Pennon Group PLC (LSE:PNN, OTC:PEGRY) has warned it is seeing a rise in bill strikes or customers refusing to pay due to anger at levels of sewage dumping and river and sea pollution.
The South West Water owner said in a bond prospectus that while it was not having a material impact on profits yet, it had noted a growing number of people withholding payments.
“Customers are actively withholding water bill payments in protests over pollution and water quality.”
Environmental groups have been driving this trend, it said, and are encouraging bill payments to be withheld until the storm overflows [sewage discharge] issue is resolved.
Pennon said it had taken a stake in one customer’s home after they refused to pay.
Sewage dumping has become a major issue for all water companies but South West Water has become a touchstone after a diarrhoea outbreak in Brixham in May caused by parasites in the drinking water.
Pennon was slammed for paying out a dividend of £127 million while customers in the fishing and tourist town were either drinking bottled water or having to boil it.
Ofwat recently gave South West Water the go-ahead to raise annual bills to £561 within the next five years, up from £497 today partly to help pay for upgrades to tis infrastructure and storm overflows.
Shares in Pennon were down 2.6% at 620.5p.