Ofwat issues £22m fine to South East Water

Ofwat has proposed a £22m fine for South East Water following repeated supply interruptions in Kent and Sussex between 2020 and 2023, which affected more than 286,000 people.

The regulator launched an investigation into these supply issues and found that the utilities company had failed to plan sufficiently, learn from incidents and conduct root cause analysis to maintain resilience within its water supply system.

As a result, it was unable to cope during periods of high demand or extreme weather. South East Water also failed to maintain key infrastructure such as service reservoirs, boreholes and major pipes.

These failures left customers with no tap water, meaning they were unable to shower or bathe and were not able to flush their toilets, causing “immense stress and anxiety”, the regulator said.

Ofwat stated that South East Water has not taken ownership of these issues, and as a result, supply interruptions are still happening too often.

The regulator said its proposed enforcement order sets out the steps it expects the company to take, including senior management responsibility to prevent these problems from happening again.

It added that the £22m fine reflects the severity of the issues and a consultation will now open on this proposal for the public and stakeholders to provide feedback before it confirms its final decision.

The consultation will be open until 13 April 2026.

Interim chief executive officer at Ofwat, Chris Walters, concluded: ''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."



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