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A water company has admitted supplying water unfit for human consumption after a parasitic outbreak in Devon.

South West Water Ltd pleaded guilty to an offence under s70(1) of the Water Industry Act 1991 to supplying water unfit for human consumption during a hearing at Exeter Magistrates’ Court.

The outbreak in May 2024 left some people in hospital and hundreds of others ill after contamination of the water supply by cryptosporidium, a parasite which causes sickness and diarrhoea.

About 17,000 households and businesses in the Brixham area were issued with a “boil water” notice as scores of reported cases emerged.

The notice, instructing them not to use tap water for drinking without boiling and cooling it first, remained in place for eight weeks for some households.

The firm was prosecuted by the Drinking Water Inspectorate (DWI) and faces a fine when it is sentenced on June 2 at the same court.

Howard Leithead, representing the DWI, had asked for the case to be sent to the crown court for sentencing as it is “high-profile or exceptionally sensitive”.

“This was an extremely high-profile incident that occurred in 2024,” he said.

“Not only was this very high-profile, but this incident affected a significant number of people across a broad geographical area.

“It resulted in an adverse impact on the public confidence in the water supply in this area.

“Its effects were, some of the complaints say, long felt after the lifting of the boil water notices.

“There was, of course, local inconvenience, economic impact, and impact on education throughout this incident.

“Given the high-profile nature of this case, and to ensure that the message is heard loud and clear by local residents that the criminal justice system will treat offences of this nature with the utmost seriousness, we respectfully submit that the crown court would be the most appropriate venue to deal with this case, given the factors identified in our note.”

Dominic Kay KC, representing South West Water, said the firm had pleaded guilty at the first instance and had submitted a basis of plea.

He said the case could be sentenced by a district judge in the magistrates’ court.

“We would respectfully submit that it isn’t a complex case, and certainly not one of such complexity that this court cannot deal with,” he said.

“Factually there is not a huge amount between the parties, as I understand, matters.

“The only real bone of contention, as the court has rightly observed, is often the case in these prosecutions, where the case sits on culpability.

“This is precisely the sort of case that district judges should, and we say, do deal with on a very regular basis, and it’s not simply in relation to environmental cases.”

District Judge Stuart Smith rejected the prosecution submission and said he would retain jurisdiction.

South West Water owner Pennon previously said the final bill for the outbreak reached nearly £40 million.

The supplier – which also owns Bristol Water, Bournemouth Water and SES Water – said it was facing costs of around £36 million for the supply contamination incident and its “reshaping and transformation programmes”.

Caroline Voaden, Liberal Democrat MP for South Devon, said after the hearing: “This time last year, the former South West Water chief executive claimed customers were among the company’s top priorities.

“Today, they have pleaded guilty to supplying water unfit for human consumption.

“This admission of guilt has been a long time coming. I am glad that SWW have owned up to their serious failures. This awful event should never have happened.

“But the mismatch between rhetoric and action plagues our broken water industry.

“Whether it is protecting customers or the environment, too many water firms say one thing, then do another.

“I want to thank the Drinking Water Inspectorate for bringing the case and the many campaigners who worked tirelessly to ensure the anguish they felt during the cryptosporidium outbreak was not forgotten.

“Last summer, the Government finally started to overhaul our water industry by promising to abolish Ofwat.

“But progress has been glacially slow. They must go much further and faster – this industry must be properly regulated and held to account.”

Marcus Rink, chief inspector of the Drinking Water Inspectorate, said: “The company’s decision to plead guilty to the offences relating to the Brixham incident reflects the seriousness of the failings identified during our investigation.

“While such incidents are very rare, this incident had a significant impact on the public and the wider community.”

Water minister Emma Hardy added: “Contamination of drinking water is rare but it is utterly unacceptable.

“The communities affected by this abhorrent incident in Brixham deserve answers and today’s guilty plea is a crucial step toward accountability.”