Latest figures show Southern Water has improved its environmental record but remains among worst performers in the country

In the Environment Agency’s latest annual report, published today (12 July), figures show the environmental performance of England’s nine water and sewerage companies.

The report shows some modest improvements to water company star ratings under the Environmental Performance Assessment (EPA) report in 2022, compared to 2021.

Measured against the Environment Agency’s 4-star rating, four companies have stayed the same, three have improved and two have got worse.

Southern water has improved, but remains one of the worst performing in the country, the Environmental Agency has said.

• Severn Trent Water – 4 stars, the same as the previous year
• Northumbrian Water – 3 stars, down from 4 stars
• United Utilities – 3 stars, down from 4 stars
• Yorkshire Water – 3 stars, up from 2 stars
• Anglian Water – 2 stars, the same as the previous year
• Thames Water – 2 stars, the same as the previous year
• Wessex Water – 2 stars, the same as the previous year
• Southern Water – 2 stars, up from 1 star
• South West Water – 2 stars, up from 1 star

Since 2011, the Environment Agency has used the Environmental Performance Assessment (EPA) to rate each company in England from 1 star to 4 star. The rating takes into account performance on environmental commitments such as pollution incidents and permit compliance. Last year an updated reporting approach was introduced, with revised metrics and tightened performance thresholds.

This year’s report for Southern Water has found that:

• The number of the most serious pollution incidents declined with five recorded in 2022 compared to 12 serious incidents in 2021.
• Total pollution incidents improved slightly to 358 in 2022, compared to 372 in 2021, but this figure remains unacceptably high.
• Self-reporting of incidents maintained the high levels seen in previous years, with 90 per cent of all pollution incidents self-reported.

Simon Moody, Environment Agency Area Deputy Director said: “Although we have seen some improvement in Southern Water’s performance, including a significant reduction in the most serious pollution incidents, they remain one of the poorest performing companies in the country. That is unacceptable.

“This year we expect to see them build on the early improvements of 2022 across their entire business and will continue to hold them to account if this is not the case. We cannot transform water quality in the way we all want if water companies’ environmental performance does not improve.

“We will always work closely with water companies who want to do the right thing and take robust action against those who don’t.”

Southern Water was fined a record £90 million two years ago after pleading guilty to thousands of illegal discharges of sewage polluting rivers and coastal waters in Hampshire, Kent and Sussex.

Environment Agency Chair Alan Lovell said: “Regulators, water companies, government, eNGOs and many others all want the same thing: better environmental outcomes, including cleaner rivers and seas. We need to work together and take collective responsibility to achieve it.

“While there have been some modest improvements, it is unacceptable to still be seeing this level of pollution. We have seen a distinct culture shift from the water industry in recent months and that is welcome – but that must translate to profound, long-term change.

“The Environment Agency will play its part by transforming the way we regulate the sector. We welcome this week’s announcement on unlimited penalties which will also improve our enforcement powers.”

The report comes as the government today published new law to allow the Environment Agency’s to impose unlimited civil sanctions on water companies for environmental offences. It means it will be quicker and easier for penalties to be imposed, although the most serious cases will still be taken through criminal proceedings.

The Environment Agency has also set out how it will:

• Create a bigger specialised workforce to focus solely on water company regulation. By autumn this year nearly 100 officers will be trained in carrying out more detailed audits of water companies to quickly identify issues and put improvement actions in place.
• Significantly increase compliance checks for every company – making sure they are sticking to the permits agreed with the Environment Agency.
• Recruit more data specialists to make better use of analytics and technology.
• Transform huge quantities of monitoring data into stronger regulatory intelligence. That includes using data-driven analytics to map monitoring data against rainfall to detect potential dry weather operation of storm overflows – known as ‘dry spills’. It means the Environment Agency can quickly direct new specialist officers to any sites at risk and stop it happening.

Water Minister Rebecca Pow said: “Today’s report shows there is significant work to do to drive the improvements in our rivers and seas that we need to see.

“The government’s Plan for Water is focused on more investment, tougher enforcement and tighter regulation. I am personally committed to driving that forward and demanding more from each and every water company.

“We have also put new regulatory powers in place to allow the Environment Agency to impose sanctions on water companies without always going through the courts. This will be an important tool in its armoury to hold companies to account.”

Since 2015 the Environment Agency’s prosecutions against water companies have secured fines of over £150 million. In 2022 the Environment Agency concluded nine prosecutions against water and sewerage companies with fines of more than £4 million.