Record 2024 Bonuses For UK Water Company Execs Rise In Tandem W. Record Flows Of Shit Into UK Rivers
Bonuses for water company bosses in England and Wales rose to £9.1m this year despite record sewage discharges into rivers and seas. More than a third of that total comprised bonuses at Severn Trent, which was fined £2m this year for “reckless” pollution but lifted its bonuses to £3.36m.
Thames Water almost doubled its payouts to executives, from £746,000 in 2021-22 to £1.3m in 2023-24, despite its CEO quitting halfway through the year. Data from Companies House, analysed by the Liberal Democrats, show that overall bonuses increased from £9.013m last year to £9.127m this year. The payouts pile further pressure on the regulator, Ofwat, to intervene in the decisions of water company boards. Last year, raw sewage was discharged for more than 3.6m hours into rivers and seas, a 105% increase on the previous 12 months.
Thames Water, which is labouring under more than £15bn of debts, is understood to have enough cash left to run its operations for only eight months, creating uncertainty for its 8,000 employees and 16 million customers. Managers at Thames have booked dates at the high court in November to try to gain court approval to change repayment terms as part of its wider effort to stave off falling into a form of temporary renationalisation.
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Labour pledged during the election campaign to ban bosses of polluting water companies from receiving bonuses, but the water (special measures) bill, which is in committee stage in the House of Lords, does not ban all bonuses. Instead, it will give the regulators powers to ban bonuses for water company chief executives who fail to meet environmental and consumer standards, and if their company is not financially resilient. It is understood that the definition of environmental standards had not yet been decided by Ofwat. The Liberal Democrats are pushing for a ban on bonuses while water companies clean up their act. The party is to table an amendment to Labour’s water bill, to try to force a ban. Its environment spokesperson, Tim Farron, said: “It is a national scandal that these bonuses are being paid out by firms who disgustingly pollute rivers, lakes and beaches. These executives are pocketing more every year while sewage levels rise. Frankly, the whole thing stinks."
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https://www.theguardian.com/business/2024/oct/20/water-companies-raise-bonuses-record-sewage-discharges