All articles tagged with #water companies
The UK government has banned bonuses for senior executives at six water companies due to concerns over environmental failures, financial resilience, and public trust, as part of new regulations under the Water Act aimed at reforming the water industry and addressing systemic issues like pollution and infrastructure failure.
Campaigners are calling for an immediate ban on bonuses for water company executives if their firms cause environmental harm, such as illegal sewage spills into rivers. The UK's water companies have faced criticism over leaks and sewage discharges, and the regulator Ofwat is considering plans to ban bonuses for bosses found to have harmed the environment. The government hopes the policy will apply to bonuses for the next financial year, and there are calls for stricter measures to hold water companies accountable for environmental and customer service failures.
Water companies in the UK are expected to request bill increases in 2025 to fund improvements in services, according to regulator Ofwat. The move comes after criticism of major providers for sewage spills and leaks, as well as their heavy debts. Ofwat boss David Black acknowledged the need for improvement and expressed concern over excessive CEO pay in the industry. Former environment secretary George Eustice predicted an average increase of £42 per household, while Water UK stated that any rises would be determined by the regulator. Thames Water, currently facing financial difficulties, has until early next year to secure funding to service its £14bn debt.
Thames Water, the UK's largest water company, is facing a financial crisis due to its heavy debt burden, which currently stands at £14bn. The company's debt was largely accumulated during its ownership by Australian infrastructure bank Macquarie, which critics argue took billions of pounds out of the company in loans and dividends. Thames Water's debt amounts to 80% of the value of the business, making it the most heavily indebted water company in England and Wales. The water industry as a whole is facing similar issues, with overseas owners loading companies with debt and paying themselves dividends at the expense of investment. Additionally, the interest payments on water companies' debt are linked to the retail prices index (RPI) measure of inflation, which has been higher than the consumer prices index (CPI) measure of inflation, further exacerbating their financial challenges.