By Adam Whittaker

Pennon Group's South West Water has agreed to pay $32.6 million after failing to meet legal obligations regarding the management of its wastewater network.

The penalty follows an investigation by the U.K. water regulator Ofwat into the sector after high-profile spills of wastewater into the environment.

South West Water's 24 million pound ($32.6 million) penalty follows action against Yorkshire Water, Thames Water and Northumbrian Water earlier in the year, which resulted in enforcement action worth more than 160 million pounds, Ofwat said.

Ofwat said South West Water had inadequate management systems to ensure it was meeting its legal obligations. It will take steps to address the identified failures, the regulator said.

South West Water will invest 20 million pounds through to 2030 to reduce spills from storm overflows. It will also establish a 2 million pound fund to tackle sewer misuse and misconnections, and provide 2 million pounds to the Nature Recovery Fund.

In opening trade, Pennon's shares rose 1% to 499 pence.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

July 10, 2025 03:11 ET (07:11 GMT)

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