South West Water (SWW) has reported a healthy increase in its half-year operating profits.

The Exeter-based company saw operating profits rise 8.2 per cent to £84.2m in the six months to October 31.

Chief executive Chris Loughlin said the firm had invested the equivalent of 99 per cent of its profits back into improving the region's environment and drinking water.

"This year for the first time 100 per cent of our beaches met EU standards - we are one of the top of the water companies nationally in controlling leakage, and the quality of our drinking water hit a new high of 99.96 per cent compliance.

"In addition, this is the tenth year in a row without any hosepipe bans or drought orders - despite below average winter rainfall.

Chris Loughlin, South West Water: "This year for the first time 100 per cent of our beaches met EU standards - we are one of the top of the water companies nationally in controlling leakage, and the quality of our drinking water hit a new high of 99.96 per cent compliance."

"Our £1.5bn investment in clean bathing waters since 1989 is a major contribution to bringing eight million tourists to the region, boosting the economy by some £4bn.

"Every day, SWW spends two thirds of a million pounds in the local economy, providing jobs, boosting tourism and helping to make keep our marine and river environment pristine."

But the bumper results are unlikely to please the region's pensioners who have been lobbying against the high level of water bills.

SWW's bills, which are the highest in the country, have risen by nearly 10 per cent in the last 12 months.

The firm blames the high rates on the increasing cost of keeping the coastal region's sea water clean.

Mr Loughlin said the company was looking at introducing new measures to support people on low and fixed incomes.

"We are acutely aware that these successes come at a price for our customers and particularly those on low and fixed incomes," he said.

"We already help many people who've got into financial difficulty, with a free debt helpline, payment plans, help for people whose income changes suddenly and special tariffs for people on benefits with large families, or certain medical conditions.

"But we would like to do more, and we will shortly be announcing a package of measures aimed at helping the worst off.

"We're just consulting on and finalising the details of that initiative at the moment and expect to announce it in coming weeks."

SWW's parent company Pennon Group made profits before tax of £71.1m. The group also owns Viridor Waste, whose profits rose 29.8 per cent to £21.8m.