The parent company of South West Water is set to appoint a new chief executive as it completes the £4.2billion sale of its recycling and waste disposal arm.
Susan Davy, chief finance officer will take on the new role, replacing Chris Loughlin who stands down after four years at the top.
Sir John Parker, chairman, will also step down from Pennon at the annual meeting on July 31.
Ms Davy said she was honoured to be taking on the role: "With our renewed focus on excellence in the water and wastewater sector it is an incredibly exciting time for the group as we forge ahead with our New Deal plans for the 2020-25 period.
“We've set ourselves ambitious targets, but I am confident we can build on past progress and can deliver for our customers and stakeholders, further cementing our leadership within the UK water sector while working in ever more innovative and sustainable ways."
The announcement comes as Pennon completes the £4.2billion sale of recycling and waste disposal arm Viridor to investment firm Planets UK Bidco.
In a note to the city Pennon announced cash proceeds from the sale of £3.7billion, after taking into account debt and customary transaction costs.
Pennon now wants to focus on its sector leading water and wastewater businesses, whilst considering further growth opportunities that create value for customers, employees and shareholders.
Pennon will consider the best use of net cash proceeds to reduce company borrowings and pension obligations, retaining funds for opportunities and making returns to shareholders.
Of the current £1.2billion Pennon company borrowings, up to £900million will be retired in the months following completion, and £36million will be injected into the Pennon Group pension scheme, which will move the scheme closer to being fully funded on a technical provisions basis.
Mr Loughlin said: "Given the sale of Viridor and the start of the new five-year regulatory cycle, it is the appropriate time to step down as the group chief executive of Pennon. It has been an honour and a privilege to have led the organisation for so many years.
“During this time the organisation has been transformed through the focus on delivering true value to all our stakeholders, including our shareholders and of course the customers and communities we serve.
“I would like to thank all the friends and colleagues within the group who, like me, should be incredibly proud of our many achievements.
“I am very confident that Pennon will have a prosperous future focussing on the water sector and am delighted to hand over to Susan, who I have worked with for so many years. I am certain she will be a great success."
Mr Loughlin joined the Board in 2006 as chief executive of South West Water and became group chief executive officer in 2016.
The organisation has been transformed under his leadership, marked by the delivery of Pennon's strategy and the completion of the sale of Viridor.
He led the establishment of South West Water as the leading regulated water company, consistently delivering by some considerable margin, sector leading performance.
This outstanding transformation has been recognised by the company being awarded fast track approval, uniquely, in two consecutive price reviews.
Sir John Parker has been chairman for five years during which time he has overseen the strategy to identify and create value for our shareholders and improve service to our customers.
He will be succeeded by Gill Rider as chairman. She joined the board in September 2012 and is a former head of the civil service capability group in the Cabinet Office, and prior to that held a number of senior positions with Accenture LLP, culminating in the post of chief leadership officer for the global firm.
