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New CEO Vows Trust Rebuild After Record Fine
10 Jun
Summary
- South West Water owner fined nearly £2 million for contamination.
- New CEO aims to rebuild trust after the parasitic outbreak.
- Devon Council may take legal action over water quality.
Pennon, the parent company of South West Water, has incurred a record £1.93 million penalty, including surcharges and costs. This fine was imposed after a 2024 cryptosporidium contamination incident in the Brixham area of Devon, which led to widespread illness.
The new chief executive, Keith Haslett, who assumed his role on April 1, 2026, acknowledged that the group must learn from this event and work diligently to regain the trust of customers and communities. He emphasized that water quality is paramount and must be ensured for customers continuously.
This significant fine comes as Devon County Council is considering legal action against South West Water regarding persistent sewage spills and the overall quality of water in the county. Councillors have expressed concerns about the company's environmental performance.
Despite these regulatory and legal challenges, Pennon has reported a return to profitability. For the year ending March 31, 2026, the group posted pre-tax profits of £114.4 million, a substantial recovery from the previous year's loss. This turnaround follows customer bill increases implemented in April 2026 to fund investment plans.
