The water trade watchdog is probing funds to the bosses of a string of suppliers following the revelation that Yorkshire Water’s offshore guardian firm had handed its chief government greater than £1m in beforehand undisclosed charges.
Business sources mentioned on Monday that among the greatest operators within the sector have been among the many recipients of Ofwat’s letter.
Disclosure of the regulator’s enquiries comes within the wake of a report in The Guardian which mentioned Nicola Shaw, the Yorkshire Water boss, had acquired funds of £660,00 from Jersey-registered Kelda in every of the final two monetary years.
A supply near Ofwat insisted that its investigation of comparable pay preparations had been deliberate previous to the reporting of Ms Shaw’s remuneration.
“We are currently reviewing water companies’ compliance with the performance-related pay prohibition rule.
“As a part of this evaluation, we’ve written to a number of firms to request extra info on the remuneration choices they’ve set out of their annual accounts.
“Where we find evidence that a company has breached the rule, we have powers to direct companies to take remedial actions which, if not complied with, can result in companies facing enforcement action – including financial penalties.”
Water trade pay has grow to be an more and more incendiary subject in latest months amid a slew of fines levied in opposition to operators throughout Britain for his or her failure to forestall leaks and main air pollution incidents.
