Under new regulation set to take effect, six major UK water companies, including Thames and Yorkshire Water, are barred from awarding bonuses for the financial year 2024/25 unless they meet specific environmental and consumer standards. This legislative change aims to enhance accountability in the water sector and ensure that companies act in compliance with financial resilience requirements. Ofwat will oversee this ban, and companies that violate it may face financial repercussions. This shift comes after years of criticism regarding excessive bonuses paid to these firms amid public concerns about service standards.
The new rules prevent bonuses for water companies that fail to meet environmental or consumer standards, ensuring accountability for their financial and operational practices.
The six water companies have been specifically banned from issuing bonuses during the financial year 2024/25 if they do not meet certain regulatory standards.
Ofwat has a new authority under the Water (Special Measures) Act to reclaim any bonuses paid during a ban, promoting financial accountability within the sector.
With over £112 million in bonuses given to UK water firms over a decade, the new rules reflect increased scrutiny on corporate governance in the industry.
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