Published: 26 June 2006
Money down the drain into the bank
In what can only be described as irony in its truest form, Thames water has reported an increase in profits in the face of missing its leakage targets for the fourth successive year and applying for a drought order for London.
The consumer body representing water customers in England and Wales has said that Thames Water missing its leakage targets again was 'totally unacceptable' to consumers and would rub salt in the wounds of consumers facing bill increases and water restrictions over recent months.
Dame Yve Buckland, Chair of the Consumer Council for Water, said:
"Their customers will also be paying 24% bill increases to the company between 2005-10, and now have every right to question whether they are getting what they paid for.
Today's announcement by Thames Water rubs salt in the wounds of consumers, damaging the goodwill and consumer confidence it will need if it is to impose water restrictions through a drought order."
The publication of the water company’s failure to achieve its leakage target for 2005-06 by 34 million litres per day was not helped by the announcement of pre-tax profits up 31% to £346.5 million.
Ofwat, responding to news of Thames Water’s failure to achieve their target, said:
"We are still awaiting the assessment from the Independent Reporter and will be scrutinising the assessment and Thames Water’s annual return carefully before deciding on regulatory action.
Given its current leakage performance we are concerned that the company may not meet future leakage targets or its security of supply commitments.
The company's poor leakage performance is not only inefficient, it is also contributing to water shortages that have led Thames Water to impose a hosepipe ban and seek a drought order.
Meeting its leakage targets should be a very high priority for Thames Water.
We expect the company to spend as much as is necessary to remedy its leakage failure and ensure that it delivers value for money and security of supply for its customers.”
Thames Water is losing 894 million litres of water a day – enough to fill 357 Olympic swimming pools.
On the 9th June the water company applied to the Government for a Drought Order, in addition to a current hosepipe and sprinkler ban, to further restrict the use of water to its five million customers in London.
The last time a Drought order was requested for London was in 1976.
Further information
Thames Water
Consumer Council for Water (CCWater)
CCWater consumer blog on the current water restrictions
Ofwat
Leakage from public water supply – Environment Agency
Beat the Drought
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