Latest news with #environmentalstandards
Telegraph
5 days ago
- Business
- Telegraph
Water regulator to be scrapped as sewage spills soar
While it is understood that ministers have not yet received the final report, which will be published on Monday, Sir Jon's interim report last month criticised 'deep-rooted, systemic' problems across the water industry, laying the blame at the door of both companies and regulators. Ofwat has been criticised for its part in failing to prevent sewage spills and then allowing water companies to put up bills by almost £10 a month on average to fund improvements in environmental standards. The regulator has also been criticised for failing to hold Thames Water to account before it slipped into crisis. Thames Water nationalisation Britain's largest water company – Thames Water, which is saddled with debt – faces the prospect of government control, with its boss warning this week that it will take at least a decade to turn the company around. Environment Agency figures showed a sharp jump in pollution incidents in England, with Thames Water, Southern Water and Yorkshire Water the worst offenders. Ofwat declined to comment, while a government spokesman said: 'We are not going to comment on speculation'. Mark Lloyd, chief executive of the Rivers Trust, which represents trusts across the country, welcomed the proposed overhaul. He said: 'The problem for Government is clear: economic and environmental regulation of the water industry has been very muddled since privatisation and is the root cause of many of the issues with the sector. 'Greater clarity, consistency, certainty and accountability of regulation are urgently needed for water companies to improve their performance and to attract investment. They therefore face a choice between reforming the current regulatory framework to make it work better or creating a new, single regulator.' Thames bondholders also welcomed proposals to scrap Ofwat, pointing to the regulator's failure to rein in Thames Water's debt binge.
Sky News
05-06-2025
- Business
- Sky News
Bonuses for water bosses end - as six firms found guilty of most serious pollution breaches
Bosses at six water companies have been banned from receiving bonuses for the last financial year under new legislation that comes into force on Friday. Senior executives at Thames Water, Yorkshire Water, Anglian Water, Wessex Water, United Utilities and Southern Water all face the restriction on performance-related pay for breaches of environmental, customer service or financial standards. All six companies committed the most serious 'Category 1' pollution breaches, with Thames responsible for six such incidents, as well as breaching financial resilience regulations when its credit rating was downgraded. 1:28 The nine largest water and wastewater providers paid a total of £112m in executive bonuses since 2014-15, though the 2023-24 total of £7.6m was the smallest annual figure in a decade. The new rules give water industry regulator Ofwat the power to retrospectively prevent bonuses paid in cash, shares or long-term incentive schemes to chief executives and chief financial officers for breaches in a given financial year. Ofwat cannot, however, prevent lost bonuses being replaced by increased salaries, as routinely happened in the banking sector when bonus pots were capped following the financial crisis. Government sources insist they do not want to cap executive pay, but suggested the regulator could consider expanding its powers to ensure any remuneration is covered by shareholder funds rather than customer bills. Water suppliers have routinely defended executive bonuses and pay on the grounds that awards are necessary to attract and retain the best talent to lead complex, multi-stakeholder organisations. Thames Water's chief executive, Chris Weston, was paid a bonus of £195,000 three months after joining the company in January 2024, taking his total remuneration to £2.3m. 1:18 4:39 Last month, the company withdrew plans to pay "retention" bonuses of up to 50% of annual salary to senior executives after securing an emergency £3bn loan intended to keep the company afloat into next year. Earlier this week, its preferred equity partner, US private equity giant KKR, walked away from a deal to inject £4bn despite direct lobbying from 10 Downing Street, in part because of concern over the negative political sentiment towards the water industry. The decision came a few days after Thames was hit with a record fine of £123m for multiple pollution incidents and breaching dividend payment rules. Welcoming the bonus ban, the 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." Whitehall sources say they "make no apology" for calling out water company conduct, despite concerns raised by an independent reviewer that negative sentiment and misdirected regulation has put off investors and raised the cost of financing the privatised system. In an interim report, former Bank of England deputy governor Sir Jon Cunliffe said "negative political and public narrative and Ofwat's approach to financial regulation have made the sector less attractive". Sir Jon will publish final recommendations to reform water regulation next month, with the aim of addressing public concerns over pollution and customer service, while attracting long-term, low-risk, low-return investors.
The Independent
05-06-2025
- Business
- The Independent
The water firms banned from paying bonuses to senior bosses under new laws
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 has 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.' 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.
Reuters
03-06-2025
- Business
- Reuters
UK utility Pennon swings to pretax annual loss on investment costs
June 3 (Reuters) - British water utility Pennon Group (PNN.L), opens new tab swung to an annual pretax loss on Tuesday, hurt by costs associated with the Brixham water supply incident and higher investments to upgrade its infrastructure. Britain's water companies are facing increased scrutiny due to pollution issues and mounting pressure to improve environmental standards while managing rising costs and regulatory demands. Water bills in England and Wales will increase by an average of 31 pounds per year between 2025 and 2030, according to industry regulator Ofwat's 2024 price review, to help finance essential investment in the sector. This is 8 pounds lower per year than what companies proposed in their plans, on average. Pennon, along with listed peers United Utilities (UU.L), opens new tab and Severn Trent (SVT.L), opens new tab, agreed to Ofwat's price review, unlike several privately owned water firms that appealed. In exchange for higher permitted income, Pennon is committing to invest 3.2 billion pounds ($4.33 billion) over five years in infrastructure upgrades. Ofwat's latest price review permits South West Water, the group's largest revenue contributor, to raise household bills by 23% leading to an average bill of 610 pounds by 2029-30. The group is partly relying on these higher tariffs to fund upgrades and meet tougher environmental standards, while restoring public confidence following recent pollution incidents. "While we have made the tough decision to put bills up in 2025-26, for the first time in over a decade, two-thirds of our investments are being funded by our supportive investors and debt providers," CEO Susan Davy said in a statement. Pennon reported adjusted loss before tax of 35.1 million pounds for the year ended March 31, narrower than market expectations of about 37 million pounds loss, according to data compiled by LSEG. ($1 = 0.7392 pounds)
CTV News
29-05-2025
- Business
- CTV News
Controversial B.C. bill fast-tracking infrastructure projects passes as Speaker breaks tie
MLAs are set to vote on a pair of bills that have drawn widespread condemnation from First Nations leaders. VICTORIA — A controversial bill in British Columbia responding to American tariffs has passed with Speaker Raj Chouhan casting the deciding vote Wednesday evening. Bill 15 fast-tracks public and private infrastructure projects, and Chouhan's vote means that the bill has passed third and final reading by a 47-to-46 vote. All New Democrats voted for the legislation, while all 41 Conservatives, both B.C. Greens and the three Independents opposed it. The passage of Bill 15 comes after it has faced weeks of criticism from Indigenous groups, municipal officials, environmentalists and some business leaders, who say the legislation gives cabinet too much power when it comes to designating provincially significant projects. Critics say the bill also undermines environmental standards and constitutional obligations to consult First Nations. Premier David Eby's government says it will consult broadly when it comes to developing the regulations to implement the legislation. Chouhan's vote also pushed Bill 14 -- which would speed up renewable energy projects and transmission lines -- through the legislature. Provincial legislators earlier also passed the budget implementation act, as well as legislation that allows B.C. to break down internal trade barriers among other measures. That bill passed by four votes, as all 46 New Democrats and the two B.C. Greens voted in favour, with all 41 Conservatives and the three Independents voting to oppose. All four bills that passed now await royal assent from B.C. Lt.-Gov. Wendy Cocchia. This report by Wolfgang Depner of The Canadian Press was first published May 28, 2025.
