First Collaborative Report from Water Regulators
The Drinking Water Inspectorate, the Environment Agency, Natural Resources Wales, and Ofwat have jointly released the inaugural Water Industry Performance Insights report. This comprehensive document synthesises evidence from the four regulators, providing a transparent overview of the current performance of the water industry for consumers, governmental bodies, and industry stakeholders alike.
This report underscores a collective dedication among regulators to enhance transparency and accountability, while also striving for improvements that benefit both consumers and the environment. It signifies a pivotal move towards a more cohesive approach to water regulation, as encouraged by the UK and Welsh Governments, who have initiated a transformative programme for the water system, which includes the introduction of the Water Bill.
The Importance of Water Quality and Accessibility
Water is a fundamental aspect of everyday life, with citizens rightly expecting access to clean and safe drinking water. Additionally, there is a public expectation for uninterrupted services during periods of drought and the safeguarding of local rivers and coastlines. Regulators play a crucial role in ensuring that water companies are held accountable for these expectations, while also prioritising public health and environmental protection.
This joint report offers a comparative analysis of individual water companies’ performance, complementing the regulators’ respective annual performance reports. The Environment Agency, Natural Resources Wales, and Ofwat have all released their detailed reports concurrently, with the Drinking Water Inspectorate having published theirs earlier in July. Together, these documents furnish a data-driven perspective on the water industry’s performance.
Mixed Results with Areas for Improvement
The findings of the joint report present a varied landscape, highlighting both commendable achievements and areas in need of enhancement:
- Drinking water quality remains exceptional, with an impressive 99.97% of tests meeting stringent standards.
- There has been a notable 43% reduction in internal sewer flooding incidents within homes and businesses, addressing a significant customer concern.
- While leakage levels have decreased over time, the growing pressures on water resources, particularly during dry spells, necessitate further reductions.
- Household water consumption has remained stable at 137.3 litres per person per day.
- Although performance regarding water supply interruptions has improved, some customers still face prolonged disruptions.
- Pollution incidents continue to be a major issue, with 2,991 occurrences reported across England and Wales in 2025, including 84 categorised as serious.
- Only 93.7% of required environmental improvement actions were completed within the designated timeframe, leaving 142 out of 2,254 planned actions unfulfilled.
Environmental Performance Assessment Highlights
The Environment Agency’s Environmental Performance Assessment (EPA) reveals ongoing challenges in environmental performance among water and sewerage companies, with the latest ratings reflecting a decline to 16 stars out of a possible 36. In instances of subpar performance, the Environment Agency is prepared to take decisive enforcement actions, including prosecutions and financial penalties against the most poorly performing companies.
Marcus Rink, Chief Inspector of the Drinking Water Inspectorate, expressed confidence in the quality of drinking water in England and Wales, noting that the industry should take pride in its record of 99.97% compliance with health standards. He remarked that this report represents a significant milestone, fostering a collaborative regulatory environment designed to ensure a reliable supply of clean drinking water for current and future generations.
Commitment to Accountability and Improvement
Philip Duffy, Chief Executive of the Environment Agency, emphasised the public’s expectation for both safe drinking water and healthy rivers. He acknowledged the report’s positive findings regarding drinking water quality while underscoring the need for the sector to address shortcomings in wastewater management and pollution control. The Agency plans to intensify inspections and enforcement actions to ensure water companies are held accountable for their responsibilities.
Helen Campbell, Interim Executive Director for Delivery at Ofwat, highlighted the public’s expectation that substantial investments approved by Ofwat should yield tangible benefits for consumers and the environment. She noted that while some companies have embraced this challenge, inconsistent performance remains an issue in various regions.
Investment and Future Directions
Ceri Davies, Chief Executive of Natural Resources Wales, discussed the critical challenge of improving water quality. The joint report provides a clearer understanding of the performance of water companies by consolidating evidence from regulatory bodies. Although progress has been achieved in certain areas, further efforts are essential, and regulators will continue to partner with the industry to promote improvements that benefit both communities and ecosystems.
The figures presented today reflect not only the actual performance but also the increased scrutiny applied by regulators. When standards are not met, regulators are committed to taking action, including fines and enforcement measures, while also supporting companies that show progress. Water companies have pledged a record £104 billion investment for the period from 2025 to 2030 to enhance water and sewage networks. Regulators remain devoted to ensuring this investment is effectively allocated and delivers positive outcomes for customers, communities, and the environment.