Regulator blocks bonuses for bosses at Berkshire and north Hampshire water companies
Bonuses worth over £4m have been withheld from executives at Thames Water and Southern Water due to performance issues
Last updated 5th Nov 2025
More than £4 million of possible bonuses for water company executives have been blocked across six companies, including Southern Water, after performance failings, according to the water regulator Ofwat.
The water firms have been deemed to have fallen short under rules on performance-related executive pay, introduced by Ofwat in June 2023. The companies decided not to award directors their annual bonuses and other payouts to comply with the new guidelines.
Southern Water, along with Anglian Water, Thames Water, United Utilities Water, Wessex Water, and Yorkshire Water, was highlighted by the regulator, with issues around pollution being a key factor.
The new rules were designed to ensure that bonuses are only awarded when water companies adequately meet environmental and operational standards.
The move comes as Southern Water was among five firms named by the Competition and Markets Authority (CMA) last month in a provisional decision that could see customer bills rise further.
Following appeals from water companies, the CMA allowed provisional increases between 1% and 5% on top of Ofwat’s initial price limits, ruling that this would ensure the funding needed for essential improvements. Southern Water was granted a 3% increase under the decision.
Kirstin Baker, chair of the CMA’s independent expert panel, said at the time: “We’ve found that water companies' requests for significant bill increases, on top of those allowed by Ofwat, are largely unjustified.
“We understand the real pressure on household budgets and have worked to keep increases to a minimum while still ensuring there is funding to deliver essential improvements at reasonable cost.”