Slapping fines on privatised water companies for failing to provide clean water is failing to make a difference, according to a Devon MP.

Speaking during a debate on water companies in the House of Commons, South Devon Liberal Democrat MP Caroline Voaden said the fine handed out to South West Water for supplying water unfit for human consumption in Kingswear and Brixham in 2024 was not enough.

The water company was fined almost £2million for the incident just over two years ago in which thousands of households were told to boil their water after a cryptosporidium bug was discovered in the water supply from a reservoir at Hillhead.

Hundreds of people reported becoming ill as a result of the bug, and a number were hospitalised. South West Water handed out tens of thousands of bottles of water while the problem was fixed.

Ms Voaden told the House: “I do not believe that that fine does justice to the impact of the event.

“People became ill and the economic impact was massive. Repeated fines, some of which are never paid, are not delivering the results that customers want to see.”

She said the government has pledged to make the customer the most important priority. But, she added: “It is time to change the ownership model of the water industry so that the customer is prioritised over profit made for overseas shareholders.”

Speaking during the same debate, Exmouth and Exeter East Conservative MP David Reed highlighted regular sewage pollution problems in his constituency.

He said Liberal Democrats on East Devon District Council proposed to build tens of thousands of new homes, and he did not have faith that South West Water would keep pace with new developments.

“We have been bitten before,” he said. “A new town was built in Cranbrook, and the corresponding sewage treatment network was never built.”

He asked the environment minister to ensure a ‘magnifying glass’ was applied to any plans.

“We must push back strongly if South West Water cannot keep pace with delivery.”