Nicola Shaw, who has served as chief executive of Yorkshire Water since 2022, announced her resignation on Friday, effective 1 January. The departure comes immediately after the Environment Agency assigned the company its lowest possible environmental rating of one star out of four, classifying it as a poorly performing enterprise. Shaw will be succeeded by Nicola Medalova, a chartered environmental health officer with prior experience at National Grid, who will transition into the role over the coming weeks.
Shaw’s tenure has been marked by considerable controversy, particularly surrounding compensation arrangements. Between 2023 and 2026, she received £1.9m in previously undisclosed payments from Kelda Holdings, Yorkshire Water’s parent company, which the firm characterized as compensation for investor engagement and financial oversight activities. Shaw acknowledged in December that the lack of transparency regarding £1.3m of these payments constituted a mistake, though she maintained the decisions about payment amounts were not within her authority. The payments were not performance-related according to Ofwat assessments.
Yorkshire Water has faced mounting criticism over operational and environmental performance metrics. The company was responsible for 260 pollution incidents in 2025, marking its highest total since 2011. Additionally, Ofwat imposed a £47m penalty in 2024 for historical sewage leaks. These performance issues contributed to substantial public and political pressure on company leadership.
Political figures from multiple parties have responded to Shaw’s departure. Liberal Democrat MP Tom Gordon characterized her management record as abysmal and called for fundamental changes in company operations. Labour MP Judith Cummins stated that leadership changes alone would prove insufficient without a complete shift in organizational direction and priorities. Conservative MP Robbie Moore indicated he would meet with Medalova to discuss performance improvement strategies.
Campaign groups and advocacy organizations have emphasized that resolving Yorkshire Water’s challenges will require systemic reforms beyond executive personnel changes. Representatives from environmental and water quality advocacy groups noted that while the company’s performance has deteriorated notably, broader issues affecting the water industry as a whole require structural intervention and policy-level solutions.
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