Committee publication · Correspondence · 13 May 2025

Correspondence to Susan Davy, CEO, Pennon Group regarding Reforming the water sector inquiry, dated 13 May 2025

From: Environment, Food and Rural Affairs Committee

Inquiry: Reforming the water sector

Summary

The Environment, Food and Rural Affairs Committee writes to Pennon Group CEO Susan Davy requesting detailed information on remuneration models, dividend policies, and spending on advertising and legal fees for the company's water and wastewater operations. The Committee expresses concern about executive bonuses, dividend payments, and billpayer money spent on legal action against regulators.

Key findings

  • Committee seeks details on remuneration committee selection, senior executive bonus policies, and how these have evolved over five years
  • Committee concerned about bill payer funding for advertisements and legal action against Ofwat, the Environment Agency, and the Drinking Water Inspectorate
  • Committee requests five-year breakdown of spending on advertising and legal activities with rationale for expenditure
  • Inquiry addresses 'culture of bonuses and paying dividends' with 'varying standards' across the industry

Tone

Procedural

Topics

water-regulationcorporate-governanceexecutive-paypublic-financeutilities

Key actors

Susan Davy, Pennon Group, Environment, Food and Rural Affairs Committee, Ofwat, Environment Agency, Drinking Water Inspectorate

Notable line

My Committee remains concerned about the culture of bonuses and paying dividends and the varying standards being applie d.

Key Quotes

My Committee remains concerned about the culture of bonuses and paying dividends and the varying standards being applie d.
Environment, Food and Rural Affairs Committee · on remuneration and dividend policies
My Committee is also concerned about bill payer money being spent on advertisements and legal action against Ofwat, the Environment Agency and the Drinking Water Inspe ctorate .
Environment, Food and Rural Affairs Committee · on use of customer funds for legal and marketing activities
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Source · parliament.uk record ↗