Yorkshire Water CEO Nicola Shaw to exit after one-star rating

By Amara Osei

Yorkshire Water received the Environment Agency’s lowest environmental rating, one star out of four, on Thursday, just 24 hours before chief executive Nicola Shaw announced her departure. Yorkshire Water said Nicola Medalova will succeed her.

Shaw, who led Yorkshire Water since 2022, will leave the company on 1 January. The company said Medalova, a chartered environmental health officer who previously worked for National Grid, will join Monday as part of a transition period. She will assume the chief executive officer role full time in the new year.

What did the downgrade reveal?

The Environment Agency said Yorkshire Water was responsible for 260 pollution incidents in 2025, the company’s highest total since 2011. The regulator’s one-star assessment placed Yorkshire Water in the bottom category and classified it as a “poorly performing company.”

In 2024, Ofwat announced a £47m fine against Yorkshire Water for historic sewage leaks. Yorkshire Water has also faced scrutiny over its performance in recent years.

Ofwat’s penalty addressed historic leaks, while the Environment Agency’s Thursday assessment counted pollution incidents during 2025. Both regulatory actions fell within Shaw’s tenure, which began in 2022.

Why did Shaw step down?

Shaw said in Friday’s statement: “It has been a privilege to lead Yorkshire Water and serve the people of Yorkshire.” She described leaving as “the right time” after leading the company since 2022.

She added: “Although there remains a huge amount of work to do, I am extremely proud of what our colleagues have achieved, putting the business on a stronger footing for delivery across all aspects of its work.” Her statement paired acknowledgment of unfinished work with praise for the company’s workforce.

What does Medalova bring?

Medalova said: “I am delighted to be joining Yorkshire Water and grateful to the Board for the opportunity to lead the business through its next chapter.” Yorkshire Water said Medalova will begin work Monday, giving her a transition period with Shaw and the leadership team before the new year.

She 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.” Her comments identify continued improvement as the central challenge awaiting the incoming chief executive.

How did the £1.3m pay controversy unfold?

Shaw has faced criticism in recent years, including over £1.3m in previously undisclosed payments made across two installments between 2023 and 2025. The shareholder-funded payments came to light in the previous August, when the government banned Yorkshire Water and five other water companies from paying “unfair” bonuses to bosses.

Those disclosures added to the criticism directed at Shaw during her tenure. In December last year, Shaw admitted that “not being transparent” about receiving the payments had been a “mistake.” She said the amounts were “not for me to decide,” underscoring that she did not set the payments herself.

What must the handover change?

Yorkshire Water enters Medalova’s tenure with a bottom-tier environmental score, 260 pollution incidents in 2025 and Ofwat’s £47m sewage-leak fine from 2024. Medalova described continued improvement as the principal opportunity, while Shaw said a “huge amount of work” remains.

The test ahead is whether Shaw’s stated progress—colleagues putting the business on a stronger footing—can translate into fewer pollution incidents and a stronger regulatory rating. Medalova has emphasized continued improvement; Shaw acknowledged that a “huge amount of work” remains.