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PN 20/07 | 29 June 2007 |
Ofwat statement on Thames Water's leakage performance | |
Responding to today's announcement by Thames Water that it has exceeded its leakage reduction target for 2006-07, Ofwat said:
"This result, following on from Ofwat's enforcement action against Thames Water last year, is good news for water consumers. It contributes to reducing the risk of future water supply problems in the capital and shows that Ofwat's consumer-focused approach is working.
"Ofwat's action means Thames Water must replace an extra 368km of ageing pipes to meet demanding leakage targets up to 2010; this will cost shareholders around £150 million. This extra investment is equivalent to more than £40 for each consumer supplied with water services by Thames Water.
"Although the company is now well on track to meeting Ofwat's regulatory targets, there is a still a lot of work to be done. Thames Water cannot afford to be complacent. Ofwat will continue to monitor closely the company's future performance."
Notes to Editors
1. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will allow companies to carry out their functions properly, and finance them. Its duties include protecting the interests of consumers, wherever appropriate by promoting effective competition.
2. The leakage targets for Thames Water for the remainder of the 2005-10 price review period are: 2006-07 - 810 Ml/d; 2007-08 – 755 Ml/d; 2008-09 – 715 Ml/d; 2009-10 – 690 Ml/d. These targets form part of the legal undertaking given by Thames Water last summer, which will see the company replace at least 368km of extra mains, in addition to the 1,235km which it is already in the process of replacing in London, between 2005-10.
3. Ml/d = Megalitres per day. A megalitre equals one million litres.
4. Media enquiries to Ofwat Press Office on: 0121 625 1442/1496.
