Yorkshire Water CEO Resigns After Company Receives Lowest Environmental Rating

Nicola Shaw, the chief executive of Yorkshire Water, has announced her departure from the company, effective January 1, following the firm's receipt of the lowest possible environmental rating from the Environment Agency. Shaw, who has led the company since 2022, will be replaced by Nicola Medalova, a chartered environmental health officer with previous experience at the National Grid.

Shaw's resignation comes amid increasing scrutiny over Yorkshire Water's performance and her own remuneration, including previously undisclosed payments.

Highlights

• Yorkshire Water was downgraded to a one-star rating out of four by the Environment Agency, classifying it as a "poorly performing company."
• The company was responsible for 260 pollution incidents in 2025, marking its highest total since 2011.
• Nicola Shaw faced criticism for receiving £1.3 million in undisclosed payments between 2023 and 2025.
• Shaw stated it was "the right time" to leave, expressing pride in the company's progress.
• Incoming CEO Nicola Medalova acknowledged the "huge challenges" and "great opportunities for continued improvement" facing Yorkshire Water.

Details

On Thursday, the Environment Agency awarded Yorkshire Water its lowest possible rating of one star, citing 260 pollution incidents in 2025, the highest number since 2011. This poor environmental performance follows a £47 million fine imposed by the water regulator Ofwat in 2024 for historical sewage leaks.

Shaw's tenure was also marked by controversy over £1.3 million in shareholder-funded payments she received between 2023 and 2025, which were initially undisclosed. She later admitted that the lack of transparency regarding these payments was a "mistake," though she maintained that the amounts were not her decision. These payments came to light after the government banned Yorkshire Water and other water companies from paying what it deemed "unfair" bonuses to executives.

Why it matters

This resignation and the company's poor rating highlight the mounting public and regulatory pressure on UK water companies regarding their environmental performance and executive compensation. The transition to a new CEO is expected to bring significant changes as Yorkshire Water aims to address its environmental responsibilities and improve service quality, directly impacting millions of customers.