Member

Amendment 13 was tabled by the noble Lord, Lord Cromwell. The Government recognise the importance of water companies’ financial resilience. For this reason, the legislation already requires that Ofwat must include standards in relation to financial resilience in its rules on performance-related pay. Ofwat’s policy consultation outlines that it is considering the use of company credit ratings as a standard within the rules on performance-related pay. The inclusion of this standard in the rules on bonuses will ensure that companies do not pay bonuses where it would further impact their financial resilience, supporting the sustainability of the company.