Yorkshire Water CEO Nicola Shaw resigns after firm gets lowest rating

Yorkshire Water’s chief executive Nicola Shaw has resigned, just one day after the company received the lowest possible environmental rating from the Environment Agency. Shaw, who has led the firm since 2022, will leave her role on 1 January. She will be succeeded by Nicola Medalova, a chartered environmental health officer who previously worked at National Grid.

Leadership change and financial scrutiny

Shaw 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 is proud of what colleagues have achieved. But her tenure was marked by criticism, including £1.9m in undisclosed payments between 2023 and 2026. The payments were made by parent company Kelda Holdings for “investor engagement” and “financial oversight.” Last December, Shaw admitted that not being transparent about £1.3m in shareholder-funded payments was a “mistake,” though she insisted the amounts were not for her to decide.

The Environment Agency gave Yorkshire Water one star out of four on Thursday, classifying it as a “poorly performing company.” The agency said the firm was responsible for 260 pollution incidents in 2025, the highest total since 2011. In 2024, Ofwat announced a £47m fine for historic sewage leaks. Medalova joins the company on Monday for a transition period and will assume the CEO role full time in the new year. She said she is delighted to be joining and grateful for the opportunity, acknowledging that the company faces “huge challenges but also great opportunities for continued improvement.”