South West Water says it is on track to meet sewage compliance targets

The news comes in a new report published by the Environment Agency. The annual study highlights those companies who are performing badly when it comes to environmental practice.

The company was prosecuted for 14 pollution incidents last year, the second highest number for a water firm, and fined a total of �46,000.

South West Water has defended its record. It blames dilapidated water and sewerage systems and says it is spending �10m to tackle any problems.

Company directors should be given duties and obligations comparable to those that they have to make making a profit Tony Juniper Friends of the Earth

The company has also been highlighted as failing to fully comply with sewage discharge levels into coastal waters.

The Environment Agency's Spotlight on Business Environmental Performance is the fifth annual report detailing good and bad environmental practice by businesses throughout England and Wales.

Environment Agency strategy manager Andy Rogers says they are working closely with South West Water to make sure the situation improves.

He said: "The company has shared with us improvement programmes that they are planning."

Friends of the Earth's executive director, Tony Juniper, said he welcomed the report. However, he said fines are not always a sufficient deterrent for companies to clean up their acts.

The company says it is spending �10m to tackle problems

He said: "Literally one day's salary for a company executive is the quantity of the fine being charged by the Environment Agency.

"Clearly that on its own is not sufficient - although we do welcome the agency continuing to enforce the law in this way.

"But we believe that, ultimately, company directors should be given duties and obligations comparable to those that they have to make making a profit for shareholders.

"They should made to make sure they are looking after the environment and the people they are affecting with this kind of pollution."

South West Water said it will be spending an extra �10m to address the issues raised in the report.

The company said whilst it is disappointed with some aspects of its sewage treatment performance, it is well on track to meet compliance targets by the end of the year.

Chief Executive Bob Batey, said: "We spend every day on behalf of customers in the South West, more money than we collect from them.

"We are likely to do so for at least another five years.

"To close the gap we have to either get it from the banks or from shareholders."