South West Water owner's £550 million investor call

Pennon has unveiled plans for a £550 million investor cash-call just weeks after its South West Water supplier was fined a record £7.9 million for repeated sewage spills.

Chief executive Keith Haslett said the rights issue would help support plans for an extra £1 billion of investment as it looks to “deliver better outcomes for our customers and communities”.

London-listed Pennon, which also owns Bristol Water and SES Water, said this will come on top of about £2.6 billion of investment already earmarked under its agreed plans with regulator Ofwat.

It follows last month’s record-breaking fine handed down at Plymouth Magistrates’ Court for 18 charges of environmental offences relating to pollution incidents in Devon and Cornwall over a six-year period.

The operator’s new boss, who took on the role in April, said: “It’s clear Pennon has real strengths, but there are areas where we need to improve and deliver better outcomes for our customers and communities.

“The operational plan, which is already under way, is practical and focuses on clearer accountability with key skills brought back in-house, and more investment where our assets need it most.”

He added the plan would “deliver a better service for customers, improve our environmental performance and generate sustainable, growing value for our shareholders”.

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