Water boss defends 41% price rise and £371k bonus

https://www.bbc.com/news/articles/cge92zy7v31o

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Yorkshire Water's Nicola Shaw said her bonus is to keep her "incentivised"

The chief executive of Yorkshire Water has defended plans to increase bills by 41% after she took home a six-figure bonus.

Average water rates in Yorkshire will rise to £607 a year in the next five years - an increase of £177, according to the Water Services Regulation Authority (Ofwat).

Nicola Shaw told the BBC the price hike would pay for supply upgrades and go towards reducing sewage discharges and storm overflows.

Defending her decision to accept a £371,000 bonus, she said she had met various targets and that the money came from shareholders and not customers.

"My shareholders are paying for that bonus and want to make sure I am incentivised to keep turning the business around and to make sure these investments work for Yorkshire," she told the BBC.

Ms Shaw turned down a bonus in 2022, the year she joined.

She said £8.3bn is being invested into Yorkshire Water "from Whitby to Sheffield".

When asked if the company could borrow money or take it from investors instead of customers she said it was "doing both", with investors putting £500m in over the next two years.

She said she accepted the increase would impact some people and that the firm had put aside £55m to help those who are struggling financially.

The BBC previously reported the firm's latest accounts show it has amassed debts worth £6.2bn and paid out dividends, external from its profits, worth £522m since 2017-18.

Water bills will increase to £607 a year by 2023, said the Water Services Regulation Authority

The research came as campaign groups continued to call on Ms Shaw to repay the £371,000 bonus received during a period in which Yorkshire Water was fined £47m for historical sewage spills and poor customer service.

Meanwhile, the typical water bill at a national level will rise by an average of £86 from April for a year before easing, Ofwat said.

Chief executive David Black said as well as cutting sewage spills, the investment would also reduce leaks and ensure customers get a better service.

Some £104bn can be spent on upgrading water systems, which will mean "cleaner rivers and seas and secure long-term drinking water supplies for customers", he added.

Bill hikes vary by region, with Southern Water customers facing the biggest increase, with bills going up 53% - to £642 on average - by 2030, while Wessex and Northumbrian Water bills will rise by 21%.

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