Committee publication · Correspondence · 6 March 2026
Correspondence from South West Water regarding debt collection practices, dated 22 December 2025
From: Environment, Food and Rural Affairs Committee
Inquiry: Reforming the water sector
Summary
South West Water (Pennon Group) responds to the Environment, Food & Rural Affairs Committee's November 2025 inquiry into debt collection practices. The company defends its approach, citing £200 million in affordability support provided to over 150,000 customers, a multi-stage debt recovery pathway prioritising early intervention, and vulnerability assessments conducted before enforcement action. The letter includes detailed responses on enforcement cases under £1,000, suspended committal orders, and vulnerability screening protocols.
Key findings
- South West Water has provided £200 million in financial support to over 150,000 customers, including 'Freshstart' debt clearance grants and tailored affordability schemes.
- In 2025, 2,704 accounts escalated to enforcement; 1,036 of these involved debts under £1,000, with an average debt of £1,763.60.
- The company operates a multi-stage debt pathway: reminder letters and outreach, advance notice of court action with timeframe, 30-day post-judgment window for payment, and only then enforcement agents or charging orders.
- Before high court enforcement, South West Water conducts full account reviews; customers aged 75+ are automatically excluded, and cases flagged for domestic violence, disability, mental health, or bereavement are held or managed differently.
- The company states it does not seek suspended committal orders (SCOs) and claims the Consumer Council for Water has received no complaints about Ofwat Paying Fair Guidelines non-compliance.
Tone
SupportiveTopics
Key actors
Alistair Carmichael MP, Susan Davy, Ian Cain, South West Water, Pennon Group, Consumer Council for Water, Court Enforcement Services, Ofwat
Notable line
“Litigation is always the final step in our debt pathway. Our approach prioritises early intervention, clear communication …”
Key Quotes
“… we have expanded support to over 150,000 customers across all our brands. By unlocking £200 million in financial support, we met our pledge to eliminate water poverty in the South West by March”
“Litigation is always the final step in our debt pathway. Our approach prioritises early intervention, clear communication, and collaborative solutions to resolve issues before they escalate.”
“Customers aged 75+ are automatically excluded. Other triggers include domestic violence, disability, mental health conditions, medical issues, young children, and bereavement.”
“We do not take any recovery action before the County Court judgment. We want to give the customer plenty of opportunity to contact us before this.”
Source · parliament.uk record ↗