Nine water firms stopped from using customers money to pay millions in bonuses

Ofwat has stopped nine water firms from using customers money to pay £6.8 million in bonuses.

The watchdog said the bonuses are “underserved” and that water companies cannot demonstrate sufficiently how they can prove they are linked to performance.

Ofwat blocked Thames Water, DwrCymru Welsh Water and Yorkshire Water from using customers month to pay £1.55 million in bonuses.

Six other companies voluntarily stopped executive bonuses worth in total £5.2 milion.

David Black, chief executive of Ofwat, said, “In stopping customers from paying for undeserved bonuses that do not properly reflect performance, we are looking to sharpen executive mindsets and push companies to improve their performance and culture of accountability.

“While we are starting to see companies take some positive steps, they need to do more to rebuild public trust.”

Secretary of State for Environment, Food and Rural Affairs Steve Reed said, “It is disgraceful that half of water companies have given out unjustifiable and unmerited bonuses.

“That is why this Government is introducing urgent legislation to ban the payment of unfair bonuses to polluting water bosses so payouts of this kind can never happen again.

“But there are deeper issues that need long-term solutions, which is why we have launched the largest review of the sector since privatisation.”

Black added, “Our new rules on exec pay and dividends link both to company performance.

“Through these new rules, our enforcement action and our incentive regime, which has imposed £430 million in performance penalties since 2020, we are challenging companies to deliver improvements for both customers and the environment.”