We will only plug the leaks if we’re allowed to raise bills: Water firms want to pass on cost of cutting waste

  • 3billion litres of water lost every day
  • Suppliers have no obligation to stop wastage
  • Hosepipe ban imposed on 20million customers
  • Annual bills up from £64 to £376
    since 2001

By
Tamara Cohen and Mark Duell

17:41 EST, 8 May 2012

|

18:05 EST, 8 May 2012

Water companies will not accept tougher targets on reducing leaks unless they can charge customers more, according to the industry’s regulator.

More than half of suppliers have no obligation to reduce leakage by a single drop until 2015 – despite losing more than 3billion litres every day.

Hosepipe bans have been imposed on 20million customers during the worst drought since 1976 and are due to last until the end of the year.

Spillover: Critics have said Ofwat should set the bar higher on curbing leaks. In the meantime, the companies have raised annual customer bills by an average of £64 to £376 since 2001

Spillover: Critics have said Ofwat should set the bar higher on curbing leaks. In the meantime, the companies have raised annual customer bills by an average of £64 to £376 since 2001

Yesterday critics said this means Ofwat
should now set the bar higher on curbing leaks. In the meantime, the
companies have raised annual customer bills by an average of £64 to £376
since 2001.

However, Ofwat says tougher action on  leaks will lead to bigger household bills.

Targets are set five years in advance to give confidence to shareholders, but they have not been changed, despite the drought conditions.

Thames Water, the largest water company,
has imposed a hosepipe ban on its 8.8million customers but loses
665million litres of treated water a day.

Leaks: Almost a quarter of the entire country¿s water supply is still disappearing from the system every day

Leaks: Almost a quarter of the entire country¿s water supply is still disappearing from the system every day

This is within its current target, which remains in place until 2014-15. Yet this get is still not being lowered to encourage the company to do better in the coming years.

Yorkshire Water missed its target by 9 per cent last year, but is on track to meet it this year.

Water wastage: More than half of suppliers have no obligation to reduce leakage by a single drop until 2015 ¿ despite losing more than 3billion litres every day

Water wastage: More than half of suppliers have no obligation to reduce leakage by a single drop until 2015 ¿ despite losing more than 3billion litres every day

Northumbrian Water which now supplies drought-hit Essex and Suffolk, and South West and Wessex Water had also reached their 2015 targets by 2010.

Smaller companies within the hosepipe ban area including Portsmouth, Sutton and East Surrey and Veolia Central have no need to fix any more leaks by 2015.

Mary Creagh, Labour’s environment spokesman said: ‘The public are rightly concerned about rising water bills and hosepipe bans.

‘Ofwat sets leakage reduction rates, but leaks are only fixed when the cost of lost water outweighs the cost of repair.

‘That’s not good for consumers or the environment.’

Colin Green, a professor of water economics at Middlesex University, said:

‘The whole system is geared to earn a fair return for the investors. What we need is a real market with incentives for the companies and consumers for using water more efficiently.’

Ofwat said it did expect companies to do better during the drought, but that the matter was at their discretion because enforcement would raise bills.

A spokesman said: ‘The current drought shows the importance of tackling leakage.

‘We also need to take a long-term view. Climate change and more households will stretch supplies further in coming years.

Double standards: Thames Water, the largest water company, has imposed a hosepipe ban on its 8.8million customers but loses 665million litres of treated water a day

Double standards: Thames Water, the largest water company, has imposed a hosepipe ban on its 8.8million customers but loses 665million litres of treated water a day

‘We know leakage matters to customers, but they also tell us they don’t want large rises in bills to reduce leakage.’

Water companies yesterday insisted they were investing their own money in plugging leaks.

A Sutton and East Surrey Water spokesman said: ‘We believe getting leakage down is the right thing, but to drive it down significantly below where it is at the moment for us would cost a lot of money.’

Anglian Water, claimed it was ‘well on course’ to hit a 9 per cent target due to investing an extra £14million in fixing leaks and extra staff.

Thames expects to exceed its 2011-12 target by at least 30million litres a day.

Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.

The comments below have not been moderated.

Average bill £346 I wish!! South West Water charged me £850 last year

If the water companies are idiotic enough to waste their product, then they have less to sell and will make less profit. That is a circle of stupidity, and yet they are meant to be run by businessmen. Ofwat needs to freeze prices completely until the companies to act responsibly and stop the waste and loss.

There is a restriction on water, but monthly direct debits have not been reduced. So in a nutshell people are paying for something they are not getting and now the water companies want these generous people to pay even more for something they are not getting. Now that is taking the p@@@.

NATIONALISE the Utilities again – It was Thatcher who denationalised them in the first place – Yet another Tory disaster. So much for privatisation being efficient. Can any one name a privatised industry that IS better for the consumer now? Looking forward to the Tory privatisation of the NHS now???

Privatisation of the water companies – another great success brought to you by the Conservative party . Profit first always remember that.

We’ve paid for leak stopping once before. That was why the prices went up so much after privatisation. Could a journalist check back and let us know how long ago this card was last played and how much the leakage problem has changed since then?

Surely the conditions of the sale of the companies or the regulatory agreements they are under must say something about this. What is it?

When privatised this cost was included in the bill. But to cut costs,increase profits and thus bonuses and larger pay increases leaks were ignored. Now they have to do something about them they want us to pay for what we’ve been paying for for years but they’ve been taking and doing nothing. Get real water companies its not going to happen!

No bonus for executives if hosepipe ban is in place by law
that will make them get off their backsides and do something about the leaks

Same old story, bonuses, pensions, shares and a government that sits back while they too wallow in their fortunes. THIS IS ENGLAND 2012. MONEY MONEY MONEY ITS A RICH MANS COUNTRY.

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