Non-Revenue Water Implications on Organisation Operation Cost and Customer Satisfaction: A Case of Musoma Urban Water Supply and Sanitation Authority (MUWASA)

Document Type : Original Article

Author

Mfumuni, Tanzania.

Abstract

Purpose- This study examined the effects of non-revenue water (NRW) on organisation running costs and customer satisfaction. The intention was to describe the NRW's effects on the MUWASA's performance as a case study. Specifically, it identified factors prompting non-revenue water; described the NRW effects on organisation running costs; and examined the level of customer satisfaction towards service provision.
Design/methodology/approach- A purposive sampling technique was used to pick respondents for the household survey and key informant interview. The study included 100 respondents (70 connected customers and 30 employees of the authority). MUWASA serves 5 zones of the municipality; therefore, the study obtained 70 connected customers from the five zones of the authority. The household survey and the key informant interviews (KII) were the main data collection methods, the survey technique was used to collect data from 100 respondents and seven were involved in key informant interviews.  Descriptive and inferential statistics and content analysis were used in data analysis.
Findings- The findings have indicated that NRW affects the water utility revenue collection, and organisation running costs, which jeopardizes customer satisfaction with the organizational service delivery. 
Originality/value- Based on the National Water Policy of 2002 which aims at achieving sustainable, effective, and efficient development and management of Water Supply and Sanitation one of its objectives is to create an enabling environment and appropriate incentives for the delivery of reliable, sustainable, and affordable water supply and sanitation services. Therefore, the findings of this study are a catalyst for the improvement of the set policy objectives and enhance interventions where necessary.

Keywords

Main Subjects


  1. AWWA (2004). Customer Attitudes, Behaviour, and the Impact of Communications Efforts, American Water Works Association, 2004
  2. Bryman, A. (2007) Planning a research project and formulating research questions. In: Business Research Methods. New York: Oxford University Press. p. 75-92.
  3. Creswell, J. W. (2015). A Concise Introduction to Mixed Methods Research. Thousand Oaks, CA: SAGE.
  4. Daniel, N. C., & Berinyuy, P. L. (2010) Using the SERVQUAL model to assess service quality and customer satisfaction. An empirical study of grocery stores in Umeå. MA Dissertation. Umeå University, Sweden.
  5. EWURA (2021). Water Utilities Performance Review Report for Financial Year 2020/21. Energy and Water Utilities Regulatory Authority. United Republic of Tanzania.
  6. Frauendorfer, R., & Liemberger, R. (2010). The Issues and Challenges of Reducing Non-revenue Water. Asian Development Bank (ADB). Mandaluyong City, Philippines, pp. 51.
  7. George, T. (2022). Mixed Methods Research| Definition, Guide & Examples. In [https://www.scribbr.com/methodology/mixed-methods-research/] Retrieved on 4th October, 2022
  8. JICA (2020). Key Points on Non-Revenue Water Reduction Projects. Project Research. Final Report. Japan International Cooperation Agency (JICA). Nippon KOEI Co., Ltd and Yokohama Water Co., Ltd. February, 2020.
  9. Leavy, P. (2017) Research Design. Quantitative, Qualitative, Mixed Methods, Arts-Based and Community-Based Participatory Research Approaches. Inc. 370 Seventh Avenue, Suite 1200, New York, NY 10001: The Guilford Press, A Division of Guilford Publications.
  10. Martins, J. P. (2014) Management of change in water companies: In search of sustainability and excellence. IWA Publishing, 13. DOI: https://doi.org/10.2166/9781780406510
  11. Ndengwa, L.M. (2016) The impact of non-revenue water on water utilities and their customers: A study of Nairobi City Water and Sewerage Company. BSc Dissertation. Nairobi University.
  12. Parasuraman, A. (1985). A Conceptual Model Service Quality and Its Implications for Future Research. Journal of Marketing42. https://doi.org/10.1177/002224298504900403
  13. Parasuraman, A., Berry, L. L., & Zeithaml, V. A. (1991). Refinement and reassessment of the SERVQUAL scale. Journal of retailing67(4), 420. https://www.proquest.com/openview/20ce41a3232b328q-origsite=gscholar&cbl=41988
  14. Oliver, R. L. (1980). A cognitive model of the antecedents and consequences of satisfaction decisions. Journal of marketing research17(4), 460-469. https://doi.org/10.1177/002224378001700405
  15. Shushu, U.P, Komakech, H. C., Dodoo-Arhin, D., Ferras, D. & Kansal, M.L. (2021), Managing non-revenue water in Mwanza, Tanzania: a fast-growing sub-Saharan African city. Scientific African, Volume 12. Doi: https://doi.org/10.1016/j.sciaf.2021.e00830
  16. Spreng, R. A., MacKenzie, S. B., & Olshavsky, R. W. (1996). A reexamination of the determinants of consumer satisfaction. Journal of marketing60(3), 15-32. https://doi.org/10.1177/002224299606000302
CAPTCHA Image