What is this report?

    For the first time, the Drinking Water Inspectorate, Environment Agency, Natural Resources Wales and Ofwat have brought their evidence together in a shared report. The report provides an accessible overview of how the water industry in England and Wales is performing and supports greater transparency across the industry.

    What does it cover?

    The report brings together existing evidence from regulators' annual performance reporting and provides a single overview of key areas that matter to customers, communities and stakeholders across England and Wales.

    Headline performance

    Joint reporting of water industry performance shows that while companies continue to improve in several areas, performance in some critical areas remains below expected standards. 

    Key facts

    • Drinking water quality remains among the best in the world, with 99.97% of tests meeting the required standards. 

    • Companies have reduced internal sewer flooding in homes and local businesses, a particularly distressing customer failure, by 43% in recent years. 

    • Leakage has reduced over the long term, but with all companies facing growing pressure on water resources, particularly during drought, further reductions are needed. 

    • Household consumption remains similar to the previous year, at 137.3 litres per person per day. 

    • Water supply interruptions performance across the sector has improved, though some customers continue to experience long-duration interruptions. 

    • Pollution incidents remain one of the main areas of concern, with 2,991 incidents across England and Wales in 2025, including 84 classed as serious.  

    • Just 93.7% of required environmental improvement actions were completed on time, with 142 of 2,254 planned actions not delivered. 

    What happens next?

    Water companies must respond to the areas where performance is below expectations and deliver the improvements needed for customers and the environment. 

    The report reflects a shared commitment by regulators to transparency, accountability and driving improvements across the sector for consumers and the environment. It marks a step towards a more integrated, joined-up approach to water regulation, as signalled by the UK and Welsh Governments, who have outlined a once-in-a-generation programme to transform the water system, including the Water Bill next year.