3 days ago
South West Water owner's losses rise by £63million after Brixham parasite outbreak
Pennon saw losses widen last year as restructuring costs and the impact of the Brixham parasite outbreak weighed on the South West Water owner.
The group, whose customers saw bills surge by an average of 28 per cent in April, posted a pre-tax loss of £72.7million for the year 31 March, up from a £9.1million loss the prior year.
The parasite outbreak in Brixham, south Devon, which left some people hospitalised, cost Pennon about £21million, as around 800 staff and supply chain partners were dispatched for an eight-week effort to return safe clean drinking water to the area.
Pennon also faced £15.8million in costs related to restructuring actions over the year.
Plans to ramp up investment in infrastructure, and encourage customers to use less water to save money, also hit profitability, according to the group.
Pennon is targeting £3.2billion of investment by 2030, incorporating work to build new reservoirs, fix storm overflows, meet its net zero commitments, and improve services for customers.
Bills for South West Water customers surged by 28 per cent on average from April, while bills for Bristol Water and Sutton and East Surrey (SES) customers are rising by 5 and 3 per cent respectively.
Pennon, which expects to return to profitability in the year ahead, said the bill hikes would help fund around a third of its investments.
Susan Davy, Pennon's chief executive, added: 'We know customers are worried about rising bills to fund this level of investment.
'While we have made the tough decision to put bills up in 2025-26 - for the first time in over a decade - two-thirds of our investments are being funded by our supportive investors and debt providers.
'Ultimately everyone will benefit from the investments we are making - from building reservoirs, to fixing storm overflows, powering our net zero ambitions and helping to create economic growth.'
