21 June 2006
Water industry regulator Ofwat has described Thames Water's record on increasing prices and delivering its promises to customers as "unacceptable".
Its statement came in response to Thames Water's admission that it has again failed to meet its leakage target for 2005/06 by 34 megalitres per day (Ml/d).
In a statement, Ofwat said the failure was "very serious".
"Given its current leakage performance we are concerned that the company may not meet future leakage targets or its security of supply commitments," it said.
"Customers are paying the higher prices that Thames Water has been allowed to charge - an average increase of 24% over 2005-10, excluding inflation - without getting all the benefits that the company has promised to deliver. This is unacceptable."
Ofcom admitted that the current drought had been caused by unusually low levels of rain over the past two years, but added that the company should set a "good example" on leakage.
"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," the regulator added.
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