THAMES Water has been condemned for failing to effectively manage Oxfordshire's water supply.

Liberal Democrats, meeting in Brighton for their annual conference, criticised the company for leaking millions of litres every day and said failing suppliers should be converted into not-for-profit companies.

Delegates passed a motion demanding compulsory metering to help tackle water shortages in areas of scarcity.

Meters would save Oxfordshire households £2 a year, the party said.

The average Thames Water customer without a meter paid £166 in 2005/06, compared with a bill of £144 for metered households, according to figures supplied by water watchdog OFWAT.