Maria Miller, the local MP for Basingstoke has today welcomed an announcement by the water regulator that rules on dividends paid out by water companies will be determined by environmental performance.
Responding to the announcement, Maria said, “I welcome the announcement by Ofwat that rules on water company dividends will be tightened. Ofwat will now be able to stop the payments of dividends in certain circumstances. Backed by Government and made possible by the recent Environment Act it makes clear that water companies must now prioritise environmental performance and good customer service.
‘’I understand that the regulator is now modifying licences to require water companies to take account of environmental performance and customer delivery when deciding whether to pay dividends. They will also be required to hold a strong credit rating and dividends payments could be stopped if their financial health is at risk.
''This is the latest in a series of moves which allows us to continue to protect our environment and to hold water companies to account for their performance.”