South West Water parent company says jobs at risk in 'savage' news

Generic picture of South West Water workers fixing leaks
-Credit: (Image: South West Water)


The parent company of South West Water has told staff that some jobs are at risk as part of a review. Pennon has sent letters stating "potential redundancies" are in the pipeline.

The company says it intends to "reshape the size of the wastewater business" to around 840. The full scope of the review is not known but DevonLive understands that staff in at least one other department have also been sent emails.

Pennon says its actions are part of a redeployment of resources and will also "create some new opportunities". It has not provided a figure for the number of people at risk but stresses many workers sent letters will be reassigned to the front line as the company refocuses its priorities. It comes in the wake of recent public criticism about its performance.

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One worker described the news as "savage", coming just weeks before Christmas. "It's a bitter pill bearing in mind the efforts people have put into this business. It's a massive demotivator.

"The people that work for the company are not responsible for the criticism it gets. They are clever, loyal, smart people."

Pennon's wastewater team is responsible for the management and maintenance of the sewerage network. Skilled engineers and staff maintain over 14,000 miles of pipes and 655 wastewater treatment works.

Pennon has told those whose roles are at risk there will be a period of consultation and they can apply for other roles within the organisation.

The letter to staff - seen by DevonLive - states that "performance needs to improve" and the company needs to be "more efficient" in the way it works. It also acknowledges the need for "tough decisions" if customers are to get the service they want.

It adds: "As a result of these changes, we will reshape the size of the Wastewater business to around 840 which will create some new opportunities as well as some potential redundancies."

The news comes amid criticism of South West Water's management of the sewage network. More than two months after a sewer burst in Exmouth, permanent repair work is finally getting underway.

It also comes against a backdrop of rising water prices and the company's commitments to ongoing projects.

Ofwat, the water services regulation authority, has proposed a 13 per cent bill increase for people which would begin at the end of March 2025. Customers will also see their bills increase after the government removed its £50 contribution.

With jobs being at risk and roles being axed the public will also want to know how Pennon Group, which operates through its subsidiaries South West Water, Bristol Water, Bournemouth Water and SES Water, plans to meet environmental targets.

Earlier this year South West Water published its strategy for the next five years in which it said it would review parts of the organisation to deliver on promises to customers and invest more resources on the front line.

South West Water has released a statement in response to the letters. It says: "We have ambitious plans to deliver as we invest £2.8bn over the next five years. We know customers and communities want to see change now and we need improve what we do, today.

"As part of this, we want to have more people delivering the services that customers want, making sure that customer and community service delivery is as at the heart of what we do. We will be strengthening our front line and field based teams to further support what we do today, and ensuring we are all working to support our customers.”