Play all audios:
South West Water owner Pennon has said rising water bills will help fund its £3.2bn investment plans, as losses deepened for the utility firm. The Exeter-based company, which also owns
Bristol Water, Bournemouth Water and SES Water, said a record year of investment, along with encouraging its customers to use less water to save money, had affected its annual profits. It
reported a statutory pre-tax loss of £72.7m for the year to the end of March, widening from the £9.1m loss reported last year. Bills for South West Water customers surged by 28% on average
from April, which Pennon said would help fund around a third of its investment plans that are due to be completed by 2030. "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," said Pennon chief executive Susan Davy. “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." Pennon confirmed in March that a major water contamination incident in Devon last year had pushed
up costs by £36m. Just over a year ago the diarrhoea-inducing cryptosporidium was discovered in a reservoir, prompting 17,000 households in Brixham to boil their drinking water for eight
weeks. Pennon was compelled to clean and flush its water network 27 times, in addition to replacing sections of its grid. For 2025-26, the company said it was anticipating a return to
profitability, with EBIDTA - a measure of performance - expected to increase by two-thirds through increased revenue and a reset of the cost base. LIKE THIS STORY? WHY NOT SIGN UP TO GET THE
LATEST SOUTH WEST BUSINESS NEWS STRAIGHT TO YOUR INBOX.