Pennon seeks £550 million from investors as it rolls out a £1 billion overhaul

Pennon, the parent of South West Water, has opened a £550 million investor cash-call as part of a wider investment programme totalling about £1 billion. The decision follows a record £7.9 million fine imposed on South West Water for repeated sewage discharges. Keith Haslett, who became chief executive in April, said the capital raise will back an operational plan that sharpens accountability, brings key skills back in-house and directs spending to the most needed assets.

The new funds sit on top of roughly £2.6 billion already committed under an Ofwat-approved schedule. Pennon, listed in London, also controls Bristol Water and SES Water, and expects the overhaul to deliver better customer service, stronger environmental results and sustainable growth for shareholders.