Ofwat investigates South West Water over leakage data
South West Water (SWW) is under investigation by the UK water watchdog over the accuracy of data it provides on leakages.
Ofwat said it would carry out a "thorough" investigation into the firm's leakage reporting and per capita consumption, or average household use.
The regulator said it was committed to ensuring water firms provide "timely, accurate and complete data".
SWW said it would "fully cooperate" with Ofwat.
Water companies are under increasing pressure to reduce the amount of water lost through leaks in the water pipeline network, with a government target to cut leakages by 50% by 2050.
Households in Cornwall and most of Devon are under a hosepipe ban as supplies remain under strain.
SWW was also fined a record amount of more than £2.1m in April after admitting it caused pollution in the two counties.
'Confidence in our data'
Ofwat said it deferred a decision on the progress SWW had made towards its leakage performance commitment to understand "how the company calculated its reported performance".
David Black, Ofwat's chief executive, said: "We are committed to holding companies to account for performance and for sharing timely, accurate and complete data with us and their customers.
"We want to ensure that is the case here. A thorough investigation will now be carried out and we will provide updates in due course on our findings and whether there is any further action Ofwat needs to take."
The watchdog can penalise or reward a company based on how well it meets its annual performance targets.
SWW said it was important customers "have confidence in our data".
"That's why we rigorously check our data which is externally audited by an independent third party," it said.
"We will of course provide any information the regulator requests and we will fully co-operate."
Luke Pollard, Labour MP for Plymouth Sutton and Devonport, said SWW had a "catalogue of failure".
He said: "South West Water's record is already unacceptable, but this Ofwat investigation suggests their performance is even worse than the figures show."
The Department for Environment, Food and Rural Affairs said: "We have been very clear to water companies that we expect them to deliver on their commitments, including targets to reduce leakage by 30% by 2032.
"Whilst we cannot comment on an ongoing investigation it's right that companies are held to account on this critical issue."
Ofwat said it would not provide any further information on the investigation until it reached a conclusion.
The utility company was also targeted by Ofwat last year in an ongoing investigation into its environmental performance and sewage treatment works.
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