In England and Wales, water companies lost over 1tn litres of water due to leaks in the last year

The Observer has revealed that water companies in England lost over one trillion litres in England and Wales last year due to leaks.

Based on the annual performance reports of 2023-24, it is estimated that millions of litres per day of water are lost.

Thames Water was the worst performer, leaking 570.4 Megalitres per day, or over 200bn litres total. This is equivalent to just below a quarter its entire water supply. Megalitres are one million litres.

In its annual report for 2023-24, the company stated that this was “our lowest leakage ever”.

Thames Water was put under special measures and has more than £15bn in debt. In June it reported that £19bn worth of assets including pipes, reservoirs and processing plants, were failing, and now pose a “risk to public safety, the water supply, and the environment”. United Utilities leaking the second most water among the companies, with more than 175 billion litres per year. Severn Trent followed closely behind at 139 billion litres.

Yorkshire Water leaked 94,9bn. litres. Welsh Water 90.8bn. litres. Anglian Water 66.4bn. litres. Affinity Water 56bn. litres.

The UK faces increasing pressure on its water supplies. The Environment Agency estimates that the UK will need five billion more litres of water a day by 2050 to address demand, and it has predicted that London Feargal Sharra, a campaigner for a clean river, said: “[Water Companies] need to get tense and stop leakages because we are running out of water. We need to save as much as we can.”

He said that Ofwat and the UK industry regulator did not prioritize companies investing money in order to combat leaks, as this would be more expensive than pumping water out of UK water systems.

Sharkey stated that “you’re back at the exact same epicenter as when it comes to sewage, a lack in political oversight and an absolute failure of the regulatory systems.” “These companies were run with the goal of maximising profit at the lowest cost, regardless of what impact it has on the consumer and the environment.”

David Hall, visiting professor of Greenwich University’s Public Services International Research Unit said: “It is the responsibility of the water systems to deliver the fresh water to the taps. The pipes need to be maintained properly if a trillion litres are lost each year. It means that there are investments not being made which could and should be made.”

Hall said that investing in infrastructure will result in a lower cost for consumers in the future.

The criticism comes as a result of a growing outcry over the amount of untreated sewage that is being dumped by water companies in British rivers and oceans. In March, the water companies of England revealed that they released raw sewage 3.6m hours total in 2023. This is more than twice the amount from the previous year.

Dividends paid to shareholders by the water companies in the country totalled £2.5bn over the past two years, up until March 2023. This brings the total payouts to £78bn since privatisation.

Some companies announced new rounds of investment as a response to criticisms about lack of infrastructure investment. Mega-projects are included, including Southern Water’s plans for spending £1.2bn to build a plant that will recycle effluent and turn it back into drinking water.

Sharkey was cynical of such projects. He argued that the industry “grasps at any straw they think will keep them afloat another five minutes”.

Water UK, a trade association for the water industry, has said that the leakage rate is at the “lowest level ever recorded”. They also stated that the companies “have proposed investing a record £105bn in order to ensure our future water supply and reduce leakage by one-third by 2030”.

Thames Water’s spokesperson stated that it is upgrading “112km mains pipe upgrades in London” with the goal of reducing leakage by 23 percent over the next three year.

The company said that one third of their leaks are located in the pipes of customers’ homes, and that smart meters will “play a critical role in protecting future supplies of water”.