Local MP Alan Mak MP welcomed new Government plans to ban water company bosses from receiving bonuses where their company is found guilty of serious breaches of the law.
The plans, which will be open for consultation shortly, would give the UK’s water regulator Ofwat the power to block bonuses for board members of law-breaking water companies. This could include cases where there has been a successful prosecution for a Category 1 or 2 pollution incident – such as causing significant pollution at a bathing site or conservation area – or where a company has been found guilty of serious management failings.
The ban would apply to all executive board members and Chief Executives and would be expected to come into effect later this year, subject to consultation. If taken forward, Ofwat would implement the measures by changing the conditions of water company licences. For water companies in England this would be done using the powers given to the regulator through the Environment Act 2021.
Alan Mak MP said: “Water company bosses who are responsible for serious breaches of the law shouldn’t be receiving bonuses. In some cases, they should be facing criminal prosecution themselves. If water bosses get bonuses, it should be for running their companies well. That doesn’t just mean turning a profit, but protecting our environment and providing us with a great service.”
He added, ““No-one should profit from illegal behaviour and it’s time that water company bosses took responsibility for that. Tougher action is needed to address poor performance by water companies, which is why I am pleased Ofwat is going further on bonus payments. In cases where companies have committed criminal breaches there is no justification whatsoever for paying out bonuses. It needs to stop now.”
Alan continues to work on improving water quality locally and updates can be found here: www.AlanMak.org.uk/SouthernWater
Photo: Alan on the water on Chichester Harbour
