SOUTH West Water chief executive officer, Susan Davy, has announced her decision to step down, marking the end of an 18-year career with the utility giant and its parent company, Pennon Group.

Her departure also signals her retirement from the Pennon Group board, where she has served as CEO since July 2020, following five years as chief financial officer.

In a statement released today, Ms Davy said the time was right to “pass leadership to a new generation” after nearly three decades in the water industry.

Her retirement comes at a critical moment for South West Water, just one day after industry regulator Ofwat published damning findings about the company’s wastewater operations.

Ofwat's investigation uncovered a “range of failures” at South West Water, including inadequate management of wastewater treatment works and sewer networks, as well as weak oversight from senior leadership and the board. The regulator concluded that the company had “failed to meet its legal obligations.”

In response, South West Water has proposed a £24-million enforcement package aimed at tackling storm overflows, addressing sewer misuse, and funding environmental initiatives. The package will be funded by the company and its shareholders – avoiding what would have been a £19-million fine, equivalent to 6.5 per cent of annual turnover, payable to the Treasury.

The enforcement proposal forms part of a broader review by Ofwat and the Environment Agency into all water and wastewater companies in England and Wales.

Reflecting on her tenure, Ms Davy said: “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 added that Ofwat’s recent approval of Pennon’s investment plans provided a “natural juncture” for her to retire.

A successor will be announced in due course.