Water regulator to tighten bonus ban over public trust concerns

The water industry regulator is set to tighten its ban on executive bonuses after accusing companies of risking damage to public trust. The Guardian and AOL.co.uk reported that Ofwat will accelerate its review because water firms appear to be undermining rules to make large payments to bosses. [1][3]

The Guardian reported that Anglian Water received specific criticism for offering retention payments worth up to 800,000 pounds to chief executive Mark Thurston despite the active bonus ban. Anglian Water will now face increased monitoring of its governance arrangements due to the controversial payments. [1]

Ofwat operates as an independent, non-ministerial government department that enforces compliance with service standards and sets five-year price limits on customer bills. It holds statutory powers to fine water companies for failures such as pollution incidents or excessive network leakage. [9]

The regulator is also taking direct action at individual firms. Water Magazine reported that Ofwat has appointed the professional services firm EY to act as an independent monitor for Thames Water. [2]