Ofwat, the economic regulator for English and Welsh water companies, says it had used new powers to ensure that bonuses at the three companies were paid by shareholders and bondholders – rather than through customer bills – because the payments had not “adequately reflected overall company performance issues”. The companies are Thames, Yorkshire, and Dŵr Cymru Welsh Water.

Photo credit: Altaf Shah

Water companies have faced public anger and political backlash in recent years over leaks and sewage overflows as they have also come under increasing financial strain.

Nine water companies will not be allowed to use customer funds to pay bonuses worth £6.8m. Six voluntarily said that shareholders would pay, but Ofwat had to use its powers directly in the cases of bonuses worth £1.5m from Thames, Yorkshire and Welsh.

Covered in The Guardian Regulator stops customers from being billed for ‘undeserved’ bonuses