A water company with millions of household and business customers in the Midlands has said it was hopeful of avoiding curbs on usage this year.

Severn Trent, which serves the Midlands and parts of Wales, has faced record low rainfall over the winter but said in a trading update that it was “not currently predicting any usage restrictions”.

It added: “This situation remains under constant review however and the company is taking steps to improve supply resilience this year.”

The position has been helped by a decline in consumption over the 2011/12 financial year as households look to cut bills and more firms go out of business or cut their production in order to meet reduced demand.

Severn is also meeting its target for tackling leaks as one of only three companies with a requirement to cut leakage rates over the water regulator’s five-year review period.

The company said initiatives to tackle the dry conditions have included the transfer of supplies from the wetter west of its region to lower reservoirs in the east.