EA: transforming regulation will make water performance look worse before it gets better

The Environment Agency (EA) has said it is meeting the demand for higher water industry performance and a better water environment “head on”. But it warned a more proactive approach will initially make performance look worse before driving increased compliance.

In a blog, the EA listed the following as part of its transformation efforts:

• Increased capacity and improved capability, with additional funding from higher charges for water companies. This includes 500 new staff by 2027 focused on water industry regulation, and inspection numbers to rise to 4,000 by March 2025 and then on to 10,000 in 2025-26 and 11,500 in 2026-27.

• A £15m investment in digital systems and other tools. The Agency said: “Data and information from lots of sources will be combined and we’ll have the ability to turn it rapidly into regulatory intelligence so that we can easily identify and tackle the highest priority issues.”

• £15.8m over three years on improving water company enforcement – including prosecutions and new enforcement options such as Variable Monetary Penalties which could deliver faster results.

• A specialist team will be created to lead the EA’s new statutory duty to work with water companies on Drainage and Wastewater Management Plans.

The blog concluded: “We will regulate for a cleaner water environment, increasing scrutiny, identifying failures and providing the intelligence for enforcement and remedial action. This will discourage future offending, inform plans to improve water company compliance and develop more resilient infrastructure to cope with the double pressures of growth and climate change.

“We will prioritise the greatest impact and risk first, but the Water Industry Regulation Transformation Programme [established in 2023] is a long-term plan. Fundamental change takes time, and a stronger approach to water regulation will mean we are likely to uncover more issues, but ultimately, we will see a compliant and resilient water industry.”