Winter legacy of leaks chills water giants
The bitter winter may cost water companiesms of pounds for breaking leakage targets imposed by regulator Ofwat.
United Utilities, which reports annual results in the next fortnight, is understood to have missed its leakage targets for the year, according to industry sources.
The company refused to comment but has admitted that leaks 'increased very rapidly' by about 200m litres a day during the worst of the weather.
Ofwat has the power to fine firms that fail to meet leakage targets up to ten per cent of their turnover.
In recent years it has taken action against companies for failing to meet targets by securing agreements that forced Thames Water to spend £150m of shareholders' money to improve performance while Severn Trent committed £45m.
It is likely that a number of other leading operators will fall foul of regulations and they are expected to make announcements when the leading stock market-listed companies - United, Severn Trent, Northumbrian and Pennon - unveil their annual results in coming days.
Shares of the listed firms have risen steadily as investors seek to benefit from an industry with an inflation-linked pricing regime.
Over the winter, all the leading suppliers were hit hard with tens of thousands of households affected by frozen and burst pipes. Water firms in England and Wales did not perform as badly as Northern Ireland's State-owned supplier, which was unable to supply thousands of customers for days at a time.
United Utilities, which owns North West Water, took 46,000 calls between Christmas and New Year, ten times its usual amount. More than 112,000 customers contacted Severn Trent against a forecast of 35,000, while Thames Water received 103,000 calls in December compared with 58,000 the previous December.
Six companies failed their leakage targets last year and have been put on a watch-list by Ofwat - Southern, Northumbrian, Veolia Central, Dee Valley, Cambridge and Yorkshire.
Yorkshire Water recently pledged £33m for reducing leaks.
Most watched Money videos
- The new Volkswagen Passat - a long range PHEV that's only available as an estate
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- How to invest for income and growth: SAINTS' James Dow
- How to invest to beat tax raids and make more of your money
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Iconic Dodge Charger goes electric as company unveils its Daytona
- Land Rover unveil newest all-electric Range Rover SUV
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Mail Online takes a tour of Gatwick's modern EV charging station
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Should you take out insurance to spare your family from a...
- ODYSSEAN INVESTMENT TRUST: Newcomer's knack for seeing...
- Britain 'must lay out red carpet' to retain top tech firms
- Elderly father duped into £25k debt by scam company Marks...
- Baroness Bowles: Nationwide using sneaky tactics to avoid...
- MIDAS SHARE TIPS: Tech tie-up in war on fake banknotes...
- Disney set to report jump in profits just weeks after...
- Ten years in the creation: Secrets of the new King...
- Older workers will sustain growth, says HAMISH MCRAE: In...
- Shipping shame as Clarksons braced for EIGHTH pay revolt
- Water giants drowning in a sea of debt borrowing even...
- Savers withdraw £5bn from current accounts in bid for...
- Tory grandee Norman Fowler reveals how he relaxed after...
- CITY WHISPERS: Mystery lingers over whether Darktrace's...
- MIDAS SHARE TIPS UPDATE: Cohort is reaping the benefits...
- How much longer can insurance firms persist with a tax on...
- Homeowners dealt fresh blow as experts warn mortgage...
- INVESTING EXPLAINED: What you need to know about primary...