South West Water Ltd has been fined a record almost £2m for supplying water unfit for human consumption following a parasite outbreak in Devon.
The company pleaded guilty to an offense under section 70(1) of the Water Industry Act 1991 for contaminating water with cryptosporidium, a parasite that causes disease and diarrhoea.
Exeter Magistrates' Court heard there were 537 probable or confirmed cases of cryptosporidiosis, with at least 10 people admitted to hospital.
More than 16,000 homes in the area were issued boil notices, where water must be boiled and then cooled before being consumed, which were not lifted on some properties for 54 days.
The water supply is believed to have been contaminated at two sites on a farm in Devon, inside the farmyard and in a field, where soil samples tested positive for the parasite.
District Judge Stuart Smith fined South West Water Ltd £1,853,000, with a surcharge of £2,000 and costs of £75,000, for a total of £1,930,000.
After the case, the Drinking Water Inspectorate (DWI), which prosecuted the company, said the fine was a record for a drinking water-related crime.
The judge described “significant disruption” to schools ahead of GCSE exams, affecting performance, along with care homes, nurseries and businesses.
“The disruption to daily life was extensive,” he said.
“Households were required to boil water for drinking, cooking, brushing teeth, and feeding babies for periods of up to eight weeks.
“Many residents spoke of confusion, mixed messages and persistent anxiety. The cumulative impact on public confidence in the safety of drinking water was substantial.”
He added: “This was a major public health incident.
“Contaminated water was supplied to a large community, hundreds of people fell ill, essential public services were disrupted and confidence in the region's drinking water was severely undermined.
“The company accepts that it failed to take all reasonable steps and exercise all due diligence to prevent the supply of unsuitable water, as required by law.”
The court heard that Torbay Hospital first reported five cases of cryptosporidiosis on May 10, 2024. South West Water was informed three days later and reviewed the water sample data, which was clear.
However, on May 14, several customers reported an abnormal water taste or odor. In the early hours of May 15, samples taken in the Hillhead area confirmed the presence of the parasite in the water.
Boil notices were issued to 16,221 properties, with a population of 38,930 people. These notices were not fully lifted until July 8, when 674 properties were still affected.
Later that day, South West Water technicians discovered a damaged air valve which was part of the water main in a field at Hillhead Farm.
The concrete chamber surrounding the valve had been removed, the metal cover was missing and the chamber had filled with dirt, silt and water. Soil samples near the valve tested positive for the parasite.
Further investigations at the farm revealed illegal cross-connections between the site's private drilling system and the public supply network, believed to be another possible cause of the outbreak.
Judge Smith said the DWI had issued a “clear recommendation” to South West Water in 2020 about maintaining air valves, and the company had drawn up a policy for regular inspection. However, this was not implemented.
He added: “In my opinion, that amounts to a systemic failure of governance within the organization.”
Prosecutor Joe Millington said the incident “undermined confidence in the water supply”.
In personal statements from victims, residents spoke of the impact of the outbreak on their lives.
One person, who experienced flu-like symptoms for 10 days before suffering vomiting and diarrhea, was taken to hospital by ambulance.
“My illness made me feel like I had been beaten,” they said.
“It was a long process to get over it.”
Another resident described drinking a glass of water from his kitchen tap that “tasted like it came from a pond.” They had to cancel a long-distance vacation and lost almost a kilo of weight.
Jennifer Watts, 52, a client supported by law firm Irwin Mitchell, described how her 10-year-old son spent three nights in hospital.
“One of my biggest fears is that life will never be the same after this experience,” he said.
Dominic Kay KC, representing South West Water, offered an “unreserved apology” on behalf of the company.
“The company, through its senior management, wishes to place on public record its genuine remorse for this incident,” he told the court.
He said it was unclear when the damage to the air valve had been caused, adding that South West Water had not been informed and he was unaware of any illegal cross-connections.
Kay said the company had acted “entirely reasonably and appropriately” since UKHSA first notified the company of the outbreak.
Pennon, owner of South West Water, previously said the final bill for the outbreak reached almost £40 million.
Speaking after the sentencing, Caroline Voaden, Liberal Democrat MP for South Devon, said: “I am sure many in Brixham will feel that the punishment meted out to SWW does not reflect the seriousness of the pollution or the effects it had on public health and the local economy.
“No one should profit from water and until the Government accepts this, we will never see the scale of reform needed to change the industry.”
Marcus Rink, chief inspector of the Drinking Water Inspectorate, said the outbreak was a major event that had “serious consequences”.
“It is right that South West Water has pleaded guilty to this offense and has been held accountable,” he said.
“The court has considered the evidence from my inspectors' exhaustive investigation and correctly recognized the harm this incident caused. Today's result demonstrates that when failures occur, there will be serious consequences.”
