MP Richard Foord has welcomed the launch of another investigation into South West Water (SWW), which he said had ‘serious failings’ needing to be addressed.

The water industry regulator Ofwat said it was looking into whether the company ‘accurately’ reported leaks and its figures showing how much water customers used.

The inquiry will look at the operational performance in 2021 and 2022 of the company, which is owned by Pennon Group.

Ofwat could impose a penalty of up to 10 per cent of the company’s turnover, which for the year ended March 31, 2022, was £583 million.

Mr Foord, who represents parts of Mid Devon within the Wellington Weekly circulation area, said: “The fact that Ofwat has launched this investigation into South West Water reinforces what we already knew – that there are serious failings in the way some of our utility companies are being run.

“This action is overdue, as it is clear that South West Water is being run for the benefit of shareholders.

“Our local communities are an afterthought.

“Their negligence has seen a stream of sewage dumped in our rivers and on our beaches, while communities are left facing burst pipes and hosepipe bans.

“The Government has repeatedly rebuffed efforts to clamp down on this behaviour, claiming that Ofwat has the ability to properly regulate the actions of water companies.

“Sadly, to date we have seen little tangible action.

“Now is their chance to prove they mean business and reassure the public that water company bosses will not be allowed to get away with this shockingly poor performance.”

Ofwat chief executive David Black said the regulator would conduct a ‘thorough investigation’.

Mr Black said: “We are committed to holding companies to account for performance and for sharing timely, accurate, and complete data with us and their customers.

“We want to ensure that is the case here.”

A SWW spokesperson said it would ‘fully co-operate’ and work ‘openly and constructively’ with the Ofwat investigators.

SWW has previously been investigated, along with other companies, for the dumping of raw sewage into watercourses.