The Environment Agency has rated eight of England's nine water companies as poor or requiring improvement, marking the lowest cumulative score since the star rating system was introduced in 2011. Thames Water was the only company to receive a single star, with serious sewage pollution incidents more than doubling from 14 to 33 in 2023-24. The company is on the brink of collapse, struggling with huge debts and underinvestment.
Only Severn Trent achieved full marks, despite being responsible for 62,085 sewage spills in 2024. The company has used its four-star rating to justify a £3.2m pay deal for its chief executive, including a £584,000 bonus, even after being fined £2m for spilling 260m litres of sewage into the River Trent.
Ofwat's performance report, also published on Thursday, found pollution incidents remained at unacceptable levels. Only two companies reported a reduction in incidents over the five-year period, and overall sewage spills increased by 27% despite a promised 30% reduction. The report blames wet weather, underinvestment, and poor maintenance.
Pollution experts have criticised the star rating system as not fit for purpose, allowing top marks to companies that illegally spill sewage. The Environment Agency will introduce new ratings in 2027, replacing stars with a numeric scale from one to five, with only the highest standards rated as 'excellent' and the worst as 'failing'.
Environment Agency chair Alan Lovell said the results were 'poor' and must serve as a 'clear and urgent signal for change'. Meanwhile, Chancellor Rachel Reeves has told regulators to focus on economic growth, and the government plans to abolish Ofwat and create a 'super regulator'. Campaigners, including River Action CEO James Wallace, have called for a complete overhaul of the privatised water system.
