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”.

Anglian Water has released a statement in response to the ban on executive bonuses confirmed by Ofwat on Friday, saying the company “fully support financial reward being tightly linked to company performance.”

The Government has confirmed that paying bonuses in the form of retention payments to senior executives are not an an option for Thames Water, following comments by water company Chair Sir Adrian Montague when he appeared before the House of Commons Select Committee for Environment Food and Rural Affairs (EFRA) last week.

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.

Environment Secretary Steve Barclay has announced that water company bosses are set to be banned from receiving bonuses if a company has committed serious criminal breaches.