Welsh Lib Dems slam water firms as millions of litres leaked daily

WELSH Liberal Democrats have criticised Dŵr Cymru and Hafren Dyfrdwy after new figures revealed widespread water wastage due to leaking infrastructure, with Dŵr Cymru alone losing an average of 251 million litres every day.

Research from the House of Commons Library, commissioned by the Liberal Democrats, shows that between 2020/21 and 2022/23, an average of 3 billion litres of water were lost daily across England and Wales — the equivalent of 1,200 Olympic-sized swimming pools.

Dŵr Cymru was the worst offender, leaking 171 litres per property per day — the highest in England and Wales. Hafren Dyfrdwy, which supplies Montgomeryshire, Wrexham, and parts of Radnorshire, ranked second worst, leaking 154 litres per property per day, or 16.4 million litres in total.

The Liberal Democrats estimate the annual cost of water leakage to customers at around £396 million.

Despite Dŵr Cymru’s not-for-profit model, the party has long raised concerns over executive pay, environmental failings, and high household bills. Water bills in Wales remain the highest in the UK, despite some of the lowest household incomes. Hafren Dyfrdwy bills are set to rise by 32% in 2025, with average charges increasing from £447 to £590.

Apology and acknowledgement of misreporting

In March 2024, Dŵr Cymru Welsh Water issued a public apology after it was found to have misreported leakage and per capita consumption figures over a number of years. An Ofwat investigation concluded that the company significantly understated the extent of its water losses, prompting accusations of misleading customers and regulators.

The company admitted to failures in governance and management oversight and agreed to a redress package worth £39.4 million, including a £10 rebate for every customer.

Chief Executive Pete Perry said: “We are very sorry that this happened. We proactively brought this issue to Ofwat’s attention… Our review identified governance and management oversight failures that led to the issues identified which have now been addressed. Achieving the planned reduction in leakage will be challenging, but we have committed a substantial increase in expenditure in this area and strengthened the relevant operational teams to recover performance.”

Welsh Water also pledged to invest an additional £59 million during the current 2020–25 price review period to tackle leakage and reduce consumption.

Ofwat Chief Executive David Black condemned the misreporting: “For five years, Welsh Water misled customers and regulators on its record of tackling leakage and saving water. It is simply indefensible, and that is why we are making Welsh Water pay this £40 million to benefit its customers.”

The findings sparked renewed criticism from campaigners and politicians alike, who say the apology and investment commitments are long overdue and insufficient given the environmental damage and costs to consumers.

Political pressure mounting

Welsh Liberal Democrats are now calling for the abolition of Ofwat, arguing that the regulator has failed to hold water companies properly to account. They propose the creation of a new, more powerful watchdog.

Their demands include:

• A single social water tariff to protect vulnerable customers
• A ban on executive bonuses at failing water companies
• Stronger environmental oversight from the Welsh Government, particularly regarding Dŵr Cymru

David Chadwick, Liberal Democrat MP for Brecon, Radnor and Cwm Tawe, said: “It’s scandalous that Dŵr Cymru is wasting millions of litres of water every year, while customers are saddled with sky-high bills. The government cannot sit idly by as water companies exploit the system.

“Ofwat must be replaced with a regulator that will hold these polluters to account. The Liberal Democrats will continue to stand up for customers who have been taken for granted for far too long.”

Glyn Preston, Senedd candidate for Gwynedd Maldwyn and Llanidloes County Councillor, added: “Communities across Gwynedd and Montgomeryshire are being failed by a system that rewards mismanagement and punishes ordinary people.

“When companies like Hafren Dyfrdwy waste millions of litres daily, it’s not only an environmental catastrophe but a betrayal of public trust.

“We need urgent reform to fix our broken water system, protect the environment, and ensure no one is forced to pay through the nose for such poor service.”

Despite recent commitments, campaigners argue that water companies in Wales continue to fall short on both environmental and consumer expectations. Critics say tougher regulation and greater transparency are essential to restore public confidence.

A Welsh Water spokesperson said: “Our performance on leakage when measured per property isn’t a true reflection of the overall situation, due to the sparse population we serve in rural areas and the length of our pipe network.

“Welsh Water is close to the industry average when measured on leakage per kilometre of pipe and this remains a more relevant comparison.

“However, leakage performance is not where we want it to be and we have invested an additional £54m over the past two years above what was planned to identify and reduce leakage as quickly as possible to improve our performance further.

“This has meant that we have made significant improvements in performance, and we expect this to be evident in our figures for 2024/25 that will be released in a few weeks’ time.

“Our aim is to continue this improvement over the next five years where we will reduce leakage by a further 25% with considerable investment planned in pipe replacement and leakage repairs.”