Statement on Yorkshire Water’s performance and the appointment of its new CEO
- Yorkshire Water’s environmental performance hits the bottom of the pile (Environment Agency).
- Its economic performance is ‘lagging behind’ (Ofwat).
- The Board stays in place despite overseeing and rewarding this performance.
- The CEO resigns to be replaced by a member of the Board.
Yorkshire Water has been given the lowest grading for its environmental performance. It was downgraded last year to two stars, and this year to the lowest grade: one star. A drop from the top of the league to the bottom, joining Thames, South Western and Southern, in just 5 years. These same years correspond to tenure of the now exiting CEO Nicola Shaw. Not only is its environmental performance poor, Yorkshire Water is also classed as ‘lagging behind’ in its economic performance by Ofwat (along with Thames and Southern). This is shocking. Meanwhile Yorkshire Water has admitted that its customers that are paying for upgrades not ‘investors’, with massive bill rises this year. But the situation gets even worse.
Yorkshire Water trailed the downgrade over the summer and will have been planning for it ever since its dramatic increase in serious pollution incidents. The departure of Nicola Shaw, whilst necessary, does not go far enough. The Board knew about this shocking performance when it increased Ms Shaw’s remuneration this year. The board is complicit in the company’s performance and should resign. The appointment of the new CEO adds insult to injury – she was a member of the Board this year, before resigning to take up the CEO position. She was therefore overseeing the performance that led to Ms Shaw’s resignation. So, whilst the company is telling stakeholders that things will get better, given the new CEO’s role as part of the mess at Yorkshire Water, not only is there is no sign that anything will change, it is a further sign (if any was needed) that Yorkshire Water has no regard for the public or their stewardship of our water.
This whole mess demonstrates that persisting with privatised water is just throwing good money after bad.
