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A new index is helping Ofwat to keep a close eye on water companies' actions to safeguard the reliability of supplies. Water companies must plan to meet customers' demands even during dry years, although there is no guarantee of unrestricted supplies if there were to be a serious drought. The security of supply index published today shows that there is no room for complacency and highlights areas where more work needs to be done by some water companies to ensure the continuing reliability of future supplies. Ofwat also reports that most water companies have made progress in cutting back on leakage from the mains. The index is being used by Ofwat to monitor how companies manage the risk of water supply restrictions in future dry spells. The index puts particular emphasis on 'headroom' – the difference between the amount of water each company has available, and how much it must put through its mains network to meet customer demand. The report includes for the first time information on critical summer peak demand when supply systems are under the greatest stress. The report reveals that 17 of the 23 companies in England and Wales meet their targets for security of water supplies. Ofwat cautions that this should not be taken as a guarantee that there will not be restrictions in these areas in unusually long dry periods, such as we are currently experiencing. Some companies do need to do more work to improve the position and manage risks down to an acceptable level, and Ofwat will be monitoring progress with their plans annually. Much of the success in avoiding restrictions has been due to the huge reduction in water lost by leakage from the mains. Although leakage rose slightly last year, it has been cut by more than 25 per cent over the last seven years. This is saving around 1.3 billion litres of water every day, enough to meet the daily needs of nearly 10 million households. Most companies are now operating at their economic level of leakage. Regrettably, leakage rose in 2002/03 at two companies – Severn Trent and Thames Water. At the former, most of the rise has been attributed by the company to changes to the way data is collected and interpreted. This is now the subject of an independent investigation being jointly carried out for Severn Trent and Ofwat. At Thames Water, which supplies more than 11 million people in Greater London and surrounding areas, Ofwat has imposed stringent targets to ensure leakages are rapidly reduced over the next three years. Reports show that the company is now making progress in achieving this in most areas, with the exception of north London. Bill Emery, Ofwat's Director of Costs and Performance said: "Customers value reliable supplies very highly. By using the security of supply index we can keep close tabs on how companies plan to meet customers' needs. While there were no restrictions on supplies this summer, there is no room for complacency, and the index points up areas where more needs to be done to ensure reliable supplies in the future." 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. Ofwat's report, Security of supply, leakage and the efficient use of water, 2002-03 will be available from the Ofwat website on www.ofwat.gov.uk or from the Ofwat library on 0121 625 1373. 3. All companies already have contingency plans for limited restrictions which might have to be introduced in exceptional climatic circumstances, probably less than once every decade. 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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