Water companies being let off leak targets 'to spare customers higher bills' Ofwat said it was urging firms to "step up to the plate" to reduce their leakages. However customers may have face higher prices to cover the cost of fixing leaks, it added. An spokesman said: "The current drought shows the importance of tackling leakage. We also need to take a long-term view. Climate change and more households will stretch water supplies even further in coming years. We know leakage matters to customers, but they also tell us they don't want large rises in bills to reduce leakage. And fixing leaks can be costly. Replacing all the pipes in England and Wales would cost an estimated £100 billion - and still leakage levels would only be halved. We need to get the balance right, so we can ensure customers continue to get a fair deal. Labour environment spokeswoman Mary Creagh told the Daily Mail: "The public are rightly concerned about rising water bills and hosepipe bans. Ofwat sets leakage reduction rates, but leaks are only fixed when the cost of lost water outweighs the cost of repair. That's not good for consumers or the environment.