Leakage is an important issue for customers and the environment. In our view reducing leakage is not only economically justifiable – reducing operating costs and capital expenditure – but also contributes to Scottish Water delivering its obligations with regard to sustainable development, and reducing its carbon emissions.

Since 2006, we have agreed with Scottish Water pragmatic annual targets to reduce leakage continually so that it achieves the point where the cost saving of reducing leakage is equal to the economic cost of the water lost. This is known as the economic level of leakage.

We were pleased to report that Scottish Water consistently beat the agreed leakage targets for the six years 2008-09 to 2013-14. As a result of this effort, leakage in 2013-14 was reduced to almost half of the level observed in 2006