Sarah Gibson,Liberal Democrat MP for Chippenham, has called for an immediate ban on executive bonuses at Thames and Wessex Water after it was announced that the companies would have to pay back over £60 million between them due to poor performance.
Thames Water and Wessex Water are two of 17 water companies penalised by regulator Ofwat over such issues as leaks, sewage spills and supply interruptions. The firms have been told to return almost £158 million to customers.
Ofwat noted that despite water companies committing to reduce pollution incidents by 30 per cent, there has only been a two per cent reduction. In Chippenham alone, Ofwat counted 1484 sewage spills last year, up by 679 compared to 2022.
The news comes as the government’s Water Bill is set to be debated in Parliament. The bill aims to strengthen the power of the regulators and put failing water companies under special measures. Water and sewage company executives have been paid £9.7 million in executive bonuses and benefits over the 2022 to 2023 period.
Although the government wants to block bonuses for executives who pollute the waterways, the Lib-Dems have said the bill is only a “half-measure” and will table an amendment that would enforce an immediate ban on bonuses.
In July 2024, Chris Weston – the latest Thames Water boss - took a £195k bonus for his first three months in office whilst customer bills were increased by 59%. In the same month, Thames Water left Wiltshire residents without access to running water for days.
Liberal Democrat MP for Chippenham, Sarah Gibson, said: “In return for polluting the River Avon and failing to protect our local environment, water company bosses are being personally rewarded with money taken from increased utility bills paid for by my constituents.
“In addition to being allowed to pump filthy sewage into our waterways across the country while their bosses take home huge bonuses, Thames Water in particular have also proven themselves to be utterly useless in the case of emergencies. To give a recent example from this Summer: residents from Royal Wootton Basset, Lyneham, Thornhill and Bradenstoke were left without access to running water for days – Thames Water failed to ensure that everyone was supplied with bottled water. Having met with them after the incident, I remain unconvinced that they are doing their best to plan for emergencies. It is therefore mind-blowing to me that their boss gets a bonus whilst their customers get a higher water bill.
“The new government’s bill is only a half-measure and nowhere near tough enough on water companies. I hope they will support the Liberal Democrat amendment, which will ban water companies from being able to dish out bonuses until leaks are fixed and sewage spills end. Only then will we start to get a fair deal for people in the Chippenham constituency.”
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