Water Companies Cash out on Bonuses Despite Big Poop Problem (2024)
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Despite a significant increase in sewage discharges into rivers and seas, water companies in England and Wales have raised executive bonuses to £9.1 million. This surge in bonuses has sparked intense scrutiny and criticism from regulatory bodies and environmental advocates.
Key Points:
- Bonuses Distribution::
The total bonuses awarded to water company executives increased from £9.013 million last year to £9.127 million this year.
- Severn Trent's Contribution::
Severn Trent reported the highest bonus distribution at £3.361 million, despite facing a £2 million penalty for environmental violations.
- Thames Water's Increase::
Thames Water nearly doubled its executive compensation from £746,000 to £1.3 million for the fiscal year 2023-24, despite the resignation of its CEO.
- South West Water's Allocation::
South West Water increased its bonus allocation by £325,000 to £504,000, following a significant contamination incident affecting tap water.
- Pension Contributions::
Pension contributions for executives in the water sector reached a new peak of £1.7 million this year.
- Regulatory Scrutiny::
The Liberal Democrats are advocating for a complete ban on bonuses for water companies that do not meet environmental and consumer standards.
- Customer Bill Increases::
Water companies are seeking to significantly increase customer bills to fund necessary infrastructure improvements for river cleanup, with proposed increases averaging £144 over five years.
- Regulatory Approval::
Ofwat tentatively approved £88 billion of the proposed £104.5 billion expenditure, limiting the average bill increase to £94. The situation has led to calls for stricter governance and accountability measures, with many arguing that these financial rewards are unjustifiable given the companies' environmental track record.
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