Water firms still polluting despite £5bn spend, regulators warn

Water companies in England have received their worst environmental ratings on record, even after spending £5bn over five years to tackle pollution. A joint report by regulators found that eight of nine firms were rated “poor” or “requiring improvement”, with only Severn Trent achieving the top grade. Serious pollution incidents stayed at similarly high levels to previous years, which the Environment Agency called a “major concern”.

Regulator anger and government response

Alan Lovell, chair of the Environment Agency, said he was “very angry” about the results. He added that the industry continued to “fall well short of the standards rightly demanded by both us and the public”. And he said it was extremely disappointing to see the level of pollution incidents, adding that he completely sympathised with the public.

Environment Secretary Dame Angela Eagle is demanding answers from failing companies. She said she would be shining a spotlight on the worst offences around the country. The government is planning new legislation next year to overhaul the industry’s structure and regulation, including combining regulators in England.

Industry response and customer concerns

Water UK, the industry body, acknowledged that the environmental performance of some companies is not good enough. But it argued that more than half of all pollution incidents result from blockages or vandalism, which are not in the direct control of the water companies. A spokesperson said record investment would help secure water supplies and end sewage entering rivers and seas.

However, customer complaints to the Consumer Council for Water rose 84% in a year, the highest in 20 years. Mike Keil, its chief executive, said many customers have not noticed any improvement in customer service or performance despite recent bill rises. He added that bill payers are already questioning whether their money is being well spent.

Wales and wider pressures

In Wales, Dŵr Cymru Welsh Water received a two-star rating out of four from Natural Resources Wales. Household consumption in England and Wales remained at 137 litres per person per day, similar to the previous year. Hosepipe bans are still in place across large parts of England and Wales following a summer drought.

Mark Owen, head of fisheries at the Angling Trust, said the industry needed to take more responsibility and cut leakage rates further. He warned that every litre lost has already been taken from the environment while rivers, fish and wildlife are under immense pressure. The report did note some strengths: drinking water quality is among the best in the world, and leakage has reduced over the long term, though regulators say improvement is still needed.