REG - Pennon Group PLC - Update on Ofwat investigation

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Today 07:10

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RNS Number : 4501Q  Pennon Group PLC  10 July 2025

PENNON GROUP PLC

10 July 2025

 

Ofwat announces next steps for South West Water as part of its sector wide
investigation

Today, Ofwat as part of its sector wide investigation into wastewater
activities, has announced its findings for South West Water.

Ofwat's proposed decision is to accept South West Water's enforcement package,
in lieu of a financial penalty given South West Water has stepped up and
acknowledged what has gone wrong and how it will put things right.

Ofwat has recognised the work South West Water has done to improve systems,
processes and controls in this area in recent years and the investments
already made to address these historical findings.

South West Water has agreed undertakings worth £24m 1  to be delivered over
the period to 2030 including:

·    £20m accelerating investment from K9 to reduce the number of spills
at environmentally sensitive locations or within a focused community

·    £2m fund for customers to tackle sewer misuse and misconnections to
address environmental pollution, infrastructure strain and public health
issues caused by improper connections to the sewer system

·    £2m Nature Recovery Fund to support environmental groups to deliver
measurable environmental gains

These investments will provide improvements for both customers and the
environment alongside our K8 plans to tackle all storm overflows at our
bathing and shellfish waters and our highest spilling sites.

 For further information, please contact:
 Pennon Group plc                              +44(0)1392 443 260
 Louise Rowe            Investor Relations
 Media Enquiries                               +44(0)207 251 3801
 James Murgatroyd       FGS Global
 Harry Worthington

 

 1  The enforcement package proposed is in lieu of a penalty of £19.0m, which
equates to c.6.5% of wastewater revenue  (below the 10% maximum possible for
such enforcement).

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