1. ASSESSMENT OF WATER USE EFFICIENCY IN RAND WATER’S AREA OF SUPPLY PRESENTATION TO: MINING AND INDUSTRIAL FORUM PRESENTATION BY: SHUNTELLE GOW DATE: 26 MAY 2016

2. BACKGROUND In November 2009, Rand Water applied for an increased abstraction license from the Vaal Dam. DWS response in November 2012 indicated that no application from Rand Water for abstraction rights in excess of 1600 million cubic meters per annum (Mm³/a) will be approved prior to the completion of Phase 2 of the Lesotho Highlands augmentation scheme Rand Water should provide a new application that is supported by its customers in terms of specific plans to manage demand, as well as the processes and protocols to be followed in the event of failure to limit demands and/or the need to apply restrictions By 2013, the demand on Rand Water systems and the abstraction rate had already exceeded the 1600 Mm³/a limit

3. © SAP 2008 / Page 3 PROBLEM STATEMENT

4. © SAP 2008 / Page 4 PROBLEM STATEMENT

5. © SAP 2008 / Page 5 PROBLEM STATEMENT Service a growing water demand with current supply levels until possibly 2024 only achievable through WDM Rand Water must assist our customers to improve water use efficiencies. Service a growing water demand with current supply levels until possibly 2024 only achievable through WDM Rand Water must assist our customers to improve water use efficiencies.

6. STRATEGIC ROLE Rand Water’s strategic role in WC/WDM Establishment of regional strategy and optimal demand targets Assist WSA in the implementation of WC/WDM when required Implement WC/WDM measures in own systems Co-ordinate the implementation of regional WC/WDM measures Participate in development and implementation of catchment management strategies NATIONAL STRATEGY FOR WATER CONSERVATION AND WATER DEMAND MANAGEMENT Rand Water’s role in terms of the National Strategy is shown in the adjacent diagram

7. © SAP 2008 / Page 7 1.Utilize the Rand Water bulk meter information to: a.Develop a tool to scientifically determine the water use efficiencies in Rand Water’s Area of Service and on which demand projections and targets could be based b.Assess municipal consumption and growth in demand, c.Understand end-consumer consumption patterns 2.Establishment of an integrated planning, WC/WDM forum with top 5 municipalities (Forums established with EMM and CoT). The main objectives from a WDM perspective are the following: SUPPORT TO MUNICIPALITIES

8. © SAP 2008 / Page 8 3.Formalize partnerships for support and implementation of water conservation and demand management projects o 3-year agreement with Rustenburg Local Municipality - Development of a WC/WDM business plan and prioritization of high impact projects. Agreement in place until May 2016 o Assessed and developed the WC/WDM business plan for Emfuleni Local Municipality. Submitted application for funding o Appointed by DWS for the assessment and development of a WC/WDM business plan for the Western Highveld Region. Rand Water was appointed as Implementing Agent for the implementation of the project 4.Co-ordinate and consolidate regional public education and awareness campaigns targeting the priority areas identified by the water use efficiency model (e.g. ‘Be the Hero’ campaign) SUPPORT TO MUNICIPALITIES

9. STRATEGIC ROLE Rand Water’s strategic role in WC/WDM Establishment of regional strategy and optimal demand targets Assist WSA in the implementation of WC/WDM in when required Implement WC/WDM measures in own systems Co-ordinate the implementation of regional WC/WDM measures Participate in development and implementation of catchment management strategies NATIONAL STRATEGY FOR WATER CONSERVATION AND WATER DEMAND MANAGEMENT Rand Water’s role in terms of the National Strategy is shown in the adjacent diagram

10. © SAP 2008 / Page 10 WATER USE EFFICIENCY ASSESSMENT a. Development of a decision-making tool - water use efficiency model o Water use efficiency model developed by Rand Water o Based on the scientific determination of a normal/expected demand and comparison with actual consumption o Developed 300 categories and assigned a normal consumption to each o Ratio of current/actual consumption to normal demand is defined as water use efficiency index (WUEI) and colour graded as follows:

11. © SAP 2008 / Page 11 Basis for the model includes: Determination of a ‘normal’ or theoretical water use per sub place, rolled up per metering area and ultimately to municipal level ‘normal’ water use – based on planning guidelines (Red Book), Census 2011 and infrastructure data on GIS, master planning principles/information obtained from municipalities and their service providers WATER USE EFFICIENCY ASSESSMENT

12. © SAP 2008 / Page 12 o Determination of Normal Use - Level of service factors Level of serviceCategories Water serviceNo piped water CSP > 200m, CSP < 200m, yard connection House connection Sanitation serviceNo waterborne toilet Flush toilet (with septic tank) Flush toilet (connected to sewerage system) Dwelling typeInformal dwelling Multiple domestic Traditional dwelling Brick house on stand Income levelIndegent Low income Medium income High income Unspecified income WATER USE EFFICIENCY ASSESSMENT

13. © SAP 2008 / Page 13 WATER USE EFFICIENCY ASSESSMENT

14. © SAP 2008 / Page 14 Determination of actual consumption: Rand Water sales information for 2013/2014 was obtained and linked to respective supply meters on GIS Meter and sales volumes were extracted for Sub Places, rolled up into DMAs and ultimately to Municipality level Ratio of actual consumption to a normal/expected use is referred to as Water Use Efficiency Index (WUEI) WATER USE EFFICIENCY ASSESSMENT

15. © SAP 2008 / Page 15 WUEI of 1 and below are good and is indicative of consumption levels that are close to the typical or expected demand WUEI greater than 1 indicate consumption levels that exceed the expected demand and may be due to inefficient water use practices and or losses. WATER USE EFFICIENCY ASSESSMENT

16. © SAP 2008 / Page 16 WATER USE EFFICIENCY ASSESSMENT

17. © SAP 2008 / Page 17 Potential residential water use reduction (based on 2014) Water use efficiency index (greater than) % reducible excess potential 2.0025% 1.2515% 1.005% 0.750% 0.000% WATER USE EFFICIENCY ASSESSMENT

18. © SAP 2008 / Page 18 NEXT STEPS

19. © SAP 2008 / Page 19 NEXT STEPS

20. © SAP 2008 / Page 20 Stakeholder engagement process: Internal SALGA Municipalities City of Johannesburg through it entity Johannesburg Water Ekurhuleni Metropolitan Municipality City of Tshwane Emfuleni Local Municipality Merafong City Local Municipality Rustenburg Local Municipality Mogale City Local Municipality Metsimaholo Local Municipality Randfontein Local Municaipality Westonaria Local Municipality Water Services Forum Other: Vaal River Strategic Steering Committee Water Leakage Summit at DBSA in August 2015 WATER USE EFFICIENCY ASSESSMENT

21. © SAP 2008 / Page 21 WATER USE EFFICIENCY ASSESSMENT Mine /Industrial DMA Meter Name 1Kloof Mine Westonaria DMA KLOOF-A DIVISION OF KLOOF G M CO LTD 2Libanon Mine Westonaria DMA MINE 3Western Areas Mine Westonaria DMA WESTERN AREAS MINE 4Blyvooruitzicht Mine Merafong DMA MINE 5Elandsrand Mine Merafong DMA MINE 6Aglo Ashanti North Mine Merafong DMA MINE NORTH 7Aglo Ashanti South Mine Merafong DMA MINE SOUTH 8Blyvooruitzicht No2 Mine Merafong DMA NO 2 SHAFT 9GFI Mine Merafong DMA NO 4 SHAFT (2) 10Aglo Ashanti No7 Mine Merafong DMA NO 7 SHAFT SOUTH 11Elandsrand Township Mine Merafong DMA TOWNSHIP 12Impala Plats Mine Rustenburg DMA BAFOKENG MINE 13African Products Industr Midvaal DMA BLESBOKLAAGTE 14Diepkloof Prison Johannesburg DMA DIEPKLOOF PRISON 15Randfontein Doornkop Mine Johannesburg DMA DOORNKOP 16West Plat Elands Mine Madibeng DMA ELANDSDRIFT 17Germiston Station Germiston DMA GERMISTON STATION 18OR Tambo Airport Ekurhuleni DMA JAN SMUTS AIRPORT 19West Plat Karee Mine Rustenburg DMA KAREE MINE 20Rust Plat Klipf Mine Rustenburg DMA KLIPFONTEIN 300 JQ 21Knights Mine Ekurhuleni DMA KNIGHTS MINE 22Kroondal Mine Rustenburg DMA KROONDAL PLATINUM MINE 23Randfontein A Mine Randfontein DMA RANDFONTEIN A 24Impala Plat Mine Rustenburg DMA REFINERIES 25Rust Plat Rust Mine Rustenburg DMA RUSTENBURG PLATINUM MINE 26Ergo Mine Johannesburg DMA SAND DUMP RECLAMATION 27Kroondal Spruitf Mine Rustenburg DMA SPRUITFONTEIN BRAKSPRUITFONTEIN 28VALINDABA Industr Madibeng DMA VALINDABA 29Glencore Wonderkop Mine Rustenburg DMA WONDERKOP PLANT

22. © SAP 2008 / Page 22 WATER USE EFFICIENCY ASSESSMENT

23. © SAP 2008 / Page 23 WATER USE EFFICIENCY ASSESSMENT

24. © SAP 2008 / Page 24 WATER USE EFFICIENCY ASSESSMENT DMA for mines/industries were determined – based on top 30 non-residential customers (or above 60 000 kl/month) Smaller users in close proximity from one another are grouped together The actual consumption for the mine DMAs is available Need to determine the normal efficiency to do the comparison Until better information is available the Rand Water average WUE I of 1.3 is assumed

25. © SAP 2008 / Page 25 The water use model provides an overview of the efficiencies in Rand Water’s Area of Supply Utilize scientific model to implement water demand management interventions on a regional level: o Determination of demand or reduction targets for the municipal customers (or the region) as required by new licensing conditions o Determination and implementation of supply quotas during emergency situations (e.g. restrictions, high demand periods, etc.) o Design and implementation of stepped-tariff to reduce inefficient water use o Monitor and evaluate the effectiveness of WDM programmes implemented by municipal customers o Develop into a Regional Management Information System APPLICATION OF THE MODEL

26. ASSESSMENT OF DEMAND ASSESSMENT OF DEMAND Analysis of historical consumption (20yrs), growth in demand and projected growth o Analyze and understand factors resulting in the decline in consumption – identify good practices that yield results, consider sustainability of interventions towards achieving the 1600 Mm³/annum abstraction limit, etc. o Analyze increase in consumption on meter level, identify opportunities for demand management o Holistic assessment of factors for growth in demand (as shown in diagram)

27. FACTORS FOR GROWTH Political factors Addressing historical inequalities - supply to unserviced areas Expansion of supply area - Ministerial directives Increased level of service Economic al factors Cost of water - tariff structure (no step tariff), flat rate Billing and revenue collection Unemployment and poverty levels Social factors Growth in population Growth in the development of areas End-consumer behaviour and practices - inefficient use of water Technolog ical factors Change in supply nodes Metering inaccuracies Deviations from normal operating mode Inefficiencies/losses in municipal distribution network (poor infrastructure condition, lack of maintenance, interruptions in supply, pressure management issues, system leakages, etc. ) Inefficiencies and losses on properties (faulty plumbing devices, etc.) Legal factors Access to water - constitutional right Free basic water policy implementation Environme ntal factors climatic conditions - high temperatures, dry periods - resulting in excessive storage of water by consumers, etc.

28. © SAP 2008 / Page 28 ASSESSMENT OF DEMAND Understand growth in demand Distinguish between growth, inefficient water use and water losses Focus on the reduction of inefficient use and losses

29. ASSESSMENT OF DEMAND Example:

30. ASSESSMENT OF DEMAND Example:

31. ASSESSMENT OF DEMAND Example:

32. ASSESSMENT OF DEMAND Example:

33. © SAP 2008 / Page 33 Some of Rand Water’s meters are on direct connections, i.e. without reservoirs downstream of the meters This enables Rand Water to measure the actual consumption patterns of the end-user Rand Water has logged a number of these meters over 7-day periods in 2014 and 2015. Based on the flow pattern, 34 meters were identified as direct supply meters – impact of mode of operations needs to be confirmed with the respective municipalities This analysis was also driven by the need for closer cooperation and sharing of information between water services authorities and providers in the Province ANALYSIS OF END-CONSUMER CONSUMPTION PATTERNS

34. © SAP 2008 / Page 34 Minimum Night Flow (MNF) analysis was done on the 34 direct meters Is a common method used to evaluate water losses in a water network. The ratio of MNF to average daily flow is often used as a rough indicator of leakage levels. A target value of around 20% would normally be considered in the industry as acceptable ANALYSIS OF END-CONSUMER CONSUMPTION PATTERNS

35. © SAP 2008 / Page 35 Example: Minimum Night flow analysis on direct meters ANALYSIS OF END-CONSUMER CONSUMPTION PATTERNS Direct Meter 1 Direct Meter 2

36. © SAP 2008 / Page 36 MunicipalityMeter nameAverage Flow in Ml/dMNF in Ml/dMNF % Municipality 1 #17.976.7084% Municipality 1 #210.255.7656% Municipality 1 #39.004.4950% Municipality 1 #44.613.5377% Municipality 1 #54.423.5380% Municipality 1 #66.311.5124% Municipality 1 #73.020.052% Municipality 2 #866.9856.5984% Municipality 2 #945.0231.9271% Municipality 2 #1013.0612.1093% Municipality 2 #1112.9611.2387% Municipality 2 #128.096.9185% Municipality 2 #1310.276.9167% Municipality 2 #1411.235.7651% Municipality 2 #154.153.1075% Municipality 2 #162.401.6870% Municipality 2 #171.921.1359% Municipality 2 #181.661.0362% Municipality 3 #1939.0733.0084% Municipality 3 #2023.4216.7872% Municipality 3 #2116.259.7760% Municipality 3 #2212.268.1166% Municipality 3 #237.785.5772% Municipality 3 #2415.144.7832% Municipality 3 #254.302.6461% Municipality 3 #264.492.3051% Municipality 4 #278.025.7171% Municipality 5 #2811.818.5472% Municipality 5 #293.072.1169% Municipality 6 #3013.3710.2777% Municipality 6 #316.464.2265% Municipality 6 #322.381.7574% Municipality 7 #3313.016.2448% Municipality 7 #346.141.4423% TOTAL ALL DIRECT410.28287.1670% About 10% or RW total supply ANALYSIS OF END-CONSUMER CONSUMPTION PATTERNS

37. © SAP 2008 / Page 37 ANALYSIS OF END-CONSUMER CONSUMPTION PATTERNS

38. © SAP 2008 / Page 38 ANALYSIS OF END-CONSUMER CONSUMPTION PATTERNS Categories of MNF

39. © SAP 2008 / Page 39 COMPARISON WITH SUPPLY VOLUMES

40. © SAP 2008 / Page 40 In comparison with water use efficiency model developed by Rand Water, the majority of the 34 selected meters (about 21) are located in the low and no efficiency areas. The likelihood is great that the MNF of these meters are mainly attributed to losses in distribution systems and end- user properties A breakdown of the MNF into components was done using South African Night flow user guide principles, WRC reports, Water balance information from DWS website and Rand Water model MNF AND WUE MODEL

41. © SAP 2008 / Page 41 COMPONENTS OF MNF The losses are predominantly on properties.

42. © SAP 2008 / Page 42 IMPLICATIONS Description ENVIRONMENTALFINANCIAL Mℓ/dkℓ/d kℓ/ Month kℓ/ annum Rand Value/day Rand value/month Rand value/ annum Night leakage (96% of MNF) Distribution system night leakage 79.979 9002 436 95029 243 400R 479 400R 14 621 700R 175 460 400 Customer night leakage 196.4196 4005 990 20071 882 400R 1 178 400R 35 941 200R 431 294 400 TOTAL LEAKAGE276.3276 3008 427 150101 125 800R 1 657 800R 50 562 900R 606 754 800 TOTAL DIRECT SUPPLY410410 00012 710 000149 650 000R 2 460 000R 76 260 000R 897 900 000 The financial implication is for municipalities but represents an indirect/potential impact on Rand Water

43. © SAP 2008 / Page 43 RECOMMENDATIONS Reduction of distribution losses o Improved management through sectorization, water balance and response to leaks – (know network, utilize all available information optimally) o Active and passive leakage control (don’t ignore simple methods) o Pressure management (highly effective WDM intervention) Reduction of customer leakage (where the majority of losses occurs) o Retrofitting household plumbing fittings o Installation of water efficient devices o Public education and awareness campaigns

44. © SAP 2008 / Page 44 RW has a better understanding of the water use patterns and inefficiencies in its Area of Supply Able to have focused sessions with municipalities/customers on demand and planning issues Development of the scientific model enables Rand Water to fulfill its role in accordance with the National WC/WDM strategy of DWS Participate and facilitate the integration of bulk supply planning for the region Facilitate the development of demand targets – scientifically determined CONCLUSION

45. © SAP 2008 / Page 45 Identify and prioritize high demand areas for further investigation Assist in the identification of appropriate WC/WDM programmes/measures to be implemented Monitor and evaluate the effectiveness of WC/WDM programmes implemented in the area of supply Implementation of appropriate water demand management interventions that is determined scientifically for the region, e.g. bulk stepped-tariff or supply quotas during emergencies or when restrictions are imposed CONCLUSION

46. © SAP 2008 / Page 46 IN A NUTSHELL….. A systematic and scientific approach is used by Rand Water that ensures water demand management is applied equitably across its customer base.

47. Thank You