(by Karma Loveday) Affinity Water has appointed Mark Garth as its new chief executive, succeeding Keith Haslett. Garth has worked for United Utilities for eight years, most recently as director of environment and formerly as operations director for wastewater services. Before that, he spent time in various roles at Severn Trent and at SP Energy Networks. A start date is yet to be confirmed, but will be in the first half of 2026. Haslett is leaving to take up post as chief exe

(by Karma Loveday and Verity Mitchell) The Environment, Food and Rural Affairs Committee has invited South East Water (SEW) to “correct the formal record” after serious inconsistencies were aired in the accounts provided by the company and the Drinking Water Inspectorate (DWI) at a hearing last week about the pre-Christmas Tunbridge Wells outage affecting around 24,000 customers. In a letter from Committee chair Alistair Carmichael to SEW chair Chris Train, the former raised

(by Karma Loveday) The National Audit Office has set out a series of recommendations for green regulation as it is reformed. In a new report, Environmental regulation , the NAO identified a number of challenges and hindrances that have held back regulation back to date. These included:  Defra has not done enough to support a strategic, joined-up approach rather than reacting to short-term, high‑profile issues. An overly cautious and risk-averse culture in Defra, the Environme

(by Karma Loveday) The Office for Environmental Protection (OEP) has identified possible failures by Defra and the Environment Agency (EA) to comply with the Water Framework Directive (WFD) Regulations. It has sent both authorities information notices setting out the details of the suspected failures. These relate to the preparation, approval and implementation of programmes of measures under the River Basin Management Plans (RBMPs) published in 2022. The notices also identif

(by Karma Loveday) Treated wastewater will be converted into tokenised credits that businesses can purchase to offset their water usage and support water resource sustainability, under a pioneering initiative from Wessex Water parent the YTL Group. YTL Enterprises (YTLE), the commercial innovation arm of YTL Construction UK, has partnered with Swiss technology company Hypercube to issue the UK’s first blockchain-verified water reuse credit using WTR, Hypercube’s water credit

(by Karma Loveday) 70% of female members – tens of thousands – surveyed by the GMB union said their personal protective equipment was ill-fitting. 58% were uncomfortable, 22% embarrassed, 24% felt unsafe and 18% said they couldn’t do their job properly. The union urged employers to adopt the new British Standard on inclusive protective equipment, and ministers to update health and safety laws to ensure all workers are issued with properly fitting PPE.  Anglian Water’s chie

(by Karma Loveday) The Environment Agency (EA) and Natural Resources Wales have published detailed guidance for water companies on how to prepare and publish Pollution Incident Reduction Plans (PIRPs). These were made statutory under the Water Special Measures Act. The first batch of plans is required in April 2026, and from 2027, companies also have to produce annual implementation reports demonstrating their year‑on‑year progress to cut pollution incidents. The plans must s

(by Karma Loveday) MPs piled pressure on the Government to take action on Thames Water, at one of the first Parliamentary debates of the year on 6 January. Led by the Liberal Democrats, the debate hauled up a catalogue of indictments about the troubled company. These included on the familiar operational themes of leakage, pollutions, sewer flooding, poor service and price increases — as well as the now equally familiar financial themes of high debt, high costs, emergency fun

(by Verity Mitchell) The economic regulator of publicly owned Scottish Water, the Water Industry Commission for Scotland (WICS), has published its Annual Report for 2024-2025. During the year it published its methodology for the Strategic Review of Charges (SRC27), which will determine investment levels and customer charges for water and sewerage services from 2027 to 2033. It published detailed business plan guidance and comprehensive data tables, providing a baseline agains

(by Verity Mitchell) Southern Water has confirmed that it has secured additional equity from funds managed by Macquarie Asset Management. The investors, as pledged, have now committed a further £245m of equity, taking the equity committed since July 2025 to £900m, and the total invested since Southern Water was purchased in 2021 to £2.55bn. Over that period, no dividend has been paid - and none will be paid before 2030. This investment programme includes, amongst other things

(by Karma Loveday) The latest base costs modelling from the Competition and Markets Authority (CMA) would leave the companies challenging their price settlements – and the wider water sector if it was applied across the board – with lower allowances than Ofwat’s final determination (FD) and the CMA’s October provisional determination (PD). The CMA published a Base costs modelling working paper last week, which is open for consultation until 7 January. The outcome was: “Our u

(by Karma Loveday) Retailers have called on Ofwat to correct or withdraw a statement in the Business Customer Insight Survey 2025 that they see as “misleading and disingenuous”. The issue concerns the statement that: “In 2025, just 15% of all business customers were satisfied (net) with the water industry compared to 60% in 2020 and 64% in 2019.” In a letter to Ofwat responding to the second consultation on the Retail Exit Code, the UK Water Retailer Council (UKWRC), represen

(by Karma Loveday) By deploying a combination of interventions, non-household customers could be helped to save more water than specified in Environment Act targets. That’s according to a report from Baringa, commissioned by the Strategic Panel and Retailer Wholesaler Group’s (RWG) Water Efficiency Subgroup on how to incentivise business customers to cut demand. This is part of a suite of work from the RWG on a Water Efficiency Roadmap.   Baringa identified eight actions and

(by Karma Loveday) Following its September consultation, Northern Ireland’s Utility Regulator has confirmed its approach to PC28 — Northern Ireland Water’s fifth price control since the government-owned company was set up in 2007. The review, for 2028-2033, will set all the usual price review elements, including outputs to be delivered and revenue allowed. In the absence of domestic water bills, NI Water is currently funded 70% by government subsidy, 20% by business charges,

(by Karma Loveday) Developments blocked by nutrient pollution in waterways will be the first focus of the new Environmental Delivery Plans (EDPs) being introduced alongside the Nature Restoration Fund. This was confirmed by the Government last week as the Planning and Infrastructure Bill gained Royal Assent. An Implementation Plan published as the Act became law set out the rollout route for the Nature Restoration Fund, which will culminate in the delivery of the first EDPs i

(by Karma Loveday) Consumer Scotland has called for new measures to alleviate the potential rise in water poverty in Scotland over the next few years, as well as longer-term solutions. The statutory customer watchdog awaits Scottish Water’s final business plan for 2027-33, but noted that the draft bills would rise annually by up to 4% plus CPI inflation across the charging period. That would mean bills increase in real terms by as much as 26.5% across the six years and would

(by Karma Loveday) Ofwat has confirmed that Wessex Water will fund an £11m enforcement package after the company failed to operate, maintain and upgrade its wastewater network adequately. The decision follows a November consultation.    Thames Water has agreed a five-year Power Purchase Agreement with RWE to source renewable electricity from an onshore wind farm in Scotland. This will supply up to 15% of Thames Water’s power requirement and contribute to its use of 100% rene

(by Verity Mitchell) As 2025 draws to a close, Thames Water is continuing to draw down its emergency loans, invest and make operational improvements. In the background, at not inconsiderable cost, its creditor group continues to negotiate with Ofwat on a revised longer-term financial arrangement to secure the utility’s refinancing. Thames Water has deferred awarding bosses retention payments totalling £2.5m to avoid public censure. The retention payment package for 21 senior

(by Karma Loveday) A statutory report by Defra to Parliament on the progress of the Storm Overflow Discharge Reduction Plan (SODPR) shows mixed results in the first three years. Between August 2022 when the plan was published (it was extended in 2023) until August 2025, progress against the targets was as follows:  The target for storm overflows discharging into or near ‘high priority sites’ (HPS) such as chalk streams not to cause local adverse ecological impact by 2045 – pe

(by Karma Loveday) Governments should consider setting minimum water usage effectiveness (WUE) and power usage effectiveness (PUE) standards for new data centre facilities. That was one of five priorities set out in a major new report from the Water Services Association of Australia (WSAA) defining the importance of water to the success of the data centre sector in Australia. WSAA said its research is intended to inform water and data sector planners, policy-makers and stakeh

(by Verity Mitchell) Since 2017, water companies in England have played a significant role in the UK's green finance sector, issuing approximately one fifth of the UK’s green bonds. This amounts to £10.5bn in bonds dedicated to supporting projects described as delivering environmental benefits, according to research conducted by Unearthed, an investigative unit within Greenpeace UK. Anglian Water has been the largest issuer in the sector, issuing £3.5bn in green bonds, while

(by Verity Mitchell) Revenue at Yorkshire Water increased by 28% to £833m in the half-year, the result of the increased price allowance for the first year of AMP8. Operating profit increased by 60% to £278.7m. Capital expenditure fell from £404.3m to £395.8m. The company said that “the marginal decrease is due to the start of the new AMP as we move to the earlier stage of the cycle and are now building up the investment programme.” It stated that a “focus for us over the firs

(by Verity Mitchell) South Staffs has reported half-year results. Turnover increased to £96.6m from £75.9m, driven by the new price control. Operating profit before exceptional items grew to £24.2m from £15.8m. Debt/RCV decreased substantially to 61.1% from 69.4%, reflecting the delay in the ramp-up of capital expenditure. Purchase of tangible fixed assets in its cashflow statement fell slightly to £19.3m from £20.3m. Management flagged that, because of the prolonged hot and

(by Verity Mitchell) Revenue for the half-year at Affinity Water increased by 20.9%, primarily due to AMP8 tariff rises and a rise in consumption due to the hot weather over the summer. Operating profit increased by 62.5% to £42m, driven by the increase in revenue and energy price reduction, and offset by a rise in inflation and increased operational costs due to the hot weather's impact. Shareholders have committed to inject £150m of equity into the company by 31 March 2026.

(by Verity Mitchell) Operating profit in Southern Water’s half-year results rebounded from a loss to £186.9m, benefitting from a 47% regulated revenue increase from the new price controls. Its capital expenditure was up only 5% to 483.6m, a significantly slower start compared to peers that recorded double digit growth. Management admitted that the balance sheet remained under pressure. The outcome of the Competition and Markets Authority’s provisional redetermination has allo

(by Verity Mitchell) Total revenues at Wessex Water increased by £45.5m to £332.5m, up 15.8%, mainly due to price rises permitted under regulatory mechanisms, according to a commentary on its half-year results. Operating profit increased by 25% from £78m to £97.7m. Bad debt charges grew by £0.7m because of the effect of new pricing but were lower as a proportion of overall household revenues. Net capital investment for the six months was £248m, a significant increase on £189.

(by Verity Mitchell) Anglian Water’s half-year revenue increased by 20.8%, reflecting regulatory price changes and higher household demand. Operating profit increased by 37.8% to £376.1m. Capital expenditure was up 3.6% to £547.3m — a smaller increase than the double digit increases of some of its peers. The company has made progress in key areas such as water recycling, tackling internal and external flooding, and reducing blockages. In Ofwat’s 2024/25 Water Company Perform

(by Karma Loveday) Several areas have announced a change in drought status, following recent wet weather and 149% of long-term average rainfall in November.   The East Midlands, West Midlands and Yorkshire have moved into recovery status. Yorkshire Water has removed its hosepipe ban. It said its reservoir levels are now at 91.6%, and that Hull aquifer levels are at 77%, and that this means that available water resources across reservoirs, rivers, and groundwater sources are a

(by Karma Loveday) The Consumer Council for Water (CCW) has set out some “non-negotiable” principles that it has urged Ofwat to follow as it works on the long-term sustainability of Thames Water. In a letter, CCW chair Rob Wilson told Ofwat chair Iain Coucher to pay heed to the following as it assesses any current or future proposal from creditors or candidates to become Thames’ new owners: No special treatment on enforcement — Thames Water must be held fully accountable for

(by Karma Loveday) Consumer Scotland is seeking greater transparency in how customer complaints are reported in the Scottish water sector. It argued this would help drive further service improvements and boost accountability. In a report, the statutory customer body noted that Scottish Water does not currently publish as detailed or accessible a breakdown of customer complaints as available in the English and Welsh water sector, or in the energy, communications and financial

(by Karma Loveday) The Drinking Water Inspectorate has announced that the hearing for the prosecution of South West Water for potential offences under section 70(1) of the Water Industry Act 1991 will take place on 4 March 2026 at 2pm before Exeter Magistrates’ Court. The prosecution follows the Inspectorate’s investigation into the Cryptosporidiosis outbreak event in the Brixham area in 2024. The Environment, Food and Rural Affairs Committee is to hold a public evidence s

(by Karma Loveday) Defra is to review the rules governing the spreading of sewage sludge on land, to reduce health and environmental risks from PFAS. That was part of a strengthened Environmental Improvement Plan (EIP) published last week by the Government. A key feature of the new five-year environmental roadmap is the first-time publication of delivery plans for the statutory targets set under the Environment Act. These provide visibility and will help progress to be tracke

(by Karma Loveday) The Competition and Markets Authority (CMA) is to publish a base cost modelling working paper for consultation mid month. In an update to the administrative timetable for the PR24 appeals, the CMA said responses would be welcomed until early January. The statutory deadline for final decisions is 17 March 2026. New Appointment and Variation (NAV) Icosa Water has rebranded to Last Mile Water, to reflect its integration into the multi-utility Last Mile group

(by Verity Mitchell) Business retailer Wave has reported full-year results to 31 March 2025. Group revenue was £554.9m, up 11.9% (2024: £495.5m). The portfolio gross margin — the element of charges retained by the retailer after settlement of wholesale costs — was 8.3%. Management said this is reflective of underlying performance compared to a margin of 9.4% in the previous period. Operating profit fell 16% to £10.3m (2024: £12.3m). Its operating profit margin at 1.85% comp

(by Karma Loveday) Ofwat has approved, and will implement on 16 December, a “clear, robust, and future-proof definition for smart AMI meters”. In its decision document on code change proposal CPW163, Ofwat explained the current definition is vague, opening the way for meters that require visual reads to be included. Specifically, this relates to smart AMI meters that are installed but not yet connected to the communication network, and smart AMI meters where equipment failure

(by Karma Loveday) The Environment Agency and Ofwat have identified “serious concerns” with Affinity Water’s security of supply risk and called for “immediate action to address the issues” – with a warning of escalation and enforcement if this does not happen within the required timeframe. In a joint letter with Defra on the 2025 annual review of the company’s Water Resource Management Plan (WMRP), the regulators set out the following concerns:  Distribution input and per cap

(by Karma Loveday) The Regulators’ Alliance for Progressing Infrastructure Development (RAPID) is consulting until 29 January on its draft decision that the South East Strategic Reservoir Option (SESRO) solution should pass Gate Three of its staggered approval process.   This decision would unlock £100m in funding, enabling the solution to continue refinement on its journey to Gate Four. The next stage of work includes further design development, finalising the groundwater fl

(by Karma Loveday) At the time of writing, a boil water notice remained in place for 24,000 South East Water customers in the Tunbridge Wells area. The company took the decision to recharge its network on 3 December so customers – some of whom have been off supply since 29 November – can flush their loos and wash. But it stressed the water did not meet regulatory drinking standards and so should not be consumed or used in food preparation without boiling first. A bad chemical

(by Verity Mitchell) Ofgem has published price controls for electricity transmission and gas networks. Compared to the £104bn of totex for water, Ofgem is only allowing £28.1bn of upfront investment across the electricity transmission (ET), gas transmission (GT), and gas distribution (GD) price controls. Ofgem said this is a 16% increase from the draft determinations, based on better supporting evidence and updated modelling. The regulator admitted that this is only part of a

(by Verity Mitchell) Fitch Ratings saw an improvement for water in its UK Utilities Outlook for 2026. It said that the Cunliffe review proposals constructively target financial stability, regulatory consolidation and stronger consumer protection. The core recommendation – an integrated water regulator for England and a similar body for Wales – should simplify oversight, cut duplication and close gaps. Fitch said it is too early to judge the effects of these changes on its reg

(by Verity Mitchell) Thames Water reported financial results for the half year ending 30 September 2025, with underlying revenue increasing by 42% to £1,880m. The increase was attributable to the new price controls. Underlying EBITDA rose by 69% to £1,211m, reflecting not only the increase in revenue but also better control of operating costs as the company transforms its operations. The company reported a profit after tax of £328m, compared to the prior period’s loss after t

(by Karma Loveday) Only one-third of sites that are meant to be protected for nature are now in ‘favourable condition’. That is among the findings from a Office of Environmental Protection (OEP) study into how the regulations covering Sites of Special Scientific Interest (SSSIs), Special Areas of Conservation (SACs) and Special Protection Areas (SPAs) are being put into practice. The report, Review of implementation of laws for terrestrial and freshwater protected sites in En

(by Karma Loveday) Thames Water has lifted its hosepipe ban , citing that recent rainfall has helped restore groundwater levels in its western region and the Farmoor Reservoir near Oxford. This is now 90% full, which is average for the time of year. Storage in London is steadily improving but remains below average for the time of year. Water Plus and a trio of explorers rowing across the Atlantic have teamed up to raise awareness and engagement on reducing planetary impact.

(by Karma Loveday) The water required for hydrogen and carbon capture projects will likely push some UK regions into a deficit as early as 2030, putting both decarbonisation and wider growth at risk. That’s according to a study commissioned by retailer Wave from Durham University. The research assessed how much water will be needed to reach net zero by 2050 across England’s five largest industrial clusters: Humberside, North West England, Tees Valley, the Solent, and the Blac

(by Verity Mitchell) Chancellor Rachel Reeves, in her Budget speech, took credit for the current Government’s achievement in “resolving the historic under-investment in water infrastructure across England and Wales which has led to bill increases over the past 12 months”. Admitting that that under-investment has been the problem, rather than poor operational and financial management, reflects the Government’s recognition that there needs now to be a more supportive rhetoric a

(by Karma Loveday) The Office for Environmental Protection (OEP) has announced an investigation into Northern Ireland’s Department for Infrastructure (DfI), Department of Agriculture, Environment and Rural Affairs (DAERA) and the Utility Regulator over the regulation of sewage discharges into Belfast Lough. The investigation will examine the regulation of discharges of untreated sewage from wastewater treatment works and combined sewer overflows, and determine whether these a

(by Karma Loveday) 93% of England’s bathing waters met the Environment Agency’s standards in the 2025 season. Of the 449 designated sites, 297 (66%) were ‘excellent’, up from 289 last year. Meanwhile 32 sites (7%) were classified as ‘poor’, down from 37 last year. The results continued a multi-year trend of improvement, although inland bathing sites continued to struggle. The Government’s new Bathing Water Regulation reforms came into force on 21 November. These reforms chang

(by Verity Mitchell) Pennon Group’s share price performed strongly on the day of its half-year results, partially reflecting post UK Budget bond market movements, as the company returned to profit.  At the half year, profit before tax was £65.9m, rebounding from a loss of £38.8m previously. Regulated revenue in water rose 26% year on year from strong demand over the summer and regulated price rises. The step change in underlying EBITDA, an increase of £91m (up 55%) to £254.4m

(by Verity Mitchell) Welsh Water reported half-year results that benefitted from increased allowed revenues from the new price control. Revenue at Welsh Water increased by 27% to £459m. The company incurred £15m of restructuring and transformation costs, £7m of professional fees associated with consultancy support, and £8m of employee-related costs associated with a redundancy programme for 500 roles. Operating profit was £87.1m compared to a loss of £1.2m in the comparative

(by Karma Loveday) Scottish Water achieved its highest overall service score to date in the 2024-25 assessment of its performance in by the Water Industry Commission for Scotland (WICS), the regulator’s fourth annual report of the 2021-27 period. The company secured its highest-ever Outcome Performance Measure score, improving in eight of nine measures, including supply interruptions, low-pressure incidents and serious pollution events. WICS noted that favourable weather cond