Thames Water beats target for fixing leaks

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The company, which is causing travel delays across the capital with more than 580 roadworks, still loses 715 million litres per day due to leaky pipes. However, it beat its government-enforced target by 40 million litres per day.

Nationally, leakage fell from 3,418 million litres per day in 2006-07 to 3,291 million last year.

Regina Finn, chief executive of watchdog Ofwat, said: "This is a positive picture, showing that the water sector can and is meeting the needs of consumers and the environment. Now it is important that companies maintain this progress, and raise their game even more."

Ofwat has set Thames Water an aggressive target of reducing leakage to 690 million litres per day by next year.

Today it also warned that other factors could make water more scarce. "Rising consumer expectations, the impact of climate change, and the demands of a growing population will all provide new challenges," it said.

"We will expect the sector to meet these challenges while continuing to deliver high-quality, good value services to consumers."

A spokeswoman for Thames Water said: "These figures demonstrate that our massive programme of replacing London's worn out Victorian water mains is having real results.

"We've replaced nearly 900 miles of the oldest and leakiest water mains and we're aiming to replace hundreds more. Although the work does involve disruption in the short term, it is going to mean less burst water mains in the future, and ultimately, less roadworks."