England’s water companies have received their lowest collective environmental ratings since 2011, as both the Environment Agency (EA) and Ofwat published performance reports on 23 October highlighting the sector’s mixed record over the past year and the 2020–25 period.
The EA’s latest Environmental Performance Assessment (EPA) for 2024 awarded just 19 stars out of a possible 36, down from 25 in 2023. Only Severn Trent Water achieved a top four-star rating for “industry-leading performance”, while three companies — Thames Water, Southern Water and Yorkshire Water — were responsible for 81% of serious pollution incidents. Northumbrian and Wessex Water recorded none.
The Agency described the results as “the lowest since the process began in 2011”, noting a 60% rise in serious environmental incidents compared with 2023.
The EA report cites several contributing factors behind the overall decline in performance, including the wet and stormy weather during 2024, underinvestment and poor maintenance of infrastructure, and increased monitoring and inspection. While the latter has improved transparency and accountability, it has also exposed more incidents than before.
Environment Agency Chair Alan Lovell said: “This year’s results are poor and must serve as a clear and urgent signal for change. What is needed now from every water company is bold leadership, a shift in mindset, and a relentless focus on delivery. We will support them however we can but will continue to robustly challenge them when they fall short.”
The EPA, published alongside Ofwat’s own assessment, reflects a joint regulatory drive toward greater transparency and accountability in the water sector.
On the same day, Ofwat released its Water Company Performance Report (WCPR) for 2024–25, providing a complementary view of progress in the last financial year, as well as over the 2020–25 period. Ofwat found performance “mixed” across companies and measures, citing improvements in areas directly affecting customers — such as reductions in internal sewer flooding and an expansion of Priority Services Registers — but unacceptable levels of pollution incidents.
The regulator noted that over £700 million has been returned to customers through underperformance penalties since 2020, including £260 million in the past year. Looking ahead, Ofwat said the next regulatory period (2025–30) will be supported by a record £104 billion investment programme to drive long-term improvements in resilience and environmental outcomes.
Together, the two reports send a unified message: while customer service and leakage reduction have improved, England’s water companies face mounting pressure from regulators to restore trust and deliver cleaner, more sustainable performance in the years ahead.
