Water Company Performance

Munira Wilson Excerpts

Tuesday 21st February 2023 Commons Chamber

[Munira Wilson (Twickenham) (LD)]

The Minister may be aware that Thames Water is considering plans to draw out water from the river at Teddington in my constituency in times of drought and replace it with treated sewage. That can cause all sorts of havoc with ecosystems if it is not monitored and regulated properly. She will appreciate that my constituents and I have little faith in regulators when Thames Water is currently losing a quarter of its supply every day through leaks and avoiding fines because the targets set for it are just not strong enough. Will she look at strengthening those targets so that companies are more liable to fines and at cracking down on the eye-watering bonuses executives are raking in, which is forcing them to look at these sorts of damaging river abstraction plans when they should be fixing leaks?

[Rebecca Pow]

The issue of leaks is important. We are tackling it and water companies have targets to cut leaks. In the 2019 price review, they had to cut leakage by 16% and reduce bursts by 12%. If they are not seen to be reaching their targets, Ofwat imposes penalties on them. Three companies are currently paying back £150 million because of leaks and supply cuts. So there is already a system in place and it needs to be adhered to. Water is a precious resource and we need all the water we can get, which is why it is so important to tackle leakage and not just tackle environmental performance in terms of bonuses. I agree with the hon. Lady that bonuses should be linked to environmental performance, and that is what we have directed Ofwat to do.