Ofwat should have to approve water firms’ bonuses and dividends, say MPs

Report says billpayer funds are being used irresponsibly, after news that Thames Water paid bonuses from 3bn loan

Bonuses and dividends for water company bosses and shareholders should be approved by the regulator before they are paid, as billpayer funds are being used irresponsibly, MPs have said.

They also recommended that the government consider ending the profit-driven water company model and making English companies non-profit, similar to how the system works in Wales, in the report by the Environment, Food and Rural Affairs (Efra) select committee.