For the year beginning 1 April 1997 the company will be limited to price rises in line with inflation. Ofwat has also placed restrictions on its dividend policy and new requirements on service standards. Yorkshire Water has also agreed to appoint two non-executive directors "with relevant experience and understanding of customers' interests".
Yorkshire Water Services's licence was modified yesterday by the director general of Ofwat, in a move which is equivalent to a pounds 40m "fine." The changes are in response to Ofwat's investigations into the performance of Yorkshire Water and its subsidiary, Yorkshire Water Services, which found "serious failures by the company in controlling leakage, minimising supply interruptions and controlling flooding from sewers," according to Ofwat.