An annual report by the Environment Agency (EA) has revealed that a majority of England’s nine water and sewage companies are failing to meet basic standards. The rankings, which cover the year 2023, have labelled four operators – Anglian Water, Southern Water, Thames Water, and Yorkshire Water – as responsible for 90% of serious pollution incidents.
The report showed that there were 47 serious pollution instances recorded, an increase from 44 in the previous year. The EA noted that more than 90% of these incidents were caused by the aforementioned four companies, highlighting a polarized performance across the sector. These findings come as water companies across the UK are under pressure to invest in their infrastructure and reduce raw sewage discharges.
The EA’s report also revealed that a total of 45 sites were found to be non-compliant with national standards. Storm overflows, reaching capacity due to intense rain, have been widely blamed by the industry for the surge in sewage pollution. Companies argue that preventing discharges would result in raw effluent backing up into people’s homes.
In March, the EA released separate data for 2023, which showed that spills into England’s rivers had reached record levels. Discharges of untreated sewage by water companies had doubled from 1.8 million hours in 2022 to a record 3.6 million. Additionally, there were 464,000 individual spills recorded, a significant increase from 301,000 in the previous year.
The EA announced on Tuesday that only three firms had met the conditions for its top four-star performance ranking: Severn Trent Water, United Utilities, and Wessex Water. Northumbrian Water received three stars, while Anglian Water, Southern Water, South West Water, Thames Water, and Yorkshire Water were given two stars. The report also noted that Wessex Water had significantly improved from its previous two-star ranking, while Yorkshire Water had dropped from three stars.
The recent election of a new government has added fresh impetus to the drive for improvement in the water industry. The Labour party’s plans include tougher penalties for poor performance and the ability to block rewards for failure when annual bonuses and shareholder payouts are due. Additionally, Ofwat, the industry regulator, is being given more powers and is currently investigating all wastewater companies in England and Wales over sewage spills.
Ofwat is also currently in negotiations with companies over their business plans for the years 2025-2030. In an interim determination earlier this month, the watchdog concluded that bills should rise by an average of 21% over the period to reflect the need for investment. A final determination is expected in December.
All companies had sought significant increases in bills, with Southern Water proposing a rise of almost 73% over the five-year term, and Thames Water proposing a 42% increase. Both companies were also among the four worst performers on pollution, according to the EA.
Alan Lovell, chair of the EA, commented on the report, saying, “For the nation to have cleaner rivers and seas, water companies must take responsibility to understand the root cause of their problems. It is promising to see some companies starting to accept their responsibilities, but it is evident that the pace of improvement continues to fall short.”
Lovell went on to mention the EA’s efforts to drive better performance, including tightening standards, increasing compliance checks, and quadrupling the number of water company inspections by March next year. He also noted that the EA is currently undergoing its biggest ever transformation in the way it regulates, with plans to recruit up to 500 additional staff.
