A further step forward in our campaign for clean water: the water regulator Ofwat is taking action against water companies that pay out dividends to their shareholders despite failing to meet the required performance standards.
It is wrong that water companies are not accountable for environmental damage and poor performance: we are clamping down on this issue, making sure water companies put customers first.
The water regulator Ofwat is modifying water companies’ licences to:
-Require company boards to take stock of performance for customers, the environment and the company’s overall financial health, when deciding whether to pay dividends
-Require companies to hold a
strong credit rating and to stop them paying dividends if their financial health is at risk
- Improve the transparency and consistency of company licences
All of this is only possible due to the Government’s Environment Act of 2021, the most far-reaching legislation than any other Government since the Victorians.
We are holding the water companies to account.