Water and sewerage companies in England: environmental performance report 2022

Wonder what Ofwat (aka the “supplier of revolving doors”) will do about this, anything? – Owl

www.gov.uk 

A summary of the environmental performance of the 9 water and sewerage companies operating in England.

1. Chair’s foreword

The performance of many of the 9 English water and sewerage companies for 2022 is very disappointing: minimal improvement in star ratings compared to 2021. The sector only achieved 23 stars out of a maximum of 36 – albeit we did tighten the Environmental Performance Assessment (EPA) again this year to drive improvements in standards across the sector.

The number of pollution incidents (from sewerage and water supply assets) worsened from 1,883 in 2021 to 2,026 last year. It is simply unacceptable to see a decline in this vital metric. 2022 was another missed opportunity for the companies to demonstrate they can improve their performance. Even worse, the early unconfirmed data for 2023 suggests that there has been no improvement this year either. I do hope this changes soon.

The disappointing results are surprising given that when I talk to the Chairs and CEOs of these companies, I get a real sense of their intent to do better. But why is this not happening yet? Primarily, I think, because of the time it takes for cultures to change in large organisations and because there are some deep-rooted problems which can only be solved by significant investment. Not just this year and next, but for some decades to come.

I am not universally gloomy though. Some companies are doing better and some metrics are improving. Credit to Severn Trent Water who retain a 4 star rating for the fourth year, and to United Utilities and Northumbrian Water who are not far behind. But all know they are at the top of a very poor league. We do see improvements this year in serious pollution incidents, down from 62 to 44, but nevertheless, performance is not where it should be.

Storm overflow discharges are under significant scrutiny, and rightly so. The data in this report briefly touches upon storm overflows, where we have seen some signs of improvement in 2022. But this should be expected. It was a notably dry year and storm overflows should be operated less in these conditions.

By the end of 2023, water companies will be required to monitor 100% of storm overflows, which will allow us to regulate using better evidence, and enable us to determine whether 2022’s improvements were the start of a trend. As we start our EPA review for the next period (2026 to 2030 data years) we will look to include this new information. In the interim, we will publish a spotlight report in autumn which will include more detail on the issue.

We know performance in recent years has seen trust in the water industry deteriorate. If it is to be rebuilt, we need to see profound, long-term change across the sector.

For all organisations which have a role to play in improving the water environment, this means stepping forward and taking collective responsibility. Water companies, regulators, government, NGOs and many others in general all want the same thing: better environmental outcomes, including cleaner rivers and seas.

Individually we have a clear responsibility to keep each other honest, not to allow for misinformation or to lose sight of scientific consensus. But more importantly, all organisations need to demonstrate that we can carry out our duties responsibly, and that we can work together.

First, we must treat the recent public apology from Water UK and the English water and sewerage companies as a signal of change. It is welcome and aligns with the sentiment shown through our annual performance meetings where all companies demonstrated a distinct shift in culture – towards improvement and better environmental outcomes.

Second, we must all play our respective roles to make sure we maximise the opportunities within the next 5-year price review. Together we can secure the greatest ever investment in our water environment. This will not fix all of the problems immediately, but it will enable significant long-term change and better environmental outcomes.

Third, the Environment Agency will play its part by transforming the way we regulate the sector. Over the next 2 years we will introduce additional specialist officers to focus solely on water company regulation while also introducing new tools which will turn huge quantities of monitoring information into regulatory intelligence.

This will give us the capacity to increase time spent regulating the water industry and enable our officers to focus on the highest risk sites and issues more easily. We welcome the announcement on unlimited variable monetary penalties which will also improve our enforcement powers and lead to better environmental outcomes.

The public, the environment and our waters demand change. If we can move forward together, not only will we demonstrate our individual delivery and contribution towards the government’s Plan for Water, we will also demonstrate our part in sharing collective responsibility in achieving better environmental outcomes. For people, the environment and our wildlife.

Alan Lovell, Chair of the Environment Agency