The Environment Agency (EA) is once again calling on the nine water and wastewater companies in England to urgently improve their performance as the latest Environmental Performance Assessment (EPA) for 2024 reveals the lowest ratings since the process began in 2011.

The EPA report is an independent comparison of environmental performance across the sector. Since 2011, the EA has used the EPA to rate each company in England from 1 star to 4 stars, to highlight where improvement in water company performance is required.

In 2024, the nine companies collectively achieved just 19 stars out of a possible 36, down from 25 in 2023. Only Severn Trent Water received the top four-star rating for industry-leading EPA performance. This is the lowest number of stars overall since the EPA process began.

The Agency points out that criteria have been regularly tightened over the years to reflect rising expectations for water company performance, so the bar is higher than ever. Based on current criteria the EA says a steady trend of improvement since 2011 can be seen – however, the latest results released today mark a dip in that trend.

Serious incidents - those causing significant environmental harm - have increased by 60% compared with 2023. Thames Water, Southern Water and Yorkshire Water were responsible for 81% of these serious incidents, while Northumbrian Water and Wessex Water recorded none.

Access to more data than ever before, and increased monitoring and inspections, allow for a clearer understanding of water company performance—and following the latest star ratings, the EA has urgently called for a fundamental shift in culture and behaviour across the sector.

“This year’s results are poor and must serve as a clear and urgent signal for change"

Environment Agency Chair Alan Lovell said:

“This year’s results are poor and must serve as a clear and urgent signal for change.

“What is needed now from every water company is bold leadership, a shift in mindset, and a relentless focus on delivery.

“We will support them however we can but will continue to robustly challenge them when they fall short.”

The report cites a number of factors for the decline in performance, including the wet and stormy weather in 2024, underinvestment and poor maintenance of infrastructure, and also increased monitoring and inspection.

To ramp up its regulation the EA is investing in 500 additional staff including environment officers, data analysts, enforcement specialists and technical experts, as well as team leaders and managers. It has developed new digital systems and significantly increased the number of water company inspections—in 2024/25 the EA delivered over 4,600 water company inspections and is on track to deliver 10,000 in 2025/26.

The EPA has been released on the same day as Ofwat’s Water Company Performance Report, reflecting the regulators’ commitment to a more integrated and transparent approach to water sector regulation.

The Environment Agency has recently announced that existing EPA criteria will be tightened, and new criteria introduced, to meet higher public and environmental expectations.

The Environmental Performance Assessment (EPA) rates water and sewerage companies in England from 1 to 4 stars, based on measures including pollution incidents, compliance with permits, and self-reporting.

The annual report covers performance across the 2024 calendar year.

Since 2015, the Environment Agency has concluded 67 prosecutions against water and sewerage companies, securing fines totalling over £153 million.

Click here to access the EPA report and related documents online