Water executives will be prohibited from receiving bonuses if they do so.
did not manage to cleanse Britain’s rivers over the past year
.
Starting from next month, the regulator Ofwat intends to proceed with their plans.
employ fresh abilities to halt
CEOs of water utilities receiving bonuses even with subpar efforts in reducing contamination.
The prohibition will look backward, considering water companies’ history of contamination and their handling from April until now. These bonuses were scheduled to be distributed during the upcoming summer. However, Ofwat stated that executives who have already received these bonuses for that timeframe must return them.
During the 2023-2024 fiscal period, executive directors received over £9 million in performance-based compensation.
Ofwat is seeking input on the specifics of implementing its authority for bonus prohibitions, which were established under the Water Special Measures Act 2025.
Environment Secretary Steve Reed stated: “Beginning this year, those in charge of water management will no longer be able to avoid responsibility.”
By extending the eligibility period for a ban until April of last year, the government aims to ‘hold executives accountable for previous mistakes’ and send a strong signal that ‘those who pollute will not benefit, while citizens bear the cost.’
Ofwat stated: “We are seeking feedback on prohibiting bonuses and are endeavoring to enforce these new regulations at the earliest opportunity.”
Read more
