- SWW offers £3.5m compensation for parasite outbreak in Devon
- Devon MP criticizes Pennon for announcing dividends amid crisis
- 16,000 households affected, two hospitalized due to water contamination
The proprietor of South West Water (SWW) has declared that it will provide approximately £3.5 million in compensation to customers who a parasite outbreak in Devon has impacted.
The Pennon group also disclosed its financial results on Tuesday, which encompassed dividends that would be paid to shareholders.
Devon MP Anthony Mangnall dubbed the announcement “tin-eared” and urged the group to either suspend its dividend offering or resign from its leadership.
The government announced on Wednesday that the boil water notice had impacted 16,000 households and businesses in Brixham after the discovery of cryptosporidium, a parasite that causes diarrhea, in its network.
The outbreak has resulted in the hospitalization of two individuals.
On Saturday, SWW increased the compensation for consumers to £215, as a significant number of them were still under the boil water advisory.
The bill to Pennon would be £3.44m if all eligible customers claimed compensation.
Pennon disclosed a profit of £166.3m and a dividend of 44.37 pence to shareholders on Tuesday.
“Tin-eared”
The announcement of Pennon’s dividends to SWW shareholders on Tuesday was “absolutely appalling” to Conservative MP Anthony Mangnall, whose Totnes constituency includes Brixham.
He stated, “I believe it is tin-eared.” At a time when South West Water’s confidence is at an all-time low, they must prioritize the interests of their consumers over their shareholders.
He also stated that I have requested that they either suspend the dividend offering, which is feasible or that CEO Susan Davy resign.
He stated that he would address the matter with Rishi Sunak on Wednesday.
“Focused fully”
Ms. Davy, the group chief executive of Pennon, stated, “Our sole objective is to restore a safe water supply to the residents and businesses of Brixham.”
“Normal service has been restored to 85% of our customers; however, we will not cease until the quality of the local drinking water is restored to the level that all of our customers expect and deserve.”
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Our operational teams are working assiduously around the clock to ensure the health and safety of our customers, which remains our top priority.
The comments were made in response to Pennon’s pre-tax losses of £9.1m for the year ending March 31, which were higher than the £8.5m losses of the previous year.
Pre-tax profits remained constant at £16.8m on an underlying basis.
0.84 pence per share reduced the total payout, as the group declared a full-year dividend of 44.37 pence.
Since Pennon issued its warning regarding water contamination in Brixham on Tuesday morning, the FTSE 250 company’s shares have declined by 10%.
