Friday, July 12, 2024

 UK

Polluting water firms’ bonuses revealed – and how much you’re paying for them


Water firm bosses continue to enjoy huge pay packets - despite pleading with regulator to impose bigger increases on customers

Water companies are set to increase their bills across England and Wales by an average of £94 in the next five years, as the under-fire firms try to improve failing infrastructure.

The water giants are under huge pressure to invest money in the creaking sewage system, following public outrage over the amount of waste getting pumped into the nation’s rivers, lakes and seas.

These companies are allowed to spill untreated sewage from storm overflows during periods of intense rainfall to prevent their systems from becoming overwhelmed.


i revealed on Wednesday that the Government will force the water firms to return money that is not spent on upgrading their sewerage networks to customers.

The bill increases approved by regulator Ofwat are less than a third of what the water companies had asked for. Water bosses had been keen to impose even larger hikes on customers to help pay for upgrades.

It comes despite huge bonuses for the companies’ chief executives over the last year – with some enjoying hundreds of thousands of pounds in top-ups, which took some of their annual pay packets to more than £1m each.

Here has set out how each water company contributed to polluting rivers last year, how much bills are set to increase – and how much they have paid out in bonuses:


United Utilities

United Utilities performed worst out of any water company last year in terms of sewage pollution, according to the Environment Agency, with 45.4 spills per storm overflow and more than 650,000 hours of monitored spill events in 2023.

Customers’ bills at United Utilities are set to increase by 21 per cent by 2030, from £442 to £536 – up by £94.

The company’s chief executive Louise Beardmore got a £420,000 annual bonus in 2023/24 – part of an overall pay packet of more than £1.4m.

It is down slightly on previous chief executive Steve Mogford’s £426,000 bonus the previous year, which was part of his £2.2m pay packet.

BILLS: Set to rise by 21 per cent

CEO BONUS: Down by 1.4 per cent

South West Water

South West Water, owned by Pennon, had 43.4 spills per overflow and 317,285 total hours of sewage spills. The company is facing a legal challenge over spills on the Devon coast.

Meanwhile, South West Water bills are set to increase by 12 per cent by 2030, from £497 to £561, up by £64.

The company’s chief executive Susan Davy was in line to receive a total pay packet of £860,000 in 2023/24 – up from £543,000 the previous year.

But she opted not to take a bonus for a second year running, amid criticism of pollution levels. The £298,000 she received under a long-term incentive plan was diverted to a company scheme for shareholders.

BILLS: Set to rise by 12 per cent

CEO BONUS: No change.

Yorkshire Water

Yorkshire Water had the third highest level of spills in England and Wales last year, with 35.9 spills per overflow and 516,386 hours in total.

Yorkshire Water’s bills are set for a 25 per cent increase by 2030, from £430 to £537 – up by £107.

Chief executive Nicola Shaw saw her basic pay increase from £515,000 to £585,000 in 2023/24. She was awarded £371,000 as part of the company’s short-term “executive incentive plan”.

She had opted to forgo her bonus the previous year, amid criticism of the company’s performance over sewage.

BILLS: Set to rise by 25 per cent

CEO INCENTIVE: £371,000.

Welsh Water

Welsh Water had 35 spills per overflow in 2023 for its operations in England, according to the Environment Agency. They accounted for 23,354 hours of spills in total.

Bills are set to increase by 29 per cent increase by 2030 from £466 to £603 – up £137.

Welsh Water’s CEO Peter Perry received a £91,000 bonus in “annual variable pay” in 2023/24, part of his £489,000 pay packet. He had refused a bonus the previous year, amid public outcry over the state of Britain’s rivers.

BILLS: Set to rise by 29 per cent

CEO BONUS: Up from zero to £91,000.

Wessex Water

Wessex Water had 32 spills per overflow in 2023, with 372,341 hours of spills, watchdog figures show.

Customers are set for a 2 per cent reduction in their bills by 2030 from £508 to £497.

The company’s chief executive Colin Skellett decided to forgo any bonus in 2023/24, amid criticism over pollution. He received a £120,000 bonus the previous year. His basic pay of £290,000 remained unchanged.

BILLS: Set to decrease by 2 per cent

CEO BONUS: Down from £120,000 to zero.

Southern Water

Southern Water saw average spills of 30.7 per overflow in 2023, spilling for 317,285 hours in total.

Customers’ bills for the company, owned by the Australian conglomerate Macquarie, are set to increase 44 per cent by 2030, from £420 to £603 – up by £183.

The company’s chief executive Lawrence Gosden received a £183,000 bonus for 2023/24, having declined a bonus the previous year. His total pay packet – including base salary, bonus and pension benefits – rose from £427,000 to £764,000.

BILLS: Set to rise by 44 per cent

CEO BONUS: Up from zero to £183,000.

Northumbrian Water

Northumbrian Water recorded 30.1 spills per overflow over the course of 2023, spilling for 280,029 hours in total.

Customers’ bills are set to increase by 11 per cent by 2030 from £415 to £460, which is up by £45.

Chief executive Heidi Mottram received a bonus of £234,000 in 2023/24 – up from £215,000 the previous year. Her overall pay packet rose from £781,000 to £842,000.

BILLS: Set to rise by 11 per cent

CEO BONUS: Up by 8.8 per cent

Thames Water

Thames Water, the embattled giant of the UK water industry, is teetering on the edge of collapse, with negotiations with Ofwat still ongoing.

It saw 27.9 spills per overflow, for a total of 196,414 hours. Thames Water bills are set to increase 23 per cent by 2030 from £436 to £535, up £99.

Chief executive Chris Weston took a £195,000 bonus 2023/24, with his total annual pay packet being £437,000.

Previous boss Sarah Bentley opted to refuse her bonus last year, as the company was heavily criticised for sewage pollution.

BILLS: Set to rise by 23 per cent

CEO BONUS: Up from zero to £195,000

Severn Trent

Severn Trent performed second best of the water companies for average spills, averaging only 24.9 spills per overflow.

Earlier this year the company was fined £2m for allowing huge amounts of raw sewage to discharge into the River Trent.

The company’s bills are set to rise by 23 per cent by 2030, from £403 to £496, up by £93.

Bills for Hafren Dyfrdwy (Severn Dee) customers, part of Severn Trent in Wales, are set to rise by 32 per cent by 2030, from £396 to £524.

Severn Trent’s chief Liv Garfield was handed a £584,000 bonus for 2023/24, up from £358,000 the previous year. Her overall pay packet rose slightly to almost £3.2m.

BILLS: Set to rise by 23 per cent

CEO BONUS: Up by 63.1 per cent

Anglian Water

Anglian Water performed best out of any water company when it comes to sewage spills, averaging 22.2 spills per overflow, spilling for 273,163 hours in total.

The company charges for customers are set to increase by 13 per cent by 2030, from £491 to £557, up by £66.

The company’s chief executive Peter Simpson took bonus and deferred bonus payments of £455,000, down from £517,000 the year before.

BILLS: Set to rise by 13 per cent

CEO BONUS: Down by 12 per cent

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