Pennon Group's South West Water unit will invest 24 million British Pounds to improve its wastewater systems, avoiding a potential fine from the UK's water regulator, Ofwat.
The agreement is part of a sector-wide investigation into wastewater activities, the company said in a regulatory filing on Thursday.
Ofwat accepted the enforcement package in lieu of a 19 million British Pound penalty after South West Water acknowledged past issues and proposed remedies, according to the company.
The investment, to be delivered by 2030, includes 20 million British Pounds to accelerate efforts to reduce spills in environmentally sensitive areas.
A further 2 million British Pounds will go to a customer fund to tackle sewer misuse, with another 2 million British Pounds for a nature recovery fund supporting environmental groups.
The deal comes as Pennon undertakes a record investment program to address issues like storm overflows, having recently reported a statutory loss before tax of 72.7 million British Pounds for the fiscal year ended March 31.
The company said the investments will provide improvements for both customers and the environment.
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