et al. in the sample of N pairs of data. The Theil–Sen (TS) slope provides
(2016), stl.fit() (Cordeiro 2016), overcomes this drawback. It per- the magnitude of the trend through a robust linear regression. Also,
forms an automatic selection of the smoothing parameters based on MK and TS are more flexible in the assumptions than parametric
minimizing an error measure, obtained through the function accu- t-test, accommodate departures from normality, small sample sizes,
racy() in package forecast (Hyndman et al. 2021). The algorithm and are robust in the presence of outliers [Helsel and Hirsch (2002)].
selects the best STL model, which has the smallest error measure MK does not depend on the data range and can find a monotonous
achieved with a specific combination of s.window and t.window. trend over nonlinear behavior. So, is well-suited for a trend esti-
The root mean square error is an error measure widely used to mated through STL. Also, it is possible to consider the autocor-
access the model performance and predictability. However, its relation by adjusting the variance of the test statistic when the
sensitivity to extreme observations and outliers can mislead data assumption of independence fails. To investigate a decrease in the
analysis. The MAE is the error measure chosen to be used in this segments, MK and TS are applied on Y  and an estimate of the mag-
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work because it is less sensitive to outliers (Hyndman and Koehler nitude of the trend (or slope) is obtained. If the result points to a
2006) when compared with the root mean square error, and it significant and negative trend, the breakpoint is relevant and is in-
presents several advantages as explained in Willmott and Matsuura cluded in the new set bp , where bp ⊆ bp. This analysis is per-
(2005). In the forthcoming analysis, the seasonally adjusted time formed using the functions mk.test() and sens.slope(), available in
series the R package trend (Pohlert 2020).

Y t ¼ Y t − St ð2Þ
Relative Magnitude of the Change
t ¼ 1; : : : ; n, is considered.
The RMC is proposed to assess water consumption behavior
change. It is calculated through a ratio that compares the consump-
Detect Structural Changes tion pattern before and after a breakpoint (see Fig. 1). The idea of
Some structural disturbances can be observed in the dynamic struc- RMC is in line with the same principle as in Gocic and Trajkovic
ture of the time series. Is important to stay alert for breakpoints, (2013) and is defined by
points in time at which statistical patterns change, as they represent
periods of the time horizon where the increases or decreases of the slpafter − slpbefore
trend are more pronounced. The R package strucchange (Zeileis RMC ¼ ð5Þ
jslpbefore j
et al. 2002) is used to detect structural breaks to test for structural
changes in linear regression models, estimating the number of seg-
ments (m) and the set of the breakpoints bp ¼ ft1 ; t2 ; : : : ; tm−1 g, where slpafter and slpbefore = nonparametric Sen’s Slopes at a
minimizing the Bayesian information criterion (BIC) and the breakpoint tk ∈ bp . This unitless indicator measures the relative
residual sum of squares (RSS) (Zeileis et al. 2003). Additionally, change, or the relative difference, between the slope after (slpafter )
this procedure has a bandwidth parameter (h) that determines the and the slope before (slpbefore ) the breakpoint, in reference to the
minimal segment size (h × n observations). In function breakpoints slope before the breakpoint. A negative value of RMC is an alert for
() (Zeileis et al. 2002) the default bandwidth parameter is h ¼ 0.15 a possible meter anomaly. The more negative is RMC, the higher is
but, it is up to the user to change h to a more suitable value based on the reduction of water consumption after the considered breakpoint.
the knowledge of the data. For example, Verbesselt et al. (2010) use
a minimum of 12% of data (23 observations) for a nine-year time
horizon; in Awty-Carroll et al. (2019), this minimum was two years Strategy Outline
(46 observations); and in Hester and Larson (2016), the minimum The idea behind the approach is the following:
was three years (36 observations). In line with the previous refer- Step 1: Estimation of the seasonal component using stl.fit() by
ences, the present study contributes with two new expressions for minimizing MAE and removing it;
obtaining the minimum length between consecutive breaks Step 2: Breakpoints analysis (bp) on y ;
Step 3: Nonparametric trend analysis for analyzing significant
frequency decreases on the segments and selecting the “relevant” break-
h¼ ð3Þ
n points (bp );
Step 4: RMC is calculated [Eq. (5)] for each breakpoint in bp .
and the maximum number of breaks The scheme of the strategy is shown in Fig. 1. In Step 1, the stl.
fit() was chosen because it showed better performance than the
n 0.5 “standard stl” (Cristina et al. 2016). Nevertheless, it is possible to
breaks ¼ ¼ ð4Þ
2  frequency h use another decomposition method instead, e.g., classical decom-
position. Step 2 uses the function breakpoints() (Zeileis et al. 2002)
where n = length of the time series and frequency is the seasonal with h and breaks estimated by Eqs. (3) and (4), respectively. In the
pattern’s length. case of Step 3, a function that includes mk.test() (Pohlert 2020) was
implemented by the authors in R. It considers bp and y as input
and bp as output. Then, to obtain the RMC values using the TS
Detect Decreasing Trends
slopes, another function was build by the authors. The new code
Research on an increasing or decreasing trend in time series is an was implemented in R version 4.1.0. The data, models, and code
important issue. It is usually based on the parametric test for the are available online (Cordeiro et al. 2020). Moreover, a significance
linear model and in the Mann–Kendall (MK) test [Mann (1945) level of α ¼ 5% is considered in the statistical analysis performed.

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Fig. 1. Scheme of the methodologies proposed using RH2.

Water Consumption Analysis meter replacement in July 2014). There is also a clear seasonal ef-
fect in RH1, RH2, RH3, and NRH3. Concerning the trend of water
Dataset consumption, RH2 and RH3 showed a downward. This pattern is
also observed in smaller periods in the other time series. Moreover,
To illustrate the procedure (Fig. 1), eight-time series of billed water the magnitude of volumes consumed is significantly different be-
consumption from the same region of the Algarve, Portugal, were tween the households and the hotel. In households (RH and NRH
used [available online (Cordeiro et al. 2020)]. The data were pro- type), the water consumption range from 0 to 120 m3 , while at the
vided by the water company Infraquinta and Loulé Municipality hotel, the consumption is higher, varying from 0 to 3,000 m3 .
and are described in the following:
• Two locations: Quinta do Lago Resort, a well-known tourist
destination for holidays; and a small rural village with less than Time Series Decomposition
3,000 inhabitants, mainly retired and older people. Distance be- The empirical analysis starts by deciding between a robust approach
tween locations is approximately 26 km; of STL or not. Outliers were detected by inspecting the weights as-
• Residential Household (RH): four monthly time series of water sociated with the residuals as in Cleveland et al. (1990). Next, for
consumption, time horizon between January 2011 and December each time series, the procedure stl.fit (Cristina et al. 2016; Cordeiro
2016 (nRH ¼ 72), from the village; 2016) was applied and an object of class stl with components T t , St ,
• Nonresidential Household (NRH): three hourly time series of and I t , as in Eq. (1), is returned. Measurements of error is an alter-
water consumption, time horizon between November 2013 and native way of conveying information about the model adjustment,
December 2018, from Quinta do Lago. However, the water and for that, the MAE was chosen. This accuracy measure has al-
companies are only concerned with the monthly levels of water ready been used in the context of water planning and management,
consumption, so the hourly data were aggregated into monthly e.g., Kandiah et al. (2016). The decomposition plots are shown
by taking the average of each month (nNRH ¼ 62); in Fig. 3.
• Hotel: monthly time series of water usage with a time horizon
from July 2006 until December 2016 (nHotel ¼ 120);
• Smart meters collected the data of NRH and RH and Hotel by Decreasing Changes
nonsmart meters. In this subsection, the objective is to detect periods of changes in
Fig. 2 shows water consumption variability in households and water usage patterns. The detection of breakpoints, which are points
hotels. Most of the time series shows a seasonal pattern associated in time k at which statistical patterns change, are estimated on the
with the year’s season, increasing in the summer and decreasing seasonally adjusted water consumption, as in Eq. (2). The procedure
during the winter. tests for structural changes in linear regression models, considering
The hotel presents a strong seasonal pattern and a decreasing the maximum number of breaks and the minimum length between
trend until 2014 that increases after mid-2014 (due to the water breaks estimated using Eqs. (3) and (4), respectively. As a result,

© ASCE 05021027-4 J. Water Resour. Plann. Manage.

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RH1 RH2
100 20

75 15
m3

m3
50 10

25 5

0 0
2012 2014 2016 2012 2014 2016
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RH3 RH4
25 15

20
10
15
m3

m3
10
5
5

0 0
2012 2014 2016 2012 2014 2016

NRH1 NRH2
50 50

40 40

30 30
m3

m3

20 20

10 10

0 0
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019

NRH3 Hotel

120 3000

80 2000
m3

m3

40 1000

0 0
2014 2015 2016 2017 2018 2019 2006 2008 2010 2012 2014 2016

Fig. 2. Times series of water consumption.

breaksRH ¼ 3 and hRH ¼ 0.17, breaksNRH ¼ 3 and hNRH ¼ 0.19, statistically significant (i.e., pvalue < 0.05), the breakpoints are
and breaksHotel ¼ 5 and hHotel ¼ 0.1 were obtained. After ob- considered “relevant” and included in bp , and its decreasing
taining the breakpoints (bp, in Table 1), the MK test for analyzing rate (Sen’s slope) is obtained (see Table 2). Fig. 4 presents the sea-
trends was applied to each segment. If a decreasing segment is sonally adjusted time series, breakpoints (bp), and relevant

© ASCE 05021027-5 J. Water Resour. Plann. Manage.

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RH1 RH2
100
75 15

data

data
50 10
25
5
0
15.0
30
25 trend 12.5

trend
20 10.0
15 7.5
10 5.0
30
seasonal

seasonal
20 3
10
0 0
−10 −3
−20
60
remainder

remainder
40 5
20
0 0
−20
2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017
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RH3 RH4
25 15
20
10
data

data
15
10 5
5 0
10 7
9 6
trend

trend
8 5
7 4
6
6
seasonal

seasonal
4 2
2
0 0
−2
−4 −2
remainder

10 4 remainder
5 0
0 −4

2011 2012 2013 2014 2015 2016 2017 2011 2012 2013 2014 2015 2016 2017

NRH1 NRH2
50
40 40
30
data

data

30
20 20
10 10
0 0
7
6 12
trend

trend

5
4 10
3
2 8

20 20
seasonal

seasonal

10 10
0
0
−10
remainder

remainder

30 20
20 10
10
0 0
−10 −10
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019

NRH3 Hotel
3000
90
2000
data

data

60
30 1000
0 0
16 1600
trend

trend

14 1400
1200
12 1000
seasonal

seasonal

40 400
20 0
0 −400
remainder

remainder

80 1000
500
40 0
0 −500
−40 −1000
2014 2015 2016 2017 2018 2019 2006 2008 2010 2012 2014 2016

Fig. 3. STL decomposition plots.

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Table 1. Breakpoints & decreasing (trend) analysis
Theil–Sen’s slopes
Type Breakpoints (bp) Segment 1 Segment 2 Segment 3 Segment 4 Segment 5
RH1 2012 (June) −0.50 (0.0064) −0.19 (<0.0001) — — —
RH2 2012 (April), 2015 (December) 0.01 (0.8926) −0.02 (0.3947) −0.26 (0.0002) — —
RH3 2014 (May) −0.01 (0.0671) −0.06 (0.0011) — — —
RH4 2015 (November) 0.01 (0.4026) −0.19 (<0.0001) — — —
NRH1 2017 (June) −0.07 (0.0099) 0.12 (0.2629) — — —
NRH2 2016 (December), 2017 (November) 0.07 (0.0252) −0.11 (0.8370) −0.46 (0.0005) — —
NRH3 2016 (December), 2017 (November) 0.01 (0.8015) 6.58 (0.0075) −0.69 (0.0044) — —
Hotel 2008 (February), 2013 (July) −6.14 (0.381) −2.59 (0.0006) −84.56 (0.0003) 5.31 (0.5022) 10.88 (0.1501)
— 2014 (July), 2015 (July) — — — — —
Note: Statistically significant trend slp (pvalue) in boldface.
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Table 2. RMC results


Type Date of meter replacement Relevant bp TSa (slpbefore , slpafter ) RMCa
RH1b 2008 (May) 2012 (June) (−0.50, −0.19) 0.62
RH2b 2010 (May) 2015 (December) (−0.02, −0.26) −12.00
RH3b 2003 (November) 2014 (May) (−0.01, −0.06) −5.00
RH4 2012 (January) 2015 (November) (0.01, −0.19) −20.00
NRH1 2018 (June) 2017 (June) (−0.07, 0.12) 2.71
NRH2 2018 (April) 2017 (November) (−0.11, −0.46) −3.18
NRH3 2018 (November) 2017 (November) (6.58, −0.69) −1.10
Hotel 2014 (July) 2008 (February), 2013 (July) (−6.14, −2.59), (−2.59, −84.56) 0.58, − 31.65
— — 2014 (July) (−84.56, 5.31) 1.06
Note: Significant decrease in water consumption in boldface.
a
Round numbers to two decimal places.
b
Outside the time horizon analyzed.

breakpoints (bp , blue dashed line). The dashed grey line corre- analysis requires a minimal segment size (h), which in this case
sponds to a breakpoint with nonsignificant adjacent segments is 14 months (corresponding to hRH4 × 72 ¼ 0.2 × 72). So, this
(slpbefore and slpafter ), i.e., pvalue > 0.05, or the water con- breakpoint was out of reach of being detected. However, if data
sumption is not decreasing. Table 2 contains the information about before 2011 were available, this issue would no longer exist.
the date of the water meter replacement, bp , TS slopes, and Concerning the nonresidential households from the Quinta do
RMC [Eq. (5)]. Lago Resort, NRH1 shows one breakpoint in June 2017. According
The residential household RH1 shows one relevant breakpoint to Table 1, the first segment is statistically significant, so the break-
detected in June 2012 (Table 2; Fig. 4). The water meter readings point is considered relevant (Table 2). The relative magnitude of
after the break are smaller than the first segment, and the magnitude change is RMC ¼ 2.71, revealing an increase in consumption after
of the trend (TS slope) is less negative (slpbefore ¼ −0.50 versus the breakpoint, so there is no motive for alarming the water com-
slpafter ¼ −0.19), with RMC ¼ 0.62, as seen in Table 2. Nonethe- pany. Besides, this water meter was replaced in June 2018. How-
less, the trend continues negative after June 2012 with a significant ever, judging by the graph of the water consumption (Figs. 2 and 4),
slope, justifying an alert and further investigation by the water it seems a hasty decision by the company. In NRH2, two break-
utility. Regarding the RH2, the global trend is decreasing (Figs. 2 points were detected (Table 1), but only one is relevant (November
and 3), and the structural break analysis identifies two breakpoints 2017) with an estimate RMC ¼ −3.18 (Table 2). According to
(Fig. 4). The decrease of the third segment is statistically significant this table, this meter was already malfunctioning for half a year
(Table 1) and so the second breakpoint (December 2015) is rel- when the substitution took place. In NRH3, the procedure detected
evant (Table 2). The RMC ¼ −12 reveals that the downward trend two breakpoints, but only November 2017 is relevant (bp ) with
(December 2015–December 2016) is more pronounced in magni- RMC ¼ −1.10. Note that this decline was detected one year before
tude compared to the previous segment (April 2012–December the meter replacement (Table 2). If a surveillance system integrated
2015). Since the consumption is decreasing, the water company this approach, the water company would have received an alert one
should keep RH2 under surveillance. For households RH3 and year before.
RH4, only a relevant breakpoint is detected, May 2014 and In the case of the hotel, from the five segments (four break-
November 2015, respectively. Moreover, comparing the TS slopes points), only two are statistically significant, corresponding to
before and after the breakpoint, the magnitude of change is consid- bp ¼ fFebruary 2008; July 2013; July 2014g, as seen in Table 2
erably higher in water meter RH4 (RMCRH4 ¼ −20 vs RMCRH3 ¼ and Fig. 4. The estimated RMC are 0.58, −31.65, and 1.06, respec-
−5). RH4 exhibits an abrupt change at the beginning of 2012 tively (Table 2). The negative value of RMC for the second break-
(Figs. 2 and 4), and based on the records from the water company, point and the decrease in consumption shows evidence that the
the meter was replaced in January 2012 (13th month). As already meter should have been replaced sooner, perhaps between July
explained in subsection “Detect structural changes,” the breakpoint 2013 and July 2014.

© ASCE 05021027-7 J. Water Resour. Plann. Manage.

J. Water Resour. Plann. Manage., 2022, 148(2): 05021027


RH1 RH2
100 20

75 15
m3

m3
50 10

25 5

0 0
2012 2014 2016 2012 2014 2016
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RH3 RH4
25 15

20
10
15
m3

m3
10 5

5
0
0
2012 2014 2016 2012 2014 2016

NRH1 NRH2
50 50

40 40
30
30
m3

m3

20
20
10
10
0

−10 0
2014 2015 2016 2017 2018 2019 2014 2015 2016 2017 2018 2019

NRH3 Hotel

3000
100

2000
m3

m3

50

1000

0
0
2014 2015 2016 2017 2018 2019 2006 2008 2010 2012 2014 2016

Fig. 4. Seasonally adjusted time series and breakpoints.

As observed in Table 2, the results indicate that the company the approach in monitoring water consumption by the consumers,
should continue to monitor all households’ meters, except RH1, such as sudden changes and continuous decrease. Besides, the ap-
NRH1, and the hotel since the corresponding RMC values are pos- proach could detect these changes sooner than the actual replace-
itive. To sum up, the previous results illustrate the effectiveness of ment time and in instances in time not foreseen by the water utility.

© ASCE 05021027-8 J. Water Resour. Plann. Manage.

J. Water Resour. Plann. Manage., 2022, 148(2): 05021027


Discussion changing one or more meters. This decision analysis could gather
the results already achieved with an econometric analysis of the op-
Water utilities need to be aware of water’s responsible use, a con- timum level of apparent losses, as described by Arregui et al. (2018),
cern emphasized by climate change. One form of the companies to or else a financial analysis as the one performed by Pacheco et al.
be alert is to steer the effective water consumption and guarantee an (2020), to increase the confidence on the timing of the water meter
efficient manutention of its equipment. However, when it comes to replacement.
the processing of real metering data, several difficulties arise.
It is well known that mechanical water meters metrology be-
comes more and more inaccurate during their operating life- Conclusion and Future Work
time due to the “wear and tear” of the measuring components
(Mutikanga et al. 2011). As already mentioned, there are several Nowadays, water utilities have an essential role in managing water
studies [e.g., Arregui et al. (2006, 2013) and Pacheco et al. (2020)] and wastewater services. One of the problems they face is nonreve-
that analyze the influence of parameters in the water meter met- nue water due to apparent losses. The procedure developed gener-
rology such as fatigue tests, depositions, incorrect water meter siz- ates an alert based on decreasing water consumption patterns to
ing, water consumption patterns, among others. Apparent losses accomplish the water company’s challenge, contributing to water
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occur due to inaccuracies in metering, illegal use, meter reading meter performance assessment. It was developed and implemented
errors, data handling, and billing errors. These type of losses has using R language and is supported by reliable statistical methods.
a significant impact on the revenue of the water companies. The Besides, a new quantitative measure, designated as RMC, is pro-
cost for the utility of a cubic meter of real losses is much less than posed. The objective is to obtain a magnitude of the water usage
the price of a cubic meter of apparent losses. This issue is of great change, which can help decide on the meter’s replacement. The
importance because while real losses are easily recognized, appar- water company must also investigate the decline of the consump-
ent losses are not perceived well likely because apparent losses tion (RMC < 0) since it might be related to a possible anomaly in
cannot be directly seen and are mostly related to economic losses. the meter. If so, it is the ideal time to replace it. The inclusion of this
Arregui et al. (2006) present extensive work regarding this issue, new approach in a system that automatically analyzes the data and
and one key observation is that the water company should study updates the information could be the solution sought by water com-
the client’s water consumption patterns (private domestic or indus- panies to mitigate the impact of apparent water losses.
trial). Additionally, Oviedo-Ocaña et al. (2020) also suggest that The proposed approach was successfully applied to eight-
customer meter renovation is an alternative to reduce apparent time series of billed water consumption from two locations in the
losses, mitigating inaccuracies associated with the aging of these Algarve, Portugal, representing three different consumption pat-
devices. terns. The data were collected by meters (Residential Households
So far, the usual mechanisms of analyzing the water consump- and the hotel) and smart meters (nonresidential households). A
tion are performed on a bigger scale, such as considering all the complement is the visual inspection of the results and their inter-
consumers/water meters of cities, as in Monedero et al. (2016) and pretation. This is also a valuable tool worth exploring to understand
Hester and Larson (2016). To the best of our knowledge, no similar and derive more insights into the consumption pattern. Moreover,
approach to the one proposed has been developed to examine water the procedure was able to identify points in time that coincide with
consumption trends for a single water meter. Its purpose is to con- the date of replacement of the meters. In some cases, they were
tribute to a better understanding of water consumption by providing detected earlier than the company’s decision on the water meter
useful guidance on the replacement of the meters. It will also pro- replacement. As so, an alert would have been useful for the com-
vide better analysis and a new perspective on water usage within pany to minimize revenue loss.
water management. In future work, it is planned a simulation study on water con-
The case study involved houses with different characteristics sumption to evaluate the approach’s performance based on quanti-
(residential and nonresidential, mainly for holidays), and a hotel, tative metrics. Furthermore, an association of the decreasing trend
from the Algarve. The Algarve is a popular summer holiday desti- with socio-economic aspects could explain the change in consum-
nation with a Mediterranean climate, meaning hot summers and ers’ behavioral patterns. The latter was not performed because it
mild winters. This seasonal effect is estimated by stl.fit() and re- was out of the paper scope. Future research on this topic should
moved. The strategy proceeds as follows: breakpoint analysis, non- be considered to refine and explain the changes in water usage. This
parametric trend analysis, and its magnitude, and a change of water strategy’s extension to identify increasing patterns is straightfor-
consumption indicator are calculated. The combination of the meth- ward, translating into a viable approach to manage NRW, alert con-
odologies was able to detect statistically significant decreasing serving water resources, and encourage responsible water use.
trends associated with points in time (i.e., breakpoints) where these
changes occur and in some cases even earlier than the company’s
decision on the water meter replacement. This is an added value of Data Availability Statement
the strategy. If the water meter is replaced too late, a significant rev-
enue loss (caused by meter under-registration) may occur. On the The data, models, and the code used that support this study’s find-
other hand, if detected after the actual replacement means that it ings are available in a repository online: https://github.com/Clara
was replaced too soon. Therefore, this approach could become a Cordeiro/StrategyWaterMeterPerformance.
useful tool to use by the water companies because it provides a bet-
ter understanding of water consumption patterns and makes a con-
scious decision regarding the water meter maintenance (to replace Reproducible Results
or not). The proposal for a unitless indicator of the magnitude of
change allows companies to analyze water meters from different Soraia Pereira (Universidade de Lisboa) downloaded all the ma-
infrastructures, with different water volumes such as a household terials, installed, ran the models using the data and functions in
or a hotel. The decision to replace the water meter is of the water “Workspace_data_functions.RData”, and reproduced the results in
company’s responsibility, which must weigh the cost-benefit of Tables 1 and 2.

© ASCE 05021027-9 J. Water Resour. Plann. Manage.

J. Water Resour. Plann. Manage., 2022, 148(2): 05021027


Acknowledgments Gelažanskas, L., and K. A. Gamage. 2015. “Forecasting hot water consump-
tion in residential houses.” Energies 8 (11): 12702–12717. https://doi.org
The authors would like to thank the editors, two referees, and a /10.3390/en81112336.
reproducibility reviewer for their constructive comments and sug- Gocic, M., and S. Trajkovic. 2013. “Analysis of changes in meteorological
gestions, which greatly improved this paper and the information variables using Mann-Kendall and Sen’s slope estimator statistical tests
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www.cm-loule.pt/pt/Default.aspx) for providing the water con- .0000659.
sumption data and inside technical guidance. Clara Cordeiro is par- Hyndman, R., G. Athanasopoulos, C. Bergmeir, G. Caceres, L. Chhay, M.
tially financed by national funds through FCT—Fundação para a O’Hara-Wild, F. Petropoulos, S. Razbash, E. Wang, and F. Yasmeen.
Ciência e Tecnologia under the project UIDB/00006/2020. Ana 2021. “Forecast: Forecasting functions for time series and linear mod-
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Borges work has been supported by national funds through els.” Accessed June 1, 2021. http://pkg.robjhyndman.com/forecast.
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UIDB/04728/2020. M. Rosário Ramos was partially supported and practice. 2nd ed. Melbourne, Australia: OTexts.
Hyndman, R. J., and A. B. Koehler. 2006. “Another look at measures of
by National Funding from FCT—Fundação para a Ciência e Tec-
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nologia under the project UIDB/04561/2020. /10.1016/j.ijforecast.2006.03.001.
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