Thames Water has revised its leakage projections upward after heavy rainfall overwhelmed its aging infrastructure. The company, which serves 15 million customers in London and the Thames Valley, now expects to lose 585 million liters per day this financial year, up from its previous estimate of 550 million liters.
For the next financial year, leakage is projected to be between 512 and 530 million liters per day, an increase from the earlier forecast of 507 million liters.
The increase in leakage estimates adds pressure on Thames Water, already burdened with significant debt and public criticism over its sewage management.
This comes amid stricter government and regulatory measures targeting the water industry. Recent plans include banning bonuses for water company executives who fail to prevent illegal sewage discharges and imposing sanctions on companies with poor service records.
Increased leakage estimates highlight pressure on Thames Water to upgrade its infrastructure.In comparison, Thames Water’s leakage last year was 620 million liters per day. Former CEO Sarah Bentley had previously acknowledged the difficulty in meeting leakage targets due to weather extremes.
This year’s severe flooding, including a January deluge that caused significant sewer backups, exacerbated the problem. Thames attributes the issues to London’s corrosive soil and its old infrastructure, with nearly half of its mains over 100 years old.
Critics argue that Thames has under-invested in infrastructure, a concern dating back to its former ownership by a Macquarie-led consortium. With a £14 billion debt load and an auditor warning of potential cash flow issues, Thames is facing intense scrutiny.
The company’s turnaround plan includes increasing annual bills and investing £18.7 billion over five years, with substantial funds allocated to improve service and replace aging pipes.