£3.2bn Investment to Transform Water Services: What It Means for Cornwall and Beyond

Record Investment Across the South West

Pennon Group has announced a record £3.2 billion investment to improve water services and environmental efforts across the South West, Bristol, Bournemouth, and Sutton and East Surrey. This major commitment will cover the 2025-2030 period and aims to address top customer priorities, including providing safe, clean drinking water, reducing storm overflows, and boosting environmental sustainability through renewable energy investments.

Keeping Bills Low While Addressing Key Issues

Despite the ambitious plans, Pennon is forecasting relatively low bill increases compared to the sector. Customers can expect an average increase of £4 per month for water services and £5 per month for sewerage services. Alongside this, the company is launching a £200 million support package to assist customers in need and extending its pledge to eliminate water poverty to 2030.

Susan Davy, CEO of Pennon, highlighted the company’s focus:
“Today’s news from Ofwat means that we have been given the green light to invest a record £3.2bn level over the next five years. This is on top of the £1.2bn we’ve already invested in our assets recently. We’re serious about making a difference now and in the future – our customers rightly deserve to see real change which we are already delivering. At the same time, we’re here to support customers to use less water, save more money as we do more than ever to support anyone struggling to pay their bill.”

Four Key Areas of Focus

1. Improving Water Quality and Resilience

Pennon is investing in new treatment works, reservoirs, and addressing lead pipe issues to ensure reliable, clean water for all. Key upgrades include:

• Upgrading a third of water treatment works in Devon and Cornwall.
• Reducing leakage to less than 10% across networks and less than 4% on customer properties.
• Connecting strategic reservoirs through a new water grid.
• Launching new large reservoirs, starting with Cheddar 2 in Bristol.

2. Tackling Storm Overflows and Pollution

The company has pledged to eliminate storm overflows at bathing and shellfish waters by 2030. Actions include:

• Addressing every bathing beach in the region.
• Strengthening trust in bathing water quality through comprehensive sampling and monitoring.
• Using a “Green First” principle to address storm overflows.

3. Supporting Customers and Keeping Services Affordable

Despite doubling its investment, Pennon aims to maintain affordability:

• Extending its zero-water poverty pledge to 2030.
• Offering a £200 million affordability package to help customers.
• Accelerating smart metering to help households reduce water usage by 5%.

4. Reaching Net Zero and Enhancing Environmental Efforts

As part of its commitment to achieving Net Zero by 2030, Pennon will:

• Plant 300,000 trees, create 1,000 ponds, and introduce a £2 million Nature Recovery Fund.
• Recycle more waste and generate enough energy to power 20,000 homes.
• Expand its award-winning Upstream Thinking catchment management programme, covering 146,500 hectares by 2030.

Delivering for the Future

With a mix of environmental gains, infrastructure upgrades, and customer support, Pennon’s £3.2 billion investment promises transformative improvements for communities across the region. While challenges such as bill increases remain, the company’s substantial support package and long-term plans aim to ensure fairness and sustainability.

For more information, visit Pennon Group’s website.