Leakage Reporting Methodology – Consultation

This document is a consultation seeking views on a new approach to reporting leakage.

This consultation includes a summary of concerns with the current reporting methodology. It sets out consideration of options and preferred options only where they have been identified. It also considers a timeline for implementation of any changes.

It is not a consultation on changing leakage reduction targets, nor the level of ambition expected from companies, or the outcome delivery incentive rates associated with performance against those targets. The focus of this consultation is the methodology used to calculate and report leakage so that reported figures make use of increasing amounts of meter data (primarily from smart meters) and hence ensure reported leakage is more accurate, consistent, and transparent.

What we're asking

We're seeking views on these areas:

• What aspects of current leakage reporting guidance work well and which should be improved?
• Do you agree that the Top-Down Bottom-Up approach in England and Wales remains appropriate for future reporting? What would need to happen to move to Top Down only?
• How can we best incorporate data from customer smart meters into the leakage calculation?
• Do you have any views on whether Bottom-Up leakage should continue to be extrapolated from night flows, or should we move to a 24 hour mass balance?
• Do you agree that upstream leakage should be reported as a mass balance, and do you have any views on whether that be Strategic Upstream Balances or more granular Upstream Flow Monitoring Zones?
• Do we need a metering standard and how would we incentivise companies to comply with any such standard?
• How do we incentivise accuracy as well as expecting companies to achieve leakage targets?
• Do you have views on how quickly any changes should be implemented?
• Do you have views on any investment that would be required in order to improve leakage reporting?
• Do you have any views on whether any changes should be a step change or a phased approach, and whether shadow reporting would be required.

How to respond

Please read the consultation documentation before responding. You can email us at leakage2050@ofwat.gov.uk with your response, or if you wish to discuss any aspect of this consultation. You can also post your response to:

Leakage 2050 Consultation response
Ofwat
Centre City Tower
7 Hill Street
Birmingham B5 4UA

Note that responses may be published. If you would prefer your response to remain confidential, please indicate this clearly.

We will publish an outcome document after the consultation has closed.