Leaky pipes make UK's water 'fifth most expensive'

Britain's notoriously leaky water system has led to the biggest price rises in Europe, according to a survey from the National Utility Services. Prices have been 'spiralling' since privatisation, and the industry needs to rethink its attitudes towards profits and investment, says the NUS.

Water prices have risen by an average of 4 per cent in the year to July, the NUS survey has found. This was the second-highest increase found in the countries included in the survey (see chart), and makes it the fifth most expensive country to buy water. In some areas, increases were as high as 6 per cent.

These rises, claims NUS, are due to the series of droughts in the past few years; and the costs associated with the wastage of water through leaks in the system. In some areas, 30 per cent of the water in the system is lost through leaks.

'Although water companies have benefited from high profits since privatisation, they have failed to plough back the investment urgently needed to upgrade the archaic distribution system,' charges NUS director Andrew Johns. While 'vast amounts' of infrastructure needs to be overhauled, he adds, the companies seem to have been more concerned with paying out dividends to their shareholders. Unfortunately for customers, the need for modernisation is still critical; and the business customers, who can't access water supplies outside their environs, 'have no option but to pay.'