PHYSICAL SUPPLY AND USE
1 The Water Account, Australia (WAA) is one of the environmental–economic accounts produced by the ABS based on the System of Environmental–Economic Accounting (SEEA). It consists of supply and use tables (collectively referred to as flow tables) for both physical and monetary volumes.
2 The WAA integrates data from different sources into a consolidated information set making it possible to link physical data on water to economic data, such as those in Australia's National Accounts.
ENVIRONMENTAL ACCOUNTING FRAMEWORK
3 The WAA was developed using the SEEA and the SEEA–Water. SEEA was first published by the United Nations in 1993 and was elevated to an international statistical standard in 2012. Environmental accounts extend the boundaries of the System of National Accounts (SNA) framework to include environmental resources, which occur outside the economic production and asset boundaries measured by the SNA.
RELATIONSHIP BETWEEN THE WATER ACCOUNT AUSTRALIA AND NATIONAL ACCOUNTS
4 Water supply and use tables provide a framework to link core components of the National Accounts to physical information. Physical data are presented in supply and use tables while some linkages to economic data are also made.
The physical water supply and use tables present aggregates of all available physical data (megalitres) in terms of the supply and use of water within the Australian economy for the financial year 2013-14. The tables illustrate the economic use of water and include: self–extracted, distributed, regulated discharge (including in–stream use) and reuse (see Glossary for definitions of these terms).
WAA presents information on the supply and use of water in the entire Australian economy in both physical and monetary terms.
WAA includes the entire geographical area of Australia.
The scope of WAA is fresh water only. The use of saline water (including water from estuaries) for power generation and other industrial uses, although measurable and reported, is not included in the supply and use tables (with the exception of sea water used for desalination).
Coverage for both supply and use tables include the following:
- individuals and companies that directly extract water from surface water and groundwater sources for their own use (e.g. domestic, industrial, agricultural or other uses);
- households, government and businesses that use water supplied by water providers for domestic, industrial, agricultural or other uses;
- water providers that extract water from surface water, groundwater and sea water for desalination, and supply it to customers for use (e.g. domestic, industrial, or other use);
- water providers that provide reuse water to their customers; other large organisations who treat water and make it available for subsequent reuse;
- other large organisations who discharge water directly to the environment (e.g. power stations, mines); and
- major in–stream water users, for example aquaculture and hydro–electricity generation, where this information is available.
Items not covered by the supply and use tables include:
- the volume of rainwater used by agricultural crops/pastures that are directly rain fed;
- discharges to the environment resulting from the run–off of irrigation water;
- the reuse/recycling of water on–farm or on–site (i.e. within homes or businesses);
- non–point/diffuse discharges; and
- the impact of storm water infiltration into the sewerage reticulation system.
Water consumption and use
Calculating water use by industries is complex and involves a number of data sources and modelling. Water use can include self–extracted water, distributed water, or reuse water and sometimes a combination of all three sources are used. Calculating water use estimates for an industry or business is made more complicated when water is also supplied to other users, or when water is used in–stream (e.g. for cooling or hydro–power). As such simply adding self–extracted water, distributed water, and reuse water to derive a figure for total water use can be misleading.
In the WAA, volumes of water used and supplied by each industry have been balanced to derive 'water consumption'. This figure takes into account the different characteristics of water supply and use of industries and is a way of standardising water use, allowing for comparisons between industries. As such the following accounting identities have been used:
- Total water use is equal to the sum of Distributed water use, Self–extracted water use and Reuse water use;
- Water consumption is equal to the sum of Distributed water use, Self–extracted water use and Reuse water use, less Water supplied to other users, less In–stream use. The use of Distributed water by the environment (Environmental Flows – see paragraphs 32–34), is not included in total water consumption.
For most industries, water use and water consumption are the same as most industries do not have any in–stream use or supply water to other users. However, water consumption and use will vary considerably for some industries, specifically the 'Water Supply, Sewerage and Drainage Services' industry, 'Electricity Supply' and 'Gas Supply' industries and 'Mining' industry, where water supply and in–stream water use volumes are significant.
There are a variety of water sources that may be supplied as reuse water, including waste water (from sewerage systems), drainage water, storm water or other water providers (i.e. a 'bulk' reuse water supply). Sewerage systems collect and treat waste water which may be treated to primary, secondary or tertiary levels. Storm water may also be collected using infrastructure separate to sewerage systems and, depending upon its intended use, may or may not be treated before being supplied as reuse water. Drainage water is also collected in regional collection drains managed by irrigation/rural water providers. This water may be supplied as reuse water to customers or discharged to the environment. This process is analogous to urban reuse systems, however the water is typically treated in urban systems before it is supplied.
The water discharged from the economy to the environment may be regulated or unregulated. Regulated discharge refers to water discharged after use where that discharge does not match the natural flow regime of the receiving water body. For example, the waste water discharged by sewerage service providers is a regulated discharge. The water discharged by the 'Electricity and Gas Supply' industry after use in hydro–electric power generation is also regulated discharge.
The water discharged by households and other industries to sewerage or drainage systems, however, is not a regulated discharge as the water is not discharged directly to the environment. This does, however, become a regulated discharge, after it has been treated by the ‘Sewerage and Drainage Services’ industry and released back to the environment. Discharges from non–point sources, such as those from the ‘Agriculture’ industry (e.g. run–off from irrigation), are not included in this publication and are represented in the supply and use tables as "not available".
Regulated discharges in the physical supply and use tables include Environmental Flows (see paragraphs 32–34).
Data for this release are sourced from a range of ABS surveys as well as state, territory and local government agencies, water authorities and industry organisations. The main sources are listed below.
- 2013-14 Water Supply and Sewerage Services Survey (WSSS);
- 2013-14 Environmental Indicators Survey (EIS);
- 2013-14 Rural Environment and Agricultural Commodities Survey (REACS); and
- Data collected from the 2011-12 Energy, Water and Environment Survey (EWES) and the 2008–09 Electricity Generators Survey (EGS) were also used to assist in modelling water use for 2013-14.
State and Territory government agencies and major businesses (including major state/territory water corporations):
Surveys conducted by other government agencies, industry associations, and annual reports of water providers, including:
Methods for Calculating Water Supply and Use
These notes are intended as a general guide to the method of calculating estimates of water supply and use. For more detail on the methods please contact the Director, Environmental Statistics Section, Australian Bureau of Statistics.
A complete list of water providers in 2013-14 was compiled using the ABS Business Register (ABSBR) supplemented by additional information supplied by State and Territory regulatory departments, industry bodies, and other water data providers. All water providers identified were surveyed in the ABS 2013-14 WSSS.
Water providers provided information on:
- Volume of water extracted from the environment and/or the volume of water received from other water providers (this information was used to reconcile total supply and to avoid double counting of water volumes);
- Volumes of water supplied to particular industries (e.g. ‘Agriculture’, ‘Mining’ and ‘Manufacturing’) and for household use. This information was reconciled with water use as reported by water users. It also enabled the calculation of coefficients (e.g. ML/employee) for industries for which there was little or no data on water use;
- The amount of water used by the water supply organisation (including mains flushing and water used on parks and gardens operated by councils that supplied water);
- Volume of water lost from the supply system (including customer meter errors and system water losses);
- Volume of water discharged, by location;
- Volume of reuse water supplied to particular industries (e.g. ‘Agriculture’, ‘Mining’ and ‘Manufacturing’) and for household use;
- Distributed water supplied to households and the number of connections served by water supply and sewerage services. Where information was not available for distributed water supplied to households, neighbouring or matched Local Government Area (LGA) coefficients based on average megalitre use per connection were used;
- The amount of water released for environmental flows. This only includes those environmental flows released in accordance with a specific plan prepared in conjunction and/or approved by the appropriate environmental (resource) regulator (see paragraphs 32–34).
- Distributed water use is the amount supplied to the ‘Agriculture’ industry by water providers;
- Total water consumption by ‘Agriculture’ was sourced from the 2013-14 REACS. Generally, the amount of distributed and reuse water consumed (collected on the ABS 2013-14 WSSS) was subtracted from total water consumed with the remainder assumed to be self–extracted water. Note that self–extracted water for the ‘Agriculture’ industry includes all groundwater that is extracted by ‘Agriculture’ businesses;
- Reuse water usage includes water used from regional reuse schemes;
- Data for Victoria were confronted against Victorian Water Register data (Department of Environment, Land, Water & Planning, State Government Victoria, 2014);
- The data presented in this publication are slightly different to the data presented in Water Use on Australian Farms, 2013-14 (cat. no. 4618. 0). This is because of multiple data sources used in WAA, 2013-14, compared to the single source of ABS survey data used to produce Water Use on Australian Farms, 2013-14. The main differences between the two publications is the total agricultural water consumption estimates for News South Wales, which are higher in the WAA, for the reasons described above. Similar differences have occurred in previous issues of WAA and Water Use on Australian Farms;
- The physical supply and use tables present an industry view of ‘Agriculture’. The ‘Agriculture’ industry view presents only the agricultural activity that occurs in businesses where the primary income producing activity (i.e. the activity with value added that exceeds the value added of any other activity carried out by the same business) of the business is agricultural production. Businesses which undertake some agricultural activity but for which other activities provide most of the income are excluded from the ‘Agriculture’ industry view. For example, a business which generates most of its income from transporting agricultural produce, but also grows some agricultural commodities would be classified to the ‘Transport, Postal and Warehousing’ industry. The agricultural production is still counted but is attributed to the ‘Transport, Postal and Warehousing’ industry. As such the industry view of ‘Agriculture’ shows a lower level (approximately 10%) of water consumption than the agricultural activity view;
- Note also that Water Use on Australian Farms, 2013-14 presents an activity view of agriculture – therefore its total consumption estimates for all states and territories are slightly different to the industry estimates presented in the physical water supply and use tables in the 2013-14 WAA.
For ‘Mining’ and ‘Manufacturing’:
- Water use and consumption estimates (including in-stream water use and water discharges) for the ‘Mining’ and ‘Manufacturing’ industries were modelled based on information from the ABS 2011–12 EWES, information from company websites and annual/environmental reports;
- Mine dewatering is categorised as self–extracted in–stream (non–consumptive) use by the ‘Mining’ industry. The water is usually used on–site or subsequently discharged to the environment;
- Only division level estimates are published at the State/Territory level (sub-division splits are presented at the National level) due to lack of survey input data for Mining and Manufacturing industries.
For ‘Electricity Supply' and ‘Gas Supply’:
- Estimates of physical water used were modelled based on 2013-14 National Greenhouse Energy Reporting System (NGERS) data, ABS 2011-12 EWES data, ABSBR data, the 2008-09 ABS EGS of water use (a census of all energy producers with a greater than 10 MW capacity), and information from company websites and annual/environmental reports.
For ’Other’ industries (see Glossary
for list of industries):
- Estimates of physical water use were sourced from information supplied by water providers in the ABS 2013-14 WSSS, 2011-12 EWES data, ABSBR data, as well as organisational websites and annual reports. Where information was not available, data was modelled using industry specific coefficients.
For household water use:
- Distributed and reuse water use was the amount supplied to households by water providers (these data were sourced mainly from the ABS 2013-14 WSSS);
- Self–extracted water use by households not connected to mains water was calculated by applying average state "volume (kL) per connection" coefficients to the households known not to be served by water providers (estimated by subtracting the connections served by water providers from the total number of households in each State and Territory). Note that self–extracted water use estimates for households do not include rainwater tank usage for households connected to mains supply;
- Population estimates were sourced from Australian Demographic Statistics, Dec 2014 (cat. no. 3101.0).
For Rainwater Tanks:
- Water storage capacity and water use by households from rainwater tanks were sourced from the ABS publication Environmental Issues: Water Use and Conservation, March 2013 (cat. no. 4602.0.55.003), WAA, regional studies and modelled data;
- It was assumed the type of dwelling (number of bedrooms) was an indication of the size of rainwater tank the household required and could accommodate. Estimates for the number and size of dwellings are based on ABS Census of Population and Housing data and household estimates;
- The estimates of household water consumption from rainwater tanks for 2013-14 are experimental and the ABS is seeking feedback on the methodology used. For further information on rainwater tanks please refer to the feature article in the 2011-12 WAA - Experimental Estimates of Household Water Consumption From Rainwater Tanks.
For Soil Water:
- Soil water use estimates were derived from Agricultural Commodities, Australia, 2013-14 (cat. no. 7121.0), Land Management and Farming in Australia, 2013-14 (cat. no. 4627.0), the ABARES publication Australian Forest and Wood Products Statistics and Department of Agriculture & Water Resources land use management data;
- Soil water abstraction is calculated by dividing yield by a water use co-efficient then calculating total water abstracted from the area planted for agricultural commodities;
- The water use coefficient is usually measured in kg(mm x ha) for crops and in mm/year for other plants. These were constructed from an analysis of scientific case studies;
- The estimates of soil water use for 2013-14 are experimental and feedback on the methods and sources used is sought by the ABS. For further information on soil water use please refer to the feature article in the 2011-12 WAA – Experimental Estimates of Soil Water Use in Australia.
Key commonwealth, state and territory water agencies recognise two forms of water used for Environmental Flows:
- Planned (rules–based) environmental water relates to statutory requirements to maintain specific water regimes (e.g. particular levels, flow rates, aquifer pressures); and
- Held (entitlement–based) environmental water relates to specific entitlements, which accrue annual allocations of water that can be extracted (or left in–stream) for environmental purposes.
Some water utilities do not measure all Environmental Flows and there is subsequent uncertainty around the level estimates. In the 2008–09 and 2009–10 editions of WAA Environmental Flows were not separately identified in the physical supply and use tables. The Environmental Flows that were reported in surveys were presented within the estimates for distributed, reuse and in–stream water supplied and used by the ‘Water Supply, Sewerage and Drainage Services’ and ‘Electricity Supply’ and ‘Gas Supply’ industries. Consumption for these industries was not affected by this treatment of Environmental Flows volumes (i.e. these flows were defined as non–consumptive use).
Due to the uncertainty in the estimates, the 2010–11, 2011–12, 2012–13 and 2013-14 editions of the WAA presented Environmental Flows only within the regulated discharge estimates for the ‘Water Supply, Sewerage and Drainage Services’ and 'Electricity Supply’ and ‘Gas Supply’ industries. The Environmental Flows were not presented within the estimates for distributed, reuse and in–stream water supplied and used.
Data Quality and Reliability
WAA estimates are prepared from a wide range of statistical sources. Some are closely related to the environmental accounting framework, but others are not completely aligned in various respects, including coverage, concepts and timing. Most of the basic data are derived from statistical surveys or as a by–product of government administrative processes. The frequency, detail and timeliness of these data sources are constrained by many factors, including available resources and meeting the administrative requirements of government. Any improvement in timeliness of data is usually at the expense of detail, reliability or additional resources. Therefore, estimates may be subject to modelling to fill some of the gaps from surveys or administrative collections.
The majority of water supply and use data is collected by the ABS (with the following exceptions) and is coherent with other data sources:
MONETARY SUPPLY AND USE
- ‘Electricity Supply' and ‘Gas Supply’ estimates were mostly modelled using administrative data from annual reports, websites and the NGERS (see paragraph 27);
- ‘Other’ industries were mostly modelled using administrative data from Annual reports and websites (see paragraph 28);
- For households not connected to mains water, self–extracted water use was based on coefficients of water use (see paragraph 29).
The Monetary supply and use section presents aggregates of all available quantitative monetary data (dollars) in terms of the supply and use of water within the Australian economy for the financial year 2013-14. Supply and use tables illustrate the economic transactions associated with the use of water and the provisions of sewerage, waste water and drainage services (also referred to as water related services).
The monetary section covers:
- supply of distributed water and water related services in the economy by the ‘Water Supply, Sewerage and Drainage Services’, ‘Mining’, ‘Manufacturing’, ‘Electricity and Gas Supply’ and ‘Other’ industries;
- expenditure on water and water related services by industries, households and governments; and
- value added to the economy by the major water–using industries.
The scope is limited to distributed water, reuse water and waste water, sewerage and drainage services. Distributed water is further subdivided into:
- urban distributed water;
- rural distributed water; and
- bulk water (both urban and rural).
Rural distributed water is water supplied via mains, open channels or natural water ways, carted untreated water/treated effluent supplied by water suppliers (including industries other than the ‘Water Supply, Sewerage and Drainage Services’ industry) for irrigation and other rural use by the ‘Agriculture’ industry. Urban distributed water is water supplied by water suppliers via mains water systems for non–agriculture use.
The scope is also limited to "net distributed water" which, in this context, is defined as water that has been supplied from one economic unit to another for a fee, creating a measurable economic transaction. The net distributed water excludes distribution losses and supply to the environment for which there is no matching economic transaction.
For national and environmental accounting purposes the ‘Water Supply’ industry is considered to provide the service of 'water delivery' rather than being the seller of a product (water).
Monetary data for the supply (sales) of distributed water and monetary data for the use (purchase) of distributed water by industries, governments and households have been integrated during the compilation process. This requires some adjustments to input data to ensure consistency of information in WAA.
It is difficult to separately identify the revenue from reuse water with that from distributed mains supply. Estimates on revenue and expenditure on distributed water thus include transactions associated with reuse water.
Many businesses and households use self–extracted water for their own use, such as farms for irrigation or hydro power plants to generate electricity. Estimates for the value of self–extracted water have not been included in this section due to lack of reliable data.
Data presented in the Monetary Supply and Use section are compiled from a variety of sources. In addition to those used in the Physical water supply and use section the following ABS data were used:
Administrative data were also sourced from:
Methods for Calculating Monetary Supply and Use
- Water providers' annual financial reports; and
- Public administration and finance data.
The data collected from these sources were collated and aggregated to state and territory level.
Industry gross value added:
- Expenditure on distributed water was calculated by taking total volume and connected properties reported by each water provider, calculating average consumption values per household and applying the provider's fixed and variable tariff structures to these average values. Where tariff information is not available, an average water rate ($ per kL) was applied to the volume of water consumed by the households within those service areas.
- Government expenditure and ‘social transfers in kind’ monetary data were obtained from the Australian System of National Accounts, 2013-14 (unpublished data).
- Revenue and expenditure on water and related services for the water supply industries were sourced from the ABS 2013-14 WSSS, supplemented by administrative data.
- Information on expenditure on water and related services by other industries was sourced from administrative data.
Data Quality and Reliability
- Water intensity can be expressed as the amount of industrial output produced from a corresponding unit of water used in the production process. This is expressed in the monetary tables as industry gross value added ($ millions) per GL of water used. Comparisons between industries and changes over time in the average gross value added per GL of water use is complicated by the impact of prices, particularly for Agriculture and Mining, where commodity prices can vary substantially from year to year. This is relevant for analyses of incomes (current prices) generated per GL of water consumed in a given year. For this reason, the percentage change movements in industry gross value added per GL of water consumed from 2012–13 to 2013-14 have been calculated using chain volume measures of industry gross value added. It should also be noted that the data represent industry averages. Changes over time in the mix of commodities produced by a broad level industry such as ‘Agriculture’, ‘Mining’ or ‘Manufacturing’ could result in significant changes in the water intensity.
The total revenue from sales of water and water related services by the ‘Water Supply, Sewerage and Drainage Services’ industry (i.e. the supply side estimates) were coherent with Australian Industry, National Accounts Supply table and Bureau of Meteorology National Performance Report (NPR) data.
Water use estimates for households, industries and governments were based on several ABS surveys and National Accounts data. Expenditure estimates and annual movements for final consumption by households and intermediate industries are in line with modelled results using the physical water volume and Consumer Price Index (CPI) data, and supply/revenue estimates.
This edition of the WAA features revisions, back-cast for the 2011-12 and 2012-13 reference periods. Revisions were made to both physical and monetary supply and use tables, the effects of which flowed through to most other tables.
Physical (volumetric) and monetary water supply and use estimates for 2011-12 and 2012-13 were revised for all states and territories, due to the development of more thorough compilation methods and the improved quality of collected data. Impacts of these revisions in physical water supply and use tables were relatively minor and mainly affected self-extracted and distributed water use breakdowns, rather than final consumption.
For these reasons please note that some of the 2011-12 and 2012-13 estimates presented in the 2013-14 edition of the WAA will differ slightly to the corresponding estimates presented in the 2011-12 and 2012-13 publications.
GROSS VALUE OF IRRIGATED AGRICULTURAL PRODUCTION
The Gross Value of Irrigated Agricultural Production (GVIAP) was estimated using data from the ABS 2013-14 REACS, as well as other ABS collections and administrative data used to calculate the value of agricultural commodities produced (see Gross Value of Irrigated Agricultural Production
, 2013-14 (cat. no. 4610.0.55.008)).
Method of Calculation
The ABS methodology for calculating GVIAP is described in the information paper Methods of estimating the Gross Value of Irrigated Agricultural Production
(cat. no. 4610.0.55.006).
OTHER PUBLICATIONS OF INTEREST61
See Related Information
for other ABS publications containing water-related information. There are a number of non-ABS publications that may be of interest to users of water data, some of which were used in the compilation of the WAA. These include: