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Water companies told to refund £260m to customers for poor performance

  • The Environment Agency's assessment shows all but one of the nine English water and sewerage companies were rated 'requiring improvement' or worse last year, with serious pollution incidents up 60% and a collective score of 19 stars, the lowest since 2011.
  • Regulatory officials pointed to last year's wet weather, underinvestment and increased inspections as causes, with Environment Agency chairman Alan Lovell calling `This year's results are poor and must serve as a clear and urgent signal for change.`
  • Thames Water received a one-star rating last year, faced more than doubled pollution incidents and almost £20b debt, while making a record £2.225 b capital investment in 2024/25.
  • Industry leaders responded that Water UK acknowledged 'the performance of some companies is not good enough' while only Severn Trent earned the top rating.
  • The EA notes assessment criteria have tightened and no prior year had fewer than 22 stars, while CK Infrastructure submitted a takeover bid for Thames Water.
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New Civil Engineer broke the news in on Thursday, October 23, 2025.
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