The competition watchdog has raised the alarm over Pennon’s acquisition of Sutton and East Surrey Water.
In yet another setback for the debt-ridden industry, the Competition and Markets Authority (CMA) said the deal could undermine Ofwat’s authority as water regulator by deleting SES from its data set.
This would make it more difficult to compare companies, affecting their ability to estimate cost allocations and set service quality goals.
Alarm: Pennon, which already owns South West Water, Bristol Water and Bournemouth Water, is led by chief executive Susan Davy (pictured)
Pennon, which already owns South West Water, Bristol Water and Bournemouth Water, is led by chief executive Susan Davy. She has until May 13 to respond.
FTSE 250-listed Pennon bought Sumisho Osaka Gas Water UK, including its subsidiary SES Water, in January for £380m.
The investigation comes amid a torrid period for the water industry, with operators put under the microscope in a scandal over wastewater discharges in recent months.