Ofwat should have to approve water firms’ bonuses and dividends, say MPs

Thames Water executives were paid bonuses worth millions from a £3bn loan meant to stabilise the company’s finances and save it from collapse. Photograph: Maureen McLean/REX/Shutterstock

Bonuses and dividends for water company bosses and shareholders should be approved by the regulator before they are paid, as billpayer funds are being used irresponsibly, MPs have said.

They also recommended that the government consider ending the profit-driven water company model and making English companies non-profit, similar to how the system works in Wales, in the report by the Environment, Food and Rural Affairs (Efra) select committee.