Maria Caulfield, Member of Parliament for Lewes, has welcomed the announcement that water bosses are set to be banned from receiving bonuses if a company has committed serious criminal breaches.
Ofwat, the water regulator, 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 measures form part of the government’s long-term strategy to tackle pollution, clean up British waters and ensure a plentiful supply for the future.
Commenting on the proposals, Maria Caulfield MP said: “Water companies should not be profiting from illegal behaviour, I believe it is absolutely right that bonus’ should be banned in such instances. I would encourage everyone to take part in the consultation when it opens”
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