Yorkshire Water boss row has Ofwat, the water watchdog, criticised over an undisclosed offshore payment made to Nicola Shaw Yorkshire Water’s chief executive, the Yorkshire Post reports.
Ofwat ruled that the payment of £600,000 did not flout the bonus ban rule. Ms Shaw was paid a total of £1.3m over the 2023-24 and 2024-25 financial years from Kelda Holdings, the company’s Jersey registered parent company. This was on top of her £700,000 annual salary.
The news article states that ‘Ofwat assessed the £600,000 payment in 2024-25 as the government banned Yorkshire Water executives from taking bonuses for that period due to the company’s poor pollution record. It has now said that “these payments do not fit the definition of Performance-related executive pay Prohibition Rule provided on the Water Industry Act 1991 and are therefore not in the scope of the rule”’.
Although the regulator said the company should in future show “greater transparency on executive remuneration” and that it was consulting with them on changing reporting requirements. But this has not satisfied campaigners who have criticised Ofwat for failing to take action.
Councillor Andy Brown, who represents Aire Valley and speaks for the North Yorkshire Green Party, described the arrangement as “immoral and unjustifiable.” He called on Ms Shaw to resign.
Meanwhile, consumers are preparing for one of the steepest water bill increases in the country. According to consumer watchdog CCW, Yorkshire Water’s average household bill will rise by 29% in 2025–26 – from £467 to £602. Sewerage charges are expected to climb by between 35% and 44%.
Yorkshire Water has not yet issued a response to the calls for Nicola Shaw’s resignation.
A critical editorial in the Yorkshire Post described Ofwat as ‘a toothless tiger’.