Ofwat Blocks Water Companies' Executive Bonuses

Ofwat has utilized new regulatory powers to prevent nine water companies from using customer funds to pay £6.8 million in executive bonuses, which represent 73% of the total proposed awards across the industry. Among the directly impacted firms are Thames Water, Yorkshire Water, and Dŵr Cymru Welsh Water, which were blocked from using £1.55 million in bonuses. The regulator stated that six other companies voluntarily decided not to pass on £5.2 million in bonuses to customers, opting to have shareholders cover the costs instead. Ofwat's chief executive, David Black, emphasized the need for accountability and performance improvement in the water sector, particularly in light of public outrage over sewage leaks and rising bills. The new rules linking executive pay to company performance are starting to take effect, with a view to restoring trust in the industry. The government is also considering enhancing Ofwat's powers to potentially prohibit performance-related pay under specific circumstances.