The new chief executive of Pennon, the owner of South West Water, has stated that the company must work to rebuild trust after being fined nearly £2 million for a parasitic outbreak in Devon.
Record fine for water contamination
Keith Haslett, who became CEO on April 1, said Pennon must learn from the incident, which led to a prosecution at Exeter Magistrates' Court earlier this month for supplying water unfit for human consumption. The company was fined £1.853 million, plus a surcharge of £2,000 and costs of £75,000, totaling £1.93 million, after the water supply in the Brixham area was contaminated with cryptosporidium in 2024.
Financial results and customer impact
In its annual results, Pennon reported a return to profit with pre-tax profits of £114.4 million for the year to March 31, compared to losses of £72.7 million the previous year. However, customers faced further bill hikes in April as the group increased its investment plan.
Haslett expressed deep sadness over the impact on customers in Brixham and acknowledged the need to learn lessons and rebuild trust. He emphasized that water quality is paramount and that the group must focus on providing wholesome drinking water 24/7.
Potential further legal action
Devon County Council is considering legal action against South West Water over sewage spills and poor water quality. Councillor Julian Brazil suggested that executives should face surcharges for poor performance. Haslett declined to comment on the council's plans but said the group respects the legal process.
Haslett, an industry veteran who previously led Affinity Water and held roles at Northumbrian Water and United Utilities, replaced former CEO Susan Davy after her retirement.
