Regulators have warned that South West Water's persistent inability to repair leaks is endangering water supplies for customers across the south-west as severe drought conditions persist in parts of the region. According to The Guardian, the company has failed to meet leak-reduction targets for seven consecutive years, prompting Ofwat, the Environment Agency, and the Department for Environment, Food and Rural Affairs to demand an action plan within six weeks.
The privatised utility, which serves 1.8 million people across the south-west, currently loses 113.5 million litres of water daily through its pipes and infrastructure—equivalent to 45 Olympic swimming pools. This leakage rate stands 18.5% above forecast levels and has worsened compared to the previous year, according to regulators' correspondence dated 26 October.
The crisis has intensified as approximately 325,000 people in Exeter and parts of mid and east Devon face the prospect of regular supply cuts over coming weeks and months. Thousands of businesses in these areas also confront potential disruption, with school closures and economic losses among the possible consequences. The situation reflects a broader pattern of water company failures; South East Water was ordered to pay £30.5 million in July 2026 following repeated supply failures that affected thousands in Kent and Sussex.
Why are leaks such a critical issue during drought?
Leakage becomes catastrophic during drought because every litre lost through damaged pipes represents water unavailable to customers. Regulators stated in their joint letter:
"Leakage is 18.5% above forecast … and increased since the previous year. Given the ongoing drought conditions, these shortcomings are placing customers at a greater level of risk. This is not acceptable."The company's own leakage has increased by 5.7 million litres daily compared to the previous year, directly undermining efforts to maintain supply security.
The situation is particularly acute because South West Water has simultaneously asked customers to reduce consumption. Regulators noted that
"Achieving your planned leakage reductions is reputationally important as you are asking customers to reduce their water use."This contradiction has not gone unnoticed by local leaders. Julian Brazil, leader of Devon county council, remarked:
"Householders and businesses have been told to save water to avoid worse drought restrictions and that it was all down to the dry weather. Now we learn South West Water has been continually warned for seven years it's not doing its bit on leakage and they are still failing, which puts our rivers and wildlife at risk of prolonged environmental damage and may leave thousands of customers and businesses facing supply restrictions."
What is the current state of water reserves?
Reservoir levels remain critically low across the region following the driest April-to-September period in over a century. Wimbleball, which supplies South West Water customers in east Devon, north Devon, and west Dorset, as well as Wessex Water customers in west Somerset, had fallen to just 16% capacity. However, the BBC reported on 4 November that recent rainfall had raised Wimbleball to 18%, though the company emphasised that sustained precipitation remains essential for lasting recovery.
The Met Office has indicated that 120% of typical rainfall over seven months is necessary to bring England fully out of drought. As of the National Drought Group meeting on the date the regulators' letter emerged, approximately 82% of England remained in drought, with formal drought declarations in place across Devon, Cornwall, Dorset, Somerset, East Sussex, and West Sussex.
The Environment Agency granted South West Water a drought permit on 2 October, allowing the company to pause normal compensation flows to the River Haddeo while releasing equivalent volumes downstream to support abstraction from the River Exe. This permit is scheduled to remain in effect until 28 February 2027 unless withdrawn earlier.
What steps is South West Water taking to address leaks?
The company has stated it is repairing leaks and redistributing water across its network to strengthen supplies. South West Water reported that it is repairing an average of 440 leaks weekly and has recruited approximately 40 leakage technicians during the current year. Richard Stanbrook, the company's drought programme director, stated:
"Recent rainfall is having a positive impact on our water resources, with welcome improvements after months of exceptionally dry conditions. However, pressure on supplies remains significant, and we need sustained rainfall in the right places to replenish our rivers and reservoirs and secure a lasting recovery. We are repairing leaks, moving water around our network and taking every practical step to strengthen supplies and reduce water losses. As conditions improve, we will keep doing everything we can to protect supplies."
However, these repair rates have proven insufficient to reverse the upward trend in overall leakage. The company's failure to meet targets over seven years has eroded confidence among regulators and local leaders alike. Brazil added:
"I would say it's a surprise but it's not, because this crisis has been decades in the making. While we've been paying the highest bills in the nation since 1989, South West Water has been busy continually polluting our bathing waters, busy losing nearly one in every five litres of water on its network and most busy paying out billions in dividends to its shareholders."
What regulatory action is being taken?
Regulators have given South West Water six weeks from 26 October to submit a comprehensive action plan addressing its leakage crisis. The joint letter from Ofwat, the Environment Agency, and the Department for Environment, Food and Rural Affairs emphasised that
"A trend of rising leakage … represents a risk to your customers' security of supply."The failure to tackle leaks has reduced confidence in the company's ability to maintain supplies and avoid emergency river abstraction, which would cause environmental damage.
The warning to South West Water arrives as the government announced the creation of eight new regional water councils designed to bring together local leaders, customers, and businesses to establish priorities for water companies and help direct billions of pounds of investment in water and flood infrastructure. Local leaders have been asked to submit proposals for operating these new bodies by the end of the year.
What happens next?
South West Water's hosepipe ban, introduced in August 2026 following months of low rainfall, is expected to remain in place for a "significant period" while reservoirs require strong winter recharge. The company has also applied for a non-essential water use ban that could restrict certain commercial activities, though no decision date has been specified.
The company faces mounting pressure to demonstrate meaningful progress on leak reduction before the six-week deadline expires. Failure to present a credible action plan could trigger further regulatory intervention and reputational damage at a time when public cooperation on water conservation is essential to avoiding more severe restrictions.
Key Facts
- South West Water loses 113.5 million litres of water daily, equivalent to 45 Olympic swimming pools, with leakage 18.5% above forecast levels
- The company has failed to meet leak-reduction targets for seven consecutive years, prompting regulators to demand an action plan within six weeks
- Approximately 325,000 people in Exeter and parts of mid and east Devon face regular supply cuts, with thousands of businesses at risk of disruption
- Wimbleball reservoir, a critical supply source, had recovered to 18% capacity following recent rainfall but requires sustained precipitation for lasting recovery
- The Environment Agency's drought permit allows South West Water to manage river flows until 28 February 2027 to support water abstraction
