Thames Water bonuses could be blocked by regulator

Thames Water and other water companies could be prevented by the industry regulator from paying any bonuses under rules due to come into effect next month.

Environment Secretary Steve Reed said new measures would stop water companies dumping a "tidal wave of sewage into our rivers while pocketing millions of pounds of bonuses".

Regulator Ofwat has been able to stop firms using customer money to fund bonuses, but the new rules mean they could not use funds from shareholders or lenders either.

However, in a statement Thames, which recently agreed a £3bn rescue loan, said it was not paying performance-related bonuses but instead "retention payments", which were not covered by the new rules.