Pennon Group Reports £16.3M Expense Following Devon Parasite Outbreak

The parent company of South West Water (SWW) incurred costs of £16.3 million earlier this year due to a water parasite outbreak in Devon, as confirmed by its leadership. The cryptosporidium outbreak in May resulted in approximately 100 confirmed cases of the diarrhoea-type illness within the Brixham area and its surroundings. Pennon, which is SWW’s parent company, stated that the £16.3 million was allocated for customer compensation, the provision of eight weeks’ worth of bottled water for affected individuals, and to conduct “extensive interventions to clean and filter the network”. Pennon reported a pre-tax loss of £38.8 million for the six-month period ending in September. Capital expenditure, including upgrades to its water infrastructure, increased to £331.8 million, marking an approximate 25% rise compared to the same period last year. Chief executive Susan Davy commented: “When things go wrong, as they did for customers and businesses in and around Brixham earlier this year, we put it right with no excuses. But we know we have more to do.” Pennon has requested regulatory approval to increase average consumer bills at South West Water by 23% over the next five years. Ofwat’s final decision on this matter is anticipated in December. SWW had previously announced a pledge of £1.2 million to support tourism and address “reputational damage.”