Water losses in distribution networks, known internationally as Non-Revenue Water (NRW), represent one of the most significant structural challenges in the water supply sector. NRW includes volumes of produced water that are not billed, either due to physical losses (leaks, bursts) or commercial losses (inaccurate metering, unrecorded consumption). In many European cities, these losses reach levels that directly affect the financial sustainability of operators, energy efficiency, and the capacity to adapt to climate change.

In this context, Directive (EU) 2020/2184 on drinking water and the report Reducing Urban Water Losses prepared by Water Europe, with contributions from State of Green, provide a complementary framework: one regulatory, the other strategic and operational.

1. Water Losses in Directive (EU) 2020/2184 – Relevant Articles and Annexes

Official text of Directive (EU) 2020/2184 (RO)

Directive (EU) 2020/2184 on the quality of water intended for human consumption – English
https://op.europa.eu/en/publication-detail/-/publication/7e65c36f-44c0-11eb-b59f-01aa75ed71a1/language-en

While the primary objective of the Directive is to protect public health by ensuring the quality of drinking water, it introduces explicit European-level requirements for the assessment of water losses for the first time.

Article 4 – General Principles

Article 4 establishes the obligation of Member States to take measures to ensure efficient use of water, given increasing pressures on resources:

„Member States shall take the necessary measures to improve or maintain access to water intended for human consumption, paying particular attention to the reduction of water losses.”

Water losses are thus recognized as a matter of public interest, not merely an operational issue.

Article 13 – Consumer Information

Article 13 introduces extended transparency requirements, including the obligation to provide relevant information on the performance of water supply systems.

Information to be made available to consumers includes:

  • system efficiency indicators;

  • information on efficient water use;

  • levels of water losses, where data are available.

Water losses therefore become publicly visible, not just internally reported to authorities.

ANNEX IV – Information on Water Intended for Human Consumption

Part B – Assessment of Water Loss Levels

This is the key section of the Directive regarding NRW.

Annex IV, Part B explicitly states:

Member States shall ensure that the level of water losses is assessed at least once per year.

The assessment should use:

  • standardized, internationally recognized indicators;

  • data comparable between operators and Member States.

The Directive explicitly mentions:

  • water losses (%)

  • Infrastructure Leakage Index (ILI)

This represents an official recognition of the IWA methodology as a technical reference.

Directiva UE 2020/2184 – a detailed assessment is required.

This assessment must include:

  • analysis of the causes of losses;

  • evaluation of the technical and economic efficiency of reduction measures;

  • identification of appropriate actions.

⚠️ The Directive does not mandate automatic reduction, but it requires justification for inaction.

2. The Reducing Urban Water Losses Report – Water Europe / State of Green

Full report:

Reducing Urban Water Losses – White Paper (State of Green / Water Europe)
https://stateofgreen.com/en/publications/reducing-urban-water-loss/

The report addresses NRW from a strategic perspective, focusing on the economic, energy, and climate impacts of water losses.

Key Messages:

  • NRW represents one of the largest sources of inefficiency in urban water systems.

  • High losses affect:

    • the financial sustainability of operators;

    • energy consumption and carbon footprint;

    • the ability to adapt to droughts and extreme events.

  • Reducing NRW requires an integrated approach, combining:

    • coherent public policies;

    • effective regulation;

    • long-term planning;

    • digital technologies (monitoring, data analytics, sensors, smart metering).

The report presents international case studies showing that water loss reduction is possible through:

  • active network management;

  • targeted investments;

  • governance and institutional capacity.

3. Convergence Between the Directive and the Report

Directive (EU) 2020/2184:

  • provides the legal framework for measurement, reporting, and transparency;

  • introduces standardized indicators (ILI, % losses);

  • requires detailed assessments when losses are high.

Water Europe Report:

  • provides tools and action models to comply with the Directive;

  • demonstrates, through concrete examples, how losses can be reduced sustainably.

Together, the two documents support a shift from reactive approaches to strategic management of water losses.

Water losses can no longer be treated as an “inevitable cost” of network operation.
Through Directive (EU) 2020/2184, the EU places water losses within the scope of public responsibility and sector governance, while the Reducing Urban Water Losses report by Water Europe provides concrete directions for action.

NRW reduction thus becomes:

  • a public policy objective;

  • a performance indicator;

  • a central element of urban resilience and the sustainability of water services.