Devon Water Parasite Outbreak Costs Pennon £16.3 Million

The cryptosporidium contamination in Brixham led to significant financial losses, customer compensation, and operational challenges for South West Water's parent company.

• The cryptosporidium outbreak in May affected 17,000 households in Brixham, Devon, with over 100 confirmed cases of illness and some hospitalizations.
• Pennon Group, South West Water's parent company, reported a £38.8 million pre-tax loss for the six months ending in September, partly due to £16.3 million in costs related to the incident.
• The financial impact included customer compensation, two months of bottled water supply, and extensive cleaning of the 20-mile water network, which was flushed 27 times.
• Pennon has requested regulatory approval to increase South West Water bills by 23% over the next five years, with a decision expected from Ofwat in December.
• The company also faced broader challenges, including restructuring costs, lower revenues from water efficiency campaigns, and scrutiny over environmental and financial performance.

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