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The environmental performance of water companies worsened again last year despite industry investment, according to the first joint report by four UK regulators. Eight of the nine companies in England received “poor” or “requiring improvement” ratings, with Severn Trent as the sole exception.
Regulators Criticize High Pollution Levels
Alan Lovell, chair of the Environment Agency, told BBC News that the findings demonstrate the industry continues to fall short of required standards. He expressed extreme disappointment over ongoing pollution levels and stated his sympathy with the public.
Environment Secretary Dame Angela Eagle stated she is demanding answers from failing companies and will spotlight the worst offences nationwide. Oversight in England and Wales currently involves four separate bodies—the Environment Agency, Natural Resources Wales, Ofwat, and the Drinking Water Inspectorate—marking the first time they have combined assessments to evaluate the sector.
England’s water companies achieved only 16 out of 36 possible stars for environmental performance, setting a record low. The Environment Agency attributed this decline to tighter performance standards alongside worsening results in specific sectors, while Natural Resources Wales gave Dŵr Cymru Welsh Water a two-star rating out of four.
Water UK acknowledged that performance falls short in certain areas, though a spokesperson emphasized that over half of pollution incidents stem from blockages or vandalism outside direct company control. The industry body added that record investment will eventually secure supplies, aid growth, and stop sewage from entering waterways.
Investment, Bills, and Consumer Concerns
Water providers have committed record investments through 2030 to upgrade networks and treatment facilities, driving an anticipated 36% average increase in customer bills between 2025 and 2030. This follows £5bn invested over the previous five years to address environmental pollution.
However, Alan Lovell noted that not all firms delivered the environmental improvement schemes funded by consumers. Mike Keil, chief executive of the Consumer Council for Water, explained that customers question whether their money is spent well, noting that complaints to the council rose by 84% in a single year.
Government plans include new legislation next year to merge regulators in England and overhaul industry structures, while the Welsh government plans a new regulator alongside Natural Resources Wales. Prime Minister Andy Burnham announced at a Labour conference speech that a strengthened Water Bill will remove limits on government share ownership in major water companies and grant new powers to local leaders.
Water Consumption and Supply Pressures
The joint report indicated that household consumption in England and Wales held steady at 137 litres per person per day. Government advisers warned that demand must decrease to protect future supplies threatened by climate change, population growth, and past underinvestment.
Hosepipe bans remain active across widespread regions of England and Wales following summer droughts. Mark Owen, head of fisheries at the Angling Trust, urged companies to accept more responsibility and further reduce leakage rates to relieve pressure on rivers, fish, and wildlife.
