Pennon Group PLC (LSE:PNN, OTC:PEGRY) has warned that efforts to prevent sewage pollution from flowing into rivers will be delayed due to heavy rain in the southwest of England.
In a full-year update, Pennon said trading for the year remains in line with expectations but benefits of its pollution reduction plan would not be seen until 2025, after rainfall in the region climbed by 50% in the latter half of the year compared to long-term averages.
“The significantly increased wastewater flows have impacted our headline performance for wastewater pollutions and use of storm overflows,” the report read.
Britain’s water sector has faced intense scrutiny in recent years over the amount of sewage which reaches and is ultimately dumped in rivers.
Sector bosses had argued last month that prospective plans to cap or ban dividends may affect companies’ plans to improve infrastructure to prevent such sewage spills.
Pennon said it anticipated being granted a two-star environmental rating after the knock to the pollution plans, with this improving to four stars in 2025, a year later than its original target.
Pennon added its takeover of Sutton and East Surrey Water, unveiled in January, was currently under regulatory review and could be granted initial clearance as early as this summer.