By Sam Tabahriti
LONDON (Reuters) -Britain’s water regulator said on Monday that it has written to six water companies requesting details on remuneration disclosed in their annual accounts as part of a review into compliance with rules prohibiting performance-related executive pay.
In June, the government banned the six water companies, including Thames Water and Yorkshire Water, from awarding bonuses to executives for the year ending April, citing failures to tackle pollution.
Regulator Ofwat contacted the companies that triggered the bonus ban rule, which include Thames – Britain’s largest supplier with 16 million customers – and the other five firms, Yorkshire Water, Anglian Water, Wessex Water, United Utilites and Southern Water.
Sky News first reported Ofwat’s written requests, which it said followed disclosures that Yorkshire Water’s offshore parent, Kelda Holdings, paid its chief executive more than 1 million pounds ($1.35 million) in previously unreported fees.
A spokesperson for Ofwat, which regulates the water sector, said it wrote to several companies this month to request further information on their remuneration decisions.
“Where we find evidence that a company has breached the rule, we have powers to direct companies to take remedial actions which, if not complied with, can result in companies facing enforcement action – including financial penalties,” the spokesperson added.
Water industry pay has come under increased scrutiny in recent months, amid a wave of fines for pollution and infrastructure failures.
In May, Ofwat imposed a record 122.7 million pound penalty on Thames Water for environmental breaches and unjustified dividend payments.
Thames has been at the centre of criticism over the privatised sector, accused of discharging sewage into waterways while paying dividends and accumulating 18 billion pounds in debt.
($1 = 0.7402 pounds)
(Reporting by Sam Tabahriti; Editing by Susan Fenton and Tomasz Janowski)
