MPs say water watchdog must get tougher

By Peter Griffiths

LONDON (Reuters) - The water watchdog Ofwat must toughen up its "limp attitude" to regulation by imposing the maximum fine on companies that fail to fix leaky pipes, an influential group of MPs said on Thursday.

In a critical report, the Public Accounts Committee said Ofwat's decision not to fine Thames Water for missing leakage targets for six years running must not be repeated.

"Ofwat has been passive in its regulation of the water industry," said committee Chairman Edward Leigh. "At the same time it has paid little heed to the interests of water users.

"Thames missed its annual leakage targets for six years in a row without so much as a slap on the wrist.

"In future, such a wanton waste of water by a company must be rewarded with the maximum possible fine."

After avoiding a fine last July, Thames Water agreed to replace hundreds of miles of old pipes.

Ofwat must push harder for more water meters to give people a financial incentive to use less water, the MPs said. Less than a third currently have one.

Figures on water usage are unreliable and need to be improved, the MPs said.