Scrutiny on Water Companies Over Executive Pay Amid Pollution Fines

The UK's water regulator, Ofwat, has intensified its oversight on six major water companies by seeking details on executive remuneration disclosed in their annual reports. This follows a government-imposed ban on bonuses, aimed at curbing pollution-related failures in firms such as Thames Water and Yorkshire Water.

Ofwat's inquiry, initially reported by Sky News, was triggered after revelations about remuneration practices at Yorkshire Water's offshore parent, Kelda Holdings, which paid significant unreported fees to its chief executive. The regulator has since reached out to companies including Anglian Water, Wessex Water, United Utilities, and Southern Water for further cooperation.

According to an Ofwat spokesperson, compliance with the rules is critical, and breaches can lead to enforcement actions, including financial penalties. This increased regulatory focus follows a record fine imposed on Thames Water, highlighting ongoing concerns about pollution and financial practices in the water sector.

(With inputs from agencies.)