Pennon boss retirees after £24m wastewater penalty

The chief executive of Pennon has announced her retirement from the water company, just days after it agreed to pay £24 million to regulators following wastewater treatment failures. Susan Davy will step down after 18 years with the South West Water parent firm.

Davy said she will remain as chief executive and board director until a successor is appointed through a formal recruitment process. The company confirmed it will conduct a comprehensive search for her replacement.

Natural retirement timing cited

The departing boss described her decision as coming at a "natural juncture" following the company's agreement of a £3.2 billion investment plan with regulator Ofwat in December. Davy has spent 30 years in the water industry.

Her retirement announcement comes just days after South West Water agreed the substantial settlement with Ofwat. The regulator found the company had spilled wastewater into the environment when it should not have done so.

Investigation reveals multiple failures

Ofwat's investigation uncovered a "range of failures" in how South West Water managed its wastewater treatment works and sewer network. The watchdog's findings led to the significant financial penalty.

The timing also follows last year's major water contamination incident in Brixham, south Devon. An outbreak of cryptosporidium - a parasite causing infection - in the water supply hospitalised some residents while more than 100 others reported symptoms including diarrhoea.

Executive pay package revealed

Davy received a pay package worth £803,000 for the latest financial year, which included £191,000 in long-term bonuses. Her total compensation reflects her senior position at the major utility company.

"I have been proud to lead the extraordinary team at Pennon whether in the offices, at reservoirs, on the road or in depots," Davy said. "This is vital work, and our people never shirk from that responsibility."

Smooth succession planned

She added that Ofwat's approval of the investment plans made this "a natural juncture to retire from Pennon". Davy said it was "right I hand this huge responsibility to the next generation of leaders".

David Sproul, Pennon's chairman, praised Davy's leadership through challenging periods. He said she had "navigated the group through some challenging external headwinds to emerge stronger and more resilient as we look ahead to the next regulatory period".

(PA) Note: This article has been edited with the help of Artificial Intelligence.