Ofwat Enforces New Rule: No Bonuses from Customer Bills for Water Companies

Nine water companies, including Thames Water, will no longer use customer bill money for bonuses due to new regulations by Ofwat. These rules impact 6.8 million pounds in bonuses, 73% of the total. Bonuses are now required to be linked to company performance.

Nine water companies, including the struggling Thames Water, are barred from using customer bill funds for bonuses, as per new rules by regulator Ofwat announced on Thursday.

The new regulation affects bonuses totaling 6.8 million pounds, which represents 73% of the entire bonus payouts. Companies must now align bonuses with their performance metrics, according to Ofwat.

The decision underscores Ofwat's commitment to ensuring that financial rewards are tied directly to corporate success and performance. This change reflects a broader regulatory trend toward accountability in utility sectors.

(With inputs from agencies.)