|
By EDWARD HEATHCOAT AMORY, Daily Mail 08:45am 22nd June 2006
For three dismal years in succession, Thames has failed to meet the targets set by the water regulator to cut leaks. This year is no exception. Previously, the regulator has done nothing.
Pathetic
But now, aware of public anger caused by the hosepipe ban, the regulator apparently encouraged wild talk that Thames could be fined up to £140million. But on past form, there isn't the slightest chance of Mr Fletcher carrying through this threat. In fact, even the targets set by the regulator for cutting leaks are pathetic.
At its current rate, it will take Thames Water 128 years to replace its decrepit pipe network. Yet Ofwat - one of whose non-executive directors is a former customer services chief at, yes, Thames Water - has set its targets so low that only two water companies have failed to meet them. This is despite the fact that on average, one quarter of our water - 500 pints per home per day - leaks away.
Problems have been compounded by financial regulation. At the time of the last major review, in 2004, the regulator agreed to keep both consumers and water companies happy by limiting the price increases.
But this meant the money available to firms to invest was radically cut. For example, the amount Thames was being asked to spend on investment was reduced by by £1.4billion.
The result was big profits for the firms, slightly lower customer bills - and a huge crisis due to water shortages.
|
