Karen Bradley, Member of Parliament for the Staffordshire Moorlands has today welcomed an announcement by the water regulator that rules on dividends paid out by water companies will be tightened.
The new powers made possible through the Government’s Environment Act mean that Ofwat will be able to stop the payment of dividends in certain circumstances. The regulator is now modifying licences to require water companies to take account of environmental performance and customer delivery when deciding whether to pay dividends. They will also be required to hold a strong credit rating and dividends payments could be stopped if their financial health is at risk.
Responding to the announcement, Karen said:
“I welcome today’s announcement by Ofwat that rules on water company dividends will be tightened. Backed by Government and made possible by our Environment Act, it makes clear that water companies must now prioritise environmental performance and good customer service.”
It follows a demand made by Environment Secretary Thérèse Coffey last month that every water and sewerage company in England provide a clear assessment and action plan on every storm overflow.
