Dan Coatsworth, head of markets at AJ Bell, said: “A slightly happier story in the sector is provided by South West Water’s owner Pennon under its new CEO Keith Haslett.
“The company has had to deal with its own challenges – notably the parasite outbreak in its supply in Devon in 2024 for which it was recently fined – but a return to profitability underlines the company’s progress.
“Pennon has largely kept a lid on costs and has benefited from higher customer bills under the new regulatory settlement and increased consumption, allowing for a decent bump in the dividend.
“However, mixed operational performance and material penalties for failing to hit environmental and service targets agreed with Ofwat show there is work for Haslett to do. A strategic update promised before the end of September will be closely scrutinised.”
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