Watchdogs to write to half the industry criticising water resource management

The Environment Agency (EA) and Ofwat are to send joint letters to around half of all water companies “outlining specific failings and necessary actions for improvement” on water resource management. The companies are Anglian Water, Bristol Water, Cambridge Water, Portsmouth Water, South East Water, South Staffordshire Water, South West Water, Southern Water, Thames Water, and Albion Water.

The action follows EA analysis of the water industry’s water resources performance for 2023/4. While wet weather meant there were no water supply issues, the Agency criticised leakage and drought preparedness. Its report led on the fact that 19% of supplies were lost to leaks, and identified Thames Water and United Utilities as the worst performers for leakage per person. The EA said the industry “must deliver a sustained reduction in leakage, particularly in the face of climate change, when extreme temperatures will make pipes more prone to bursts” and to meet its commitment to halve leakage by 2050.

Elsewhere, the Agency flagged up that some water companies would not have sufficient water supply in some areas in the event of a drought.

More positively, there had been a 3.6% reduction in per capita demand; this against the backdrop of the Environment Act target to reduce water use in England by 20% per head of population by 2037-38 from 2019-2020 levels.

Water Minister Emma Hardy said: “This report is a damning indictment of the sheer volume of water that is wasted by water companies across England. As the climate crisis worsens and more pressure is placed on our water systems, we must fix our broken water infrastructure to ensure we have a resilient future water supply.”

Alan Lovell, chair of the EA, said: “While we’ve seen some progress by companies, it’s clear that more planning, resources and investment are needed, particularly on leakage.”