Chief Executive of the Environment Agency Philip Duffy has written to Ofwat Chief David Black regarding the Ofwat performance related executive pay (PRP) prohibition rules for water industry category 1 incidents which came into effect on Friday.

Category 1 incidents are the most serious incidents, having caused significant impacts to the environment and/or people.
For 2024 the environment rule states 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.
The letter sets out the Environment Agency’s verified data on Category 1 incidents, which will be included in the EPA report for 2024. The Agency’s full EPA report for 2025 will be published in October 2025.
Water companies that had Category 1 incidents during 2024 are as follows:
Verified environment performance assessment category 1 incidents for 2024
- Anglian Water - 1 incident September Peterborough
- Southern Water - 1 incident August New Forest District
- Thames Water - 7 incidents
- 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 incident December Bolton
- United Utilities - 1 incident December Kirklees District
Philip Duffy and David Black will both appear before the House of Commons Public Accounts Committee later today to give eveidence in person to the PAC inquiry into water sector regulation.
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