About Consultation
This consultation, issued under section 35C of the Water Industry Act 1991, invites comments on our proposals to update the Performance related executive pay (PRP) prohibition rule to reflect new changes in environmental reporting for “water only” companies (WOCs). If implemented, the changes would require WOCs to prohibit PRP if they have had one or more category 1 incidents affecting water as reported by the Environment Agency (EA) in the calendar year preceding the end of the PRP payment year. This would align with existing requirements for water and sewerage companies in relation to category 1 pollution incidents reported in the “Water and sewerage companies in England: environmental performance” report.
No other changes are proposed and this consultation does not seek views on other changes to the PRP rule. We still intend to commence a review of the entire PRP rule in 2027 which will be subject to a separate consultation.
We are asking for responses to the consultation by 27 February 2026. Subject to consultation, we are proposing the change takes effect for any PRP paid in relation to the 2026-27 financial year.
Responding to this consultation
We welcome any comments on the consultation questions by 27 February 2026. Please send any responses via email to: [email protected].
We intend to publish responses to this consultation on our website at www.ofwat.gov.uk. Subject to the following, by providing a response to this consultation you are deemed to consent to its publication.