MP calls for £24m South West Water levy to fund urgent infrastructure upgrades

Thursday, 10 July 2025 14:54

Newquay’s MP is calling for proceeds from a proposed financial enforcement package against South West Water to be used to speed up key infrastructure improvements in the region.

It comes after water regulator Ofwat announced plans to issue a £24 million enforcement package against the company for failing to properly manage its wastewater treatment works and sewer network.

In a statement, the regulator said:
"As part of the enforcement package, South West Water has recognised its failures and is taking steps to put it right."

A public consultation will now take place, giving people and stakeholders the opportunity to comment before Ofwat makes its final decision.

The announcement follows an investigation that found South West Water failed to meet its legal obligations, leading to wastewater being spilled into the environment when it should not have been.

This is part of Ofwat’s largest and most complex set of investigations across the water industry.

Ofwat says the company has already taken some steps to address the issues, including investments to improve treatment works and storm overflows, and new governance arrangements to strengthen oversight of environmental compliance.

South West Water says the £24 million package will be funded by the company and its shareholders – not by customers.

Its CEO, Susan Davy, said: "We are pleased that Ofwat has completed its review into wastewater at South West Water as part of its sector-wide investigation. For South West Water, this related to historical issues. I have always said that when things go wrong, it is how we respond and put things right – and that is exactly what we are doing."

She added the company has proposed a ringfenced £24 million investment programme to reduce spills, tackle sewer misuse, and establish a Nature Recovery Fund for environmental groups in Devon and Cornwall. This is on top of the £760 million the company is already investing over the next five years to reduce the use of storm overflows across the region.

Noah Law, MP for St Austell and Newquay, who says he has dealt with hundreds of complaints about South West Water, particularly around sewage pollution, said: "Any proceeds received should go to support the acceleration of key infrastructure upgrades, like the six Combined Sewer Overflow hotspots I have been pressing South West Water to upgrade."