By Fatma Younis
A joint report by England's environmental regulators has found that eight of the country's nine water companies are rated "poor" or "requiring improvement" on environmental performance, despite billions of pounds in investment and bans on executive bonuses.
Regulators' joint assessment
The Environment Agency, Drinking Water Inspectorate, Natural Resources Wales and Ofwat reported 74 serious pollution incidents in 2025, just one fewer than the previous year. Overall pollution incidents reached 2,666, a 40% increase since 2016. The companies' combined environmental performance score fell to 16 out of a possible 36 stars, the lowest since the rating process began.
Thames Water leads pollution incidents
Thames Water recorded the most serious pollution incidents, followed by Anglian Water, United Utilities, Yorkshire Water and Southern Water. The report highlights Thames Water's Mogden sewage treatment works in west London as a notable site.
Government response
Environment Secretary Angela Eagle summoned water industry bosses to Whitehall, stating "people are sick of excuses." She warned that root-and-branch reform cannot wait and said the Department for Environment, Food and Rural Affairs is preparing further action with tougher consequences for executives at failing companies, including bonus blocks for one-star rated firms.
Campaigners call for reform
Environmental groups demanded stronger measures. River Action chief executive James Wallace urged immediate special administration for Thames Water and a review of public ownership models. Wildlife and Countryside Link chief executive Richard Benwell said a new regulator must have a legal duty to restore nature and enforcement powers across water, agriculture and chemical sectors.
Industry reaction
Water UK, the industry trade body, noted the lowest leakage levels in history but acknowledged environmental performance is not good enough. The group said more than half of pollution incidents were caused by blockages or vandalism outside companies' direct control, and that record investment will help secure supplies and end sewage discharges.
