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Ofwat has today set mandatory leakage targets for Severn Trent Water. The targets, which have been agreed with the water company, improve the long-term security of water supplies for customers. In July 2003 Severn Trent changed the way in which it collected data on water consumption by its customers, which resulted in higher leakage than previously reported. Ofwat suspended Severn Trent's annual leakage targets and commissioned independent reporter Halcrow Management Sciences Ltd to investigate the company's new data and how it intended to achieve an economic level of leakage. The report concluded that most of the reported increase in Severn Trent's leakage figures was due to unmetered customers using less water than previously assumed. This is because both leakage and unmeasured use are key components of water supplied. If customer use falls and the total supplied remains the same then generally reported leakage will have risen. Halcrow confirmed that the company had made substantial reductions of around a third in their leakage from the mid-1990s. But it reported that actual leakage had risen from the low point by around 2% - the equivalent of ten million litres per day - over the last three years. Ofwat's new leakage targets for Severn Trent aim to reverse the rise in leakage by the end of March 2005, and ensure that the company achieves its revised economic level of leakage as soon as possible. The company's progress will be monitored. Ofwat's assessment of Severn Trent's overall service performance in 2002-03 will also be adjusted to reflect the revised targets. Past performance of Severn Trent and new targets set today are:
NB Figures are shown to the nearest 5 Ml/d The independent reporter also found that while Severn Trent had good systems in place for monitoring leakage on the local distribution network, the company's ability to measure losses from trunk mains and service reservoirs needed improvement. Severn Trent has started to put in place improved monitoring systems to remedy this problem. Notes to Editors: 1. The Director General of Water Services is the economic regulator of the water and sewerage companies in England and Wales. He exercises his powers in a way that he judges will allow them to carry out their functions properly, and finance them. Customers' interests are represented by WaterVoice. 2. Ml/d = Megalitres per day. A megalitre is the equivalent of one million litres. 3. Economic levels of Leakage – the level of leakage at which it would cost more to make further reductions than to produce the water from another source. 4. Reporters are independent professionals appointed by the company with Ofwat's approval. They have a primary duty of care to the Director General of Water Services. They scrutinise the company's business and report to the Director General on the reliability and accuracy of company information and any concerns they have. 5. Media enquiries to Ofwat press office on 0121 625 1416/1496/1442. Out of hours enquiries to pager: 08700 555 500 water 503/509. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk  | |||||||||||||||||||||||||||
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