The latest environmental performance report on England's water and sewerage companies paints a concerning picture of an industry struggling to meet basic environmental standards. While a few companies have shown improvement, the majority continue to underperform, particularly in critical areas such as pollution control and permit compliance.
The Environmental Performance Assessment (EPA) for 2023, conducted by the Environment Agency, reveals that five out of nine water companies in England are still rated as "requiring improvement." Only three companies achieved the highest four-star rating, with Severn Trent Water standing out as the sole consistent top performer over the past five years.
Perhaps most alarming is the increase in pollution incidents. The number of serious pollution events rose to 47 in 2023, up from 44 the previous year. Total pollution incidents climbed to 2,174, marking the highest level since 2019. For the first time since the EPA's inception in 2011, not a single company met the target for total pollution incidents.
Despite the overall gloomy picture, there are some positive developments. Self-reporting of pollution incidents improved to 84%, the best performance since the EPA began. All companies met targets for the Supply Demand Balance Index and satisfactory sludge use and disposal.
However, these improvements are overshadowed by persistent issues. Leakage increased by 23 megalitres per day from the previous year, with only three companies reporting reductions. Most companies also reported higher per capita water consumption than forecast, raising concerns about water efficiency efforts.
The Environment Agency is responding to these challenges with increased regulatory efforts. Plans are in place to dramatically increase inspections of water company sites, rising from 4,000 per year by March 2025 to 11,500 annually by March 2027. The agency is also not shying away from enforcement actions, with four prosecutions in 2023 resulting in £6.79 million in fines.
Looking ahead, the regulatory landscape is set to become even more stringent. The Environment Agency is planning to expand and strengthen its EPA metrics for the 2026-2030 period, signaling a continued push for improved environmental performance.
For executives in the water industry and related environmental sectors, these findings underscore the urgent need for strategic shifts. Companies must prioritize investments in infrastructure upgrades, pollution prevention, and water efficiency measures. The increased regulatory scrutiny also suggests that compliance and environmental performance should be at the forefront of corporate strategy.
Moreover, the report highlights the growing importance of transparency and proactive environmental management. Companies that can demonstrate consistent improvement and proactive measures may find themselves better positioned in an increasingly challenging regulatory environment.
As England grapples with the dual pressures of climate change and population growth, the performance of its water sector takes on even greater significance. The coming years will likely see intensified focus on environmental stewardship in this critical industry, with both challenges and opportunities for those companies willing to lead the charge in environmental performance.
