EU regulation
EU leakage assessment, by ILI.
The recast Drinking Water Directive moved leakage out of the internal KPI pack and into a figure that has to be assessed, evidenced and sent to Brussels. The obligation sits with the member state, but the numbers come from utilities – which means the quality of your water balance is now somebody else's problem too.
What the directive actually changed
Directive (EU) 2020/2184 recast the EU’s drinking water rules in 2020. Most of the attention went to the parameters at the tap. The quieter change was Article 4(3): for the first time, how much water leaks out of a network on the way there became something a member state has to measure, evidence and report.
The method is named. Leakage is assessed using the Infrastructure Leakage Index, or another method of comparable rigour. That matters more than it sounds, because ILI is a ratio rather than a percentage, and a ratio survives comparison between countries in a way that “we lose 18% of system input” does not.
One distinction worth keeping straight: the obligation belongs to the member state, not to you. No utility is required by Brussels to file anything. But a national authority cannot report a number it does not have, so the requirement lands on utilities anyway, through whatever national instrument was used to transpose it.
Who is in scope
The assessment has to cover at least water suppliers distributing 10,000 m³ per day or more, or serving 50,000 people or more. That is a floor, not a ceiling – some member states collect from a wider set. A mid-sized municipality is often just under it and asked anyway, because the national authority would rather have the coverage.
The timetable
- 12 January 2026 – done. Member states had to communicate their leakage assessment to the Commission. This date has passed; most of the work now visible in the sector is the second round of it, and utilities that supplied a weak first number are being asked for a better one.
- 12 January 2028. The Commission adopts a delegated act setting a threshold, based on ILI or another appropriate method.
- After the threshold lands. Member states above it have to present an action plan. That pushes the work back down to the utilities that make up the national figure.
The gap between now and 2028 is the useful part. A utility that spends it turning an annual estimate into a measured, zone-level balance arrives at the threshold with a defensible number and a trend. One that waits arrives with a spreadsheet.
What you need in place to produce the number
An ILI is only as honest as the water balance underneath it, and a water balance needs four unglamorous things.
- Every input measured. System input meters on each source into the network, reading reliably. A balance missing one input is not a balance.
- Zones that are real. The network divided into districts with known, actually-closed boundaries. One partly open valve moves a neighbour’s consumption into your loss figure.
- Readings on one clock. A zone meter read at midnight against customer meters collected over three weeks compares two different stretches of time, and the remainder is arithmetic noise. Synchronise first, subtract second.
- Real losses separated from apparent ones. ILI is about real losses – water through a hole. Meter under-registration, unauthorised use and data-handling errors are apparent losses, and counting them as leakage sends crews to look for a pipe problem that is sitting in the accounting.
Water loss management on Divako is built around exactly these four, and non-revenue water for municipalities walks through what the balance is made of.
What to watch out for
- A first ILI is usually wrong, and that is fine. The first number a utility computes is generally a statement about its data quality rather than its pipes. Publish it internally, find what it is really measuring, and improve the inputs before the number goes anywhere official.
- Apparent losses flatter and punish at random. An ageing meter fleet that under-registers at low flow moves water from “billed” into “lost” and inflates your real-loss figure. Check meter age and drift before you conclude the network is leaking.
- UARL is sensitive to pressure. The unavoidable-losses denominator depends on average operating pressure, so a pressure figure that was assumed rather than measured moves the ILI without anything changing in the ground. Measure it.
- Do not quote a 2028 threshold. It does not exist yet. Plan for the mechanism – assessment, threshold, action plan – and leave the number blank until the delegated act is published.
- Transposition varies. The directive sets the floor; national law sets what your regulator actually asks for, in what format, and how often. Check the national instrument, not just the directive.
What you get
- A continuous water balance per zone, not an annual estimate
- Real and apparent losses separated, so the ILI input is the right number
- System input, zone boundary and customer meters in one hierarchy
- Synchronised readings, so a difference across a zone means something
- Validation on gaps, duplicates and stalled meters before anything is subtracted
- An auditable trail from a reported figure back to the readings behind it
- Exports for national leakage reporting and for the annual accounts
Questions
Frequently asked
What does the Drinking Water Directive require on leakage?
Article 4(3) of directive (EU) 2020/2184 requires each member state to assess how much water its networks lose, and the potential to reduce it, using the Infrastructure Leakage Index or another method of comparable rigour. The assessment had to reach the Commission by 12 January 2026. It is an obligation on the member state, not directly on the individual utility – but the state can only report what its utilities can measure.
Which utilities are in scope?
The assessment has to cover at least the suppliers distributing 10,000 m³ a day or more, or serving 50,000 people or more. Smaller suppliers are outside that floor, though several member states have chosen to collect more widely. If you are near the threshold, assume you will be asked.
What is the Infrastructure Leakage Index?
A ratio: the real losses a network actually has, divided by the real losses a network of that shape could not realistically avoid. Because the denominator accounts for mains length, connection count and pressure, two very different networks can be compared honestly – which a plain percentage of system input cannot do. An ILI of 1.0 means a network is losing about as little as its physical layout allows.
What happens in 2028?
By 12 January 2028 the Commission adopts a delegated act setting a threshold, based on ILI or another appropriate method. Member states sitting above it have to present an action plan. The figure itself has not been published, so anyone quoting one today is guessing – what is fixed is the date and the mechanism.
Does Divako make us compliant?
No, and be wary of anyone who says otherwise. Compliance is the member state's obligation and the reporting is your utility's work. What Divako does is produce the measurement underneath it: a continuous water balance per zone, real losses separated from apparent ones, and a trail from the reported figure back to the readings it came from.
Your network
Get to a number you can defend.
Tell us how your zones are laid out and where the input meters sit. We will walk through what your leakage assessment would be built from, and what is missing – about 30 minutes.