A Midlands-based water company, South Staffordshire Water, has been repeatedly warned by industry regulators about risks to its water supply, according to documents revealed from Ofwat, the Environment Agency, and the Department for Environment, Food and Rural Affairs (Defra). These warnings were part of last year’s annual review of water resources management plans, covering the period from 2020 to 2045.
Alongside South Staffordshire Water, ten other companies—including Thames Water, South East Water, Anglian Water, Affinity Water, Southern Water, South West Water, Cambridge Water, Portsmouth Water, Essex and Suffolk Water, and Albion Water—were also flagged for potential supply security risks.
The concerns raised span a range of issues, including leakage levels, chemical pollution, unsustainable water abstraction, and inadequate demand management. These findings come amid the government’s plans to introduce “MOTs” for water companies, designed to prevent outages like the recent disruption affecting thousands of South East Water customers in Kent and Sussex.
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Despite South East Water attributing recent supply interruptions to poor weather, regulatory documents highlighted ongoing warnings across four consecutive years regarding pressure on its water supply system. In November’s most recent letter, regulators expressed “significant resilience concerns” related to dry weather, noting that supply had already been restricted due to high demand.
Four companies—South West Water, Southern Water, South Staffordshire Water, and Portsmouth Water—received warnings for six consecutive years. Regulators specifically criticized Southern Water for persistent underperformance in water resources management, particularly regarding leakage reduction, warning that this failure jeopardizes both customer supply and the environment.
South West Water was cautioned over its management of peak water demand during warm, dry periods, with regulators stressing the urgent need for demand reduction measures to address operational challenges. Thames Water received similar warnings about lagging demand management, which threatens short-term supply security and long-term sustainability targets.
Regulators also expressed concerns to Anglian Water and Essex and Suffolk Water that supply constraints could limit regional growth and sustainability by forcing the rejection of prospective new users.
James Wallace, CEO of the campaign group River Action, commented: “This evidence clearly shows the UK is sleepwalking towards water shortages. Despite being a rainy country, decades of underinvestment and a profit-first approach have left our water system dangerously fragile. Every day, three million litres of drinking water are lost through leaking pipes, and no major reservoirs have been built since the sector’s privatization in the late 1980s. Customers have paid higher bills, but water companies must now invest urgently to prevent taps running dry, and to protect our economy, food security, industry, and health.”
In response, the government unveiled new regulatory powers as part of a sweeping overhaul of the water sector. The Water White Paper sets out plans requiring companies to perform regular health checks on their infrastructure—pipelines, pumps, and sewage treatment works—to detect and address problems before critical failures occur.
An Ofwat spokesperson acknowledged some progress but emphasized accountability: “We have reminded off-track companies that they will be held accountable for any failures in delivering resilient water supplies. We do not hesitate to act, as demonstrated by our ongoing enforcement action against South East Water on supply and customer service issues. Our 2024 Price Review has allocated £2 billion towards accelerating 30 major supply projects, part of an unprecedented £104 billion investment package aimed at improving outcomes for customers and the environment.”
Requests for comment were also made to Defra, Water UK, and the involved water companies.