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.”