Is the government right to ban bonuses at water companies?

Thames Water is among six utility firms to be banned from paying out bonuses by the government.

It is safe to say the water industry is not in the government’s good books.

Decades of underinvestment and mounting debt have led to a sewage spill crisis, sparking immense public outrage.

Thames Water, the UK’s largest water supplier, has come to symbolise the sector’s woes as it teeters on the brink of administration.

US private equity titans KKR walked away from exclusive talks over a rescue deal earlier this week in the latest, and potentially biggest, blow to its turnaround plans.

From today, Thames will become one of six companies banned from paying bonuses to senior executives after ministers intervened.

But is this the right decision?

Bonuses and dividend payments in the spot