South West Water shamefully pays out £116m in dividends despite Brixham parasite scandal

Richard Foord has criticised South West Water for once again increasing their dividend payout – in spite of the contaminated water scandal in Brixham – and said the money should instead be used to bolster Devon's ageing water infrastructure.

The outbreak of cryptosporidiosis has resulted in more than 50 people being infected from drinking contaminated water, with two requiring hospital treatment, and thousands left without access to safe water for several days.

The Pennon Group, which owns South West Water, has blamed the outbreak on a faulty valve. However, despite this incident, the company has this week increased its dividend payout to shareholders yet again by a further 3.8%.

This means that shareholders will receive a roughly £116million payout at the same time that South West Water is hiking people's water bills, arranging compensation for the Brixham contamination, and facing millions in fines from the Environmental Agency.

Richard Foord said:

"This saga is a disgrace and proof that the government has lost control of these profiteering water firms - who continue to prioritise dividends over much-needed investment.

"South West Water must not pay their Executives a single penny in bonuses this year. Instead, the money should be put towards compensation for those affected in Brixham, and ensuring this situation never happens again.

"Pennon bosses have a lot of questions to answer for, including why they're once again issuing huge shareholder payouts at the same time that our infrastructure is falling apart. This will be a hard pill to swallow for customers who are seeing their bills rise yet again.

"These companies are no longer fit for purpose. They need to be reformed from top to bottom; they must no longer put profit ahead of people's safety and our precious natural environment."