Water Companies: Incentives
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, what steps he is taking to prevent executives from water companies that have been sanctioned for releasing sewage into waterways from receiving bonuses.
Answered by Emma Hardy
The Government is clear that transformative change across the water sector is needed to clean up our rivers, lakes and seas, and modernise the sector for decades to come.
Unfair bonuses have been banned under new powers given to Ofwat within the Water (Special Measures) Act which came into force on 06 June. Under Ofwat’s rules, companies are not permitted to pay bonuses to water bosses that oversee poor environmental and customer outcomes. This delivers on a key manifesto commitment and has been backdated to apply to any bonuses relating to the financial year from April last year.
Additional information can be found at GOV.UK.
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