Yorkshire Water boss resigns after firm downgraded
Yorkshire Water CEO Nicola Shaw steps down effective Jan 1 after the Environment Agency gave the firm a lowest-possible one-star rating and 260 pollution incidents.
Stock photo for illustration only, not from the actual event
- Yorkshire Water chief executive Nicola Shaw has announced her resignation effective January 1.
- The departure comes just 24 hours after the Environment Agency gave the firm a lowest-possible one-star rating.
- The company was responsible for 260 pollution incidents in 2025, its highest total since 2011.
- Nicola Medalova, a former National Grid official, is set to take over as the new chief executive.
Yorkshire Water's chief executive has announced her decision to step down from the utility firm, arriving hot on the heels of the company receiving the lowest possible environmental rating from regulators. Nicola Shaw will leave her post on January 1, handing over the leadership reins to her designated successor.
The resignation announcement followed closely on Thursday when the Environment Agency (EA) handed the water firm a dismal one-star rating out of four—the absolute lowest possible score—officially classifying Yorkshire Water as a poorly performing company.
According to the EA, Yorkshire Water was held responsible for 260 pollution incidents throughout 2025, marking the company's highest annual total recorded since 2011. Furthermore, the company previously faced a hefty £47m fine levied by Ofwat in 2024 over historical sewage leaks.
Stock photo for illustration only, not from the actual event
Throughout her tenure leading the firm since 2022, Shaw faced continuous scrutiny, notably regarding her £1.3m in undisclosed payments taken between 2023 and 2025 while the firm's operational performance came under fire. Those previously hidden payments had come to light the preceding August after the government barred water companies from doling out unfair executive bonuses.
"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."
Nicola Shaw
The high-profile departure underscores mounting regulatory and public pressure facing the UK's utility sector over environmental compliance, particularly concerning sewage discharges into natural waterways. As watchdogs like the Environment Agency and Ofwat crack down on ecological failures, leadership changes in firms like Yorkshire Water reflect the intense corporate and political fallout from failing environmental metrics.
To steer the company forward, Yorkshire Water announced that Nicola Medalova—a chartered environmental health officer with previous experience at National Grid—will join the firm on Monday to undergo a transition period before officially taking over as full-time CEO in the new year.
Medalova stated regarding her new appointment, "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."
Source: BBC Business
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