UNITED Utilities has praised the 'extraordinary efforts' of staff who hit targets on repairing leaks despite receiving 40,000 calls between Christmas and New Year.

During the festive period, the water supplier received an unprecedented ten times the usual level of calls to burst pipes.

Regulator Ofwat has the power to fine firms that fail to meet leakage targets – with potential penalties up to 10 per cent of their turnover – but the North West Water owner said it met its 2010/11 benchmark of 464 megalitres a day.

Annual results released to the London Stock Exchange also highlighted the impact of Ofwat's recent five-year price review, which resulted in a four per cent reduction in United's prices in real terms during the last financial year, not taking into account inflation.

Average household bills for customers in the year to the end of March were £362, down from £377 the year before.

Revenues fell four per cent as a result, to £1.48 billion in the year to the end of March, while operating profits dipped 17 per cent to £580 million.

The cost of infrastructure renewals and property rates also affected profits. Despite the "tough" Ofwat settlement, the Warrington-based group has claimed it is well positioned for the five-year regulatory period after embarking on a cost-cutting drive and winning union backing for changes to its pension scheme.

Chief executive Steve Mogford, who took the helm in March, said the company had made good progress and went on to praise the "outstanding commitment" of staff who helped the company meet its leakage target with minimum customer disruption.

Mr Mogford said: "Despite a year of extreme weather, we have demonstrated resilience, continued to serve our customers and, thanks to the extraordinary efforts of our employees, met our leakage target."

The company's operations cover a population of seven million people and 3.2 million households and businesses in the North West, including thousands in South Cheshire. United Utilities is also close to completing its West End Link water pipeline, a £120 million project connecting Merseyside and Greater Manchester.

Mr Mogford added: "We have continued to make high levels of investment in our water and wastewater assets, providing further benefits for customers, shareholders and the environment. Capital spend in the year was over £600 million.

"We are focused on providing the best service, at the lowest sustainable cost and in a responsible manner, for the long-term benefits of our customers, our shareholders and the environment."

Jan Wright, chairman of Crewe's Underwood Lane Tenants and Residents' Association, urged United to keep bills as low as possible.

Mr Wright said: "Everything's going up at the moment. And pensions have gone up by such a small amount there is a deficit when you include inflation."