Conclusion 11

We were concerned that water companies, having been pushed to be more ambitious in their leakage reduction plans, had accepted new targets that were unrealistic and that would set them up to fail.19 Ofwat assured us that new technology for detecting and fixing leaks exists, for example new materials that reduce the propensity to leak, and robots that can go through pipes, detect leaks and fix them but the NAO reported that Ofwat had acknowledged that, for some companies, achieving their targets relied on as yet unknown and untested approaches.20 Ofwat acknowledged that the targets were stretching but said that water companies had had three years to prepare for the required step-change in efforts to tackle leakage. The Department assured us that companies recognised their responsibilities with regard to leakage because their reputations are on the line and there 15 Letter from Department to the Committee dated 15 June 2020 16 Letter from Department to the Committee dated 15 June 2020 17 Q 69 18 Q 70 19 Q 74 20 Q 73; C&AG’s Report, para 19 Water supply and demand management 11 are risks of penalties and enforcement if they do not take the action required.21 Ofwat said it had already seen some of the better performing companies in recent years making the levels of reduction it is looking for, so did not think it is unachievable.22 Ofwat was confident many water companies would develop new ways to tackle leakages, and would “surprise themselves” at what they can achieve.23 Achieving net zero carbon emissions