Watchdogs highlight tougher regulation in action

(by Karma Loveday)

The Environment Agency has reported exceeding its target to complete over 10,000 inspections of water company assets in the 2025/26 year. This is more than double the 4,600 inspections of 2024/25.

The Agency said it had uncovered over 3,000 permit condition breaches, leading to “real-world action with over 3,000 individual demands for improvement issued to water companies, including repairing sewage works and upgrading infrastructure”.

The watchdog said that by deploying its largest-ever water enforcement workforce (with 500 additional staff for water regulation) and record funding, its scrutiny of the sector had “increased sharply, marking one of the many significant changes the organisation has undergone to deliver tougher regulation”. It argued: “Water company behaviour is beginning to shift. 22% of site visits uncovered at least one issue — down from 25% the previous year — indicating that more diligent scrutiny of water company assets is pushing companies to maintain their assets more responsibly.”

Meanwhile, Ofwat pointed out that the 1 April marked the start date of two new powers it gained under the Water (Special Measures) Act: the Fitness and Propriety Rule, which requires new water company executives to pass a fit and proper person test; and the Consumer Involvement in Decision Making Rule, which requires water companies to demonstrate not only that customers’ views are listened to, but that they are also used to inform any decisions that will have a material impact on them.