Water companies’ environmental performance declined again last year despite £5bn of industry investment over five years, according to the first joint assessment by the regulators overseeing the sector in England and Wales.
Eight of the nine companies assessed were rated either “poor” or “requires improvement”. Severn Trent was the only company to receive the highest rating.
The companies were praised for reducing service interruptions, but severe pollution affecting the environment remained a “major concern”. Environment Agency (EA) chairman Alan Lovell said the results showed the sector was performing “significantly below the standards that both we and the public rightly demand”.
A joint assessment of the water industry
Water companies in England and Wales are currently overseen by four regulators: the Environment Agency, Natural Resources Wales, Ofwat and the Drinking Water Inspectorate. The report marks the first time the regulators have worked together to assess the industry.
The joint approach follows Sir Keir Starmer’s government pledge to merge regulatory organisations into a single body as part of efforts to streamline oversight.
Severe pollution remains a major concern
The report’s strongest criticism focused on environmental performance. The Environment Agency said severe pollution incidents in 2025 were of “grave concern” and remained at the same high level as the previous year.
“These results highlight the scale of the sector’s underperformance,” Mr Lovell said.
He added that, despite the £5bn invested over the past five years, “not all companies have been able to deliver on the environmental improvement plans they have been funded for”.
Source: www.bbc.co.uk