South West Water CEO announces retirement amid enforcement action

The chief executive of South West Water has announced her retirement, days after the water regulator Ofwat revealed plans for a £24 million enforcement package against the company.

Susan Davy, who has led South West Water for the past five years and served as chief financial officer since 2015, is also a board member of parent company Pennon Group.

“Running a water company is always interesting, often challenging, but totally fulfilling,” said Ms Davy. “I have enjoyed taking responsibility for the provision of a sustainable service to millions of homes.”

Her announcement comes after Ofwat said it intended to take enforcement action over South West Water’s failure to properly manage its wastewater treatment works and sewer network.

A public consultation is now under way before the regulator makes its final decision. In a statement, Ofwat said: “As part of the enforcement package, South West Water has recognised its failures and is taking steps to put it right.”

The regulator's investigation found the company had failed to meet its legal obligations, resulting in wastewater spilling into the environment when it should not have.

Ofwat said South West Water had already taken action to address the issues, including investing in treatment works and storm overflow improvements, and introducing new governance measures to strengthen oversight of environmental compliance.

The £24 million package, if finalised, will be funded by the company and its shareholders and not customers.

Earlier this week, Ms 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.”

The situation has drawn growing political attention. In June, Newquay MP Noah Law issued what he called a "final warning" to Ms Davy, urging the company to act with urgency on water pollution concerns.

At the time, South West Water told Radio Newquay it was delivering its largest ever investment programme across the Pennon Group - £3.2 billion from Cornwall to Surrey. Eleven major projects are under way in Mr Law’s constituency.