Yorkshire Water Chief Nicola Shaw Resigns After Downgrade

Yorkshire Water chief executive Nicola Shaw will step down on January 1, the company said Friday, a day after the Environment Agency gave the firm its lowest possible environmental rating, BBC News reported.

Shaw has led Yorkshire Water since 2022. She will be replaced by Nicola Medalova, a chartered environmental health officer who previously worked for the National Grid, according to the company.

Why Is Nicola Shaw Leaving Now?

Shaw's resignation comes one day after the Environment Agency rated Yorkshire Water one star out of four, its lowest rating, classifying the firm as a "poorly performing company," per BBC News. The agency said Yorkshire Water was responsible for 260 pollution incidents in 2025, the company's highest total since 2011.

In a statement, Shaw said it had been a "privilege" to lead the company and that it was the "right time" to leave. "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," she said.

What Pay Criticism Has Shaw Faced?

Shaw has drawn criticism over payments from Yorkshire Water's parent company, Kelda Holdings, that were not disclosed at the time they were made, BBC News reported. The firm said the payments covered "investor engagement" and "financial oversight." Ofwat, the industry regulator, said the payments were not performance-related.

Shaw said in December last year that "not being transparent" about an earlier set of shareholder-funded payments had been a "mistake," though she said the amounts were "not for me to decide." The undisclosed payments came to light after the government banned Yorkshire Water and five other water companies from paying what it called "unfair" bonuses to executives.

Ofwat has also fined the company over historic sewage leaks, according to BBC News.

Who Is Replacing Her?

Nicola Medalova, a former non-executive director of Yorkshire Water's board, joins the company Monday for a transition period before taking over as chief executive full time in the new year. "Yorkshire Water faces huge challenges but also great opportunities for continued improvement," Medalova said, adding she looks forward to working with Shaw and the leadership team as she gets up to speed.

How Have Politicians Reacted?

Tom Gordon, the Liberal Democrat MP for Harrogate and Knaresborough, said Shaw should have stepped down "much earlier," calling her tenure a period of "abysmal management of our precious natural resources." He said Medalova's "replacement needs to understand that residents are at their wits' end, paying ever-rising bills for polluted rivers and threats of hosepipe bans."

What Happens Next

Timeline

• 2022: Shaw becomes Yorkshire Water chief executive.
• 2023–2026: Undisclosed payments made to Shaw by parent company Kelda Holdings.
• Thursday, October 29, 2026: Environment Agency gives Yorkshire Water its lowest rating.
• Friday, October 30, 2026: Shaw announces resignation.
• Monday: Nicola Medalova joins for transition period.
• January 1, 2026: Medalova becomes chief executive; Shaw departs.

What to watch:

• Whether Ofwat opens further review of executive pay disclosures at Yorkshire Water.
• How Medalova responds to the Environment Agency's one-star rating and pollution incident count.
• Whether other water companies face similar leadership or regulatory pressure this year.

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