Committee publication · Correspondence · 10 April 2025

Correspondence from Anglian Water regarding the Chief Executive’s evidence to the Committee, dated 4 April 2025

From: Environment, Food and Rural Affairs Committee

Inquiry: Reforming the water sector

Summary

Anglian Water Chief Executive Mark Thurston responds to Environment, Food and Rural Affairs Committee questions from 4 April 2025 evidence session. The letter addresses remuneration policies, sampling programme allegations, bathing water disinfection trials, citizen science engagement, sewer flooding in Kessingland and Hickling, and 25-year water security planning. Thurston refutes Observer allegations of improper sampling and details performance-linked pay mechanisms tied to environmental and customer delivery targets.

Key findings

  • Remuneration performance contracts weight environmental measures at 40% for 2023/24, increasing to 50% for serious pollutions, storm overflows and treatment works compliance in 2025/26; remuneration reduced due to underperformance on pollutions
  • Anglian Water categorically refutes Observer allegations of 'no flow' sampling at water recycling sites, citing legitimate operational and geographical reasons; sampling programme managed independently with external certification and Environment Agency audits
  • Performic acid chemical disinfection trial at Southwold Water Recycling Centre improved bathing water from 'sufficient' to 'excellent' standard; Environment Agency requesting national laboratory study before permitting wider rollout (due early 2026)
  • Anglian Water engaged 30+ community groups in citizen science pilot (launched 2023), convened two citizen science conferences, and fed technical knowledge into PR24 capital enhancement planning including AMP8 bathing water provisions
  • Sewer flooding in Kessingland and Hickling addressed through multi-agency collaboration: £96 million AMP8 investment to 'slow the flow'; misconnections and infiltration identified as key causes; sustainable drainage system (SuDS) pods proposed for Hickling residents

Tone

Procedural

Topics

water-utilitiesenvironmental-performanceexecutive-remunerationfloodingwater-quality

Key actors

Mark Thurston, Alistair Carmichael MP, Kath Durrant, Jenny Riddell-Carpenter MP, Jayne Kirkham MP, Andrew Pakes MP, Jess Asato MP, Josh Newbury MP

Notable line

We absolutely refute the allegations published in the Observer earlier this year regarding 'no flow' samples at water recycling sites …

Key Quotes

I can categorically say yes, this is the case. Anglian Water Services operates a Performance Contract which accounts for 60% of variable remuneration for all our Senior Managers and Leaders.
Mark Thurston · Responding to whether remuneration has been reduced due to pollution underperformance
We absolutely refute the allegations published in the Observer earlier this year regarding 'no flow' samples at water recycling sites, and we have legitimate explanations for all the examples given, as well as standard …
Mark Thurston · Addressing sampling programme allegations
Since its installation, the Southwold Denes bathing water has improved from the 'sufficient' classification to the highest 'excellent' standard.
Mark Thurston · Describing performic acid disinfection trial outcomes
As part of our AMP8 business plan we will be investing £96 million to 'slow the flow' to prevent rain and groundwater from getting into sewers to begin with …
Mark Thurston · Addressing sewer flooding challenges across the region
We continue to set stretching targets for our Executives and wider workforce which means that pay and reward mirrors company performance.
Kath Durrant · Remuneration Committee Chair statement on performance-linked pay framework
This involves use of a new scorecard assessing performance in the round, which includes an increase in the performance weighting for our environmental measures – specifically, serious pollutions (Category 1 and Category 2), internal and external flooding and storm overflows, to 50% for 2025/26 and beyond .
Kath Durrant · Describing revised bonus plan emphasis on environmental performance
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Source · parliament.uk record ↗