Ofwat Blocks Water Firms From Using Customer Money for Executive Bonuses

The regulator halted £6.8 million in bonuses tied to poor performance and placed ten firms under financial scrutiny.

Ofwat stopped nine water companies from using customer funds to pay £6.8 million in executive bonuses, citing insufficient performance links.
Thames Water, Yorkshire Water, and Welsh Water were directly blocked from passing £1.55 million in bonuses to customers' bills.
Three firms, including Thames Water, Southern Water, and South East Water, were flagged as requiring urgent financial intervention due to significant debt and financial instability.
A further seven companies were categorized as having 'elevated concern,' with Ofwat closely monitoring their financial resilience and dividend practices.
The government plans to introduce legislation banning unjustifiable bonuses and has launched a major review of the water sector's regulation and accountability.