Pennon, the owner of South West Water, has cited “exceptionally high” groundwater levels as the reason for a surge in sewage leaks and pollution incidents.
The Exeter-headquartered utility company reported that the third wettest October to August on record led to an “increase” in storm overflows, amidst broader concerns about the state of the industry’s infrastructure.
Pennon stated higher rainfall and water tables in 2024 also affected the number of “pollution incidents, alongside the performance of a small number of treatment works.”
In a London Stock Exchange announcement, the firm said: “We continue to invest in our infrastructure to make targeted operational interventions to protect the environment.”
This news emerges as Ofwat, the industry regulator, prepares to make a crucial decision in December regarding the setting of annual household water bills, as reported by City AM.
Water UK, a lobby group, has cautioned that the proposed cap, which would restrict fee increases to 21 per cent, might pose a “material risk” to utilities companies’ ability to secure sufficient funds to address sewage leaks.
Pennon has been under fire due to the significant rise in pollution incidents at South West Water last year, which nearly doubled compared to 2023.
Amidst growing concerns over sewage contamination in British rivers, Susan Davy, the chief executive, received a substantial pay increase to £860,000 from £534,000 the previous year.
Earlier this year, an analysis by the Observer revealed that UK water companies leaked over one trillion litres of water last year.
“Supporting our customers remains one of our four priorities alongside tackling storm overflows, ensuring water resources and water quality, and driving environmental gains, with over 140,000 customers benefiting from our affordability initiatives with a 35 per cent increase in customers on our social tariffs,” stated Pennon.
The group anticipates that like-for-like revenue in its half-year results, due to be released in late November, will be affected by reduced customer demand. Operating costs are expected to remain largely unchanged.