Utility firm announces £100m investment plan

Utility firm Pennon has announced plans to invest £100m more than previously thought over the next two years as it looks to tackle its ongoing pollution problem.

The owner of South West Water and Bristol Water said it expects capital expenditure will total more than £850m in the financial years ending 2024 and 2025.

The announcement came as part of the firm’s half year results.

Pennon reported profit after tax had dropped from £18.5m to £1.8m in the first half of the year.

The company has blamed the losses on higher inflation driving costs.

The company also announced its plans for 2024 and said the additional £100m investment will ensure the company is well positioned to deliver its commitments in its business plan for the period 2025-2030 across priority areas of water resources, water quality, pollution reduction and storm overflows.

Chief executive Susan Davy said: “I am very clear that if we serve our customers well, we serve our shareholders well, which is why we are focused on improving environmental performance, keeping bills as low as possible.

“This has helped us deliver a 100 per cent bathing water quality assessment for the third year running and reduce serious pollution incidents this year, but we know there is more to do.”

Ms Davy added that the company is looking ahead to 2030 where it hopes to create up to 2,000 new jobs in the South West.

This is in addition to providing 1,000 apprentice and graduate opportunities to 2030, and provide further security in the wider supply chain across the region.