Water companies blocked from using customer cash for 'undeserved' bonuses

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Ofwat says it has stepped in to use its new powers to halt water firms that cannot show bonuses are sufficiently linked to performance from using customer money to fund the payouts.

Nine water companies have been blocked from using customer money to fund 'undeserved' bonuses by the industry's regulator. Ofwat said it had stepped in to use its new powers over water firms that cannot show that bonuses are sufficiently linked to performance. The blocked payouts amount to 73% of the total executive awards proposed across the industry. The regulator has prevented crisis-hit Thames Water, Yorkshire Water, and Dwr Cymru Welsh Water from paying £1.

Money blog: Seven deals to avoid on Black Friday - and alternative buys David Black, chief executive of Ofwat, said: 'In stopping customers from paying for undeserved bonuses that do not properly reflect performance, we are looking to sharpen executive mindsets and push companies to improve their performance and culture of accountability. 'While we are starting to see companies take some positive steps, they need to do more to rebuild public trust.

 

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