by Megan Darby
Leakage targets are likely to be toughened as Ofwat responds to government and public pressure.
The regulator will share its updated thinking next month after companies’ 2011/12 leakage performance figures are finalised.
Speaking at an Institute of Water conference last week, director of policy and communications Marian Spain conceded that the sustainable economic level of leakage (SELL) methodology currently used “makes sense to economists but doesn’t always make sense to customers”.
Ofwat was “starting to think very seriously that we may need to do more on leakage”, she added.
While some companies support sticking with SELL, others are keen to go beyond their leakage reduction targets. Bristol Water, for example, has claimed to be on track to beat its target for 2011/12 by 15 per cent.
Addressing leakage means replacing infrastructure as well as reacting to reported leaks and bursts.
In London, 34 per cent of supply pipes are more than 100 years old. Thames Water chief executive Martin Baggs warned that the system could deteriorate faster than it was being replaced.
He said: “My concern is about sustainable legacy … at some point, that bow wave of the ageing network is going to hit us.”
More demanding leakage targets could also provide a spur for metering. Southern Water expects its rollout of meters with leak alarms will help save five megalitres a day.
This article first appeared in Utility Week’s print edition of 25 May 2012.
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