The chief executive of South West Water has announced her resignation following a string of public crises, including major sewage pollution scandals and a damning ruling by water watchdog Ofwat.
Susan Davy, who has led Pennon Group and South West Water (SWW) since 2020, will step down after nearly two decades with the company. Her departure comes just one day after Ofwat ordered SWW to spend £24 million to tackle failings in how it manages its wastewater systems, following a three-year investigation.
The announcement follows a year marred by PR disasters. A cryptosporidium outbreak in Brixham left thousands boiling their water and several hospitalised. In Plymouth, a burst main cut off water supplies for days, while residents across the South West continue to voice outrage over repeated sewage spills on beaches.
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Ms Davy, who earned over £800,000 last year, said:
"It has been an honour to serve as chief executive of Pennon. Running a water company is always interesting, often challenging, but totally fulfilling."
The move also follows intense political pressure. On Thursday, Plymouth MP Fred Thomas led a group of South West MPs demanding Ms Davy return what they described as a £200,000 bonus to customers. She later clarified she had received no formal bonus this year but was awarded £191,000 in variable pay.
Ms Davy joined Pennon in 2007 and became CEO in 2020, during which time she led several acquisitions and announced a record £3.2bn investment plan for the region. But the company has faced growing backlash over its environmental record and customer service failures.
In its report, Ofwat found South West Water had “systemic failings” that led to illegal sewage spills and inadequate oversight by senior leaders. Rather than issue a fine, the regulator accepted a £24 million enforcement package, to be funded by the company and its shareholders.
David Sproul, chairman of Pennon Group, said:
“Susan has led Pennon through its transition to focus on UK Water. The board and I are incredibly grateful to Susan for her unwavering leadership.”
Despite stepping down, Ms Davy will remain in post temporarily to ensure a “smooth and orderly transition” while a successor is appointed.
The news marks another chapter in a turbulent period for the water company, which has faced legal action, public protests and media scrutiny over its environmental performance.
As local residents and politicians call for reform, all eyes will now turn to the next chief executive and whether they can restore trust in one of the South West’s most controversial companies.
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