Natural Resources Wales has downgraded Welsh Water’s performance after a rise in pollution caused by the company in the last year.

Welsh Water (Dŵr Cymru), which provides water in the south of Powys, was marked down to a two-star rating being rated as “requiring improvement”.

Clare Pillman, chief executive of Natural Resources Wales, said: “It is very disappointing that Dŵr Cymru Welsh Water’s performance has continued to decline.

“Water companies need to take urgent and sustained action to make the changes needed to address the significant pollution incidents we are seeing in our waters.

“In the face of the climate and nature emergencies, the need to act now is ever more important, as our ageing sewer network comes under greater pressure.

“Without sufficient investment and a strong performance management framework from water companies, the environment will continue to pay the price. In our meetings with Dŵr Cymru Welsh Water we have been very clear about the improvements they must deliver.”

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In 2022, Welsh Water was found to have caused 89 sewage pollution incidents, 84 of which were categorised as having a low environmental impact. Five were classed as having “a high or significant impact”.

Water companies are expected to self-report incidents to Natural Resources Wales before others do, as “without a rapid response, the impact of pollution can escalate and the opportunity for mitigation measures can be lost”.

Yet the company failed to self-report on many occasions with the number of incidents self-reported incidents falling to 65 per cent - down seven per cent from 2021.

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In response, Ms Pillman has called for a “step change in performance that is so clearly needed and called for by us and the public”.

Expectations for improvements were outlined in the report, including a requirement to reduce the number of sewerage pollution incidents year on year, stop all significant pollution incidents and reverse the decline in the self-reporting of incidents.

The performance of Hafren Dyfrdwy, supplier of drinking water and wastewater services to parts of north east and mid Wales, has also been reviewed but is not subject to a star rating due to its relatively small operating area in Wales.