UK's Pennon says water conservation campaign weighs on customer demand
Recasts paragraph 1 and headline, adds details throughout
Sept 26 (Reuters) -British utility Pennon PNN.L said on Thursday lower water consumption due to its water conservation campaign weighed on its first-half revenue, and also forecast subdued demand to persist in its South West Water division.
UK's water industry has been criticised and penalised for releasing sewage into rivers and seas and raising customers' bills during a cost-of-living crisis, while the new government plans tighter regulations to reform the struggling sector.
Pennon, which serves more than 4 million Britons daily, attributed the weak demand to its 'Water is Precious' water efficiency campaigns, which urged customers to use water resources efficiently in a bid to reduce overall consumption.
The company also offered customers tariff incentives like bill credits on reducing their water consumption under the campaign.
In May, Pennon said it would pay 3.5 million pounds ($4.67 million) as compensation to households in southern England affected by a parasite outbreak.
The Exeter-based company said on Thursday the contamination at Brixham had cost the group about 16 million pounds.
Shares of the FTSE 250 .FTMC member were down 1.5% at 591 pence in early trade.
($1 = 0.7488 pounds)
Reporting by Yamini Kalia in Bengaluru; Editing by Sherry Jacob-Phillips
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