Record 81 criminal investigations opened into water firms
Over 80 criminal investigations into water firms have been launched since the general election, which if proven could leave bosses facing five years in jail and firms on the hook for hundreds of millions of pounds, the environment watchdog has said.
The Environment Agency has used new powers handed to it by the government to open 81 lines of inquiry into water companies that have allegedly fallen foul of environmental laws.
The figure – a 145 per cent jump since the election in July – represents the largest criminal action against water firms in history, thanks to a 400 per cent rise in the number of inspections carried out by the watchdog.
The record number of spot checks unearthed “widespread law-breaking”, the agency said, with under-fire Thames Water the subject of 31 of probes.
Anglian Water faces 21 probes – the second-highest of England’s 10 major water firms – while London-listed Severn Trent and United Utilities together face the the third-highest number of investigations with seven.
Environment secretary Steve Reed, said the sector’s firms and their bosses had “too often gone unpunished” for pumping “record levels of sewage into our waterways”.
“With this government, water companies who break the law will finally be punished for their disgraceful behaviour so we can clean up our rivers, lakes and seas for good,” he added.
Bosses of water firms could face jail time
Last month, the government handed sweeping new powers to the water industry’s two main regulators – Ofwat and the Environment Agency – which included possible jail time for bosses that obstruct or fail to co-operate with environmental investigators.
The new laws, which came into effect as part of the Water (Special Measures Act) 2025, were intended to act as a “powerful deterrent” as water firms invest in upgrading the industry’s creaking infrastructure.
Not only do the powers mean the water firms under criminal investigation face paying the cost of carrying out the probe, but it also gave ministers the capacity to block the payment of bonuses to bosses, should they fail to meet environmental standards.
The 81 criminal investigations represents the first opportunity for regulators to wield these new powers, Philip Duffy, the Environment Agency boss, calling the spate of probes “just the beginning”.
Ministers are also poised to use those same powers to block the controversial bonuses that Thames Water bosses plan to pay themselves, despite the having only recently escaped bankruptcy thanks to a last gasp deal with creditors. The bonus plan – unearthed during a frosty evidence session with the environment committee of MPs last week – sparked fury among campaigners and customers, with Reed branding them an example of water firms “profiting from failure”.
Campaigners have welcomed the criminal investigations. James Wallace, the boss of River Action, said: “It’s good to see the government finally taking water pollution seriously. But jail time for water bosses remains highly unlikely.
“The law only applies to cover-ups — and there’s no need to hide what’s already happening in plain sight, week in, week out.”
A Water UK spokesperson said:“It is right that water companies are investigated and held to account when things go wrong. Almost 99 per cent of sewage and water treatment works meet their permits and we are focused on getting to 100 per cent.”