“It is unacceptable that publication of your WRMP24 [Water Resources Management Plan] has been delayed. As you are aware, producing an WRMP is a statutory process, and enforcement action could be taken where a company is not compliant with their legal duties.”

“Given the extent and persistence of issues identified for South West Water, we will require South West Water representatives to attend six-monthly progress meetings with Defra and both regulators in November-December and April-May.”

“This is the seventh consecutive year that South West Water has received a joint regulator letter. Where sufficient progress is not demonstrated, issues will be escalated to the Water Delivery Taskforce and the relevant regulators may consider further regulatory action, including investigation and, where appropriate, the use of statutory enforcement powers.”

Regulators – it’s time to take the gloves off. Slapping wrists is not enough – Owl

Text reads:

Pennon Group — South West Water, SES Water and Bristol Water WRMP Annual Reviews 2026

Thank you for your Water Resources Management Plan (WRMP) Annual Review 2026 submission. This first delivery reporting year provides an important indication of progress in the statutory implementation of your WRMP and associated PR24 investment programme. We previously wrote to you to urge that this must proceed  without delay.

The delivery of your WRMP is essential to maintaining resilient water supplies, protecting and enhancing the environment, and supporting sustainable growth. Recent drought conditions have reinforced the importance of delivering planned actions and investments in a timely manner. On this basis, it is unacceptable that publication of your WRMP24 has been delayed. As you are aware, producing an WRMP is a statutory process, and enforcement action could be taken where a company is not compliant with their legal duties.

Defra, the Environment Agency and Ofwat have reviewed Pennon Group’s submission and identified significant risks to security of supply and the environment in South West Water in particular and requires prompt action. We also have concerns that related slow delivery may be driving poor performance in some areas for Bristol Water and SES Water.

The issues identified are set out in detail in Annex 1 and are summarised below:

South West Water

•          Your reported supply-demand balance (SDB) has deteriorated relative to both your WRMP24 forecast and the previous year. While the company-level position remains in surplus, deficits have been reported in individual water resource zones, and raises concerns regarding the resilience of supplies during periods of drought and the company’s ability to maintain planned levels of service. A primary driver of this is higher than forecast distribution input.

•          Leakage is 18.5% above the WRMP24 forecast, and has increased since the previous year. Given the ongoing drought conditions, these shortcomings are placing customers at a greater level of risk. This is not acceptable.

•          Per capita consumption (PCC) has reduced slightly compared with the previous year but is 5.7% above your WRMP24 forecast of 149.20 I/h/d.

•          Outage is 5.57 MI/d above your WRMP24 forecast of 9.68 MI/d, and has worsened since last year, reducing available supply and increasing risks to security of supply.

•          Non-household consumption has exceeded forecast, and is the third consecutive year it has increased. It has been reported at 4.2% higher than the WRMP24 forecast of 158.27 MI/d.

Bristol Water and SES Water

•          Repeating concerns seen for South West Water, leakage is above WRMP24 forecast by 7.1% and 22.4% for Bristol Water and SES Water respectively. This represents a notable improvement in 2025 for Bristol Water, but remains above forecast and has not been replicated across other Pennon companies.

•          Household metering penetration is 5.5% and 10.9% behind WRMP24 forecasts for Bristol Water and SES Water respectively.

•          Procurement processes have been cited as persistent reasons across the Pennon companies for delayed commencement of leakage reduction programmes, metering roll out and water efficiency programmes. Continued issues in these areas will rapidly result in impacts to your supply resilience.

You are required to address these issues and provide evidence of the actions taken by the deadlines specified in Annex 1. Actions should be supported by clear implementation plans, measurable milestones and demonstrable benefits.

We will continue to monitor progress through our established engagement arrangements, including meetings between your company and representatives from the Environment Agency and Ofwat. At these meetings, you will be expected to demonstrate credible and adequately resourced plans, together with tangible progress in reducing the risks identified in this letter.

Given the extent and persistence of issues identified for South West Water, we will require South West Water representatives to attend six-monthly progress meetings with Defra and both regulators in November-December and April-May. We will make arrangements for the first meeting with you in the near future. We will continue to monitor progress at Bristol Water and SES Water through existing engagement arrangements.

This is the seventh consecutive year that South West Water has received a joint regulator letter. Where sufficient progress is not demonstrated, issues will be escalated to the Water Delivery Taskforce and the relevant regulators may consider further regulatory action, including investigation and, where appropriate, the use of statutory enforcement powers.

Where appropriate, we will align this work with other ongoing regulatory engagement to ensure a coordinated and consistent approach.

Your WRMP is a critical plan for securing sustainable water supplies and protecting the environment. We expect you to take the necessary action to address the issues identified and deliver the commitments set out in your plan.