Comparing ARIMA, Holt–Winters and TimeGPT Models for Municipal Water Consumption Forecasting: Evidence from Vouzela, Portugal

This study presents a methodology for forecasting municipal water consumption to support efficient resource management. Using monthly data from 2018 to 2022 for the municipality of Vouzela, Portugal, three forecasting approaches were evaluated: SARIMA, Holt–Winters, and TimeGPT. Data preparation included logarithmic transformation and stationarity assessment using the KPSS test, ensuring appropriate conditions for statistical modelling. The SARIMA model was selected automatically based on the Akaike Information Criterion (AIC), while the Holt–Winters method was fitted with additive components and a Box–Cox transformation. In addition, TimeGPT was employed as a state-of-the-art foundation model for time series forecasting. The three methods were used to predict water consumption for the 12 months of 2023, and their performance was assessed using MAE, MSE, RMSE and MAPE. Results indicate that although all methods perform adequately, Holt–Winters and TimeGPT better capture recent consumption dynamics, providing more accurate forecasts in several periods. Overall, this study shows that combining classical statistical models with advanced forecasting techniques offers local authorities reliable and computationally accessible tools to support water supply planning and sustainability.