Pennon customers opt for cash from Watershare+ payout

Pennon Group PLC (LON:PNN), the south-west water utility, has said that nearly 95% of customers had taken their Watershare+ payout in cash rather than shares in the company.

The FTSE 100 group launched Watershare+ last month as a way for customers to benefit directly if beat its regulatory targets.

The utility said it would pay out £20mln or £20 per customer through the Watershare+ scheme with customers having the option of accepting shares in Pennon instead of a £20 credit to their bill.

Just over 100,000 shares in the company had been bought by customers using their WaterShare+ dividend, Pennon said today, at a cost of £1.9mln with one in 16 households becoming shareholders through the scheme.

In a statement, Susan Davy, Pennon’s chief executive, said: “We’re very pleased with the positive response we’ve had to this trailblazing initiative.

 “This landmark step for a listed utility opens up a new kind of share ownership scheme for customers, connecting them with their water company in a way that has never been done before.”