Water regulator Ofwat has proposed a £22M fine for South East Water following supply disruptions between 2020 and 2023 across Sussex and Kent.
The investigation found that the company failed to plan sufficiently, learn from incidents and conduct root cause analysis to maintain resilience within its water supply system, and was therefore unable to cope during periods of high demand or extreme weather. The company also failed to maintain key infrastructure such as service reservoirs, boreholes and major pipes.
As a result of the disruptions, customers had no tap water, were unable to shower or bathe, and unable to flush their toilets, which caused immense stress and anxiety.
Ofwat’s investigation found that the company’s response was slow and disorganised, with shortages of bottled water and not enough tankers or support for vulnerable customers. It also failed to learn lessons from previous incidents, including the Beast from the East in 2018.
A consultation will now open on this proposal for the public and stakeholders to provide feedback before Ofwat confirms its final decision. The consultation will be open until 13 April 2026.
Chris Walters, interim CEO, at Ofwat said: “South East Water’s significant failings caused major disruption and had a huge impact on thousands of its customers. Not only did the company fail in its duty to provide a water supply to meet the demands of its customers, but it also fell short when it came to providing support for customers who lost their supply. They must do better.
“This investigation gets to the heart of the company’s supply resilience problems. We want to see South East Water take more responsibility and get on with fixing things for its customers.”
A spokesperson for South East Water said: “We recently filed for judicial review of an Ofwat draft decision and sought an injunction. Following a hearing, the court did not grant the interim injunction. We respect the court’s decision on this.
"We are now considering Ofwat’s draft decision and will respond via the appropriate channels, ahead of its final decision. We have no further comment at this time."
Meanwhile, Ofwat has also launched a new investigation into South East Water after further supply interruptions in November and December last year and January this year.
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