Environmental Performance Of UK Water Companies Worsens

There has been no shortage of headlines about the difficulties facing many water companies in the UK and the latest Environment Agency (EA) report into water company performance made for uncomfortable reading for those in the sector.

The EA report for 2024–25 awarded the country’s water companies 19 out of a possible 36 stars for the year’s performance, which is the lowest rating the industry has received since the system was introduced in 2011.

Each of the country’s nine water companies is awarded a star rating from one to four. Only one company – Severn Trent Water – achieved the highest rating of four stars. The vast majority of water companies received just two stars, while Thames Water was given the lowest rating of one star.

A one-star rating is considered to show poor performance, while a two-star rating requires improvement.

What does this mean for water consumers?

As the Ofwat report, which was also released in October, noted, customers have seen reductions in their bills as a result of repeated failings by water companies. The organisation noted that its underperformance payments have seen £700 million returned to consumers in the last five years.

In the 2024–25 year, these payments equated to £260 million coming off customer bills. However, because water companies have also been authorised to increase bills to fund significant investment in the country’s water system, many won’t see much of a difference in how much they pay.

How does poor water company performance affect the environment?

One particularly concerning statistic from the EA report is that serious water pollution incidents increased by 60 per cent in 2024 compared to 2023. Three water companies – Thames Water, Southern Water and Yorkshire Water – were responsible for over 80 per cent of these incidents.

While the wet and stormy weather the UK experienced last year contributed to these incidents, long-standing underinvestment in infrastructure was also cited as a significant factor. The EA also noted that more incidents are now coming to light as it has increased its monitoring and inspection.

There has been a significant campaign within the UK in recent years to hold water companies to account for sewage leaks in the country’s waterways and seas, with far greater public attention on water quality now than in the past.

For instance, the End Sewage Pollution campaign, which is supported by a coalition of organisations including Surfers Against Sewage, is calling for an end to pollution incidents and larger penalties for companies that discharge sewage.

What is Severn Trent doing differently?

One bright spot in the EA report is that Severn Trent has been named industry leading and received four stars for its environmental performance. This highlights that, with the right approach, it is possible to improve environmental performance and deliver robust services to customers.

After receiving the four-star rating for the sixth year in a row, the company shared that it had completed 580 environmental improvement schemes in 2024, as well as been named as delivering the joint best total pollution reduction performance.

Severn Trent is continuing to invest in its water infrastructure and stresses the importance of collaborating with stakeholders such as environmental charities, local authorities and other regional bodies to ensure its continued improvement.

Can I switch water suppliers?

As an individual consumer, you are unable to switch your water supply to a different supplier, as the system is set up for companies to deliver water on a regional basis. However, business water customers do have the option to switch.

This is because business water supplies are provided by water retailers, rather than the regional water companies who are the focus of the EA and Ofwat reports. As a result, this means you can change your business water supplier if you want to.

The main reason many organisations choose to switch is to access lower bills, but you may also want to change water suppliers to get better customer service or to consolidate bills. In some cases, water suppliers may offer tailored services that better suit your business.

How can I switch business water suppliers?

Before you can switch your business water supplier, you need to find out who currently provides this service if you don’t already know. If you’re not sure if you can switch, a service like ours can help.

Not only can we help you work out if you’re eligible to change water suppliers, but we can also support you to assess the different water retailers available in your area so that you can make an informed decision that delivers the best outcomes for your business.