Water Company Admits Failures Amid Severe Supply Issues
The chairman of South East Water (SEW) acknowledged before MPs that the company "failed" its customers during significant water supply disruptions that affected tens of thousands over the winter months.
In November and December, approximately 24,000 properties across Kent and Sussex experienced water loss or low pressure. Shortly thereafter, up to 30,000 properties faced further supply problems.
During a session with the Environment, Food and Rural Affairs Committee on Tuesday, SEW chairman Chris Train stated the company "failed on the basic objective of delivering water".
"It is absolutely untenable for customers to be without water."
As the situation unfolded, the company faced intense scrutiny, with the regulator warning of "lasting damage" caused by the outages.
Leadership Under Fire Amid Calls for Resignation
SEW's chief executive, David Hinton, who has a base salary of £400,000 and received a £115,000 bonus last year, has been the subject of multiple calls to resign following the incidents.
However, Chris Train informed MPs that the board continues to support Hinton, noting that the chief executive has voluntarily forfeited his upcoming bonus for the current year.
Tunbridge Wells MP Mike Martin criticized SEW's leadership during the committee hearing, describing their performance as "pathetic".
"If the board thinks Dave Hinton is the best person for the job, then they too are failing in their job,"
he told the BBC.
When questioned about his intentions, Hinton expressed his desire to remain in position and continue efforts to improve the service.
"I feel really emotionally connected to the service and the communities that I serve,"
he said.
Impact on Customers and Businesses
SEW customers are facing a 7% increase in their bills starting April, raising the average annual charge to £324 for 2026/27, up from £303 the previous year.
Businesses affected by the supply failures have reported losses amounting to tens of thousands of pounds.
One resident described the January outage, attributed by SEW to Storm Goretti and power cuts, as akin to "Armageddon".
Several schools were compelled to close due to the inability of customers to shower, bathe, or flush toilets.
SEW has established a £600,000 compensation fund for impacted businesses, but the committee chair, Alistair Carmichael, remarked that this amount "does not touch the sides".
Long-Term Consequences and Consumer Response
Dr Mike Keil, CEO of the Consumer Council for Water, highlighted survey results indicating that 54% of SEW customers now keep bottled water in preparation for potential future outages.
He further noted that nearly 20% of customers have resorted to drinking only bottled water following a boil water notice that lasted several days.
"This type of interruption, of this duration, has lasting damage and lasting consequences,"
Dr Keil stated.
Environment Secretary Emma Reynolds described the water supply disruptions as "completely unacceptable".
Company Response and Lessons Learned
David Hinton acknowledged that the company has learned lessons from the failures but admitted there is still much to improve.
"Clearly we've got a lot more to learn."
Committee member MP Josh Newbury criticized SEW's communications during the crisis as "haphazard and inconsistent".
Hinton conceded mistakes in the speed of public communication and acknowledged that the company failed to promptly detect issues at one of its treatment works in November. This failure resulted in homes in Tunbridge Wells, Pembury, Eridge, and Frant being without drinking water for nearly two weeks.
"If we had spotted it earlier we would have resolved it,"
he said.
Regulatory Findings and Company Initiatives
The Drinking Water Inspectorate's investigation concluded that the outage was "foreseeable and preventable".
It identified "longstanding weaknesses" in management, monitoring, maintenance, and organizational preparedness as root causes.
The inspectorate confirmed that SEW has been placed into a "transformation programme" aimed at addressing these fundamental issues.
SEW has announced plans to invest £2.1 billion in infrastructure and resilience over the next five years.
Chairman Chris Train cited climate change as a contributing factor, stating that the "speed and severity" of climate phenomena in the South East have "outstripped reasonable predictions".
Regulatory Actions and Financial Status
In March, Ofwat proposed a £22 million fine against SEW for disruptions affecting 286,000 people between 2020 and 2023. This fine does not cover the more recent failures.
Ofwat is also investigating whether SEW breached its licence conditions.
Speaking to the committee, Ofwat's chief executive Chris Walters acknowledged that SEW is making "steps forward" but emphasized that "only time will tell if those are sufficient."
SEW is owned by a consortium of investment and pension funds led by Utilities Trust of Australia and carries £1.3 billion in debt, according to its latest annual report.
The company reported pre-tax losses of £19.8 million for the year ending 31 March 2025, an improvement from £36.7 million the previous year.
SEW supplies water to approximately 2.3 million people across Kent, Sussex, Surrey, Hampshire, and Berkshire.
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