England’s 22 Water Companies Fail Environmental Targets; Only One Rated Adequate
Ofwat’s latest environmental performance report shows that 21 out of 22 water companies in England received a ‘poor’ or ‘requiring improvement’ rating. The findings were released on 12 September 2024 after a comprehensive audit of key sustainability indicators. The report covers the 2023/24 financial year, covering metrics such as nitrogen and phosphorus runoff, biodiversity impact, and climate‑related emissions. The results raise alarms about the long‑term health of England’s water ecosystems and the reliability of the water supply system.
What Happened: Ofwat’s 2023-24 Environmental Review
The Office of Water Services (Ofwat) published its annual environmental performance assessment on 12 September 2024, evaluating 22 water companies operating across England. Each company was scored on a scale of ‘excellent’, ‘good’, ‘requires improvement’, or ‘poor’ across four core environmental targets: nitrogen and phosphorus pollution, biodiversity, climate change mitigation, and water‑use efficiency. Ofwat reported that 21 companies fell into the ‘poor’ or ‘requiring improvement’ categories, while only South West Water achieved an overall ‘good’ rating. A notable detail is that South East Water reported a 12 % reduction in nitrogen emissions in 2022, the first improvement seen in the past decade. The audit also highlighted that 15 companies failed to meet the nitrogen reduction target set for 2025, with 8 companies missing the phosphorus threshold entirely. The findings were presented at a press conference in London, where Ofwat’s chief executive, Sarah Brown, explained the methodology and implications for future regulatory oversight. nn
Why It Matters: Impact on Water Quality and Ecosystems
The poor performance of the majority of water firms signals a widening gap between regulatory expectations and operational realities. Biodiversity loss is a direct consequence of untreated runoff entering rivers and wetlands, threatening species that rely on these habitats. Consumers may face higher water bills as companies seek to cover the costs of additional treatment and compliance measures. The report also indicates a potential increase in the frequency of water quality incidents, which can lead to public health risks
Despite being the most regulated industry, England’s water companies collectively own less than 0.2 % of the country’s total land area, yet they influence the health of over 70 % of its river systems.

