South West Water was sentenced to a record fine for a drinking water offence at Exeter Magistrates’ Court on Tuesday after the utility pleaded guilty to supplying water unfit for human consumption. The total penalty of £1.93m includes a £1.853m fine, a £2,000 surcharge, and £75,000 in costs.

Judge Stuart Smith called the outbreak, which began in May 2024, “a major public health incident” and said “disruption to daily life was extensive.” He said the harm had been “wide-ranging and profound” and that the company’s system for monitoring air valves had been “inadequate.” He described the “unvarnished reality” as a failure of visual inspection of air valves, amounting to “systemic failure of governance” at South West Water. Smith reduced the fine by a third because the company entered an early guilty plea.

The Drinking Water Inspectorate (DWI) brought the prosecution after its investigation found that cryptosporidium from animal faeces had entered the drinking water network on agricultural land, the court heard. The contamination likely occurred through an exposed and faulty air valve that was covered in mud.

The first cases of illness were confirmed by the UK Health Security Agency on 14 May 2024, just before the May Bank Holiday. A day later, South West Water confirmed traces of cryptosporidium in the supply and issued a boil water notice to about 17,000 homes and businesses in and around Brixham. The advice to boil tap water remained in place for 54 days for some properties before being lifted on 8 July.

In victim statements read to the court by DWI representative Joe Millington, residents described the physical and emotional toll. One person spoke of flu-like symptoms lasting 10 days, followed by vomiting and diarrhoea that led to hospitalisation. “My illness made me feel as if I had been beaten up,” they said. “It was a long process of getting over it.”

Another resident described drinking a glass of water from the kitchen tap that “tasted like it had come from a pond” before suffering diarrhoea during a family holiday in Spain. The court heard that person had not eaten for eight days and lost almost a stone in weight.

Jennifer Watts, 52, told the court her 10-year-old son spent three nights in hospital. “One of my biggest fears is that life will never be the same again after this experience,” she said.

The company offered an “unreserved apology” and expressed “genuine remorse” for the incident, according to the court. Smith noted that South West Water responded rapidly once the contamination was discovered, deploying “substantial personnel” and providing “substantial financial remediation” to those affected.

Keith Haslett, chief executive of Pennon Group, the parent company of South West Water, said: “It is very clear we must learn lessons from this incident and work hard to rebuild trust with the customers and communities we serve, both in Brixham and beyond.”

Marcus Rink, DWI chief inspector, said: “While serious incidents like this are rare, this case highlights how crucial it is for companies to maintain the highest standards - or face serious consequences if they fail to do so.”

The previous record fine for a drinking water offence was £1.42m, handed to Anglian Water in May 2025 for allowing unapproved plastic materials to contaminate water supplies serving 1.3 million people.

South Devon MP Caroline Voaden said the fine was insufficient. “It is disappointing after this lengthy saga to see South West Water escape with such a small fine,” she said. “I am sure many in Brixham will feel the punishment dished out to South West Water does not reflect the seriousness of the contamination or the effects it had on public health and the local economy.”

Smith also noted the economic impact, telling the court: “Businesses were heavily impacted during what should have been a high season period.”