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Water companies in England and Wales are making progress in ensuring they will be able to meet future demand from customers, according to a new report from Ofwat. Continuing investment in water resources coupled with cuts in leakage from the mains has reduced the risk of supply interruptions for many companies during prolonged dry spells. But the report - The Security of supply, leakage and the efficient use of water 2004-05 - warns that several companies still have more to do. The period covered by the report includes the beginning of the drought which has led to water supply restrictions in parts of south east England. The report notes that Thames Water – the biggest water company in England and Wales – and Folkestone and Dover Water still need to improve their supply position. They will do this do this through a combination of measures including better leakage control, investment in new resources and encouraging more efficient use of water by customers. Price limits announced last year by Ofwat will enable water companies which face problems to carry out an investment programme worth nearly £1.7 billion to safeguard future water supplies. Ofwat expects that by 2010 each company will have an adequate supply to meet customer demands, even in a dry year. Thames aims to remove its shortfall by continuing to tackle leakage and other measures to enhance supply including a desalination plant on the Thames estuary. But the plans are delayed while the company seeks planning permission. Folkestone and Dover is currently awaiting a government decision on its application for water scarcity area status, which would enable it to introduce compulsory metering to reduce demand. The report also identifies Southern, Dŵr Cymru and Severn Trent as companies that have work to do to ensure supply continues to meet demand. The three companies have all agreed plans with Ofwat which should see almost all their shortfalls removed by 2008/9. Philip Fletcher, Director General of Water Services, said: "Encouraging customers to use water wisely is part of each company's strategy to maintain water supplies. Ofwat will be working with other members of the Government's newly-formed Water Savings Group to carry out an action plan to encourage households to use water more efficiently. "We will want to ensure that increased metering of household supplies is part of a cost effective programme of measures. If customers pay for the water they use they will have an incentive to save both water and money." 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. 2. The Water Savings Group which comprises the Environment Agency, Ofwat, the Consumer Council for Water, Water UK, Defra, the Office of the Deputy Prime Minister and Waterwise, the water industry's new water saving body. It has been formed to encourage households to reduce consumption and use water more efficiently. It held its first meeting last week under the chairmanship of Environment Minister Elliot Morley. The group agreed an action plan that promotes collaborative work on water efficiency. 3. The Security of supply report is available on the Ofwat website, also from the Ofwat library by phoning 0121 625 1373 MEDIA ENQUIRIES TO OFWAT PRESS OFFICE ON: 0121 625 1416/1496/1442 Out of hours enquiries to pager: 08700 555 500 water 502/503. Ofwat publications and press notices can be found on Ofwat's website at: www.ofwat.gov.uk  | ||||||
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