Water industry regulator Ofwat has launched an "enforcement investigation" into South West Water.
The water company, which is owned by Exeter-based Pennon Group, is under scrutiny regarding the accuracy of information reported for its performance on leakage and per capita consumption (PCC).
Ofwat sets performance targets for companies on leakage and PCC. Companies are assessed against these targets annually and can be penalised or rewarded, depending on their performance. The regulator investigates water companies when it believes there may be a breach of an obligation that Ofwat has powers to enforce.
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In November 2022, Ofwat deferred a decision on the progress South West Water has made towards its leakage performance commitment, as it sought to understand how the company calculated its reported performance.
David Black, Ofwat chief executive said: “We are committed to holding companies to account for performance and for sharing timely, accurate, and complete data with us and their customers. We want to ensure that is the case here. A thorough investigation will now be carried out and we will provide updates in due course on our findings and whether there is any further action Ofwat needs to take.”
Ofwat has stated that it will not provide further information on the investigation until it reaches a conclusion.
A South West Water spokesperson told BusinessLive: "It's important our customers have confidence in our data. That's why we rigorously check our data which is externally audited by an independent third party. We will of course provide any information the regulator requests and we will fully cooperate."
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