(Alliance News) - Pennon Group PLC's South West Water business became the latest to be targeted in the UK Water Services Regulation Authority's investigation into the environmental performance of water companies.
Shares in Pennon were down 6.1% at 1,004.50 pence on Tuesday morning in London - the worst performer in the FTSE 250.
Pennon acknowledged on Tuesday that South West Water is now part of an ongoing investigation into how water and wastewater companies manage their wastewater treatment works. The Exeter-based utility said it will work "openly and constructively" with Ofwat.
Five earlier enforcement cases were opened in March against other UK-based water companies, South West Water joins to become the sixth company investigated thus far.
"The serious concerns we identified last year prompted our initial focus on five companies. As we gather and analyse more information, including data on storm overflow spills, our concerns have grown further about South West Water's operation of its wastewater assets and environmental performance. As a result, we have opened an additional enforcement case into South West Water," explained Ofwat Chief Executive David Black.
Ofwat added that is working with the UK Environment Agency, which is carrying out a criminal investigation into companies' compliance with environmental permits.
By Heather Rydings; heatherrydings@alliancenews.com
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Pennon (PNN)
