Almost a fifth of water supplies are being lost through leaks before they reach customers’ taps, a report from the Environment Agency has found.

The assessment of water companies’ annual performance data on managing resources warned that although leaks were down 10 per cent from 2017/2018 levels, they were still “too high”, with an average of 19 per cent of water supplies lost in the network across England.

Embattled Thames Water and United Utilities were identified by the report as having the worst leakage rates per person, and it also warned that in many areas of England leaks got worse last year.

The Environment Agency (EA) told companies they must deliver a sustained reduction in leakages, particularly with climate change driving extreme weather such as hot dry conditions that make the ground move and raise the risk of pipes bursting.

READ MORE: Plans to build up to 350 homes on northern edge of Carterton

The report also highlights that while the wet winter and summer of 2023/24 mean there were no drought-related supply issues, some companies still reported they do not have enough water available to meet demand if there had been a drought.

The companies receiving letters are Anglian Water, Bristol Water, Cambridge Water, Portsmouth Water, South East Water, South Staffordshire Water, South West Water, Southern Water, Thames Water, and Albion Water.

The EA’s chairman, Alan Lovell, said: “In the face of the enormous challenges on water resources, we have to tackle both sides of the equation – reducing demand and increasing supply.

“While we’ve seen some progress by companies, it’s clear that more planning, resources and investment are needed, particularly on leakage.

“We expect water companies to accelerate their plans to increase water efficiency, reduce leakage and prepare for future droughts.

“We will continue to work closely with Ofwat and Defra to hold water companies accountable and ensure they deliver on their commitments to protect our environment and secure our water supply for future generations.”

Water minister Emma Hardy said: “This report is a damning indictment of the sheer volume of water that is wasted by water companies across England.

“As the climate crisis worsens and more pressure is placed on our water systems, we must fix our broken water infrastructure to ensure we have a resilient future water supply.”

A spokesperson for industry body Water UK said: “With much of our network over 100 years old, water companies have worked hard to deliver the lowest level of leakage ever recorded.

“We have a plan to reduce leakage by a third by the end of the decade, but the regulator Ofwat has put this at risk by proposing to cut investment in our water infrastructure by £17 billion.

“If we want to lose less water to leakage, we will need Ofwat to reconsider its plans.”