Victims of South West Water’s parasite outbreak will receive just £215 each, while the company’s investors will share in a £127m dividend bonanza.
Hundreds of people became ill from the waterborne cryptosporidiosis parasite over the past week, with around 17,000 homes in the Brixham area affected.
Pennon Group, the listed parent company of the discredited utility which also owns Bristol Water and Bournemouth Water, said yesterday it would give affected households total compensation of £3.5 million.
But this was overshadowed by the payment of dividends to shareholders, which came despite racking up an annual loss of £9.1m.
The move sparked calls for Pennon chief executive Susan Davy (pictured) to resign.
Missing: Campaigners now calling for Pennon chief executive Susan Davy (pictured) to resign
Dan Coatsworth, analyst at City investment platform AJ Bell, said: “Clients affected by the Brixham parasite crisis will be angry that they will only receive £215 compensation for considerable disruption, while Pennon shareholders are reaping dividends.”
It implies that Pennon’s top brass is totally out of touch with how to behave as good corporate citizens.
The dispute at Pennon comes less than a week after rival United Utilities handed out almost £340m to shareholders despite being accused of pumping millions of liters of wastewater into Windermere in the Lake District. .
Environmental campaigner Feargal Sharkey said yesterday: “The water industry never ceases to amaze me with the level of utter incompetence, chaos and out of control industry it has become.”
The outbreak of cryptosporidiosis, a contagious virus that causes vomiting, fever, cramps and diarrhea, has been traced to a South West Water reservoir.
A total of 46 cases have been confirmed and two people have been hospitalized, but hundreds of people are believed to be suffering from symptoms that can last up to two weeks.
The crisis is just the latest to hit the industry amid outrage over the dumping of sewage into Britain’s rivers and lakes. There are also fears about the future of Thames Water as it struggles under the weight of its crippling £18bn debt.
Pennon said investors will receive a dividend of 44.37 pence per share.
£2.4 million was deducted from the £126.9 million total to reflect a record sewage fine last year, but the payout was still 3.8 per cent higher than the previous year.
Parasite outbreak: Pennon Group, the parent company of listed South West Water, said it would hand over supplied dirty water worth a total of £3.5m to customers.
Anthony Mangnall, Conservative MP for Totnes and South Devon, said the dividend payment was “completely unacceptable”.
He added: ‘This offering of tin ears is a slap in the face to those who have been so badly affected by South West Water. I suggest they suspend the dividend offer or Susan Davy resigns.
“It is hugely disappointing, at a time when public confidence in South West Water is at an all-time low, they have decided to push ahead and pay dividends.”
Davy insisted South West Water was “working tirelessly around the clock” to ensure the health and safety of customers. “We won’t stop until our local drinking water is back to the quality all of our customers expect and deserve,” she said.
Davy took home a £543,000 salary last year after giving up his six-figure bonus due to public and political pressure over sewage spills.
It comes as an annual survey found satisfaction with water companies has seen an unprecedented decline.
The Consumer Council for Water survey found that only 35 percent were satisfied with the way they manage wastewater, down from 88 percent a decade ago.
And all water companies saw their trust scores drop, with energy providers overtaking them for the first time as most trusted utilities.