Competition watchdog sounds alarm over Pennon’s takeover of Sutton and East Surrey Water

By City & Finance Reporter

Updated:

The competition watchdog has sounded the alarm over Pennon’s takeover of Sutton and East Surrey Water.

In yet another setback for the debt-riddled industry, the Competition and Markets Authority (CMA) said the deal could undermine Ofwat’s authority as water regulator by wiping SES from its dataset.

This would make it harder to compare companies – denting its ability to estimate cost allowances and set service quality targets. 

Alarm: Pennon, which already owns South West Water, Bristol Water and Bournemouth Water is run by chief executive Susan Davy (pictured)

Pennon, which already owns South West Water, Bristol Water and Bournemouth Water is run by chief executive Susan Davy. It 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 probe comes amid a torrid period for the water industry, with operators put under the microscope in a scandal over sewage discharges in recent months.

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