NAO on Ofwat's approach to water efficiency and leakage

National Audit Office report (41 pages, PDF) on the value for money of Ofwat's regulatory activity in relation to water leakage and the promotion of water efficiency. The report notes shortcomings in the available data for leakage (because of the difficulty of estimating unmetered consumption) and for the effect of water efficiency measures. It suggests capping total revenues alongside the current price cap in order to encourage companies to promote water efficiency.

The report's summary also suggests "investigating ways in which companies can be incentivised further to share water on a regional basis where this makes economic sense (including competition law concerns) and is environmentally sound" but the report does not provide details of this point.

For further information or advice please contact Franck Latrémolière.

Filed under NAO, Ofwat, Water.

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