The chief executive of Pennon Group, a British utility company that owns South West Water, was given a bonus payment of £270,000 despite overseeing a public health emergency that saw parasite-infested water supplied to 17,000 homes in Brixham, Devon.

The scandal resulted in over 100 confirmed cases of diarrhoea-type symptoms in May 2024, caused by the microscopic parasite cryptosporidium. 16,000 homes were issued with intructions to boil their drinking water for up to 54 days. South West Water pleaded guilty to supplying water unfit for human consumption, and faced a record fine of £1.85m in June 2026. The utilities provider has now faced 23 convictions since 2014.

Pennon Group made a loss of £35.1m in 2024 as a result. The company recorded around £12m in costs to restore water quality, and has earmarked over £1bn for investment programmes over the next five years.

In Cornwall, South West Water has systematically failed in its role as a clean water provider and waste disposal manager. Campaign group Surfers Against Sewage recorded over 45,000 hours of dry sewage spillages in 2025, and for which the company received a two-star rating from the Environment Agency. This has driven grassroots campaigns to oust the company from Cornwall, led by Dowr Glan alongside allies in Mebyon Kernow and the Green Party.

Map of Pennon Group activities. Pennon Group About Us page.

Before leaving her role as chief executive, Susan Davy said: “We know customers are worried about rising bills to fund this level of investment. While we have made the tough decision to put bills up in 2025/26 – for the first time in over a decade – two thirds of our investments are being funded by our supportive investors and debt providers.”

Davy received a £270,000 bonus for 2024-25 and an £87,000 bonus for 2025-26, in addition to a base salary and benefits of £561,000 for 2024-25, and £473,000 for the first nine months of 2025-26 before she left the company. With pensions and share allocations, Davy earned more than £1m in 2024-25.

In 2025, the government introduced legislation preventing water company executives from receiving bonuses if their activities did not meet strict environmental and consumer standards. However, Davy’s payouts were reinstated after regulator Ofwat released guidance on how the new rules would be applied.

Pennon Group also committed to increasing shareholder dividends in line with inflation until 2030 despite recent hikes in water bills. Water companies argue the bill hike is necessary to fix the sector’s creaking infrastructure, which has caused a surge in sewage leaks  in recent years.

Thirty-eight town and parish councils have supported a vote of no confidence in South West Water as part of the Dowr Glan campaign. This follows systemic sewage spills by South West Water around Cornwall, and Cornish residents facing the highest water bills in the UK.

In an open letter, Dowr Glan campaigners stated: “It is clear that SWW continues to prioritise shareholder dividends and executive bonuses over the essential capital investment needed to fix our infrastructure. Their leadership has lost its social licence to operate in Cornwall.”

Featured image via: Pennon Group.