Image description: Aerial view of a water treatment works. Photo by 逐光 创梦/ Pexels
England’s water and sewerage companies have come under renewed scrutiny following the publication of the latest environmental performance report by the Environment Agency. The 2024 report reveals that only two out of nine major companies achieved the highest rating, while four were rated as requiring improvement or poor performance. The findings have prompted calls for stronger regulatory oversight and accelerated investment in infrastructure.
According to the Environment Agency’s official report, Severn Trent Water and United Utilities were the only companies to receive four-star ratings, indicating industry-leading performance. In contrast, Southern Water, South West Water, Thames Water, and Anglian Water were rated two stars or below, reflecting significant concerns over pollution incidents and compliance failures.
The report highlights a rise in serious pollution incidents, with 50 recorded in 2023 compared to 44 in 2022. Southern Water alone accounted for 11 of these, prompting the Environment Agency to describe its performance as “unacceptable” and to warn that enforcement action may follow if improvements are not made. The agency also noted that Thames Water had the highest number of total pollution incidents, with 350 reported across the year.
Environment Agency – “companies must do better”
In response to the findings, Environment Agency Chair Alan Lovell stated that “companies must do better” and that “the public rightly expects clean rivers and seas”. He emphasised the need for water companies to invest in infrastructure and improve operational standards to meet environmental targets.
The report also draws attention to the role of the Water Services Regulation Authority (Ofwat), which has been working alongside the Environment Agency to ensure compliance and transparency. Ofwat has urged companies to “step up” and deliver on their commitments to reduce pollution and improve customer service. The regulator is currently reviewing investment plans and has signalled that future funding will be contingent on measurable environmental outcomes.
Water companies must be held accountable
The government has reiterated its support for tougher enforcement and has pledged to hold companies accountable. The Department for Environment, Food & Rural Affairs (Defra) is expected to publish further guidance later this year on storm overflow reduction and nutrient neutrality, as part of its broader water industry reform agenda.
While some companies have made progress in reducing leakage and improving monitoring, the overall picture remains mixed. Campaigners and environmental groups have called for greater transparency and stronger penalties for non-compliance, warning that continued underperformance could undermine public trust and damage ecosystems.