Lowest environmental rating for South West Water with all bosses’ bonuses banned
South West Water has been given the lowest possible environmental rating by the Environment Agency over high levels of pollution.
The utility company has been handed a one-star environmental rating as regulators accused bosses of failing customers and the environment.
The company was one of four UK water firms to receive the bottom rating in the agency’s latest annual assessment (for 2025) alongside Yorkshire Water, Southern Water and Thames Water.
Under rules introduced last year, bosses at the four companies will automatically be barred from receiving bonuses following poor performance ratings for 2025.
Environment Secretary Dame Angela Eagle said: “Water companies have let the public down time and time again, and today’s report is further proof that root-and-branch reform cannot wait.
“People are sick of excuses. They want clean rivers, lakes and seas, and the certainty that every pound they pay is being invested wisely, not wasted.”
The report found that pollution incidents across England and Wales remained a major concern, with 2,991 recorded in 2025.
Of those incidents, 84 were classified as serious.
The assessment marks the first time water regulators have released a combined evaluation of the industry, bringing together data on drinking water, sewage pollution, customer service and environmental performance.
Although the quality of drinking water remains high, with 99.97% of tests meeting required standards, the sector is falling short on wastewater and environmental protection.
The Environment Agency said overall ratings for water and sewerage companies had fallen to 16 out of a possible 36 stars, with just one company achieving the highest four-star rating.
The government said it would consider strengthening restrictions on executive bonuses amid concerns that bosses at persistently underperforming companies continue to be rewarded.
A spokesperson for South West Water said: “We are under new management with a renewed focus on improving our performance.
“We know there’s much more to do and although it will take time, we are taking action and making progress in the areas that matter most to our customers and the environment.
“We reduced spills from storm overflows by 17% last year alone, with spill duration down by 25%, and we have insourced over 40 new leakage specialists, focused where they are needed most.
“We are working hard to build on the progress we’re making, backed by record levels of investment across the region.
“We are transforming our network to improve long-term resilience of our water supply; protecting the environment and tackling leaks as part of our multi-billion-pound-plan to deliver the long-term improvements our customers and communities expect.”
