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Operational expenditures (OPEX) for a typical water utility can be broken down into production and distribution expenditures. Production expenditures include costs associated with producing water such as abstraction and treatment, as well as energy costs for pumping water into the distribution network. Costs associated with distribution expenditures include repair and maintenance, network pressurisation, chemical spending, water quality monitoring and leakage detection costs. Water utilities annually spend approximately US$92 billion on OPEX worldwide, approximately 43% of which is distribution expenses and 57% of which is production expenses.




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