NEWS

South West Water bills rise by a third following worst performance in sector with 550,000 hours of sewage spills

Tariffs increase as Environment Agency publishes damning data after South West Water owner Pennon Group issues £24.5 million in dividends to shareholders.

Leigh Curtis

South West Water bills increased by a third this month immediately after the Environment Agency published data showing that the company had released sewage for more hours than any other water company in England and Wales during 2024.

The data shows that a South West Water overflow in Salcombe Regis spilled sewage for very nearly all of 2024 – bar eleven hours – the longest sewage release duration across all the storm overflow sites in England and Wales.

The total duration of spills across all South West Water’s storm overflows in 2024 was 544,429 hours, an increase from 530,737 hours in 2023 and the worst performance in the sector.

Water company release of sewage into rivers and seas is not illegal, but is intended to take place only when the sewerage system is at risk of being overwhelmed. In such circumstances excess rainwater and sewage is released via storm overflows to prevent the combined mixture flooding into homes.

While several other companies came close to matching South West Water’s poor performance, Dwr Cymru Welsh Water only recorded 31,770 hours of spills. In contrast with water companies in England, it is a not-for-profit organisation with no shareholders that is run for public benefit.

2024 duration in hours of monitored spill events at water company overflow sites 2024 duration in hours of monitored spill events at water company overflow sites. Source: Environment Agency.

Following the release of the storm overflow data late last month, South West Water wastewater services managing director Richard Price sought to emphasise a small reduction in the number of the company’s sewage spills – 3.5% – despite the duration of each spill lasting longer on average.

He said that the company was “one of only five in the industry to reduce spills compared to 2023”, adding that its “focus has been to reduce spills at beaches in the bathing season by 20% in the last five years as we continue to focus on what our customers care about”.

He also neglected to mention that serious South West Water pollution incidents had increased by 80% year on year to 111 such incidents per 10,000km of sewer.

The company’s serious pollution incident rate was close to double that of the next poorest-performing water authority, Southern Water, and more than five times higher than the target set by industry regulator Ofwat.

Ofwat nevertheless says that it expects South West Water to “deliver a 62% reduction in storm overflow spills”, as well as a 30% reduction in pollution incidents, compared with the company’s 2023-24 performance.

2020-24 South West Water serious pollution incidents per 10,000km of sewer vs targets 2020-24 South West Water serious pollution incidents per 10,000km of sewer vs targets. Source: Ofwat.

South West Water bills rose by 32% at the beginning of April, from an average of £520 to £686 per customer per year, more than the 26% average increase across England and Wales.

A £50 annual bill subsidy introduced in 2013 for the company’s customers, who the government said were already paying “way above the national average of a pound a day”, was axed at the same time.

As a result South West Water customers will pay an average of £1.87 per day in 2025-26.

The company says that the subsidy removal, which it describes as an “additional payment”, will be invested in meeting pollution targets, which include a goal of no more than ten spill events per storm overflow by 2030.

It says it will be “the first water company to meet this government goal, a decade ahead of target”.

It also says its “commitment to eradicating water poverty remains unwavering”. It offers financial support which includes reduced tariffs and payment plans to “people who struggle to pay their bills”.

However, as of April 2024 only 3.5% of the company’s 1.8 million customers were on a support tariff.

In 2023-24 Pennon Group and South West Water CEO Susan Davy, who also holds £298,000 of shares in the company, received £562,000 in pay and other benefits.

In January 2024 Pennon Group, owner of South West Water, issued just over £24.5 million in dividends to shareholders.

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Former East Devon MP Simon Jupp confirmed last week that he had joined Pennon Group as its regional development director.

Simon Jupp, who represented the East Devon parliamentary constituency from 2019 until it was abolished before last year’s general election, had previously been critical of South West Water.

Last January, after accusing the company of carrying out “potentially illegal sewage spills”, he led an Exmouth Journal opinion piece with: “We all want healthy seas and rivers. Across our part of Devon, people I talk to are rightly angry at South West Water’s lack of investment. It’s an anger that I share.”


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