The new chief executive of Pennon, the parent company of South West Water, has stated that the group must work to rebuild trust following a record fine of nearly £2 million after a parasite outbreak in its water supply in Devon.
CEO's Commitment to Change
Keith Haslett, who assumed the role of chief executive on April 1, acknowledged that Pennon must learn from the incident after the company was prosecuted at Exeter Magistrates’ Court earlier this month for supplying water unfit for human consumption.
“Whilst I have only been chief executive for a few weeks, it is very clear that we must learn lessons from this incident and work hard to rebuild trust with the customer and communities we serve, both in Brixham and beyond,” Mr Haslett said.
Record Fine and Legal Action
The company was fined £1.853 million, along with a surcharge of £2,000 and costs of £75,000, bringing the total to £1.93 million. This penalty followed the contamination of the water supply in the Brixham area of Devon in 2024 by cryptosporidium, a parasite that causes sickness and diarrhoea.
In addition, Devon council is considering taking legal action to address sewage discharges and poor water quality in parts of the county.
Financial Performance
In Pennon’s full-year results released on Wednesday, the group reported a return to profit, with pre-tax profits of £114.4 million for the 12 months to March 31, compared to losses of £72.7 million the previous year.
Mr Haslett expressed his deep sadness over the impact on customers in Brixham and emphasised the need for the company to restore confidence.
