SOUTH EAST WATER ORDERED TO PAY £30.5M PENALTY FOR SERVICE FAILURES

Ofwat, the water regulator, has confirmed that South East Water will pay £30.5m in penalties following investigations into supply interruptions, customer service failings and breaches of its operating licence. The redress package concludes three separate investigations and includes a £22m fine for water supply failures recorded between 2020 and 2023 that affected more than 286,000 people. A second investigation examined supply interruptions in Tunbridge Wells, Kent and Sussex between November and January that left up to 70,000 homes without water. A third investigation was launched after Moody's downgraded South East Water's credit rating in May, which constituted a breach of its licence condition.

South East Water supplies drinking water to 2.3 million customers across Kent, Sussex and Surrey. The company serves a large residential and business customer base across the south-east region. Ofwat will appoint an independent monitor to review South East Water's performance improvement plan and wider turnaround efforts going forward. Helen Campbell, executive director for delivery at Ofwat, stated that the failures had caused disruption and hardship for residents and businesses over many years, and that supply interruptions at this scale had occurred too frequently.

Campbell said the penalty package represents the first step towards accountability and improved performance. She added that South East Water must make meaningful, lasting changes to ensure customers can rely on the service they receive. Ofwat welcomed the company's engagement in concluding the investigations. The regulator confirmed that work remains ongoing beyond the penalty announcement.