Pennon has unveiled plans for a £550 million investor cash-call as part of an overhaul just weeks after its South West Water supplier was fined a record £7.9 million for repeated sewage spills.
Recently-hired chief executive Keith Haslett said the rights issue would help support plans for around an extra £1 billion of investment as it looks to “deliver better outcomes for our customers and communities”.
London-listed Pennon, which also owns Bristol Water and SES Water, said this will come on top of about £2.6 billion of investment already earmarked under its agreed plans with regulator Ofwat.
It follows last month’s record-breaking fine handed down at Plymouth Magistrates’ Court for 18 charges of environmental offences relating to pollution incidents in Devon and Cornwall over a six-year period.
Mr Haslett, who took on the role in April, said: “It’s clear from my comprehensive review that Pennon has real strengths, but there are areas where we need to improve and deliver better outcomes for our customers and communities.”
He added: “The operational plan, which is already under way, is practical and focuses on clearer accountability with key skills brought back in-house, and more investment where our assets need it most.”
He insisted the plan would “deliver a better service for customers, improve our environmental performance and generate sustainable, growing value for our shareholders”.