The chief executive of Pennon Group, the company that owns South West Water, announced her resignation on 11 July - just a day after the firm was hit with a £24 million enforcement package by industry regulator Ofwat.

Susan Davy, who has led the FTSE 250 water and waste management company since 2020, confirmed her retirement from the top job following a turbulent period for the company - including a £72.7 million loss and mounting political pressure over water quality and supply failures.

Her departure comes after a three-year investigation by Ofwat found South West Water had fallen short in managing its wastewater treatment works and sewer networks, culminating in a demand for urgent improvements.

Confirming her resignation, Ms Davy said: “Running a water company is always interesting, often challenging, but totally fulfilling. I have enjoyed taking responsibility for the provision of a sustainable service to millions of homes.”

The company added that after more than 18 years at Pennon - and nearly 30 years in the water sector - Ms Davy had decided “the time is right for her to hand over to a new leader”.

MPs across the South West had called for her to step down in recent weeks, citing poor performance and public health concerns. In a joint statement, Newton Abbot MP Martin Wrigley and South Devon MP Caroline Voaden said they had “no confidence in her leadership”.

Following her announcement, Ms Voaden commented: “This announcement closes a sorry tenure as CEO of South West Water where Ms. Davy oversaw shocking levels of sewage spills, plummeting customer confidence, and a water contamination event that sent people to hospital.

“In truth, this decision should have come a lot sooner. The shocking report from Oftwat was clearly the straw that broke the camel’s back, and for me, epitomised the negligent attitude SWW has shown to the environment and its customers in the past five years.”

Mr Wrigley said: “Following our joint letter calling for the resignation of Susan Davy, we would like to thank her for making the right decision in light of the recent findings of Ofwat. We can look forward to new ways of working for both the environment and customers; South West Water and Pennon Group have the opportunity now to appoint someone who can take the company forward.”

Ms Davy has faced growing scrutiny in the past year over a series of high-profile incidents, including a Cryptosporidium outbreak in Brixham that left residents ill, and prolonged water outages in Plymouth and Tavistock. Her £803,000 pay package - which included £191,000 in “variable pay” despite the company’s financial and operational woes - also drew criticism from campaigners and politicians. Ms Davy maintained she received no bonus this year.

While Ms Davy’s resignation may satisfy public and political calls for accountability, the real test will be whether new leadership can restore trust and deliver tangible improvements. Customers across the South West - many of whom have faced boil-water notices, service outages, and environmental degradation - will now be watching closely to see if this change signals genuine reform or simply a reshuffling at the top.