Yorkshire Water chief executive Nicola Shaw has announced her departure from the company, coming just a day after the Environment Agency issued the firm its lowest possible environmental rating. Just 24 hours after the company was given the lowest possible environmental rating by the Environment Agency, yorkshire Water’s chief executive has announced she is to step down. She said: “I am delighted to be joining Yorkshire Water and grateful to the board for the opportunity to lead the business through its next chapter. The leadership team and colleagues across the business as I get up to speed, yorkshire Water faces huge challenges but also great opportunities for continued improvement and I look forward to working with Nicola Shaw. Only then can the company begin to restore public trust. The whole system and every water company is failing in different ways and we are seeing that the system is broken and we need fundamental change. Catch up with the latest episode of Look North, listen to highlights from West Yorkshire on Sounds.
Shaw, who has managed the organization since 2022, will step down from her position on January 1. According to in December last year Shaw, “not being transparent” about receiving £1.3m in shareholder-funded payments across two instalments had been a “mistake”, but had insisted those amounts were “not for me to decide”.
She will be succeeded by Nicola Medalova, a chartered environmental health officer and former National Grid employee who previously served as a non-executive director on the company board.
Medalova is slated to join the firm on Monday for a transition period ahead of taking over the chief executive role full-time in the new year.
Reflecting on her departure in a Friday statement, Shaw remarked that serving as head of the utility provider was a privilege and the right moment to exit.
She noted that while considerable work remains, she takes pride in the progress achieved alongside colleagues to strengthen the operational foundation. Although there remains a huge amount of work to do, I am extremely proud of what our colleagues have achieved, putting the business on a stronger footing for delivery across all aspects of its work.
Performance Scrutiny and Payments
- Criticism: Shaw faced intense scrutiny regarding company performance and the acceptance of 1.9 million pounds in undisclosed payments between 2023 and 2026.
- Parent Company Role: Kelda Holdings disbursed the funds, citing investor engagement and financial oversight purposes.
- Previous Admissions: In December of the prior year, Shaw acknowledged that a lack of transparency regarding 1.3 million pounds in shareholder-funded installments across two payments was a mistake, though she maintained the amounts were outside her control. She subsequently collected another 660,000 pounds earlier in the year, with Ofwat clarifying the funds were unconnected to performance.
- Regulatory Sanctions: The government previously banned Yorkshire Water and five other operators from distributing unfair executive bonuses in August. Furthermore, Ofwat issued a 47 million pound penalty in 2024 concerning historical sewage leaks.
Environmental Rating and Pollution
- Environmental Standing: The Environment Agency awarded the firm a single star out of four on Thursday, classifying it as a poorly performing company.
- Pollution Figures: The agency recorded 260 pollution incidents originating from Yorkshire Water during 2025, marking the highest annual total since 2011.
Political and Campaigner Reactions
Tom Gordon, the Liberal Democrat MP for Harrogate and Knaresborough, argued that Shaw should have departed much sooner, criticizing the management of natural resources and rising consumer bills amid severe river pollution. Paying ever-rising bills for polluted rivers and threats of hosepipe bans while someone at the top rakes in millions, her replacement needs to understand that residents are at their wits’ end.
Judith Cummins, Labour MP for Bradford South, asserted that the utility requires a wholesale cultural shift and a complete change of direction rather than merely a new face at the helm, citing skyrocketing bills, deteriorating service, and record pollution levels.
Robbie Moore, Conservative MP for Keighley and Ilkley, stated that the resignation could not arrive quickly enough and confirmed plans to request an urgent meeting with the incoming chief executive designate to address operational standards.
Campaign representatives also voiced deep skepticism regarding systemic industry practices.
Chris Stewart of the York campaign group Ouse It Lose It described the resignation as a stark reflection of corporate performance despite claims of ongoing improvements, emphasizing a continuous decline in operational standards.
Naomi Tilley, campaigns manager for Surfers Against Sewage, maintained that systemic restructuring is essential regardless of executive changes, warning that profit-driven water companies will continue to fail customers and allow pollution to persist in coastal waters. The status quo cannot continue. We’re never going to see pollution curbed and stopped, while these companies are set up for a profit. Additional reporting by David Rhodes and Grace Wood.
