Ofwat Shifts Bonus Costs to Water Firm Shareholders

Ofwat, the water industry regulator, has mandated that shareholders of Thames Water, Yorkshire Water, and Dŵr Cymru Welsh Water must cover £6.8 million in executive bonuses rather than using customer funds. This decision follows public outcry regarding performance issues, including leaks and sewage overflows, and financial strains faced by the companies. Nine water companies in total have been affected by this ruling, though only three required direct intervention from Ofwat as others complied voluntarily. The new regulations aim to link bonuses to company performance, preventing undeserved payouts from customer bills. Thames Water is facing significant financial challenges with £18 billion in debt and is seeking a £3 billion emergency funding package. Additionally, the regulator is closely monitoring the financial resilience of South Staffs Water and Wessex Water.