<p>The 25 Year Environment Plan sets out our ambitions for reducing leakage. This includes supporting Ofwat’s challenge to the industry to reduce leakage by 15% by 2025.</p><p> </p><p> </p><p> </p><p>Ofwat monitors progress against leakage targets and will take action if water companies do not meet them. For example, following an Ofwat investigation into Thames Water’s leakage performance, Thames Water agreed to pay £65 million back to customers as part of an overall package of payments and penalties worth £120 million.</p><p> </p><p> </p><p> </p><p>We expect water companies to set ambitious leakage reduction targets and make sure they meet these targets. Water companies are currently setting out their targets for leakage reduction in their long term water resources management plans.</p><p> </p>