YORKSHIRE Water has acknowledged that it “should have been more transparent” – after it was revealed the firm’s boss was given an extra £1.3 million through an offshore parent company.

Earlier this month, Bradford-based Yorkshire Water confirmed that Nicola Shaw received £660,000 from Kelda Holdings in 2023-24 and £660,000 in 2024-25 – and defended the previously undisclosed payments, saying the money was paid by shareholders, not Yorkshire Water bill-payers.

In its 2024-25 annual report, Yorkshire Water disclosed that Ms Shaw’s remuneration dropped by 33 per cent in 2024-25 to £689,000 – after she decided not to take a bonus for the year.

Regulated water companies must report directors’ pay in their annual accounts each year – but there is no obligation for parent companies, such as Kelda Holdings, to disclose their pay to the regulator or the public.

Yorkshire Water said it would now release details of any payments from Kelda Holdings to Ms Shaw and its chief financial officer in its accounts in the future. 

It comes after Environment Secretary Steve Reed told the House of Commons this week that the payments had “outraged customers”.

He said he had asked the water regulator Ofwat to “assess its legality as a matter of urgency”. 

“If Ofwat finds that the rules have been broken, companies will face sanctions, including fines imposed at a level that will deter future abuses,” he added.

A Yorkshire Water spokesperson said: “We recognise the strength of feeling that the issue has generated. 

“While the existence of this fee was already noted in Yorkshire Water’s annual reports, which are published on our website, we acknowledge that we should’ve been more transparent about these payments. 

“We have now committed to disclosing the value of any Kelda related payments for our CEO and CFO as part of Yorkshire Water’s accounts in future.
 
“Our focus remains on improving performance and delivering better outcomes for customers, communities and the environment. 

“With Nicola’s leadership and through her active shareholder engagement, investors have provided £500m of new investment to Yorkshire Water, with a further £600m committed by March 31, 2027, the largest single capital commitment in our history. 

“Over the next five years we will invest £8.3 billion – around £3.2m every day – to improve service, reduce pollution and modernise Yorkshire’s water network.
 
“Our focus is delivering better outcomes for customers, communities and the environment. 

“We know trust will be earned through actions and performance, and we intend to demonstrate that.”