WATER company Severn Trent has failed to meet its annual target for repairing leaks after the coldest December in 100 years caused a surge in the number of broken pipes.
The utility firm, which supplies thousands of homes and businesses across North Staffordshire, matched last year's performance.
But failed to meet regulator Ofwat's reduced benchmark of 483 megalitres per day for 2010/11.
It has blamed its first above-target leakage performance for five years on two periods of freezing temperatures followed by a thaw and pledged to invest more money to make its system more resilient this year.
The company, which is based in Coventry, reported pre-tax profits of �253 million for the year to March 31, down 24.3 per cent from �334.4 million the year before.
Turnover rose by 0.4 per cent, from �1.703 billion to �1.711 billion.
Prices dropped by 0.7 per cent but this was offset by a rise in consumption.
Chief executive Tony Wray paid tribute to the dedication of the firm's employees in dealing with the challenges thrown up by the weather.
He said: "Our people showed tremendous dedication, working around the clock to keep supplies running.
"We have reduced leakage significantly since the winter and have plans in place to achieve our targets in 2012. We have taken into account recent experiences and have already commenced with plans to improve the resilience of our network."
Mr Wray, pictured, said that Severn Trent does not currently expect to impose hose pipe bans on its customers despite the "unseasonably dry" weather.
But the company will continue to monitor the situation and is encouraging customers to use less water, while driving down its own leakage rate.
The Sentinel reported in February that Severn Trent customers will see their water bills go up by an average of �13 this year.
Industry regulator Ofwat announced that prices were to rise in line with inflation for 2011/12, which means the average Severn Trent household bill will rise by 4.3 per cent, or �13, to �311.
Across England and Wales, the average household bill is due to rise by 4.6 per cent (about �16) to �356. The new prices came into effect last month. Yesterdaywater firm United Utilities, which supplies homes and business across South Cheshire, praised the "extraordinary efforts" of staff who hit targets on repairing leaks despite receiving 40,000 calls between Christmas and New Year.
During the festive period, the water supplier received an unprecedented ten times the usual level of calls to burst pipes.
Regulator Ofwat has the power to fine firms that fail to meet leakage targets – with potential penalties up to 10 per cent of their turnover – but United Utilities said it met its 2010/11 benchmark of 464 megalitres a day.
Revenues fell four per cent to �1.48 billion in the year to the end of March as a result of a drop in prices imposed by Ofwat's recent five-year price review.
Operating profits dipped to �580 million.
Chief executive Steve Mogford, who took the helm in March, said: "Despite a year of extreme weather, thanks to the efforts of our employees, we met our leakage target."
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