Thames Water boss says leakage targets 'not realistic'

An important development from the financial markets: Thames Water boss says leakage targets 'not realistic' Figure caption, Watch: Simon Jack presses Thames Water boss on pollution targetsBySimon Jack, Business editor and Shanaz Musafer, Business reporterPublished1 hour agoThe boss of Thames Water has claimed targets the company has been set over things like leakages are "not realistic". Thames has been criticised for its performance in recent years following a series of sewage discharges and leaks, and last year was fined a record £122. 7m by regulator Ofwat, most of which was for breaching sewage spills rules.

Chris Weston said Thames wanted "to do better" but said some of its targets were not achievable. Ofwat said company targets were "intended to be ambitious", while an environmental group said sewage pollution should not be accepted as inevitable. Thames, which has struggled for years under billions of pounds of debt, faces being put in a form of temporary nationalisation known as a special administration regime.

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But Weston said if that were to happen, there was a risk the taxpayer would have to bear the cost of funding it, and instead backed a rescue deal put forward by the firm's lenders. Pollution targetsWater companies have performance commitments on issues such as leakage. It is illegal to release raw sewage into rivers and seas during "normal" weather conditions, but firms are allowed to do so when it rains heavily, to prevent homes being flooded.

Thames is the UK's largest water company, supplying water and wastewater services to 16 million customers across London and parts of southern England. Speaking to the 's Big Boss Interview podcast, Weston said the company treats 4. 3 billion litres of waste a day, and "99.

5% of the time" it gets treated successfully, although "sometimes something goes wrong". "We want to do better when it comes to pollutions," he said, but added, "the targets that the company is expected to make are not realistic. ", we have to hit a certain level of leakage, but it is so far in excess of what we are capable of doing, I think anyone would be capable of doing, however much money you invested, that it is not going to be achievable.

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"The chance of getting to zero pollution was "very, very slim", he added. Ofwat told the : "With around a fifth of water put into supply still lost through leakage, companies must deliver on the commitments they have been funded to achieve. "Water company targets are intended to be ambitious and drive better outcomes for customers and the environment.

"A spokesperson for the Environment Agency said: " and the public expect Thames Water to comply with the law," adding that the agency would continue to hold companies to account where performance falls short. James Wallace, chief executive of campaign group River Action, said: "Thames Water's tactics of opacity and deflection fool no-one.

Economists are analysing what the news means for the markets.