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Thu, 05 Mar 2026

Thu, 05 Mar 2026 South East Water faces £22m fine for supply failures

The firm was unable to cope during high demand, Ofwat says, leading to "immense stress" for customers.
South East Water faces £22m fine from regulator Ofwat due to multiple supply disruptions that affected over 286,000 people in Kent and Sussex. Ofwat claims company failures left it unable to cope during high demand or extreme weather, resulting in customers being without tap water, unable to shower or flush toilets. The proposed fine relates to incidents between 2020 and 2023 but does not cover recent disruptions that left thousands of homes without water. South East Water has filed for a judicial review of Ofwat's draft decision and sought an injunction, which was rejected by the court. The company says it will respond via official channels ahead of the final decision. Ofwat investigation found South East Water's response to supply problems was slow and disorganized, with shortages of bottled water and inadequate support for vulnerable customers. The regulator claims the company failed to plan sufficiently, learn from past incidents, and conduct analysis to identify root causes of problems. Ofwat also says South East Water failed to maintain key infrastructure such as service reservoirs, boreholes, and major pipes. Consumer Council for Water's chief executive Mike Keil criticizes South East Water for stalling the announcement, which risks damaging customer trust in the company. South East Water is facing a further investigation by Ofwat for recent supply interruptions that affected 16,000 homes last December and 30,000 properties in January. Ofwat interim chief executive Chris Walters explains that investigations take time due to complex engineering information involved. The regulator will examine whether South East Water provided high standards of customer service and support during the incidents. South East Water could face a fine up to 10% of its turnover, which rose by 1.7% to £285.5m in the latest financial results. Residents affected by disrupted water supplies describe their experiences as "immense stress and anxiety", including a woman who had an operation on her leg and was unable to keep it clean due to lack of tap water. The company's owners, investment and pension funds led by Utilities Trust of Australia, hold a 50% stake in South East Water. The company has £1.3bn worth of debt and reported pre-tax losses narrowed from £36.7m to £19.8m for the year to March 2025. Liberal Democrat MP Mike Martin suggests the government should take further action beyond fines, including potentially putting South East Water into a special administrative regime if it is found to be in breach of its license.