Watchdog to block shareholder payouts if water companies in England and Wales miss targets

A burst water main floods a London street. Water companies have been criticised for a lack of investment in infrastructure. Photograph: Yui Mok/PA

The water regulator for England and Wales is to use new powers to block companies from shareholder payouts if they fail to hit performance and environmental targets.

Ofwat, which in December heavily criticised some of the country’s biggest suppliers over the size of dividend payments relative to their financial performance, said the new rules would also mean water companies would “maintain a higher level of overall financial health”.