Pennon Group blames bad weather as it pushes back environmental performance target

The Exeter-based group, which is behind South West Water and Bristol Water, told shareholders it expects to retain its two star Environmental Performance Assessment (EPA) status for 2023, and delayed expectations of achieving the top four-star recognition by 12 months to 2025.

Awarded by the Environmental Agency, EPA measures a water company's performance on a rating of one to four, with one indicating underperformance and 4 industry leading. In 2021 South West Water was given a one-star, or “poor performing company” rating.

“We anticipate retaining two-star EPA status for 2023, assuming Environment Agency confirmation of our improved water resource position,” Pennon said.

“For 2024, whilst six of the seven EPA metrics are tracking positively towards four-star equivalent performance, current operating conditions have meant the benefits of our pollution incident reduction plan will not be seen until 2025 “As such overall four-star EPA status is now reprofiled for 2025.”

Pennon said: 'Annual rainfall in the South West has increased by 50 per cent in the second half of the year, when compared to long term averages, in addition to the 10 named storms since September 2023 and 12 yellow weather warnings for rain in the region. 

'The significantly increased wastewater flows have impacted our headline performance for wastewater pollutions and use of storm overflows.

'That said, we continue to make sustainable progress on delivering environmental improvements across the region, with 78 interventions underway to improve 49 of 151 beaches through our WaterFit programme by 2025.

'For 2024, whilst six of the seven EPA metrics are tracking positively towards 4 star equivalent performance, current operating conditions have meant the benefits of our Pollution Incident Reduction Plan will not be seen until 2025. 

'As such overall 4 star EPA status is now reprofiled for 2025.'

In recent years, Pennon has been investing to improve its environmental performance. 

It has now completed work to diversify its water resources in Devon, and has done 70 per cent of the works it plans in Cornwall.

The company intends to increase Cornwall's water resources 45 per cent by 2025, and has met its ambition to increase Devon's resources by 30 per cent a year ahead of schedule.