For years, communities across the Midlands have been asking the same question, how did our rivers become so degraded, so quickly, under the watch of a company that insists it is “one of the best performers in the sector”?
In March 2025, a detailed and highly technical letter landed on the desk of the Environment, Food and Rural Affairs Committee (EFRA). It came from an anonymous “concerned stakeholder” of Severn Trent Water, someone with deep knowledge of the company’s internal financial structures. The letter alleged that Severn Trent had used a complex corporate arrangement, known as the Trimpley structure, to artificially inflate the amount of money it could pay out in dividends.
It accused the then‑CEO, Liv Garfield, of giving misleading evidence to Parliament about how the structure worked and what it was for.
And then… nothing happened.
What the whistleblower alleged
The whistleblower’s letter was forensic and it argued that:
• The Trimpley structure created circular value- an asset whose worth was based on Severn Trent’s own equity.
• This allowed the company to boost its distributable reserves by over £1.5 billion.
• Dividends had been paid far in excess of profits, contradicting Garfield’s public statements.
• The structure sat outside Ofwat’s regulatory ring‑fence, avoiding scrutiny.
• Severn Trent had misreported the structure within its regulated business accounts.
• A Hong Kong holding company existed within the group structure, raising questions about transparency and political risk‑management.
It was, in short, a warning that the financial resilience of the company supplying water to millions may not be what it appears.
What happened next
Severn Trent responded quickly, insisting that:
• Trimpley was simply an accounting tool to manage timing differences.
• It had “never been used” to pay dividends.
• It was tax‑neutral.
• It would be dismantled when new IFRS rules arrive in 2027.
Ofwat later wrote to EFRA saying that the structure did not support excessive dividends, did not breach license conditions, and no other water company uses a similar structure.
Following this EFRA did not recall Garfield to explain, no investigation was opened, and no sanctions were applied. The whistleblower’s concerns simply disappeared.
Why this matters now- the leadership change
Fast‑forward to today and Liv Garfield has stepped down, and Severn Trent’s new CEO, James Jesic, has inherited a company facing:
• Public distrust
• Ongoing sewage pollution scandals
• A collapsing reputation for transparency
• A sector‑wide crisis of legitimacy
• Intensifying scrutiny from campaigners, journalists, and regulators
Jesic is not an outsider parachuted in, he is a long‑serving internal figure with deep operational knowledge of Severn Trent’s systems, capital programme, and regulatory positioning. His appointment followed a formal succession process announced in late 2025, with Jesic stepping into the role in January 2026.
This context matters.
The Trimpley episode is part of the legacy Jesic now inherits, a period where complex financial engineering, muddy disclosures, and regulator‑accepted explanations have shaped public distrust.
For communities fighting for clean rivers, this isn’t abstract accounting.
It’s about trust, and whether the new CEO will break from the culture that allowed such structures to exist unchallenged.
What Clean River Action believes must happen next
1. Full transparency on legacy financial structures
If Trimpley is truly redundant, Severn Trent should publish a clear, accessible explanation of how it worked, why it was created, and how it will be unwound.
2. A commitment from the new CEO to rebuild trust
James Jesic must demonstrate that the era of muddy financial manoeuvres is over. River health depends on investment, not creative accounting.
3. Stronger parliamentary oversight
EFRA should revisit the whistleblower’s concerns, not to punish individuals, but to ensure future evidence is accurate, complete, and independently verified.
4. A regulator that tests claims, not just receives them
Ofwat must show it can interrogate complex structures rather than accept corporate assurances at face value.
The bigger picture
The Trimpley story is not about one transaction, it is about a culture, one where financial engineering has been prioritised over environmental performance, and where public accountability has been treated as a communications exercise rather than a duty.
Now under Severn Trent’s new CEO, James Jesic, that culture remains an open question. Jesic has been in post long enough to set a new direction, yet there have been no public updates on unwinding Trimpley, no clarity on legacy financial structures, and no visible shift toward the transparency communities have been asking for. Meanwhile, executive bonuses have continued, even as river health indicators collapse and public trust erodes.
Clean River Action will continue to watch closely, because our rivers require more than promises.