All you need to know about how we regulate water companies

We regulate a wide range of activities and operators. One of the industries we regulate is the water industry and our activity includes permitting, compliance and enforcement. We have a key role alongside many others, including farming and wider industry to protect and improve water, now and in the future. You can read more about our role in Water Enforcement here.

We want to be a modern, confident and efficient regulator. To enable this, a new model for regulation was developed with the launch of the Water Industry Regulation Transformation Programme (WIRTP) in 2023. It sets out measures to transform the way we regulate the water industry to uncover more non-compliance and drive better performance from water companies.  

Our role is to protect and improve the environment so that everyone can enjoy the benefits of a clean, safe and healthy place to live.

We are responsible for granting or refusing environmental permits and regulating sites that may impact on the environment through water abstraction, emissions or waste materials. We will not issue a permit if we find evidence that demonstrates the operation will be harmful to human health or the environment.

This FAQ explains what happens when an operator applies to us for an environmental permit or permit variation. It covers what we can and can't consider when we determine the application, as some responsibilities fall to the local authority.

What is an environmental permit?

Operators may need an environmental permit if they do an activity that could:

• pollute the air, water or land
• increase flood risk
• adversely affect land drainage

They are breaking the law if they operate without a permit when they should have one.

An environmental permit sets the conditions which the operator must meet when operating their site.   It covers the management and operation of the site and the control and monitoring of emissions.

Some smaller sites and activities don't need to apply for an environmental permit if they are low risk to the environment.  These operate under an 'exemption'.  You can read more about this here: Check if you need an environmental permit - GOV.UK (www.gov.uk)

When applying for an environmental permit, the operator needs to explain how they will meet the current standards to protect human health and the environment.  Their application describes the measures they will take, and we need to be satisfied they are appropriate to control the risks identified.  

How do we assess an environmental permit application?

We assess all permit applications to make sure they meet the requirements of the Environmental Permitting Regulations.  When we consider a permit application we review the emissions it will generate to water, how it will be operated and whether it will meet the required standards.

We consult professional partners when appropriate, such as the local inshore fisheries and conservation authority where the discharge might affect certain coastal waters.  

If there aren't any technical reasons to refuse the permit application, we are bound by the Regulator's Code to issue the permit. This is a government policy to ensure regulators do not obstruct economic development.

How is the Planning System different?

Planning is a separate and distinct process from environmental permitting.  Planning permission can be granted by a local authority without an environmental permit being in place and vice versa.

In broad terms, the planning process is intended to ensure that the right sort of development takes place in the right place, and that it is necessary.  It addresses the development's proposed land use and how suitable the location is, as well as considering flood risk, other environmental constraints and whether there is a local and national need for the development.   It also considers operating hours, implications for road traffic, safety and congestion and the potential visual impact in the landscape.  These issues are not covered by an environmental permit.

The table below shows matters that we consider, and those for the planning authority.  Please note that not all of the factors included in the table are relevant for applications for water discharge activities.

*These lists are not exhaustive.

How can you have your say on permit applications?

We consult on all permit applications. You can view the consultations through our consultation portal, Citizen Space: Environment Agency - Citizen Space (environment-agency.gov.uk)

If we decide a site is of High Public Interest (SHPI), we will provide enhanced engagement with stakeholders to ensure good levels of awareness of the permit application, the consultation and how people can take part.  We cannot do this for all permit applications, but you can still take part in all consultations using the above link.

We can only consider issues covered by the environmental permit and can only refuse a permit application based on technical information.  

Please remember that we are bound by the Regulator's Code and can only refuse a permit application if we have technical evidence that the activity will cause harm to the environment or human health, and the operator cannot reduce this impact through control measures. 

What happens next?

Once we close a consultation, we review all the comments we have received.  Our permitting officers and technical specialists will review the permit application and come to a draft decision.

If we receive any significant new information from the operator during the permit determination period, we may decide to consult again.

If we decide to refuse the permit, the operator has the right to appeal this decision.

If the site is a SHPI and we think we might issue the permit, we will hold a second consultation so you can view our draft permit and draft decision document.  This enables you to comment on the conditions we include in the permit and understand how we have used your comments from the consultation.

If the site is not a SHPI we do not consult on our decision to issue an environmental permit.

For general information about our permitting process please see Check if you need an environmental permit - GOV.UK (www.gov.uk).

For more general enquiries about our work or if you wish to be added to our mailing list for a particular site, please email DCISEnquiries@environment-agency.gov.uk.

Find out about dry day spills and what we do to investigate them by reading our blog here: What are dry day spills? – Creating a better place

Dry day spill data is collected centrally and made available to the local area team. A dry day spill is when a storm overflow is used on a ‘dry day’ – which is defined as no rainfall above 0.25mm on that day and the preceding 24 hours. 

South West Water do have many sites that cause dry day spills. In some cases, it may be that SWW have legitimate reasons for a longer drain down time for instance rainfall catchment size and tidal influences can cause long dilute discharges. For these sites, they must submit evidence to the Environment Agency; where SWW is suffering from problems to do with surface water inflows they need to submit suitable action plans demonstrating root cause of the issue and outlining how they intend to resolve it. SWW need to submit these plans to us next year. 

Our approach   

To take action against South West Water on dry day spills we need to gather the data from the water company monitors and assess thousands of lines of data.  Further investigation is always required on ‘dry day spills’. We need to have a certain level of evidence to take enforcement action – whether criminal or civil. That will often include a site inspection and a requirement for the company to provide detailed evidence on the spill in question.   

SSW have reported 2,323 dry day spills between 1^st  January and 30^th June 2025, but it is not possible for the Environment Agency to investigate each one. Decisions on whether or how to progress matters are taken in line with our Environment Agency enforcement and sanctions policy - GOV.UK. We take a national approach and focus on those assets which spill very frequently or have the potential to impact on sensitive sites such as bathing or shellfish waters. No South West Water sites have met the criteria for further investigation in relation to dry day spills, however we may take dry day spill data into account as a factor when investigating a water company site for other offences.

Like all public bodies, we operate with finite resources and we need to prioritise our work. That means we will focus our investigation on those sites that are the biggest risk to our environment.  

Find out more about the 2024 price review for water companies here, which applies from 2025 to 2029.

Download the Price Review 2019 final determinations for South West Water here.