Susan Davy has announced her decision to step down as the chief executive officer of South West Water, marking the conclusion of her 18-year career with the company and its parent organization, Pennon Group.
Davy, who has served as CEO of Pennon Group since July 2020 and previously held the role of chief financial officer for five years, will also retire from the Pennon Group board.
In a statement issued last week, Davy explained that she felt it was the right time to "pass leadership to a new generation" after nearly three decades in the water industry.
Her decision to retire comes at a time of scrutiny for South West Water. The announcement follows a report by industry regulator Ofwat, which highlighted a range of issues within the company’s wastewater operations. The investigation found shortcomings in the management of wastewater treatment works and sewer networks, as well as a lack of adequate oversight from senior leadership and the board. Ofwat concluded that South West Water had "failed to meet its legal obligations."
In response to the regulator's findings, South West Water has proposed a £24-million enforcement package aimed at addressing storm overflows, tackling sewer misuse, and funding environmental initiatives. This proposal, which the company and its shareholders will finance, seeks to avoid a £19-million fine, equivalent to 6.5 per cent of the company’s annual turnover, which would have been payable to the Treasury.
The enforcement package is part of a broader review being conducted by Ofwat and the Environment Agency into all water and wastewater companies in England and Wales.
Reflecting on her tenure, Davy stated, "It has been an honour to serve as Chief Executive Officer of Pennon. Running a water company is always interesting, often challenging, but totally fulfilling. I have enjoyed taking responsibility for providing a sustainable service to millions of homes." She also noted that the recent approval of Pennon’s investment plans by Ofwat represented a "natural juncture" for her to retire.
