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Wales Online
5 days ago
- Business
- Wales Online
Water company bosses banned from getting bonuses
Water company bosses banned from getting bonuses Bonuses to six companies are being restricted under a new UK Government law Water bosses from six companies will not be allowed to claim bonuses, as part of a government crackdown. Under new rules, companies are not permitted to pay bonuses to water bosses if there have been poor environmental breaches or customer outcomes. The rules come into force today, and the UK Government say it will mean bosses at Thames Water, Yorkshire Water, Anglian Water, Wessex Water, United Utilities, and Southern Water are not permitted to receive bonuses with immediate effect. It is backdated to apply to any bonuses relating to the financial year from April last year. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here Neither of the companies which operate in Wales, Dwr Cymru or Hafren Dyfrdwy are impacted. While both fall under the legislation, no Welsh companies have been deemed to have breached the new standards to the point at which bonuses can be withheld. Dwr Cymru has faced criticism for spills and issues in Wales. Last month it was fined £1.3m over 800 sewage breaches. You can read that here. Water companies have awarded over £112 million in bonuses and incentives over the last decade and last year alone, £7.6m in bonuses were paid to water bosses in England. Article continues below The companies impacted are: Anglian Water: CEO (chief executive officer) bonus banned Southern Water: CEO and CFO (chief finance officer) bonus banned Thames Water: CEO and CFO bonus banned United Utilities: CEO and CFO bonus banned Wessex Water: CFO bonus banned Yorkshire Water: CEO and CFO bonus banned Anglian Water's CFO is not subject to the ban because they were not in post for the most serious (category one) incident. Wessex Water's CEO is not subject to the ban because they were not in post for the criminal offence that triggers the ban. The new act means companies that do meet Ofwat's standards will still be eligible to pay executives bonuses. While it is for water companies to set their own remuneration, new standards published by Ofwat that come into force today mean bonuses will not be permitted be handed out in specific cases when a water company: Fails to meet core environmental standards and presides over serious pollution offences Fails to meet basic financial resilience standards (e.g. meet minimum credit rating requirements) Fails to meet core consumer standards (e.g. failure to operate and maintain sewage networks) Is convicted of a criminal offence (e.g. criminal convictions for serious environmental failings including illegal spills) Any company failing to meet key standards will automatically lose the right to award bonuses and if a company pays a bonus while banned, Ofwat has the powers under the Water (Special Measures) Act to direct the company to claw back the money. Any company that does not comply with Ofwat's directions will face enforcement action. Environment secretary Steve Reed said: "Water company bosses, like anyone else, should only get bonuses if they've performed well, certainly not if they've failed to tackle water pollution. "Undeserved bonuses will now be banned as part of the Government's plan to clean up our rivers, lakes and seas for good. Promise made, promise delivered." Article continues below
ITV News
5 days ago
- Business
- ITV News
Six water companies banned from paying bonuses to senior bosses
Six water companies have been banned from paying bonuses to senior bosses, under new rules that come into force on Friday. Thames Water, Yorkshire Water, Anglian Water, Wessex Water, United Utilities and Southern Water have been told that they cannot issue bonuses for the financial year 2024/25, which concluded in April. They have all been banned under new rules which prevent bonuses from being paid if a water company does not meet environmental or consumer standards, does not meet financial resilience requirements, or is convicted of a criminal offence. The six companies are not under an indefinite ban, and those firms may be able to offer rewards for the 2025/26 year, provided they stick within the Ofwat rules, under the Water (Special Measures) Act which comes into force on Friday. If a company pays a bonus while it is under a ban, the water regulator Ofwat has the power to get the money back. According to the Department for Environment, Food and Rural Affairs, more than £112 million in bonuses and incentives have been handed out by water firms in the last ten years. Water companies set their own salary and reward packages. It is understood that if firms that are banned from offering bonuses, try to compensate by increasing salaries, then officials may look into it. Environment Secretary Steve Reed said: 'Water company bosses, like anyone else, should only get bonuses if they've performed well, certainly not if they've failed to tackle water pollution. 'Undeserved bonuses will now be banned as part of the Government's plan to clean up our rivers, lakes and seas for good." Under the new rules, Yorkshire Water, United Utilities, Thames Water, and Southern Water will all be unable to pay bonuses to the chief executive or chief financial officer, for the last financial year. Anglian Water will be banned from paying their chief executive a bonus, but their chief financial officer will not be banned. Wessex Water will be banned from paying their chief financial officer any extra, but their chief executive will be exempt. The exemptions are because people were not in post when the incident that broke Ofwat's rules happened. Campaign group River Action have called the move a 'welcome step' but said that increased salaries should be prevented. Chief executive James Wallace said: 'We won't end pollution for profit until water companies are refinanced and governed for public benefit. 'Any attempt to inflate base pay as a workaround must be stamped out. 'The era of rewarding criminal leadership must end. No more cream for the fat cats.' Wessex Water have said that under their own rules, 'which require the achievement of specific customer and environmental performance targets', neither the chief executive nor chief financial officer would receive any bonus. A spokesperson added: 'Looking ahead, we are planning a step change in the maintenance of our sewerage infrastructure, with a proposed investment of approximately £300 million by 2030.' A Southern Water spokesperson said: 'We note the Government's announcement and await full details of how this will impact our existing approach to performance-related reward. 'This is already closely tied to the delivery of improvements in customer satisfaction and environmental performance. 'Any bonuses are paid by shareholders, not customers, and are overseen by an independent committee.' A Yorkshire Water spokesperson said: 'Our chief executive, Nicola Shaw, had already made the decision that it would not be appropriate for her to receive an annual bonus this year, due to the company's performance on pollution, and a recognition that we need to do better for the communities we serve and earn trust. 'She has also taken the decision to waive her entitlement to an additional bonus that would have vested under our longer-term incentive scheme. 'We are determined to make improvements to our performance so we can deliver our part in creating a thriving Yorkshire, doing right for our customers and the environment.' It comes after Thames Water were fined £122.7 million, the largest penalty the water watchdog has ever issued, after two investigations into wastewater and dividend payments. The utility giant will pay £104.5 million for breaches of rules relating to its wastewater operations, and an extra £18.2 million for breaking rules related to dividend payments.
Yahoo
5 days ago
- Business
- Yahoo
Six water companies banned from paying bonuses to senior bosses
Six water companies have been banned from paying bonuses to senior bosses, under new rules that come into force on Friday. Thames Water, Yorkshire Water, Anglian Water, Wessex Water, United Utilities and Southern Water have been told that they cannot issue bonuses for the financial year 2024/25, which concluded in April. They have all been banned under new rules which prevent bonuses from being paid if a water company does not meet environmental or consumer standards, does not meet financial resilience requirements, or is convicted of a criminal offence. The six companies are not under an indefinite ban, and those firms may be able to offer rewards for the 2025/26 year, provided they stick within the Ofwat rules, under the Water (Special Measures) Act which comes into force on Friday. If a company pays a bonus while it is under a ban, the water regulator Ofwat has the power to get the money back. According to the Department for Environment, Food and Rural Affairs, more than £112 million in bonuses and incentives have been handed out by water firms in the last ten years. Water companies set their own salary and reward packages, and it is understood that if firms that are banned from offering bonuses increase salaries to try to compensate, then officials may look into it. Environment Secretary Steve Reed said: 'Water company bosses, like anyone else, should only get bonuses if they've performed well, certainly not if they've failed to tackle water pollution. 'Undeserved bonuses will now be banned as part of the Government's plan to clean up our rivers, lakes and seas for good. 'Promise made, promise delivered.' Under the new rules, Yorkshire Water, United Utilities, Thames Water, and Southern Water will all be unable to pay bonuses to the chief executive or chief financial officer, for the 24/25 financial year. Anglian Water will be banned from paying their chief executive a bonus, but their chief financial officer will not be banned. Wessex Water will be banned from paying their chief financial officer any extra, but their chief executive will be exempt. The exemptions are because people were not in post when the incident that broke Ofwat's rules happened. Campaign group River Action have called the move a 'welcome step' but said that increased salaries should be prevented. Chief executive James Wallace said: 'We won't end pollution for profit until water companies are refinanced and governed for public benefit. 'Any attempt to inflate base pay as a workaround must be stamped out. 'The era of rewarding criminal leadership must end. No more cream for the fat cats.' Wessex Water have said that under their own rules, 'which require the achievement of specific customer and environmental performance targets', neither the chief executive nor chief financial officer would receive any bonus. A spokesperson added: 'Looking ahead, we are planning a step change in the maintenance of our sewerage infrastructure, with a proposed investment of approximately £300 million by 2030.' A Southern Water spokesperson said: 'We note the Government's announcement and await full details of how this will impact our existing approach to performance-related reward. 'This is already closely tied to the delivery of improvements in customer satisfaction and environmental performance. 'Any bonuses are paid by shareholders, not customers, and are overseen by an independent committee.' A Yorkshire Water spokesperson said: 'Our chief executive, Nicola Shaw, had already made the decision that it would not be appropriate for her to receive an annual bonus this year, due to the company's performance on pollution, and a recognition that we need to do better for the communities we serve and earn trust. 'She has also taken the decision to waive her entitlement to an additional bonus that would have vested under our longer-term incentive scheme. 'We are determined to make improvements to our performance so we can deliver our part in creating a thriving Yorkshire, doing right for our customers and the environment.' It comes after Thames Water were fined £122.7 million, the largest penalty the water watchdog has ever issued, after two investigations into wastewater and dividend payments. The utility giant will pay £104.5 million for breaches of rules relating to its wastewater operations, and an extra £18.2 million for breaking rules related to dividend payments.
Daily Mirror
5 days ago
- Business
- Daily Mirror
Bosses of six water firms banned from getting bumper bonuses under new law
Unfair bonuses have been banned for senior executives at six water companies, under Labour's new measures in the Water (Special Measures) Act Bosses of water firms who pollute Britain's rivers have been banned from taking bonuses under new laws taking effect from Friday. Water bosses awarded themselves over £112 million in bonuses and incentive payments in the last decade. Unfair bonuses have been banned for senior executives at six water companies, under Labour's new measures in the Water (Special Measures) Act. The ban applies to Thames Water, Yorkshire Water, Anglian Water, Wessex Water, United Utilities, and Southern Water. They have all been banned under new rules which prevent bonuses from being paid if a water company does not meet environmental or consumer standards, does not meet financial resilience requirements, or is convicted of a criminal offence. The six companies are not under an indefinite ban, and those firms may be able to offer rewards for the 2025/26 year, provided they stick within the Ofwat rules, under the Water (Special Measures) Act which comes into force on Friday. If a company pays a bonus while it is under a ban, the water regulator Ofwat has the power to claw the money back. Environment Secretary Steve Reed said: 'Water company bosses, like anyone else, should only get bonuses if they've performed well, certainly not if they've failed to tackle water pollution. Undeserved bonuses will now be banned as part of the Government's plan to clean up our rivers, lakes and seas for good. Promise made, promise delivered.' Campaign group River Action have called the move a "welcome step" but said that increased salaries should be prevented. Chief executive James Wallace said: "We won't end pollution for profit until water companies are refinanced and governed for public benefit. "Any attempt to inflate base pay as a workaround must be stamped out. "The era of rewarding criminal leadership must end. No more cream for the fat cats." Wessex Water have said that under their own rules, "which require the achievement of specific customer and environmental performance targets", neither the chief executive nor chief financial officer would receive any bonus. A spokesperson added: "Looking ahead, we are planning a step change in the maintenance of our sewerage infrastructure, with a proposed investment of approximately £300 million by 2030." A Southern Water spokesperson said: "We note the Government's announcement and await full details of how this will impact our existing approach to performance-related reward. "This is already closely tied to the delivery of improvements in customer satisfaction and environmental performance. "Any bonuses are paid by shareholders, not customers, and are overseen by an independent committee." It comes after Thames Water were fined £122.7 million, the largest penalty the water watchdog has ever issued, after two investigations into wastewater and dividend payments. The utility giant will pay £104.5 million for breaches of rules relating to its wastewater operations, and an extra £18.2 million for breaking rules related to dividend payments.
The Star
26-05-2025
- Business
- The Star
Higher contributions from Wessex Water for YTL Power
KUALA LUMPUR: YTL Power International Bhd could see a rebound in its financial performance in its fourth quarter of its financial year ending June 30, analysts say. This was expected to be underpinned by a rise in contributions from Wessex Water in Britain as a 21% water tariff increase there takes effect. YTL Power International's nine-month year-to-date results that were announced last week were mostly below expectations, at 72% of forecasts by CGS International Research (CGSI Research) and consensus. Despite an anticipated step up in the coming quarter's contributions from Wessex Water, CGSI Research revised the group's forecast net profits for this year down by 3% as weaker volumes are expected from YTL PowerSeraya Pte Ltd in Singapore. Meanwhile, YTL Power's third quarter's results were below Maybank Investment Bank Research's (Maybank IB Research) expectations on a more pronounced tapering of PowerSeraya's earnings. The research house continued to view YTL Power's risk-reward balance favourably on undemanding valuations and potential re-rating catalysts ahead. 'We maintain our earnings estimates. Our sum of parts based target price is adjusted to RM4.18,' RHB Research said.
