Anglian Water, which serves a large portion of Norfolk, has been officially prohibited from awarding bonuses to its chief executive, Mark Thurston, and his predecessor, Peter Simpson, for the financial year 2024/25. This action stems from new legislation designed to impose stricter accountability among water providers, particularly in light of environmental and consumer service failures. The Water (Special Measures) Act, introduced in 2025, specifies that bonuses cannot be paid if a company does not meet established standards or bears a criminal conviction.

This ban comes amid significant issues within the water industry, where public confidence has waned due to a series of pollution incidents and rising water bills. Other major companies, including Thames Water and Southern Water, have also been constrained by similar restrictions, indicating a widespread push for reform within the sector. Water regulator Ofwat has highlighted the necessity of linking financial rewards to actual performance and compliance with environmental standards.

Anglian Water has recently faced scrutiny following a series of pollution-related fines. Notably, the firm was ordered to pay £1.42 million for allowing flakes of plastic-based coatings—applied in unapproved processes—to contaminate its drinking water supply. This incident, reported by the Drinking Water Inspectorate (DWI), marked a significant failure in compliance with safety regulations. The company admitted to the offence and was convicted, bringing to light broader concerns over its operational management.

Environment Secretary Steve Reed commented on the need for accountability within the sector, stating, “Water company bosses, like anyone else, should only get bonuses if they’ve performed well, certainly not if they’ve failed to tackle water pollution.” His remarks underscore a growing frustration among regulators and the public regarding the perceived inadequacies of water providers to manage their responsibilities.

In recent years, Anglian Water has also faced various other prosecution cases linked to environmental non-compliance. For instance, the company has incurred fines exceeding £300,000 for unlawful sewage discharges that have devastated local ecosystems, leading to the significant death of aquatic wildlife, such as fish in protected conservation areas. These incidents exemplify the ongoing challenges within the sector and the urgent need for corrective action.

As the government continues to scrutinise water companies, the restrictions on bonus payments reflect an intensified focus on ensuring that these firms are held to account for their environmental and consumer performance. The overarching intent is to restore public trust and foster a water industry that not only meets regulatory standards but is also responsive to the needs of those it serves.

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Source: Noah Wire Services