South West Water to pay out £3.5m to customers after water parasite outbreak
Those affected by the parasite outbreak could get compensation worth £215
SouthWestWater/GETTY
South West Water has confirmed it will pay out around £3.5 million in compensation to customers affected by a parasite outbreak in Devon.
The Government said 16,000 households and businesses in Brixham had been affected by the boil water notice after traces of cryptosporidium, a waterborne disease which can cause vomiting, was found in its pipes on May 15.
Following the announcement of the group's higher annual earnings and an increased dividend for investors, Susan Davy, group chief executive insisted she is "100 per cent focused" on returning a safe water supply to those affected by the parasite outbreak.
She has increased customer compensation to £215 for those affected, adding that normal service has now been restored for 85 per cent of customers.
If all eligible customers claimed compensation, the bill to Pennon would be £3.44million.
On Tuesday Pennon reported a profit of £166.3million last year and a dividend of 44.37 pence to shareholders.
If all eligible customers claimed compensation, the bill to Pennon would be £3.44million
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Conservative MP Anthony Mangnall, whose Totnes constituency covers Brixham, said it was "absolutely appalling" that Pennon announced its dividends to SWW shareholders on Tuesday.
He said "I think it's tin-eared. At a time when confidence in South West Water is at an all time low, they really should be thinking about making sure their consumers are on side, rather than shareholders."
"I've called for them to either suspend the dividend offering, which can be done, or that the CEO Susan Davy steps down," he added
Davy said: "Whilst the results we are announcing today are based on our performance for the last financial year, we are 100 per cent focused on returning a safe water supply to the people and businesses in and around Brixham.
"Normal service has returned for 85 per cent of customers but we won’t stop until the local drinking water is returned to the quality all our customers expect and deserve.
"Our absolute priority continues to be the health and safety of our customers, and our operational teams are working tirelessly around the clock to deliver this."
The firm said the move to reduce the total dividend payout to investors by 0.84p a share to 44.37p showed "we are listening, clearing the way for long-term shareholder value".
However, the payout was still 3.8 per cent higher than the previous year.
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Pennon reported a profit of £166.3million last year and a dividend of 44.37 pence to shareholders
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SWW was fined £2.2million in April last year for illegal sewage spills across Devon and Cornwall spanning four years.
Davy added: "At a time when media, public and regulatory scrutiny is high, it is important we do what is right for all."
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