A highly critical new report by the House of Commons Environment, Food and Rural Affairs Committee is warning that a failing water sector in which “water companies increasingly look like financial institutions rather than businesses servicing monopolised critical infrastructure” is in need of “root and branch reform”.

Alistair Carmichael MP Chair of the House of Commons Environment, Food and Rural Affairs Committee, has written separately to Thames Water Chair Sir Adrian Montague and CEO Chris Weston to ask for further clarification of the information they provided when they appeared before the Committee in person on 13 May in an uncomfortable session as part of its ongoing inquiry into reforming the water sector.

Thames Water chiefs were on the defensive when they appeared in person before the House of Commons EFRA Committee earlier this week in an intensive two hour evidence session which made for compelling – and at times uncomfortable – viewing.

Ofwat has today launched a new consultation seeking feedback on a new rule that will prevent water companies from awarding bonuses to water bosses in certain circumstances.

The Water (Special Measures) Act 2025 received Royal Assent yesterday, boosting the powers of water sector regulators to tackle pollution. The major legislation to crack down on water company executives polluting Britain’s rivers, lakes and seas has been signed into law in the most significant increase to enforcement powers in a decade.

King Charles' speech to Parliament this morning says the new Government will introduce a Water (Special Measures) Bill which includes strengthening Ofwat’s powers to ban the payment of bonuses if environmental standards are not met and strengthening regulation to ensure water bosses face personal criminal liability for lawbreaking.

Ofwat has published its assessment of how performance related pay awarded to water company executives during 2022-23 was aligned to delivery for customers and the environment, and overall company performance.

Ofwat has confirmed new plans that will ensure customers no longer fund executive bonus payments where they have not been sufficiently justified, following a consultation which saw the largest response the regulator has ever received.

Dŵr Cymru Welsh Water has confirmed that Chief Executive, Peter Perry, and Chief Finance Officer, Mike Davis, will not receive any variable pay/ bonus for the financial year 2022-23.

The chief executives of Yorkshire Water and South West Water have both announced they will not accept a bonus this year – the news follows the announcement earlier this week that Sarah Bentley, CEO of Thames Water, has made the decision to forgo any bonus or LTIP payments for the financial year 2022-2023.