08 May 2012

Data Reveals Very Low Targets For Stopping Water Leakage

Data obtained by the Guardian newspaper reveals that more than half of water companies will not be required to reduce their leakages by a single drop before 2015, despite the worst drought in 25 years.

The information, which came from regulator Ofwat, also shows the entire water industry will cut leaks by only 1.5% in that time.

3.4bn litres of water leaks from the system, almost a quarter of the entire supply, every day.

Since privatisation of the water industry in 1989, Ofwat has set leakage reduction targets for the 21 water companies, which operate local monopolies across England and Wales. Analysis of the data, supplied to Ofwat by the companies themselves, revealed:

• Eleven companies have targets of zero reduction of leaks by 2015. They include Yorkshire Water, which failed to meet its 2010-11 targets and as a result was required to spend an additional £33m on leak repairs.

• Leaks have been reduced across England and Wales by only 5% over the past 13 years.

• The worst-performing company, Southern Water, which supplies Sussex, Kent, Hampshire and the Isle of Wight, missed its latest leak target by 16% and had to pay £5m back to customers, but will be allowed to increase its leakage by 6% by 2015.

• The 25-year management plans of the water companies envisage reducing leakage by only 10% in that time.

The average annual customer bill for water has risen by £64 since 2001 and is now £376, while the companies collectively made £2bn in pre-tax profits and paid £1.5bn in dividends to shareholders in 2010-11.

A government spokesman told the Guardian that leakage targets were set to be reviewed in the light of the drought, and an interim verbal agreement had been struck with water companies that extra efforts would be made to tackle leakage. But no new targets have been set. "We have to find a balance between the need to fix leaks with keeping water bills affordable for people," he said.

(H)