Water companies record lowest environmental ratings since assessments began

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Star ratings fall to 16 out of 36

The Environment Agency’s annual assessment, published on 29 October for the first time as part of a joint report with Ofwat, the Drinking Water Inspectorate and Natural Resources Wales, awarded English water companies 16 out of a possible 36 stars. That is down from 19 last year and the lowest since the process began. Only Severn Trent achieved the top rating.

There were 74 serious pollution incidents in 2025, one fewer than the year before, and 2,666 incidents overall, 40% more than in 2016. Thames Water recorded the most, followed by Anglian Water, United Utilities, Yorkshire Water and Southern Water. The EA attributed the lower scores partly to declining performance and partly to tighter standards. In Wales, Dŵr Cymru Welsh Water received two stars out of four from NRW.

Ministers and regulators respond

Environment Secretary Angela Eagle said “people are sick of excuses” and that she was demanding answers from the companies that are failing. Defra says each company will be set targets covering leakage, pollution and customer satisfaction, and that Eagle is looking at strengthening the rules that already block bonuses at one-star companies. EA chair Alan Lovell told the BBC he was “very angry”, adding that not all companies had delivered the improvement schemes they were funded for. Water UK acknowledged that the performance of some companies “is not good enough” but noted that more than half of incidents were caused by blockages or vandalism. The report also found household consumption flat at 137 litres per person per day, while hosepipe bans remain in place across large parts of England and Wales.

Pressure on the reform programme

The report adds to pressure on companies to show that the record £91.95 billion English water and sewerage companies have to spend between 2025 and 2030 is delivering results, with the BBC noting that bills are expected to rise by an average of 36% over the period. The government plans to replace the existing regulators with a single regulator, and has said its strengthened Water Bill will lift limits on state ownership, with new powers for mayors and further details due in its 10-year plan for Britain. Companies with poor ratings should expect closer scrutiny of executive pay and performance.

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