Yorkshire Water's chief executive Nicola Shaw has announced her resignation, effective 1 January 2027, a day after the Environment Agency gave the company its lowest possible environmental rating. Shaw, who has led the firm since 2022, will be replaced by Nicola Medalova, a chartered environmental health officer who previously worked for the National Grid and was already a non-executive director on Yorkshire Water's board. Medalova will join the company on Monday in a transition period before taking on the chief executive role full time in the new year.
The Environment Agency's one-star rating on Thursday marked a significant downgrade, classifying Yorkshire Water as a 'poorly performing company'. The regulator found Yorkshire Water was responsible for 260 pollution incidents in 2025, the highest total since 2011. This downgrade follows a £47m fine announced by Ofwat in 2024 for historic sewage leaks. Shaw said in a statement that it had been a 'privilege' to lead the company but that it was the 'right time' to leave, adding that she was 'extremely proud' of what colleagues had achieved in putting the business on a stronger footing.
Shaw's departure comes amid sustained criticism over her compensation and the company's performance. Between 2023 and 2026, she received £1.9m in undisclosed payments from Kelda Holdings, Yorkshire Water's parent company, for what the firm described as 'investor engagement' and 'financial oversight'. In December, Shaw acknowledged that 'not being transparent' about £1.3m in shareholder-funded payments had been a 'mistake', though she insisted the amounts were 'not for me to decide'. Ofwat said the payments were not performance-related. The payments came to light in August after the government banned Yorkshire Water and five other water companies from paying 'unfair' bonuses to bosses.
Medalova said she was 'delighted' to join Yorkshire Water and acknowledged the firm 'faces huge challenges but also great opportunities for continued improvement'. Politicians and campaign groups welcomed the leadership change but warned it was insufficient. Tom Gordon, Liberal Democrat MP for Harrogate and Knaresborough, said Shaw should have stepped down 'much earlier', describing her tenure as overseeing 'abysmal management' of natural resources. Judith Cummins, Labour MP for Bradford South, said Yorkshire Water needed 'more than a change of leadership' and 'a complete change of direction', with customers frustrated by poor service, rising bills and record pollution.
Campaign groups stressed the need for systemic reform beyond personnel changes. Chris Stewart at York campaign group Ouse It Lose It said the company had shown 'a continual decline' despite 'loud noises about how much they're putting into improving'. Naomi Tilley, campaigns manager at Surfers Against Sewage, argued that 'systematic change' was needed, stating that 'the whole system and every water company is failing' and that fundamental reform was necessary while water companies remain profit-focused.
For Yorkshire Water customers, the leadership change occurs as the company faces the lowest environmental rating possible and record pollution incidents, while bills continue to rise and service remains under scrutiny.