The Environment Agency’s Chief Executive, Philip Duffy, has written to Ofwat regarding water industry category 1 incidents in 2024, in relation to performance related executive pay (PRP) prohibition rules.
Category 1 incidents are the most serious incidents, having caused significant impacts to the environment and/or people.
Current rules state that water companies should prohibit PRP where they have either:
i) Been rated 1-star by the Environment Agency Environment Performance Assessment (EPA) and /or
ii) Recorded an EPA Category 1 incident during 2024.
In his letter, the EA Chief Executive has provided the Environment Agency’s verified data on Category 1 incidents, which will be included in the EPA report for 2024. The full EPA report for 2025 will not be published until October 2025.
In 2024, Thames Water had seven category 1 incidents. Anglian Water, Southern Water, United Utilities and Yorkshire Water each had one category 1 incident.
Environment Secretary Steve Reed confirmed on Friday 6 June 2025 that the ban on bonuses will apply to senior executives at all five of the above mentioned water companies, as well as senior executives at Wessex Water, with immediate effect.
Verified environment performance assessment category 1 incidents for 2024:
| Company | Number of category 1 incidents | Date | Location |
|---|---|---|---|
| Anglian Water Services | 1 | September | Peterborough |
| Southern Water Services | 1 | August | New Forest District |
| Thames Water | 7 | January | Three Rivers District |
| January | Chiltern District | ||
| February | Slough | ||
| April | Enfield London Borough | ||
| April | Sevenoaks District | ||
| November | Reigate and Banstead District | ||
| December | Runnymede District | ||
| Yorkshire Water | 1 | December | Bolton |
| United Utilities | 1 | December | Kirklees District |
