The Environment Agency (EA) has today called on water companies
to urgently improve their performance as the latest Environmental
Performance Assessment (EPA) for 2024 reveals the lowest ratings
since the process began in 2011.
The EPA report is an independent comparison of environmental
performance across the sector. Since 2011, the EA has used the
EPA to rate each company in England from 1 star to 4 stars, to
highlight where improvement in water company performance is
required.
In 2024, the nine companies collectively achieved just 19 stars
out of a possible 36, down from 25 in 2023. Only Severn Trent
Water received the top four-star rating for industry-leading EPA
performance. This is the lowest number of stars overall since the
EPA process began.
However, criteria have been regularly tightened over the years to
reflect rising expectations for water company performance, so the
bar is higher than ever. Based on current criteria we can see a
steady trend of improvement since 2011—but these results mark a
dip in that trend.
Serious incidents—those causing significant environmental
harm—have increased by 60% compared with 2023. Thames Water,
Southern Water and Yorkshire Water were responsible for 81% of
these serious incidents, while Northumbrian Water and Wessex
Water recorded none.
Access to more data than ever before, and increased monitoring
and inspections, allow for a clearer understanding of water
company performance—and following the latest star ratings, the EA
has urgently called for a fundamental shift in culture and
behaviour across the sector.
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 report cites a number of factors for the decline in
performance, including the wet and stormy weather in 2024,
underinvestment and poor maintenance of infrastructure, and also
increased monitoring and inspection.
To ramp up its regulation the EA is investing in 500 additional
staff including environment officers, data analysts, enforcement
specialists and technical experts, as well as team leaders and
managers. It has developed new digital systems and significantly
increased the number of water company inspections—in 2024/25 the
EA delivered over 4,600 water company inspections and is on track
to deliver 10,000 in 2025/26.
The EPA has been released on the same day as Ofwat's Water
Company Performance Report, reflecting the regulators' commitment
to a more integrated and transparent approach to water sector
regulation.
The Environment Agency has recently announced
that existing EPA criteria will be tightened, and new criteria
introduced, to meet higher public and environmental
expectations.
Notes to editors
-
The Environmental Performance Assessment (EPA) rates water
and sewerage companies in England from 1 to 4 stars, based on
measures including pollution incidents, compliance with
permits, and self-reporting.
-
The annual report covers performance across the 2024 calendar
year.
-
Since 2015, the Environment Agency has concluded 67
prosecutions against water and sewerage companies, securing
fines totalling over £153 million.
-
The EPA report can be
accessed online.
-
Ofwat's Water
Company Performance Report is published on the same day
and can be accessed online.
-
We consistently apply the EPA metrics to ensure reporting is
in line with the 5-year investment cycle enabling stability
and predictability.
-
The metrics are regularly tightened over the years to reflect
rising expectations of water company performance. Applying
the current 2024 metrics retroactively shows a steady trend
of improvement since 2011. For example, using 2024 metrics
the overall star rating in 2011 would have been 11—improving
to 25 in 2023. More information in the star ratings 2011-2024
report.
