Change the Water (Special Measures) Act to require OFWAT to block executive bonuses and payment of shareholder dividends in the event of water companies declaring water rationing measures.
Water companies have paid billions in shareholder dividends and bonuses while neglecting to make adequate investment in future proofing our water infrastructure to keep up with climate change or a growing population. We think the government should intervene and change the law to correct a market failure, by requiring OFWAT to apply financial penalties to shareholders and executives in the event of implementing water rationing.