England water firms face new scrutiny after poor report
Eight of nine major utilities received poor ratings in a joint assessment that found pollution incidents remained high despite increased investment.
By Lily Carter ·
Environment Secretary Angela Eagle summoned executives from major water companies to government offices in Whitehall on Wednesday. She called the meeting after a new report revealed that environmental performance has declined across the sector.
The joint assessment, produced by the Environment Agency and three other regulators, rated eight of the nine water companies in England as poor or requiring improvement. The group earned a total score of 16 stars out of 36, which marks the lowest rating since the assessment process began. This score dropped from 19 stars in the previous year.
The report documented 74 serious pollution incidents in 2025. These are events that cause significant harm to the environment. This figure was only one lower than the count from the previous year. The high number of incidents occurred despite billions of pounds in investment, bans on executive bonuses, and public complaints.
Eagle stated that the public is tired of hearing excuses. She warned that the industry could face stricter rules. "Water companies have let the public down time and time again, and today's report is further proof that root-and-branch reform cannot wait," she said.
The Department for Environment, Food and Rural Affairs is preparing to impose tougher consequences for executives at failing firms. The department plans to outline specific improvement actions, including tackling leakage and reducing pollution. Current rules already block bonuses for executives at companies that receive a one-star rating.
Total pollution incidents in England reached 2,666 in 2025. This represents a 40 percent increase compared to levels in 2016. Thames Water recorded the highest number of incidents, followed by Anglian Water, United Utilities, Yorkshire Water, and Southern Water.
James Wallace, chief executive of River Action, argued that the current system favors shareholders over the environment. He suggested that Thames Water should enter special administration immediately. He also called for ministers to review alternative models, including public ownership.
Richard Benwell, chief executive of Wildlife and Countryside Link, noted that the four agencies have shared data for the first time. He said a new regulator must have a legal duty to restore nature. Water UK, the industry trade body, acknowledged that environmental performance needs improvement but highlighted that leakage levels are at a historic low.
Source: The Guardian
