“As the only water company to have received an outstanding rating for our business plan for the third consecutive time, we have a track record of setting and delivering on stretching business plans. Consistently around 70% of the stretching regulatory deliverables have been met which put us top quartile compared to the sector.” – Susan Davy

Read Owl’s April post entitled “South West Water rewarded £6,7m for failure”. This exposes the only outstanding thing SWW excels in, is being the industry leader in writing creative future plans which it then fails to deliver.

Owl is waiting for Simon Jupp’s spin on all this.

South West Water owner makes huge loss after Brixham bug cost it £21m

Pennon sees losses widen and puts up bills

William Telford Business Editor www.devonlive.com

South West Water owner Pennon Group Ltd has made a £72.7m loss after a water bug made hundreds of people ill in Devon last year. The utilities giant saw losses widen from the £9.1m loss it made in [the previous year].

It put the blame for the loss on having to deal with the Cryptosporidium outbreak in Brixham in 2024, which left more than 100 people saying they were ill and some even going to hospital, and said the cost of “interventions to return quality supplies” cost it about £21m. It also said a company restructure cost it about £16.6m.

But the Exeter-based company, in its annual results for the year to the end of March 2025, said it expects to return to profitability in 2025/26 through increased revenue and a “reset of our cost base”. It also highlighted investment plans of £3.2bn.

South West Water customers saw bills jump by 28% on average from April, while bills for Bristol Water and Sutton and East Surrey (SES) customers, both companies being owned by Pennon, are going up by 5% and 3% respectively.

Susan Davy, group chief executive, said: “Pennon has delivered a resilient operational performance during a demanding year, while building a robust platform for the future. We have reshaped and reset the cost base, delivered record levels of capital investment and – following a successful rights issue – maintained a strong balance sheet.

“We are listening to our customers, who are quite rightly demanding water companies to do more for customers today and to step up investment for the future. We are doing both. We have worked diligently to help customers use less water and save more money with a range of campaigns and pilots.

“At the same time, our record year for investment has improved services that matter most to our customers. Whilst this has impacted profitability this year, it has been the right thing to do.

“As the only water company to have received an outstanding rating for our business plan for the third consecutive time, we have a track record of setting and delivering on stretching business plans. Consistently around 70% of the stretching regulatory deliverables have been met which put us top quartile compared to the sector.

“Of course there is more to do, not least on those measures we didn’t achieve, and our ambitious new plan includes a record £3.2bn of investment due to be completed by 2030. We know customers are worried about rising bills to fund this level of investment. While we have made the tough decision to put bills up in 2025/26 – for the first time in over a decade – two thirds of our investments are being funded by our supportive investors and debt providers.

“Ultimately everyone will benefit from the investments we are making – from building reservoirs, to fixing storm overflows, powering our net zero ambitions and helping to create economic growth. It’s why we’re able to make a £200m support package available to those who need it most.

“It’s also why – as the dry weather persists – we’re predicting that the South West won’t need a hosepipe ban this summer. We could not do this without the 4,000 brilliant colleagues who walk in our customers’ shoes every single day, focusing on the priorities that matter most for customers.”