The agency made the call after awarding water companies lower marks for pollution.
This year Southern Water and South West Water were given the lowest rating of one star, while four companies - Anglian, Thames, Wessex and Yorkshire Water - got only two stars - meaning they require significant improvement.
As well as calling for jail time for chief executives and board members "whose companies are responsible for the most serious incidents", the Environment Agency wants the courts to impose much higher fines. It noted that they often amounted to less than a chief executive's salary. In response to the assessment, industry body Water UK Chief Executive Christine McGourty said: "This year's results show that, overall, industry must do better."
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