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The Sun
5 days ago
- Business
- The Sun
Fat cat water regulator bosses get millions of pounds in salaries while failing to get a grip on the sewage crisis
GREEDY water regulator bosses paid themselves millions in salaries while failing to get a grip on the sewage crisis. Ofwat's senior management team netted more than £2 million in pay last year. 2 Chief exec David Black received a total remuneration package of £250,000 to £255,000 including pension. The failing regulator also handed out over £6 million to external consultants in two years, according to official contracts. It comes as Ofwat is set to be abolished under reforms announced on Monday. The useless watchdog has been blasted for failing to stop water companies spewing sewage into waterways while lining the pockets of their shareholders. Now it can be revealed the regulator has been spaffing taxpayer cash on companies for communication advice and training staff for grillings by MPs. A £15,000 contract was given to Moxy Communications for advice including 'training for Select Committees'. This is despite Ofwat having around 16 people on their comms team with salaries for their senior director advertised at around £105,000. Recently, advisors Strand Partners won a £100,000 seven-month contract to 'reduce the pressure on Ofwat and free up resource'. 2 A separate £30,000 contract was spent on an online tool to schedule content to go live on Ofwat social media channels. And another £80,000 went on a 'social listening tool' to 'gain valuable insights' from social and digital media. Senior Lib Dem MP Tim Farron said: 'It is shocking that Ofwat bosses have the audacity to award themselves millions for failure, and this unnecessary spending is an insult to every single bill payer who sees their charges rocket, while the state of our waterways plummets. 'This isn't just incompetence; it's a betrayal of public trust and we need a radical overhaul. 'It's time to pull the plug on Ofwat. We need a powerful, new regulator that can finally force these companies to clean up their act and stop the sewage scandal for good.' Tory shadow environment secretary Victoria Atkins said: 'As families watch bills rise by the month, Ofwat bosses are busy signing off million-pound consultancy contracts and paying themselves bumper salaries. "Spending £80,000 to listen to tweets and £15,000 on Select Committee coaching is a slap in the face to every household footing the bill.' For the first time the Government will promise to cut sewage pollution with a clear deadline. Environment Secretary Steve Reed has announced that pollution from water companies will be cut in half by the end of the decade. And a record £104 billion is being invested to upgrade crumbling pipes and build new sewage treatment works. He said: 'One of the largest infrastructure projects in England's history will clean up our rivers, lakes and seas for good.' He is expected to announce a consultation on creating a new regulator to coincide with the results of a major review into the water industry directed by former Bank of England deputy governor Sir Jon Cunliffe. An Ofwat spokesperson said Mr Black's salary takes account of the 'scale, complexity and challenges of the role'. They added: 'Decisions on pay and bonuses for the Senior Leadership Team are made by the Board's People Committee in line with guidance from the Cabinet Office and the Senior Salaries Review Body. The process and the salary increase applied was in accordance with the Government pay guidance for Senior Civil Servants.'
The Sun
09-07-2025
- Business
- The Sun
Thames Water bosses set to be grilled by MPs over bonus payouts from £3bn rescue loan
BOSSES at Thames Water face a fresh grilling by MPs over bonus payouts from a £3billion rescue loan. The stricken utility firm dished out £2.5million to senior execs despite attempts by ministers to block the payments. Documents released yesterday by the environment select committee reveal Thames paid £2.46million to 21 managers on April 30. It was the first of three bonuses due under a management retention scheme. Thames paused that in May amid a backlash over the planned £18.5million in bonuses being paid from a government loan. Environment Secretary Steve Reed had been asked to claw back the payments. But in a letter to the Commons committee, Thames chairman Sir Adrian Montague said the board did not intend to recover the money. In another letter to the committee, industry regulator Ofwat said rules limiting bonuses only apply to those at the very top of the company. Boss David Black said that as a result, 'the payments made on April 30 fall outside the scope of the rule'. The committee has now recalled Thames bosses for questioning next week. MPs will also demand answers on why private equity firm KKR withdrew from a £4billion rescue deal. Thames Water, heavily in debt and serving 16million customers, said it is now negotiating with 'certain senior creditors'. 1 WATER BILL REFUNDS PARKING FINES ROCKET PRIVATE parking firms are set to issue 14.5million ticket s in a year, a study says. The RAC said requests to the DVLA for driver data hit 7.2million in six months — up 12 per cent on the previous year. At this rate, drivers face daily fines totalling £4.1million, the organisation said. It blamed faulty machines, aggressive tactics and misleading signs for the increase. Five firms, including Parkingeye and Euro Car Parks, account for nearly half the tickets. The previous Government promised a new code of practice in 2019, but regulations have been delayed. HOMES BOOST SEVEN major housebuilders have agreed to pay £100million to support affordable housing across the UK following a probe. The Competition and Markets Authority found signs firms including Barratt Redrow, Bellway, and Taylor Wimpey, shared sensitive information which could have impacted housing prices. The payment is the largest secured by the CMA and will fund hundreds of homes. JET2 HOLS JOY JET2 has reported booming sales, with a 12 per cent rise in passenger numbers to 19.77million over the past year. The airline and holiday provider saw revenues jump 15 per cent to £7.17billion, driven by demand for last-minute getaways. Package holiday bookings grew by eight per cent, while flight-only customer numbers also surged. Profits before tax rose 11 per cent to £577.7million.
Free Malaysia Today
05-06-2025
- Business
- Free Malaysia Today
UK's Thames Water fined £122mil over sewage and dividend breaches
Thames Water's credit rating is currently below investment grade. (EPA Images pic) LONDON : Britain's Thames Water, on the brink of financial collapse, will have to pay a record £122.7 million fine for breaching its legal obligations over sewage treatment and dividend payments, regulator Ofwat said today. The watchdog, which had previously issued a £104.5 million penalty, added an additional £18.2 million to the fine after the company paid out dividends despite delivering an operational performance that caused 'an unacceptable impact on the environment and customers'. It also issued an enforcement order which would require the company to take steps to rectify identified breaches relating to its wastewater operations. Thames, Britain's biggest water supplier with 16 million customers, has been at the centre of a backlash over the privatised water sector, accused of pumping sewage into rivers and seas while paying out dividends and allowing its debt pile to balloon to 18 billion pounds. 'This is a clear-cut case where Thames Water has let down its customers and failed to protect the environment,' Ofwat boss David Black said in the statement. The company secured a £3 billion loan in February to stave off financial collapse. Today, Ofwat said the company was seeking new buyers to fund its turnaround. Thames, whose credit rating is currently below investment grade, is now in cash lock-up and no further dividend payments can be paid without Ofwat's approval, the watchdog, which recently received new powers to better scrutinise the industry, added. Earlier this month the company halted a bonus scheme for its executives after ministers objected to the payouts. In a separate statement, Thames Water said its lenders continued to support its liquidity position and that its equity raise process was continuing. 'We take our responsibility towards the environment very seriously … The dividends were declared following a consideration of the company's legal and regulatory obligations,' it said.
Scottish Sun
28-05-2025
- Business
- Scottish Sun
Thames Water hit with largest ever fine for water company over sewage spills and breaking rules
RECORD WATER FINE Thames Water hit with largest ever fine for water company over sewage spills and breaking rules Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) THAMES WATER has been hit with a £122.7million fine — the largest ever for a water company. It will pay £104.5million for sewage spills, plus £18.2million for breaking the rules over dividend payments. Sign up for Scottish Sun newsletter Sign up Watchdog Ofwat slammed the struggling company for 'letting down its customers and failing to protect the environment'. It said Thames had 'routinely and not in exceptional circumstances' released untreated sewage. And, issuing its first fine over shareholder payments, it highlighted one of £37.5million in October 2023 to the firm's holding company — plus another £131.3million dividend from March 2024. Ofwat boss David Black, said: 'Our investigation has uncovered a series of failures by the company to build, maintain and operate adequate infrastructure.' Mike Keil, chief executive of the Consumer Council for Water, said Thames' actions were a 'serious betrayal of customers and the environment'. The fine must be paid by Thames and its investors, and not be passed on to its 16 million customers. Thames hiked its bills by an average of 31 per cent in April. It owes £19billion and is trying to restructure its finances through a sale to US investment firm KKR. Thames insisted it takes its environmental responsibilities 'very seriously' and said it was making progress addressing the issues. Doubling Compensation for Water Issues: Government's Big Move 4 Thames Water has been hit with a £122.7million fine Credit: PA BRANCH GROWTH NATIONWIDE BUILDING SOCIETY says customers have been flocking to its branches over the past year as rival banks pull out of high streets. Nearly 200,000 more have used its branches. Nationwide has the second-largest branch network in the UK behind Lloyds. But Lloyds has been axing hundreds in recent years — with 136 more set to shut over the next year. Nationwide, meanwhile, has pledged to keep all of its nearly 700 branches open until at least the start of 2028. A PAW YEAR FOR PROFIT 4 Pets At Home reported a 16.6 per cent fall in profits Credit: Getty RISING costs and lower animal sales have both dealt a blow to Pets At Home. The chain reported a 16.6 per cent fall in profits in the year to the end of March, to £72.9million. The firm benefited from the boom in pet ownership during the pandemic but demand has fallen since. Profits at its vet arm climbed almost a quarter to £75.9million. But it is facing a probe over prices on items such as pet medications. CLOSING five depots and simplifying its structure has helped Magners and Tennent's maker C&C Group return to profit, as it made £38.5million last year, compared to a £70.9million loss in 2023. It sent shares climbing by 3 per cent. B&Q'S HOT SPELL THE recent warm weather has helped sales at B&Q owner Kingfisher to bounce back up by 5.9 per cent in the past three months. Seasonal products such as garden furniture has flown off the shelves, with sales up by almost a third across B&Q. And they were a fifth higher at Screwfix. But Kingfisher's boss Thierry Garnier remained cautious, warning that 'consumer sentiment remains mixed'. Traders agreed with his negative view, sending shares down almost four per cent. METER SCANDAL'S £140 PAYOUTS 4 Eight companies are set to pay £5.6million in compensation over the meter scandal Credit: Getty EIGHT energy companies will pay an average £140 compensation to 40,000 customers forced to have pay-as-you-go meters installed. They will pay £5.6million in compensation using guidelines set out by Ofgem. They have also agreed to write off £13million of energy debts from customers who had a prepayment energy meter force-fitted between January 1, 2022, and January 31, 2023. The firms involved are Scottish Power, EDF, Octopus, Utility Warehouse, Good Energy, Tru Energy and Ecotricity. Octopus inherited force-fitting cases when they acquired customers. The firms have agreed to the compensation, ordered by Ofgem after a review. The watchdog's Tim Jarvis said: 'Our priority has been to put things right. "We've made our expectations clear to suppliers on how customers who were treated poorly should be compensated.' Some firms tried to ensure struggling customers paid their bills by forcing their way into their homes to install a meter, often when they were out. Energy Secretary Ed Miliband said of yesterday's ruling: 'Justice is finally being delivered to many of the families, lots of them vulnerable, who were affected by the scandal.' Dhara Vyas, chief of Energy UK, said: 'Suppliers have worked hard to co- operate with this review.' Customers will be contacted by their suppliers and do not need to take action. GOOGLE'S £25BN RAP GOOGLE is facing a £25billion lawsuit in Britain over its 'excessive and unfair prices' in online advertising. Roger Kaye KC, a former deputy High Court judge, has filed a lawsuit arguing that Google uses its dominant position to charge excessive rates. He is seeking compensation for all advertisers who have paid for search advertising since 2011. Mr Kaye says it has affected between 500,000 and 1.5million advertisers. GROCERY INFLATION 2YR HIGH 4 Grocery price inflation is at its highest since February 2023 Credit: Reuters GROCERY price inflation has surged to 4.1 per cent — the highest since February 2023, according to analysts. The figure takes the UK into 'new territory', warned market research company Kantar. Prices rose the fastest for chocolate treats, suncare products, butter and spreads. May's hot weather sent sun cream sales climbing 36 per cent. Other rises included potato salad (up 32 per cent) chilled burgers (27), prepared salads and coleslaw (both 19). Meanwhile, prices fell the fastest for dog and cat food, and household paper products. Fraser McKevitt, from Kantar, said: 'Households have been adapting their buying habits to manage budgets for some time. 'But we typically see changes once inflation tips beyond the three per cent to four per cent point as people notice the impact on their wallets.' He said own-label lines were currently the fastest growing part of the market.
Epoch Times
28-05-2025
- Business
- Epoch Times
Thames Water Fined £122.7 Million Amid Financial Crisis and Political Pressure
Thames Water has been hit with a record-breaking £122.7 million fine by the regulator Ofwat for sewage treatment failures and dividend payment breaches. The financial penalty—the largest ever imposed on a water company—comes as the debt-laden utility battles for survival amid calls for nationalisation and concerns over the ultimate cost of the company's financial distress to taxpayers. Ofwat's fine is split into two parts: £104.5 million for sewage treatment failures and £18.2 million for breaching rules on dividend payments. The investigation uncovered that Thames Water paid £37.5 million in interim dividend payments in October 2023 to its holding company, Thames Water Utilities Holdings Limited, and a further £131.3 million in March 2024. David Black, Ofwat's chief executive, called it a 'clear-cut case' in which the company 'has let down its customers and failed to protect the environment.' This marks the first time Ofwat has penalised a company over shareholder payouts. The decision puts Thames Water into 'cash lock up,' requiring it to obtain Ofwat's approval before paying out any further dividends. Related Stories 2/18/2025 4/16/2024 Environment Secretary Steve Reed said on social media platform X that the government has delivered on the promise to clean up Britain's waters, Earlier this year, Thames Water secured the On March 31, it announced that it had selected U.S. private equity firm Kohlberg Kravis Roberts & Co. (KKR) as its preferred bidder to acquire a majority stake in the company. In an update published on its website, Thames Water The deal, however, remains subject to due diligence, regulatory approvals, and final agreement on terms. With the added pressure of new Ofwat fines, the provider's recovery could be even more difficult. The penalties are likely to increase its borrowing costs and impact the company's ability to attract new investment. Special Administration Regime If Thames Water were to become insolvent or unable to provide essential services, it could be placed under the Special Administration Regime (SAR). SAR is a legal safety net used to keep vital utilities running when private companies fail. The regime was last triggered in 2021 when Bulb Energy collapsed during soaring wholesale energy prices. In such cases, the government steps in to fund operations, with the goal of recovering those costs later through restructuring or a sale. At the High Court hearing, Mr. Justice Leech said that if Thames Water's rescue plan wasn't approved, the next likely option would be for the company to enter the SAR. However, after considering the public need for uninterrupted water services, he decided to approve the company's rescue plan instead. Thames Water's Beddington Sewage Treatment Works, near Croydon, south London on March 14, 2025. Ben Stansall/AFP via Getty Images Thames Water Defends Record In response to the penalties, Thames Water said it takes its environmental responsibilities 'very seriously.' The firm added that it has already made progress in addressing issues related to storm overflows. 'The dividends were declared following a consideration of the company's legal and regulatory obligations. Our lenders continue to support our liquidity position and our equity raise process continues,' a Thames Water spokesperson said. Private Equity Bid Despite the company's optimism over KKR's £4 billion proposal, the prospect of a foreign private equity takeover has sparked debate in Westminster. In the House of Lords, Lord Prem Sikka has He pointed out that the company already holds 187 criminal convictions and urged the government to clarify what conditions it would impose on any new owner. 'We need to know precisely what the government will demand,' he told peers. In a separate parliamentary debate, Liberal Democrat MP Luke Taylor noted that more than a quarter of Thames Water customer water bill payments now go toward interest on its debt. 'That is our money paying for the company's mistakes,' he Taylor questioned the decision to allow a foreign private equity firm to take over such a critical public utility and called for sector-wide reform, suggesting the government should work in collaboration with Thames Water to ensure 'good governance.' Referring to KKR's track record with Northumbrian Water—which saw over 40,000 sewage spills in 2024—he asked, 'What will change if it takes over Thames Water?' Calls for Public Ownership Labour MP Bell Ribeiro-Addy rejected the idea of another private takeover altogether, advocating instead for renationalisation. She dismissed arguments in favour of competition as irrelevant in a monopolised sector. 'Which other water company can my constituents switch to when the service is poor?' she asked. As of 2025, What It Means for Customers Thames Water's financial problems and record fine raise big questions for the 16 million people who rely on its services. For now, water and sewage services will continue as normal, even if the company ends up in the SAR. While Ofwat has blocked Thames Water from paying dividends and is watching its finances closely, campaigners argue that these measures are not enough. The think tank Common Wealth 'We don't need the sticking plaster of reactive fines, we need proper surgery: to remove the profit motive from water,' it added.
