Pennon blames ‘exceptionally high’ groundwater level for sewage leaks and pollution

Pennon, the British energy company that owns South West Water, blames “exceptionally high” groundwater levels for an increase in sewage leaks and pollution incidents.

The Exeter-based company said the third wettest October to August on record had led to a “surge” in the number of storm floods, despite wider concerns about the sector’s infrastructure.

Pennon argued that higher than normal rainfall and groundwater levels in 2024, in addition to the completion of a small number of wastewater treatment works, also impacted the number of “pollution incidents”.

“We continue to invest in our infrastructure to carry out targeted operational interventions to protect the environment,” the London Stock Exchange said in a statement.

This comes ahead of a major decision by the water regulator Ofwat in December on the level of annual water bills for households.

Lobby group Water UK warned that the currently proposed cap on a charge increase of 21 percent could pose a “significant risk” that utilities would not be able to raise enough money to stop the sewage leaks.

Pennon has faced significant backlash over the huge number of pollution incidents at South West Water last year, which almost doubled compared to 2023.

While more and more sewage was being discharged into British rivers, managing director Susan Davy was earning a proud salary of £860,000; the year before, she had only earned £534,000.

Analysis from the observer Earlier this year it was revealed that British water suppliers lost over a trillion litres of water last year.

“Supporting our customers remains one of our four priorities, alongside tackling flooding from rainfall, safeguarding water resources and water quality, and promoting environmental improvements. Over 140,000 customers benefit from our affordability initiatives, with the number of customers using our social tariffs increasing by 35 percent,” said Pennon.

The Group expects comparable sales in its half-year results published at the end of November to be impacted by lower customer demand. Operating costs are expected to remain broadly unchanged.