Ofwat Blocks Bonus Payments from Customer Funds

The water industry regulator, Ofwat, has blocked nine water companies from using customer funds to pay for £6.8 million in executive bonuses, citing insufficient linkage to company performance. Thames Water, Yorkshire Water, and Dŵr Cymru Welsh Water were directly reprimanded, while six other companies voluntarily shifted the costs to shareholders. David Black, Ofwat's chief executive, emphasized the need for water firms to rebuild public trust and improve accountability. This move comes amid increasing public and political pressure due to poor performance on pollution and rising customer bills. Ofwat's actions are part of broader regulatory changes aimed at ensuring bonuses and dividends reflect company achievements and include new powers to enhance financial resilience and prevent excessive customer bill hikes. These changes are particularly relevant for debt-laden Thames Water, which is seeking emergency funding.