Warning to water companies
Ofwat will assess whether firms are doing enough after they submit their business plans in September
The decisions some water companies have made on dividends, financial structures and top executive pay have damaged customer trust
Chief executive, Rachel Fletcher, said: “The decisions some water companies have made on dividends, financial structures and top executive pay have damaged customer trust.
“We have looked in detail at the incentives we give water companies.
“Through the measures we’ve announced today, we are strengthening the incentive on companies to improve their performance for customers and cutting the rewards that come from financial engineering.
“This is an important step in making sure water companies put customers’ interests, and those of future generations, at the heart of all the decisions they take.”