Water: Bills and Executive Remuneration

Lord Scriven Excerpts

Tuesday 3rd July 2018 Lords Chamber

[Lord Gardiner of Kimble]

As my noble friend said precisely, we wish to improve water quality. Let us be clear: since privatisation, customers are eight times less likely to suffer sewer flooding. The number of serious water pollution incidents caused by the water industry reduced significantly from over 500 in the early 1990s to 57 in 2016. Clearly, there is room for improvement. That is what both Ofwat and we in Defra want. In terms of what has been achieved with the £140 billion investment since privatisation, our water quality is improving and we want it to improve even more.

[Lord Scriven (LD)]

My Lords, in the latest published Ofwat figures, Yorkshire Water scored 12 out of 18 for customer satisfaction, yet the chief executive officer took home £1.3 million of pay, pension and bonus payments last year. That is seven times more than the Prime Minister. Can the Minister guarantee that the changes announced today by Ofwat will never allow a chief executive officer to be paid for such bad customer satisfaction in future?

[Lord Gardiner of Kimble]

My Lords, I am absolutely clear that Ofwat’s requirements of companies are very clear on the issue of performance-related executive pay. We are willing to take regulatory action to support Ofwat’s reforms if water companies do not readily co-operate.