Pennon is an environmental infrastructure group focused on the UK water sector.
Our team of around 4,000 talented colleagues work around the clock to deliver over 1 billion litres of water to 4.24 million people every day.
Our team of around 4,000 talented colleagues work around the clock to deliver over 1 billion litres of water to 4.24 million people every day.
Our customers have been at the heart of developing our Business Plan for 2025 to 2030; to this end, we have had more direct feedback and engagement than ever before and we have listened to the views of more than 250,000 customers. These interactions have led to the creation of our four strategic priorities.
IIn 2022/23 we announced our approach to breaking the cycle of drought in the South West which would be achieved through enhancing our supplies across Devon and Cornwall as well as targeting water efficiency. These measures are part of a £125 million shareholder injection and would bring an increase in resources in Cornwall and Devon by 45% and 30% by 2025.
During 2023/24 we have broken the drought cycle with our strategic reservoirs reaching 100% peak capacity in early April 2024 – a third of this storage was achieved through our interventions.
new sources in development including desalination plant
of total investment in clean water
By 2030, we will have tackled all storm overflows at our bathing beaches, shellfish waters and high-spilling sites given the importance of tourism to our region. In the meantime, and to restore confidence in our bathing waters, we will implement a first of- its-kind monitoring regime so everyone can feel they can enjoy being in the water at their favourite beach. We are implementing our “Green First” approach to investment, working with nature to improve drainage and reduce storm overflows.
of storage increases
of total investment in wastewater
In April 2023, Pennon Power acquired its first renewable energy site for development in Dunfermline, Fife. The site comprises a 45MWp solar farm, with a 30MW 2-hour co-located battery storage system, situated on the site of a former open-cast coal mine. The annual generation from this single asset will be equivalent to the entire current Group renewable energy portfolio.
Solar Sites acquired
of investment
To achieve our target of eradicating water poverty by 2030, we have worked with CACI and ICS to develop a water poverty model, supported by an extensive suite of data, allowing us to identify with high levels of probability those customers who are in water poverty and in need of our support. To deliver this we have announced our largest ever package of support, of over £200 million by 2030.
Customers moved onto social tarriffs in the year
of financial suppport to customers
people served
of financial support provided to customers since 2020
children taught across 116 schools using education resources
LeakBot devices sent out to homes
apprentices supported since 2020
colleagues
“We’re doing this, for a water system that everyone can be proud of.
“The fundamentals are strong for a more sustainable future.
“I am excited to have joined Pennon at this time in the Company's development.
Beaches, bathing waters, rivers and our natural environment set us apart as a region. We recognise that is what makes us unique.
Pennon is engaged and participating in a range of local and regional public, private and third sector partnerships tacking action to tackle climate change and nature recovery, including the local nature partnerships and catchment partnerships.
CREWW, is a 25-year research partnership between South West Water and the University of Exeter (UoE).
Officially opened in March 2024, the new dedicated, operationally net zero research facility is underpinned by a £21 million capital and research investment by South West Water. It is the only water sector partnership to receive support from the UK Research Partnership Investment Fund (UKRPIF), as well as being the largest RPIF-sponsored project in the South West. CREWW has already begun working on projects including the creation of a state-of-the-art laboratory which will tackle the scourge of microplastics in our environment. The project represents an investment of £1.4 million from South West Water and will initially develop our understanding of the presence of microplastics in sewage sludge to inform our wastewater operations.
Across the Group we are trusted to provide a clean, safe and reliable water supply to c.3.5million people across Bristol, Bournemouth, Devon, Cornwall, the Isles of Scilly and parts of Dorset. The health of our environment is intricately linked to the state of our water supply, so as we look to ensure robust supplies into the future, we focus on protecting the environment from which we take raw water to be treated and put into supply.
A new supply at Gatherley was delivered in the year (adding to the Lyd pumping scheme last year), reaching our 30% increase in resources target for Devon.
We have also achieved 30% in Cornwall with the completion of a new 22km pipeline network and raw water pump station at another redundant quarry in Mid-Cornwall, named Blackpool Pit. This new pipeline network and pump station will supply raw water straight to Cornwall’s strategic water treatment works in Lostwithiel.
The abstraction pontoon at Blackpool Pit is pictured opposite. We continue with our investments at Porth Rialton and desalination to deliver the remaining 15% for Cornwall.
The Natural Resources Team have removed non-native trees from two wastewater treatment sites to remove large conifer trees as part of biodiversity improvements.
The trees that have been removed have been replaced with native broadleaf species such as oak, hazel, lime and rowan that offer much greater benefits to birds and other species.
The logs from the cut conifer trees have been recycled for use in peatland restoration work at two South West Water sites – Burrator Reservoir in Devon and Park Pit in Cornwall. This work is being carried out by the South West Peatland Partnership, a £13 million project, led by South West Water, which is delivering peatland restoration in the South West of England.
The wood removed from the sites has been used by the South West Peatland Partnership to create leaky wooden dams, or timber rounds, which help to trap water in the environment, restoring dried and degraded peat bogs. The work will ultimately help to prevent run-off from the land into the watercourse, improving water quality in the area and trapping carbon in the landscape.
In 2021, we published our Promise to the Planet – our ambitious plan to reduce our operational carbon emissions to Net Zero by 2030. During 2023/24 we have committed to even more ambitious targets, to go beyond reducing our operational emissions, and set out scope 1, 2 and 3 GHG emission reduction targets, targets to reduce emissions across our value chain, and to increase our use of renewable electricity.
Our three-pillar strategy remains unchanged
Maximising self-generation from renewables at our sites across the South West - working with partnerships and utilising our expertise.
We are driven by our strategic focus of leading on UK environmental infrastructure, delivering for the benefit of our customers, communities, and the environment. Further detail can be found in our TCFD and TNFD report.
Through our purpose and values, we aim to increase our social value, providing support to our people, customers and communities. As a business, we serve a regional population of c.4.5 million, which can swell to c.10 million in the summer, and our c.4000 employees go to great lengths to provide exceptional service every day of the year.
Our goal is to be the Employer of Choice across our region through promoting social mobility, prioritising Diversity and Inclusion by addressing racial and gender inequality. We provide safe, secure and meaningful employment where all employees are paid fairly for the work they do and where trust is high. We want to show that it is a dynamic and exciting time to be working in the water industry.
Our new values acknowledge a significant shift in how we seek to deliver our strategic priorities across the Group and are intended to serve as a unifying thread across all areas of the Group.
Be you
We want you to bring your best every day. Be open and inclusive, work together and win as one team. Let your passion inspire those around you. Be authentic, make your mark and be you.
Be rock solid
We want you to be the one we all look up to. Be trusted. Act with integrity and make good on your promises. Build trust, one relationship at a time. Be rock solid.
Be the future
We encourage you to be curious and challenge convention. Share ideas with confidence and purpose, and help share our future. Embrace change. Drive progress. Own the challenge. Be the future.
In 2019 we made a pledge to eradicate water poverty and ensure everyone has an affordable bill by 2025, a full five years ahead of the industry target. This was set for South West Water and Bournemouth Water, with a similar target independently set by Bristol Water, to achieve 0% in water poverty.
With households feeling the impacts of the cost-of-living crisis, we have extended our package of affordability measures, unlocking £100m of financial support for customers, and we are pleased that we are on track to achieve our industry leading commitments to eradicate water poverty by 2025. A commitment we have doubled down on in our Business Plan to 2030.
98% of South West Water and Bournemouth Water households have been independently assessed as having an affordable bill. This is up from 96.8% last year. 100% of Bristol Water customers receive an affordable bill. Over 132,000 unique customers have benefited from one or more of our affordability initiatives across South West Water, Bournemouth Water and Bristol Water to date. We are focused on lifting a further 10,000 customers out of water poverty in the next year as we continue to evolve our affordability toolkit. This includes our innovative data model allowing us to identify and auto enrol customers who are within the group who are often the most vulnerable and hardest to reach onto social tariffs. We are also continue to work with local councils and debt partners to identify customers who may be in financial difficulty and may need support.
We are integral to the communities across our region and we are committed to listening and engaging regularly to understand their needs, working together to ensure water for all and protecting our environment today and for future generations.
