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Ofwat has published the final Water Company Performance Report (WCPR) for the 2020-25 period, which assesses the performance of water companies in the last financial year, as well as focusing on what the sector has achieved in the last five years, and where it has fallen short.

The report shows that water company performance has been mixed — both between companies and across performance areas. We’ve seen progress in areas that most impact customers — for example, internal sewer flooding has improved with two companies achieving 70% or more reduction over the 2020-25 period, and the sector improving the reach of their Priority Services Registers (PSR) from 2% to 12.8%. The report also highlights continuing challenges where companies have fallen short, including how pollution incidents remain at unacceptable levels, with only two companies reporting a reduction in incidents over the five-year period.

Some measures benefit from a longer-term perspective which you can see within the report. For example, the sector has now reduced leakage by 43% since privatisation – although companies must further improve on this to secure resilient future supplies.

We have held companies to account for poor performance across the 2020-25 period. Our underperformance payments have led to bill reductions — with more than £700m returned to customers over the last five years. In the last year, the figure was more than £260m, the bulk of which was accounted for in the final determination in December 2024 and reflected in customer bills from April 2025.

We also recognise some of the upheavals of the past five years that have affected the water sector and company performance.  These include the COVID-19 pandemic and rising inflation, which increased sector costs and placed additional pressure on household finances.

As we move into the next period (2025-30), backed by a record level of planned investment, Ofwat will continue to drive companies to deliver real improvements for customers, communities, and the environment. The £104bn announced in December last year is a significant moment for the sector and will help accelerate long-term improvements for our rivers and seas, and secure supply for the future. Ahead of the creation of the new regulatory body, we remain focused on driving better performance and ensuring the sector delivers lasting value for the public.

The WCPR report can be read in full here: Water Company Performance Report 2024-25 – Ofwat