Ofwat launches probe into Pennon over leakage data

The regulator said it had opened an enforcement case into South West Water to investigate the accuracy of the performance figures it had reported for leakage and per capita consumption in the 2021-22 regulatory reporting period.

Ofwat sets targets for companies on both leakage and per capita consumption, and they are either penalised or rewarded depending on whether they are met. In November, Ofwat deferred its decision on the progress South West Water had made towards its leakage performance commitment, as it wanted to better understand how the firm was calculating its data.

David Black, Ofwat chief executive, said: "We are committed to holding companies to account for performance and for sharing timely, accurate and complete data with us and their customers."

Pennon said the data in South West Water’s annual performance report had been subject to "rigorous assurance processes", including independent checks by an external technical auditor.

"We will work openly and constructively with Ofwat to comply with the formal notice issued to South West Water as part of this investigation," it added.

As at 0945 BST, shares in Pennon were down 2% at 805p.

It is the second probe by Ofwat into South West Water, which supplies Cornwall, Devon and parts of Dorset, in less than a year. It was also fined £2.1m last month by the UK Environmental Agency for pollution offences across Devon and Cornwall during a four-year period.