Committee publication · Correspondence · 6 May 2025
Correspondence from Philip Duffy, CEO, Environment Agency regarding investigations into water companies in England, dated 28 April 2025, and additional dataset
From: Environment, Food and Rural Affairs Committee
Inquiry: Reforming the water sector
Summary
Philip Duffy, CEO of the Environment Agency, responds to the EFRA Committee's March 2025 inquiry into water sector reform. The Agency reports conducting 11,474 investigations into English water companies since 2015, resulting in 58 prosecutions. Data shows 11,086 closed investigations, 351 ongoing, and 37 in legal review. The Agency declines to disclose per-investigation resource allocation citing enforcement discretion, but notes 440 new posts funded through industry charges and plans to increase annual inspections from 4,536 (2024/25) to 10,000 (2025/26).
Key findings
- Environment Agency conducted 11,474 water company investigations since 2015 with 58 prosecutions; 11,086 closed, 351 in investigation management, 37 in legal process
- 2024/25 inspections exceeded target at 4,536; identified 1,072 minor breaches and 97 significant non-compliance cases; planned increase to 10,000 inspections in 2025/26
- 440 new regulatory staff recruited (officers, data analysts, enforcement specialists) funded through Water Industry Transformation Programme and water company charge uplift
- Agency declines to disclose resource allocation per investigation, citing risk to ongoing enforcement discretion; most investigations resourced from existing team budgets with variable resourcing based on severity and complexity
- Average prosecution costs applied £90,253.90 across 58 cases (2016–2024); Agency welcomes new enforcement powers from Water Special Measures Act including automatic penalties and civil variable monetary penalties
Tone
FactualTopics
Key actors
Philip Duffy, Environment Agency, Alistair Carmichael MP, Defra, Anglian Water Services Limited, Thames Water Utilities Limited, Severn Trent Water Limited, Southern Water Services Limited
Notable line
“We need to see a fundamental shift from the industry, moving away from fixing failures to ensuring the long-term resilience of water infrastructure.”
Key Quotes
“In total, the Environment Agency has conducted 11,474 investigations since 2015, with 58 resulting in prosecutions.”
“We are unable to provide any further details of ongoing investigations, as there is a risk that this may prejudice those investigations and fetter our discretion in enforcement decision- making under our published …”
“The Environment Agency has greatly expanded the number of staff dedicated to regulating the water industry with 440 new posts, including regulatory officers, data analysts, and enforcement specialists.”
“This has enabled us to exceed our 2024/25 target of 4,000 water company inspections, delivering 4,536 this year. This number is set to rise significantly to 10,000 inspections in 2025/26.”
“We need to see a fundamental shift from the industry, moving away from fixing failures to ensuring the long-term resilience of water infrastructure.”
“We welcome this opportunity to step up our regulation with these additional powers and the Government's ambition to drive through much-needed reform.”
Source · parliament.uk record ↗