Thames Water has been told its "unacceptable" leaky pipes are partly to blame for the recent hosepipe ban.

Over the year, Thames Water has lost the equivalent of 43 Olympic-sized swimming pools every day through leaky pipes in the Thames Valley region.

Figures released by the company yesterday showed Thames Water failed to meet its leakage targets for the third year running, despite announcing £346.5m pre-tax profits.

Water regulator Ofwat has partly blamed the leaks for the hosepipe ban imposed on thousands of homeowners in the region.

The figures showed 894 million litres a day (mld) were lost in the company's area, including London, in the 12 months to March 31. Its target was to restrict it to 860 mld.

An Ofwat spokesman said: "Customers are paying the higher prices that Thames Water has been allowed to charge without getting all the benefits the company has promised to deliver. This is unacceptable.

"Although the current drought is the result of below-average rainfall for two consecutive winters, we expect Thames Water to set a good example by controlling its leakage.

"The company's poor leakage performance is not only inefficient, it is also contributing to water shortages that have led Thames Water to impose a hosepipe ban and seek a drought order."

June Tracz, 74, spotted a leak outside her home in Ingle Close, Headington two weeks ago.

She said: "It's disgusting. They put the water rates up but they don't seem to be doing any work."

Thames Water did reach its local target for preventing leaks in its area outside of London, but is still losing 109 mld per day.

Chief executive Jeremy Pelczer said: "It is immensely frustrating that despite our strenuous efforts to reduce leakage we have missed our target."

In the past 12 months, Thames Water has fixed 87,000 leaks, an increase of 20 per cent on the previous year.