Ofwat has launched a new consultation inviting comments on its proposals to update the Performance related executive pay (PRP) prohibition rule to reflect new changes in environmental reporting for “water only” companies (WOCs).

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 announced that new rules on executive bonuses and on dividends are beginning to bite in their first full year of operation, in 2023-24 financial year - the regulator says that 73% of exec bonus payments will not be paid for by water customers in a new report Protecting customer interests on performance-related executive pay: 2023-24 assessment.

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.

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 CEO of Thames Water, Sarah Bentley, has made the decision to forgo any bonus or LTIP payments for the financial year 2022-2023. Thames Water’s CFO, Alastair Cochran, will also decline all performance-related pay.

Water sector regulator Ofwat has outlined new plans intended to ensure customers do not fund executive bonus payments where they have not been sufficiently earned through the company's performance for customers and the environment.

The Times, i-news and the Daily Telegraph have all launched separate ongoing campaigns to tackle water pollution with a specific focus on pressing for action by the Government, water companies, alongside water sector regulators Ofwat and the Environment Agency.