Environment Agency downgrades Yorkshire Water
The Environment Agency’s decision to assign Yorkshire Water its lowest possible environmental rating on Thursday necessitates the resignation of chief executive Nicola Shaw, who will leave her post on 1 January. The regulator gave the company one star out of four, meaning Yorkshire Water is a poorly performing company. This downgrade follows 260 pollution incidents recorded in 2025, which was the highest total for the firm since 2011. Shaw, who has led the firm since 2022, said it was the right time to leave her post after facing criticism for her performance and for receiving £1.3m in undisclosed payments between 2023 and 2025. Nicola Medalova will join the firm on Monday.
| Metric | Value |
|---|---|
| Environmental rating | 1 out of 4 stars |
| 2025 pollution incidents | 260 |
| Highest incident year | 2011 |
Shaw said: "It has been a privilege to lead Yorkshire Water and serve the people of Yorkshire. 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."
New leadership follows payment scrutiny
Nicola Medalova, a chartered environmental health officer who previously worked for the National Grid, will join the company on Monday to begin a transition period before assuming the chief executive officer role full time in the new year. She replaces Shaw, who has led the firm through periods of scrutiny regarding company performance. This leadership change follows criticism of Shaw for taking £1.3m in undisclosed payments between 2023 and 2025, which the company had previously not disclosed. In December, Shaw admitted that not being transparent about receiving these shareholder-funded payments across two installments was a mistake, though she insisted those amounts were not for me to decide. The government prohibited Yorkshire Water and five other water companies from paying unfair bonuses to executives in August.
Medalova 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. Yorkshire Water faces huge challenges but also great opportunities for continued improvement and I look forward to working with Nicola Shaw, the leadership team and colleagues across the business as I get up to speed."
