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Although 18 of the water companies in England and Wales met their leakage targets, there was an increase in reported total leakage of more than 200 million litres per day, according to new figures published today by Ofwat. The rise was mainly due to a substantial revision in the recorded data reported by Severn Trent Water and continuing increases in leakage in the London area of Thames Water. The figures from the water companies for 2002-03 show that:
Philip Fletcher, Director General of Water Services, said: "Most water companies are maintaining control of leakage at the economic level. However, Severn Trent and Thames report problems. The reasons differ. "Following a two-year internal review of its systems and assumptions about leakage and customer use, Severn Trent has reported new data leading to a substantial revision of its figures for total leakage. The company has told me that the largest element of the increase reflects a new lower view on how much its average customer uses. In addition, the company has reported a rise in leakage from its network. The company has agreed to my request to commission a detailed investigation by Jon Bateman, our independent reporter, of its plans to understand and then to achieve its revised economic level of leakage. I expect him to report to me by the end of this November. I will then set the leakage targets necessary to ensure that Severn Trent achieves its revised economic level of leakage promptly. "I am disappointed that leakage has again risen in the Thames Water area despite an improving position in the non-London areas. I note that Thames is continuing with its comprehensive action plan to bring leakage under control. In the light of the regular progress reports we get from the company and the advice from John Brindley, our independent reporter, I am satisfied with the progress being made by the company to improve its position. I expect the company to meet the mandatory and indicative targets I recently set for 2003-04 through to 2006-07." Further details - Severn Trent Water Severn Trent Water has submitted a higher figure for leakage after revising some of the key components used to record water supplied to customers. The company has concluded that the increase results first from its unmetered customers using much less water than it had previously thought (much of the difference is explained by higher leakage from customers' supply pipes). Second, it has corrected numerous meter readings of water entering the supply system. We will set out the position more fully in our autumn report, Security of supply, leakage and the efficient use of water, 2002-03. Our independent reporter Jon Bateman has been commissioned to carry out a full investigation into the company's new data, the implications for its economic level of leakage and any subsequent plans needed to achieve this. Further details - Thames Water Although leakage has risen this year, the company is making progress in delivering the steps required in the action plan it has agreed with Ofwat. Thames has put in place improved systems for identifying and measuring leakage. The reports provided to Ofwat on a quarterly basis show leakage beginning to stabilise or fall in significant areas with only the more difficult North London area continuing to report rises, although at a reduced rate. We have already re-imposed mandatory targets for Thames Water following its improved recording of leakage. The targets will help ensure that Thames' performance comes into line with the rest of the industry by 2006-07 – three years later than originally planned. Note 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. WaterVoice represents customers' interests. 2. Ml/d = Megalitres per day. A megalitre is the equivalent of one million litres. 3. It would take 2½ megalitres of water to fill an Olympic-sized swimming pool. 4. 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 (this includes environmental and social costs). 5. The 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. 6. Independent Reporter Jon Bateman is employed by Halcrow Management Sciences, and John Brindley by W S Atkins. 7. The action plan agreed with Thames Water is set out in appendix 4 of Ofwat's report, "Security of supply, leakage and the efficient use of water 2001-02, published last October, which is available on Ofwat website's on www.ofwat.gov.uk or from the Ofwat library on 0121 625 1373. 8. Ofwat's leakage targets for Thames Water were announced last December for the area outside London (see press notice 72/02) and in March 2003 for the area covering London (see press notice 05/03). These are set out below:
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 If you would like to see an Excel version of this table please click here.  | ||||||||||||||||||||||||||||||||||||
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