The UK Government have revealed, water regulator Ofwat will be taking forward a consultation to define the criteria for a ban.
That could include 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.
Last year 10 water bosses received bonuses, totalling £2.5 million.
The UK Government say the measures form part of its long-term strategy to tackle pollution, clean up British waters.
UK Government Environment Secretary Steve Barclay said: “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 today 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.
“I will shortly be setting out more detail on further steps to clean up our waters, including reducing the reliance on water company self-monitoring in order to hold them to account and drive the improvements we all need to see.”
The change follows the Environment Secretary’s recent meeting with water company chief executives where he set out his expectations on performance – and also builds on Ofwat’s announcement last year to tighten restrictions on bonuses.
Water UK, the trade body that represents water companies, said firms were supporting customers through the cost of living crisis by providing record levels of financial help.
A spokesperson for Water UK said: “It is right that regulators have all the powers they feel they need to hold water companies to account.”
“Water companies are determined to provide the best possible service for their customers and are currently providing unprecedented levels of support.”
