Yorkshire Water sets out its response to a one-star rating as its chief executive change is confirmed

Yorkshire Water has said its environmental performance in 2025 "had not been good enough" (Water Magazine). The admission followed the Environment Agency's decision to cut the company's rating from two stars to one. It came days after the company confirmed that chief executive Nicola Shaw is leaving.

What we know

Stephanie Pullan, Yorkshire Water's director of asset management, named two main factors behind the result (Water Magazine):

• Pollution: 13 serious pollution incidents in 2025.
• Late schemes: five environmental improvement schemes in West Leeds were not delivered on time.

The EA's data report shows three red metrics. Yorkshire had 260 sewerage pollution incidents, or 50 per 10,000km of sewer; 13 serious incidents; and 93.2% of WINEP schemes delivered on time. It was green on self-reporting, permit compliance (99.0%) and sludge (Environment Agency). Its WINEP rate was well above the sector's 80.2%, but still red.

The company said it completed 668 environmental obligations during the year. One of the five late schemes is now finished, and it has committed to completing all five by 2028. On monitoring, more than 27,000 sewer level monitors are installed. It is also trialling 360-degree cameras, in-sewer sensors and drones, and changing its incident escalation processes. Network improvements are complete at almost 300 locations since April 2025, and more than 450 storm overflows are due for upgrade by 2030, within an £8.3bn programme for 2025–30 (Water Magazine).

Leadership

Shaw is stepping down after four and a half years. Her successor, Nicola Medalova, is a former Yorkshire Water non-executive director and senior National Grid executive. She joined as CEO Designate on 2 November and becomes chief executive on 1 January 2027.

What others are reporting

PA's report, carried by the Irish News, said the departure was announced a day after the rating cut. Shaw said there "remains a huge amount of work to do". Medalova spoke of "huge challenges but also great opportunities". PA also reported 335 pollution incidents in total for 2025 and £1.2m of pollution fines last year. It said Shaw received £1.3m between 2023 and 2025 through Jersey-incorporated Kelda Holdings, which the company said was paid by shareholders rather than bill payers. As one of four one-star companies, Yorkshire is automatically barred from paying bosses' bonuses. TheBusinessDesk linked the rating to a rise in pollution incidents.

Background

Yorkshire had four stars as recently as 2020, then two, three, two and two before this year's one (Environment Agency). Its 13 serious incidents match 2024, when Thames, Southern and Yorkshire together accounted for 81% of the sector's serious incidents (Environment Agency). Across the sector, Yorkshire was one of only two companies to meet the permit compliance target in 2025 (Environment Agency).

What we don't know yet

Yorkshire has not given a target for cutting serious incidents in 2026. Nor has it said how the remaining four West Leeds schemes are phased before 2028.

What to watch

• Whether serious incidents fall in 2026, now that dry-day spills will also count as pollution incidents under the new EPA methodology.
• Medalova's first public priorities after 1 January.
• Delivery against the 2028 West Leeds commitment.