Water firm is on track to deliver results in line with expectations

Pennon Group

South West utility firm Pennon has said it is expecting to deliver results in line with management expectations in a trading update.

The Exeter company added that the £814 acquisition of Bristol Water has now been fully completed.

Following clearance from the CMA in 2022 the merger of South West Water and Bristol Water completed in February with the combined water business now operating under one licence.

The company said it is accelerating its plan to achieve 50 per cent self-generation by 2030, which forms part of our broader Net Zero 2030 commitment.

And Pennon is in advanced discussions with a range of counterparties offering large scale solar development opportunities at sites situated across the UK, ranging in capacity up to 60 MW.

These opportunities, which would be initially funded through the group capital allocation of £160m, offer the potential for attractive commercial returns, with actionable near-term development timelines.

The company said it continuing to invest in schemes to tackle water shortages.

It added: “Following some of the driest, hottest weather on record in 2022, and more recently a very dry February, the drought status declared in the South West by the Environment Agency last year remains in place.

“Our focus remains on securing resilient water supplies for current and future generations through investment in a suite of innovative solutions and engaging with customers to ‘Save Every Drop’.

“Our industry-first ‘Stop the Drop’ campaign launched in November 2022 successfully incentivised customers to reduce their usage to support reservoir recharges in Cornwall, resulting in a customer payment of £30 per household.”

The company added that it is working towards improving issues around pollution.

Pennon said it had improved its wastewater pollutions performance by over 50 per cent in two years, including a 75 per cent reduction in serious pollutions in 2022 from eight to two.