Security of Supply 2006-07, published on Tuesday, examined how well companies performed up to March 2007 and their long-term plans to balance supply and demand.

It concluded that customers can look forward to secure, safe and continuous water supplies now and in the future.

The report also showed that between April 2006 and March 2007, water companies and their customers saved nearly 65 million litres of water a day – equivalent to the daily consumption of a city almost the size of Bradford.

Companies spent £31million on water efficiency activities during the year – a rise of 24% on the previous year.

Ofwat bosses said its voluntary efficiency targets will help water suppliers increase water savings.

Chief executive Regina Finn said: “The focus by customers and companies on using water wisely is very important when companies are calculating how much water their customers will need over time, and planning to find the water resources to meet that need.”

Across the industry, leakage fell for the third consecutive year, and Severn Trent Water was the only company that failed to meet its leakage target.

Ofwat announced in August that it was taking action against the company, which included a legally-binding commitment to reduce leakage and a reduction in charges for customers in 2008-09.

However, the report also raises concerns that Dwr Cymru Water, Three Valleys Water and South East Water are not hitting targets Ofwat expect them to meet in the 2005-10 price review period.

Ms Finn added: “We will monitor those companies closely and, as we did with those missing leakage targets, we will take the action necessary to make sure they meet their customers’ needs.”

Ofwat chiefs also noted that the number of meters installed in homes had beaten their expectations, with 425,000 people opting for the measure in 2006-07.

Kate Martin

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