The Drinking Water Inspectorate, Environment Agency, Natural Resources Wales and Ofwat have today published the first Water Industry Performance Insights report. The four regulators have brought their evidence together, giving the public, governments and industry a single, clear view of how the water industry is performing.
The report reflects a shared commitment by regulators to transparency, accountability and driving improvements across the sector for consumers and the environment. It marks a step towards a more integrated, joined-up approach to water regulation, as signalled by the UK and Welsh Governments, who have outlined a once-in-a-generation programme to transform the water system, including the Water Bill.
Water touches every part of daily life. People expect clean, safe drinking water. They expect services to keep working during drought and that their rivers and coastlines are protected. Regulators exist to hold companies to account for that and to ensure the protection of public health and the environment.
Designed to give an overview of individual water companies’ performance, the joint report sits alongside the regulators’ individual annual performance reports. EA, NRW and Ofwat have published these more in-depth reports today - with DWI publishing their report back in July - and together they provide a data driven insight into the performance of the water industry.
The joint report shows a mixed picture, but with strengths to build on:
- Drinking water quality remains among the best in the world, with 99.97% of tests meeting the required standards.
- Companies have reduced internal sewer flooding in homes and local businesses, a particularly distressing customer failure, by 43% in recent years.
- Leakage has reduced over the long term, but with all companies facing growing pressure on water resources, particularly during drought, further reductions are needed.
- Household consumption remains similar to the previous year, at 137.3 litres per person per day.
- Water supply interruptions performance across the sector has improved, though some customers continue to experience long-duration interruptions.
- Pollution incidents remain one of the main areas of concern, with 2,991 incidents across England and Wales in 2025, including 84 classed as serious.
- Just 93.7% of required environmental improvement actions were completed on time, with 142 of 2,254 planned actions not delivered.
Marcus Rink, Chief Inspector of the Drinking Water Inspectorate said:
Consumers in England and Wales can have continued confidence that their drinking water remains among the highest quality in the world, with 99.97% of tests meeting the strict standards that protect public health. That is a record the industry should be proud of.
This report marks a significant first step, bringing four regulators together for the first time to give a more transparent and collaborative picture of the water sector. It is a foundation we intend to build on, working ever more closely to ensure clean and resilient drinking water supply now and for the future.
Philip Duffy, Chief Executive at the Environment Agency, said:
People expect two simple things: safe water from their taps and clean, healthy rivers. Today’s report shows good performance on drinking water quality, but on wastewater and pollution the sector is still falling short.
We are stepping up inspections and enforcement and will use our powers to hold water companies to account and drive the improvements people and the environment deserve.
Helen Campbell, Interim Executive Director for Delivery at Ofwat, said:
Customers rightly expect the record investment approved by Ofwat to deliver tangible improvements in their daily lives and for the environment.
Over the past year we have seen some step up to this challenge, but this is inconsistent and poor performance continues in too many places.
The responsibility sits with water companies to deliver on what they have agreed to, and we will continue to work across regulators to drive stronger outcomes.
Ceri Davies, Chief Executive of Natural Resources Wales, said:
Improving water quality is one of the most significant environmental challenges we face. This joint insights report provides a clearer picture of water company performance by bringing together evidence from across the regulatory systems.
While progress has been made in some areas, there is more to do. We will continue to work with partners across the sector to drive improvements that benefit people, nature and the resilience of our water environment.
Today’s figures reflect greater scrutiny as much as they do underlying performance. Where performance falls short, regulators will act, using the full range of tools available, including fines, enforcement action and requirements for companies to fix problems. Regulators will support companies where they are improving and continue to challenge them where standards aren’t met.
Water companies have committed record levels of investment for 2025 to 2030, with over £104 billion to upgrade water and sewage networks. Regulators are committed to ensuring this investment is well spent and delivers for customers, communities and the environment.
Notes to Editors
EA Water and Sewerage Companies in England: environmental performance report
The EA’s Environmental Performance Assessment (EPA) rates water and sewerage companies in England and Wales from 1 to 4 stars, based on measures including pollution incidents, compliance with permits, and self-reporting.
The EPA report covers performance across the 2025 calendar year.
Since 2015, the Environment Agency has concluded 73 prosecutions against water and sewerage companies, securing fines totalling over £172 million.
Ofwat Water Company Operational Performance
Ofwat set stretching targets for water companies in the 2024 price review, to drive real improvements for customers, communities and the environment.
Ofwat’s new Water Company Operational Performance report tracks every company against these targets from the start of the new investment period, and shows which companies are improving and which are falling short. It also monitors companies’ performance over longer timeframes.
In this first year, we’re already seeing progress in some areas, but others still need urgent attention.
Ofwat’s data-driven approach to assessing company performance has been expanded this year to provide a broader view of company performance - both individually, and in comparison to other companies. The new ‘improving’ tag shows the direction the company is travelling in.
In the categorisation for 2025-26, ten companies are categorised as good or on-track, while seven are categorised as off-track and we expect them to improve. Eight companies also received an Improving tag, recognising improvements the company has made over time.
- South West Water (Bristol region) and South West Water (South West region) are categorised separately, so there are 17 categorisation assessments across 16 companies.