A former water company boss has been handed a £270k bonus despite a parasite outbreak that sickened more than 140 people and caused a public health scandal.
Susan Davy stepped down as chief executive of Pennon, the group that owns South West Water, last year. She received the six-figure sum despite the board initially deciding to withhold the bonus following a public outcry.
South West Water pumped drinking water to thousands of homes in Devon containing cryptosporidium, a microscopic parasite that causes a highly infectious gastrointestinal illness.
The outbreak in May 2024 impacted approximately 17,000 homes and lasted more than 50 days.
The parasite left four people requiring hospital treatment and caused more than 140 confirmed cases of sickness and diarrhoea.
South West Water was fined a record £1.8m after pleading guilty to supplying water unfit for human consumption, following a prosecution brought by the Drinking Water Inspectorate. The company offered a “full and unreserved apology”.
Former environment secretary Steve Reed introduced legislation in February 2025 to prevent water companies paying out bonuses to executives if they fail to meet strict environmental and consumer standards.
However, Davy’s payouts were reinstated after guidance from regulator Ofwat over how the new rules would be applied.
Davy, who claimed the parasite outbreak caused her “sleepless nights”, received a £270,000 bonus for 2024-25 and an £87,000 bonus for 2025-26, The Telegraph reported.
That was in addition to a base salary and benefits of £561,000 for 2024-25, and £473,000 for the nine months of 2025-26 before she left the company.
With pensions and share allocations, Davy earned more than £1m in 2024-25.
Allies of Andy Burnham, who is widely believed to be the next prime minister-in-waiting, have said the new MP for Makerfield wants to bring ‘the essentials of life’ – including water – back into public control.
More than four in five Brits support nationalising the country’s water companies, YouGov polling from earlier this month revealed.
Tom Midlane is a freelance journalist.