New owners of Southern Water Macquarie pledge to improve pollution record

Chichester Harbour was one of the sites where Southern Water was fined for releasing untreated sewage

Hopes have been raised that a takeover of Southern Water will lead to less sewage being released into the sea along the south coast.

Asset management fund Macquarie has bought a majority stake in Southern Water for £1bn, a month after the utility company was fined a record £90m for widescale pollution.

The new owner has said the money will be used to invest significantly to upgrade its network. It will also create 1,000 jobs.

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Bosses at Macquarie also said they will be ‘strengthening a zero-tolerance mindset to environmental pollution: a commitment to significantly improving Southern Water’s environmental track record, which Macquarie Asset Management recognises is one of the worst performing in the UK water sector’.

Around £2bn will be invested over the next four years to fix the pipes, pumping stations and sewers which are under-performing and causing harm to the local environment, the company said.

Macquarie said it has been in regular contact with regulator Ofwat over the proposals, setting out its intentions and commitments.

Along with reducing pollution by more than 50 per cent compared with 2019, the new owner also plans to invest £230m to upgrade Southern Water’s pipes, to reduce leaks.