Water companies’ environmental performance worsened again despite industry investment, according to the first report produced jointly by the sector’s regulators. Eight of the nine UK companies assessed were rated either “poor” or “requires improvement”, while Severn Trent was the only company to receive the highest rating. Regulators said severe pollution remained a major concern, although companies had reduced service interruptions.
Alan Lovell, chairman of the environmental regulator, said the results showed that the industry was performing “well below the standards that both we and the public rightly demand.”
“I’m very angry,” he told BBC News. “I think it’s very disappointing to see the level of pollution incidents…and I completely sympathize with the public’s feelings.”
Environment Secretary Dame Angela Eagle said she would “demand answers from failing companies” and “shine a spotlight on the worst offenders across the country”.
First joint assessment by regulators
Water companies in England and Wales are currently overseen by four regulators: the Environment Agency (EA), Natural Resources Wales (NRW), Ofwat and the Drinking Water Inspectorate. This is the first time the regulators have worked together to assess the industry.
The joint approach reflects Sir Keir Starmer’s government’s pledge to merge the bodies covering England into a single organisation as part of efforts to streamline regulation.
However, the report’s most significant findings concern environmental performance.
Pollution remains a major concern
The Environment Agency said severe pollution incidents in 2025 were of “grave concern” and remained at the same high level as in previous years.
Overall, water companies in England received 16 out of 36 stars for environmental performance, the worst total in the history of the assessment. The EA said this reflected “not only lower performance in some areas, but also stricter performance standards.”
In Wales, Dol Cymru Welsh Water received a rating of two out of four stars from NRW.
Industry body Water UK acknowledged that “the environmental performance of some water companies is not good enough”. However, it said more than half of all pollution incidents resulted from “blockages and vandalism that are not under the direct control of water companies.”
A Water UK spokesperson said: “It will take time, but this record investment will help secure water supplies, support growth and eliminate sewage flowing into our rivers and oceans.”
Drinking water and leaks
The report said the quality of Britain’s drinking water remains “among the best in the world”. It also identified several strengths that “need to be further strengthened”.
The regulator said leakages were decreasing over the long term, but added that further improvements were still needed.
Source: www.bbc.co.uk
