The GMB union are calling for Ofwat to investigate Severn Trent Water leakage figures amid concerns that 500 job cuts have led to depleted water stocks.

GMB, the union for water workers, is calling for the water industry regulator to investigate the water leakage data from Severn Trent Water (STW). According to the union, the water company increased the background consumption estimates by 20% in 12 months which the GMB says the regulator “must investigate if this was to hide the true leakage position.”

The GMB want Ofwat to investigate why during the past year the allowance for background consumption of water per property has been increased from approx. 2.0 to 2.4 litres per property per hour. The change over the 4.3 million properties served by Severn Trent Water adds up to over 40 million litres per day (MLD) – the union wants an investigation to establish whether the change has been used to offset the true levels of leakage the company faces and whether it enabled STW to present a stable leakage position of 441ML/D to Ofwat, thereby achieving the regulatory target of 453ML/D for 2014/15.

The GMB considers that the failure to control leakages is linked to the shedding of 500 key staff through redundancies during 2014/15 and the introduction of a number of cost saving initiatives to increase returns to shareholders by new CEO Liv Garfield.

Gary Smith, GMB National Secretary for Utilities, commented:

 “GMB call on OFWAT to investigate possible inaccuracies in the leakage data supplied by STW for the last reporting year (2014/15). STW increased the background consumption estimate per property per hour by up to 20% over a 12 month period. OFWAT must investigate if this was to hide the true leakage position.”

“There are concerns that as far back as January senior management within STW could see they were going to fail the leakage target largely due to grossly failed change plans which reduced 500 key operational roles at a critical time.”

GMB want Ofwat to investigate whether senior managers then began to seek to manipulate the backgound usage allowances and for this to be set against that otherwise attributed to leakage.

In a statement, the union has drawn attention to the fact that in 2008 the company was found guilty of supplying inaccurate data on leakages on 3 occasions between 2000 and 2002, saying that “STW was also fined £35m for providing false information deliberately and offering customers a poor service.”

It also pointed out that the leakage figure is "a major company Key Performance Indicator which contributes directly to the outturn of executive bonuses."