11 July 2006
Thames Water has admitted that leakage levels in London are unacceptable, but has defended its recent record on investing in the pipeline infrastructure of the capital.
"Leakage in the capital remains unacceptably high and we acknowledge that more work needs to be done to continue to reduce it," said the company's managing director, Jeremy Pelczer.
"We undertook 20% more work putting new pipes in the ground in 2005/06 than was originally planned," he added.
Last week, industry regulator Ofwat decided not to fine the London water firm but ordered it to invest £150 million to stop future leaks, after the utility failed to attain its leakage target for the third year in a row.
"In addition to the £1 billion we are already committed to spend on leakage reduction in this regulatory period (2005-2010), the extra investment of £150 million announced by Ofwat will be funded by shareholders and will accelerate our Victorian Mains Replacement (VMR) programme, to complete at least an additional 230 miles (368 km) of new mains by 2010," Mr Pelczer said.
Thames Water was severely criticised by Ofwat for its loss rate of 894 million litres every day from its network of supply pipes, well above the regulator's maximum target of 860 million litres.
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