It’s the end of term and the reports are out. It’s fair to say that the sector has had a difficult year.
Although there are signs of improvement, if a single phrase could sum up the industry’s performance over the past 12 months, it would be: “Must do better.”
Ofwat’s AMP8 year-one report, published at the end of October, has found that just 49% of the industry’s performance targets have been met.
The Environment Agency’s 2025 Environmental Performance Assessment, also published at the end of last month, has seen the performance rating for England’s nine water and sewage companies fall to its lowest ever level. Just 16 of a possible 36 stars were awarded, down from 19 last year.
And a third report, jointly drafted for the first time by The Drinking Water Inspectorate, Environment Agency, Natural Resources Wales and Ofwat, and also published in October, carries a similar evaluation. There are some positive findings, but on key metrics there is a long way to go.
Different markers, different marks
Each report has a reason to exist. Each regulator has its own legal duties. Together, though, they ask a lot of a customer who just wants to know how their water company is doing. They don’t even agree on the parameters. Ofwat’s report suggests a healthier environmental return. It reports storm overflow spills down 30% and every wastewater company improving. But the Environment Agency reports worse permit compliance and gave its lowest star total.
MPs have noticed. The Environment, Food and Rural Affairs Committee described the regime as “a spaghetti junction of 80 pieces of legislation”. It tentatively backs a single regulator, and wants company data verified and made public.
What a bad report costs
Trust is slow to build and quick to lose. Every statistic of decline or delay wears patience thin.
Better news, harder to hear
However, there is better news. The UK’s drinking water is among the best in the world, with 99.97% of about 4 million tests passing. Internal sewer flooding is down 43% since 2019/20. Leakage has fallen over the long term. Four companies have cut supply interruptions by more than half.
But good news gets lost. The drought is still with us and reservoir water levels are still falling. The sector needs a sceptical public to back new supplies. A slow start to a record investment programme does not help. It is early, and targets get tougher each year. But that’s hard to say in a headline.
Why communication matters
Here’s a view. Satisfaction and communication are closely linked. Ofwat’s own report says so. It finds a 97% correlation between customers feeling they are being kept informed and how satisfied they are. It names poor communication and unresolved problems as significant drivers of dissatisfaction. Its customer experience scores, published in October, show the scale. The industry average fell to 63.6 from 74.0. It is the sixth fall in a row. And the gap between the best company and the worst is now 27 points.
Satisfaction isn’t trust. But it’s hard to build trust without it.
Where communication earns its place
That’s where communication comes in. Not as an afterthought, but as an integral part of the job. People who are kept informed are more satisfied. People who understand how water reaches their homes are better placed to back what it takes to protect it. Our 2024 research found that 46% of people do not understand how their water is supplied. It is hard to ask someone to support a new reservoir when they are unsure where their water comes from. And our research also found that the public is ahead of the sector. More than three-quarters (76%) back new reservoirs. But 68% say water companies aren’t doing enough. The support is there. The confidence is not.
Listen early
Engagement matters for the same reason. Telling people is one thing. Listening to them early enough is another. It’s how a plan comes to feel like the community’s own, not something imposed on it. Engagement also takes time, so it has to start before the headlines turn.
Engagement is about to get a formal home. On 5 November, the government announced eight regional water councils, bringing together local leaders, customers and businesses to set priorities on sewage, flooding, drought and future supplies.
The homework
The regulators will keep marking the sector’s papers. The reports will keep coming. What the sector can control is how well it explains itself, and how willing it is to listen. Contact the Copper water team at water@copperconsultancy.com to discuss your communications and engagement needs.