The chief executive of Yorkshire Water has announced her resignation just one day after the company received the lowest possible environmental rating from the Environment Agency.
Leadership Change and Background
Nicola Shaw, who has headed the firm since 2022, will depart from her position on January 1 and will be succeeded by Nicola Medalova. Medalova is a chartered environmental health officer and a former National Grid employee.
In a statement released on Friday, Shaw described leading the company as a privilege and stated that it was the correct time to step down. She noted that while significant work remains, she feels extremely proud of the achievements made by her colleagues in strengthening the business for future delivery.
Yorkshire Water reported that Medalova will start on Monday to allow for a transition period before officially taking over as chief executive officer in the new year. Medalova stated she was grateful to the board for the opportunity and acknowledged that the business faces major challenges alongside great opportunities for continuous improvement.
Environmental Rating and Scrutiny
The departure follows a decision by the Environment Agency on Thursday to award Yorkshire Water one star out of four, which is the lowest possible mark and designates the firm as a poorly performing company. The agency reported that the utility provider was accountable for 260 pollution incidents throughout 2025, marking the highest annual total for the company since 2011.
In addition to environmental concerns, Shaw faced public criticism during her tenure, notably for receiving £1.3m in undisclosed payments between 2023 and 2025. The payments came to light in August after the government prohibited Yorkshire Water and five other water companies from distributing unfair bonuses to executives.
In December of the previous year, Shaw admitted that failing to be transparent about receiving the £1.3m in shareholder-funded payments across two instalments was a mistake, though she maintained that the amounts were not for her to decide. Furthermore, regulatory body Ofwat announced a £47m fine against the company in 2024 for historic sewage leaks.
