Water: Bills and Executive Remuneration

Lord Berkeley Excerpts

Tuesday 3rd July 2018 Lords Chamber

[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.

[Lord Berkeley (Lab)]

My Lords, does the Minister agree that one way of reducing water bills would be for the water companies to reduce their dividends? Last year, Thames Water declared a £55 million dividend which then got paid to one of its holding companies and, through a complex chain, ended up at Macquarie. It then had the gall to say in its annual report:

“No dividends or interest on shareholder debt was paid to external shareholders”,


in the same year. Surely that is stretching truth and credulity much too far. Will the Minister do something about that, please?

[Lord Gardiner of Kimble]

I feel I am repeating exactly what Ofwat has announced, as it is the statutory regulator, in terms of its requirements on increasing transparency on both dividends and executive pay. We are absolutely clear that this is a public service provided under private ownership and there are responsibilities that go with that. There have been very considerable improvements since privatisation, but there is a wake-up call to the water companies.