Yorkshire Water Boss Resigns After Firm Given Lowest One-Star Rating
Yorkshire Water chief executive Nicola Shaw will step down on 1 January 2027, just a day after the Environment Agency gave the company its lowest possible environmental rating. The announcement, made on Friday 30 October 2026, ends Shaw’s tenure leading the firm since 2022. Her successor, Nicola Medalova, will join on Monday 2 November as chief executive-designate before taking over full time in the new year.
The timing has put the spotlight back on England’s water industry, which regulators said this week had fallen to a record low on environmental performance. Yorkshire Water was one of four companies given the lowest rating, alongside Southern Water, Thames Water and South West Water. For customers in Yorkshire, the change at the top raises a direct question: whether new leadership can turn around a pollution record that regulators now describe as poor.
| Company | Yorkshire Water |
| Outgoing chief executive | Nicola Shaw, in post since 2022 |
| Departure date | 1 January 2027 |
| Incoming chief executive | Nicola Medalova |
| Medalova joins as chief executive-designate | Monday 2 November 2026 |
| Medalova takes over full time | January 2027 |
| Environment Agency rating | One star out of four — lowest possible, classed as “poorly performing” |
| Previous rating | Two stars out of four |
| Pollution incidents in 2025 | 260, the highest total since 2011 |
| Previous year total | 151 |
| Other one-star companies | Southern Water, Thames Water, South West Water |
| Bonus consequence | Senior executive bonuses automatically blocked under rules introduced last year |
| Ofwat fine (2024) | £47 million for historic sewage leaks |
| Customers served | More than five million people in the Yorkshire region |
A Resignation Announced Within a Day of the Downgrade
Shaw announced she would step down just 24 hours after the Environment Agency published its verdict, according to the BBC. In a statement on Friday, she said it had been a privilege to lead Yorkshire Water and serve the people of Yorkshire. She added that, although there remains a huge amount of work to do, she was extremely proud of what colleagues had achieved in putting the business on a stronger footing.
The company has not said that the environmental rating was the reason for her departure, and that distinction matters. What is certain is the sequence: the downgrade on Thursday 29 October, followed by the resignation announcement on Friday 30 October. Shaw will stay on through a handover period, working alongside Medalova until she leaves on 1 January.
What the One-Star Rating Actually Means
The Environment Agency’s Environmental Performance Assessment rates water and sewerage companies from one to four stars. One star is the lowest possible score and formally classes a company as poorly performing. Yorkshire Water fell from two stars to one in the assessment for 2025, published on 29 October 2026.
The rating is not symbolic. Under rules introduced last year, a one-star company is automatically blocked from awarding bonuses to its senior executives. The same block applies to Southern Water, Thames Water and South West Water, the other companies rated one star this year. The Environment Agency said Yorkshire Water was responsible for 260 pollution incidents in 2025, up from 151 the year before — a rise of more than 70 per cent and its highest total since 2011.
Who Is Taking Over at Yorkshire Water
Nicola Medalova is a chartered environmental health officer who previously worked for the National Grid, and she is currently a non-executive director at Yorkshire Water. She will join on Monday 2 November 2026 as chief executive-designate, giving her a two-month handover alongside Shaw before formally taking the role in January 2027.
That handover structure is deliberate. It gives the incoming chief executive time inside the business before she carries full responsibility for its environmental improvement plan. It also means Shaw’s departure is a managed transition rather than an immediate exit, with the changeover date fixed at 1 January.
Pay, Fines and the Scrutiny Shaw Leaves Behind
Shaw’s tenure came under sustained scrutiny over pay, performance and pollution. The BBC reported she faced criticism for taking £1.9 million in undisclosed payments between 2023 and 2026, made by parent company Kelda Holdings for what the firm described as investor engagement and financial oversight.
Separately, regulator Ofwat announced in 2024 that it was fining Yorkshire Water £47 million for historic sewage leaks. Those two figures — the payments and the fine — are distinct, and neither should be confused with the other. Together they explain why the resignation has drawn political attention, with opposition MPs arguing the company’s leadership should have changed sooner.
The wider context is a sector under pressure. Regulators’ first joint report on water industry performance found environmental performance had fallen to a record low last year despite reforms and investment. Environment Secretary Dame Angela Eagle has summoned water bosses to Whitehall to explain their failures and outline immediate action, including tackling leakage, cutting pollution incidents and improving customer satisfaction.
That national picture gives the Yorkshire Water story a broader significance. A £30 million wildlife purchase in Northumberland shows conservation money is still flowing in the region, but for a water company, the test is narrower: fewer pollution incidents, cleaner rivers and a rating that climbs back from one star.
What Customers and Rivers Need to See Next
For the more than five million people Yorkshire Water serves, the practical questions are straightforward. Will pollution incidents fall from the 2025 high? Will the company’s environmental investment programme deliver measurable improvements at treatment works and overflows? And will the bonus block stay in place until performance genuinely improves?
Medalova’s first test will be setting out that plan in her own words once she takes over in January. Until then, the one-star rating stands as the public record of where the company is starting from. Shaw’s departure closes a four-and-a-half-year tenure; the work of lifting Yorkshire Water out of the lowest rating now falls to her successor.
Frequently Asked Questions
Q: Why is the Yorkshire Water boss resigning? A: Nicola Shaw announced on 30 October 2026 that she will step down on 1 January 2027, a day after the Environment Agency gave Yorkshire Water its lowest one-star rating. The company has not said the rating was the reason for her departure.
Q: Who will replace Nicola Shaw at Yorkshire Water? A: Nicola Medalova, a chartered environmental health officer who previously worked for the National Grid, joins as chief executive-designate on 2 November 2026 and takes over full time in January 2027.
Q: What does a one-star Environment Agency rating mean? A: It is the lowest possible rating, out of four stars, and it formally classes a company as poorly performing. It also automatically blocks senior executive bonuses under rules introduced last year.
Q: How many pollution incidents did Yorkshire Water record in 2025? A: The Environment Agency said 260, up from 151 the year before and the highest total since 2011.
Q: Which other water companies received one star? A: Southern Water, Thames Water and South West Water were also rated one star in the same assessment.
Q: Was Yorkshire Water fined over sewage leaks? A: Yes. Ofwat announced in 2024 that it was fining the company £47 million for historic sewage leaks. That fine is separate from the £1.9 million in payments to Shaw reported by the BBC.
