Caroline Voaden, Liberal Democrat MP for South Devon, has called for an immediate ban on executive bonuses at South West Water (SWW) after it was announced that the company would have to pay back £17.4 million due to poor performance.

SWW is one of 17 water companies penalised by regulator Ofwat over such issues as leaks, sewage spills and supply interruptions. The firms have been told to return almost £158 million to customers.

Ofwat noted that despite water companies committing to reduce pollution incidents by 30 per cent, there has only been a two per cent reduction.

In Totnes alone, Ofwat counted 5,279 sewage spills last year, up by 1,396 compared to 2022.

The revelation comes as the new government’s Water Bill is set to be debated in Parliament. It aims to strengthen the power of the regulators and put failing water companies under special measures.

Between 2022-2023, £9.7 million was paid out in executive bonuses and benefits to water and sewage company executives.

Although the government wants to block bonuses for executives who pollute the waterways, the Lib-Dems have said the bill is only a “half-measure” and will table an amendment that would enforce an immediate ban on bonuses.

Ms Voaden said it was “high time” action was taken on the polluting firms.

“For too long the Conservatives allowed water companies to ride roughshod over people here in South Devon, pumping their filthy sewage into our waterways while bosses took home massive bonuses,” she said.

“That must end. No longer should these people be personally rewarded for failing to protect our precious environment, while at the same time hiking bills for residents.”