South West Water boss refuses £440,000 bonus over backlash over sewage leak

Pennon boss Susan Davy has turned down a £157,000 bonus and £283,000 long-term incentives. Credit: Tim Pestridge

Boss of the South Pennon Group, owner of West Water, has waived £440,000 in premiums over record water quality fines.

Pennon CEO Susan Davy has waived from an award of £157,000 and long-term incentives of £283,000. , according to the company's annual report.

Its decision comes amid growing public dissatisfaction with the amount of wastewater being dumped into rivers and beaches as water companies continue to pay shareholders large sums.

In April, the firm was fined £2.15m for illegal discharge of sewage into rivers and beaches. offshore in Devon and Cornwall following an EPA investigation that found South West Water liable for significant environmental damage.

Regulator Ofwat also announced an investigation into Pennon last month that focused on making sure its leak and water usage reports were accurate.

Pennon said its numbers were «subjected to a rigorous process checks” and were signed by the technical auditor. .

However, «the possible outcome of this investigation is currently unknown,» according to the company's annual report.

Pennon posted a pre-tax loss of £8.5m on revenue of £797m. for the year ended 31 March. This leaves Pennon with just £144m in cash reserves, down from almost £2.7bn two years ago.

Despite this, the company has recommended a £112m dividend to its investors, what was called a «slap in the face» by Liberal Democrat spokesman Tim Farron.

The government has announced plans to introduce legally binding targets to reduce wastewater discharges into the UK's rivers and seas.

However, the proposals have faced criticism for allowing water companies to pass £10bn of waste reduction to UK households through higher bills. This follows years of underinvestment from predominantly foreign-owned suppliers.

In her annual report, Pennon Chairman Jill Ryder said, “We need to do more and faster to upgrade our Victorian sewer system. and to protect the environment.

“The Board of Directors is focused on planning, prioritizing and investing in the necessary changes. We listen to our customers, stakeholders and regulators. We all share the same point of view; it is a multi-generational challenge and will take time to be sustained. We can and must make progress in the short term.”