Yorkshire Water has confirmed that chief executive Nicola Shaw is stepping down, one day after the company received the lowest environmental performance rating from regulators.
Shaw has chosen to stand down after four and a half years leading the organisation. Nicola Medalova, a former National Grid executive, will arrive next week as chief executive-designate before formally taking up the position in January.
Departure follows environmental downgrade
On Thursday, the Environment Agency (EA) downgraded Yorkshire Water's environmental performance rating from two stars out of four to one, the lowest possible rating. That classification means the company is regarded as poorly performing and, along with Southern Water, Thames Water and South West Water, is automatically barred from awarding bonuses to senior executives under regulations introduced last year.
The utility, which supplies more than five million customers across Yorkshire, recorded 335 pollution incidents in 2025, including 13 classed as serious, according to the EA. It was fined a total of £1.2 million last year over pollution incidents.
Transition and response
Shaw said there "remains a huge amount of work to do" but that the business is on "stronger footing for delivery across all aspects of its work". She added: "This now feels like the right time to begin an orderly transition to the company's next chapter."
Yorkshire Water has also faced previous criticism over remuneration to Shaw worth £1.3 million between 2023 and 2025, paid through the Jersey-incorporated company Kelda Holdings. The company said at the time that shareholders, not bill payers, funded the payments.
Medalova said: "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." She committed to maintaining a "relentless focus" on delivering "for customers, communities and the environment".
