Liberal Democrat MPs for Oxfordshire have called for an immediate ban on bonuses for Thames Water executives following a new Ofwat report.

It was announced yesterday (October 8) that the company would have to pay back £56.8million due to poor performance - the largest penalty awarded to any water company in the country.

It comes as the new government’s Water Bill is set to be debated in Parliament.

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The Liberal Democrats have said that the bill is only a “half-measure” and will table an amendment enforcing an immediate ban on the executive bonuses of water companies.

Last year there were 4,158 sewage spills in Oxfordshire, and local MPs said that the steps announced by the regulator today should mark a “watershed” moment for Thames Water and that it is “high time” to take action on these polluting firms.

However, Thames Water said that while its performance penalty is among the "highest in its sector", this "reflects that Thames Water has three to four times more customers than other water companies", meaning its "penalty rates are set proportionally higher".

It said the ODI penalty per household ranks Thames as an "average performer in the industry".

Oxfordshire’s Liberal Democrat MPs Layla Moran, Calum Miller, Freddie van Mierlo, Olly Glover and Charlie Maynard said: “For too long the Conservative government allowed water companies to ride roughshod over the people of Oxfordshire, pumping their filthy sewage into our waterways while their bosses took home massive bonuses.

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“That must end. No longer should these executives be personally rewarded for failing to protect our local environment and hiking bills on people in our area.

“Disappointingly, the new government’s bill is only a half-measure, nowhere near tough enough on these polluting firms.

Thames Water “That is why I am proud to support the Liberal Democrats’ amendment to the bill, which would ban water company bosses from receiving bonuses until leaks are fixed and sewage spills stop.

"Only then can we secure a fair deal for the people of Oxfordshire.”

Meanwhile, Thames Water said it is "pleased" that Ofwat has "recognised the improvements" it has made "by upgrading [its] rating".

A spokesperson for Thames Water said: "This shows our turnaround plan is having a positive impact. We have achieved the largest reduction in financial penalties across the industry and are one of only three companies to improve their ODI performance over the year. 

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“Of note, we delivered our lowest ever annual leakage volume and recorded our best performance over the past five years for water quality (CRI), sewer flooding, and clearance of blockages.

“We recognise the work that remains to keep improving and get our performance where it needs to be.

"That’s why we have proposed an ambitious business plan for 2025-2030 to allow us to make the vital investment required in the next regulatory period.

"If Ofwat approves our plan, we will be able to keep our performance on its improved trajectory and deliver more for our customers and the environment.”