The Department for Environment, Food and Rural Affairs (Defra) and the Environment Agency have announced a new civil penalties framework for water companies, following a consultation that closed on 3 December 2025. Enabled by the Water (Special Measures) Act 2025, the framework introduces variable monetary penalties (VMPs) proved to the civil standard of proof, capped at £500,000, and automatic penalties (APs) of £10,000 for very large organisations—doubling to £20,000 if unpaid within 28 days. Penalty values vary by turnover banding, with very large organisations defined as those with annual turnover of £250 million or more. AP triggers include: (1) failure to report significant pollution incidents within four hours; (2) failure to maintain event duration monitoring (EDM) devices at 90% operational uptime per calendar year; (3) failure to report EDM data monthly; (4) more than three emergency discharges from an emergency overflow in a year and (5) failure to return abstraction data within 28 days of request. Defra confirmed it will bring forward secondary legislation to implement the changes subject to Parliamentary approval. Modelling indicates the changes could cost the water sector between £50 million and £67 million annually, with water companies prohibited from passing penalties onto customer bills.