Environmental ratings hit a new low, with Severn Trent the only four-star company

The Environment Agency's Environmental Performance Assessment (EPA) for 2025, published on 29 October, gave England's nine water and sewerage companies a combined 16 stars out of a possible 36, down from 19 in 2024 (Environment Agency). Severn Trent was the only company rated four stars. Company responses dominated the start of this week.

16 / 36

Source: Environment Agency ↗

What we know

• Four stars: Severn Trent Water.
• Two stars: Anglian, Northumbrian, United Utilities and Wessex.
• One star: Southern, South West, Thames and Yorkshire.

The report records 74 serious (category 1–2) pollution incidents in 2025, against 75 in 2024. Thames had 24, Yorkshire 13, and Southern and Anglian 12 each. Total incidents fell from 2,801 to 2,666. Delivery of environmental improvement schemes under the Water Industry National Environment Programme (WINEP) fell to 80.2% (502 of 626), the lowest since the metric began in 2011; Thames completed 24.5%. Numeric permit compliance slipped from 98.8% to 97.4%, and only Severn Trent and Yorkshire met the target. Self-reporting of serious incidents rose from 63% to 69% (Environment Agency).

EA chair Alan Lovell said serious pollution incidents "remain a major concern" and that there is "nowhere to hide" for companies that break the law.

What others are reporting

Severn Trent said it has held four stars for seven consecutive years, citing 99.5% discharge permit compliance across 648 treatment sites. Chief executive James Jesic acknowledged that "the rating system will change in the years ahead" (Water Magazine). The EA's own data report puts Severn Trent's permit compliance at 99.3%, with five green metrics and one amber. The amber was for its two serious incidents, both category 1 (Environment Agency).

The Rivers Trust highlighted the incomplete WINEP work and falling permit compliance. It argued that the way ratings are used can stop poorly performing companies from adopting nature-based solutions, and wants that changed (Water Magazine).

LBC reported that bosses at the four one-star companies are automatically barred from bonuses. It quoted Environment Secretary Dame Angela Eagle as saying "people are sick of excuses", and reported that failing bosses are expected to be called in to produce improvement plans. TheBusinessDesk focused on South West Water's drop to the bottom rating.

Background

The EPA ran alongside the first joint report from the EA, Ofwat, the Drinking Water Inspectorate and Natural Resources Wales. That report found 99.97% drinking water compliance. It also noted that the EA has brought 73 prosecutions against water and sewerage companies since 2015, with fines of over £172m (GOV.UK).

The decline is long-running. The sector scored 30 stars in 2020, then 22, 23, 25 and 19 before this year's 16. The EA cautions that metrics have tightened over time, so comparisons are imperfect (Environment Agency).

Sector EPA stars (out of 36)

1. 2020

   30 stars

2. 2021

   22 stars

3. 2022

   23 stars

4. 2023

   25 stars

5. 2024

   19 stars

6. 2025

   16 stars

Illustrative

Serious incidents had jumped from 47 in 2023 to 75 in 2024, with Thames alone recording 33 (Environment Agency). The 2025 figure is therefore flat, not improving.

What to watch

• The new EPA methodology for 2026–30, which adds a storm overflow monitor metric and will record dry-day spills as pollution incidents.
• Whether ministers publish the improvement plans demanded from one-star companies.
• Ofwat's application of the bonus ban for 2025–26.
• Thames's WINEP backlog of 105 late schemes.