South East Water to pay £30.5m penalty after multiple supply failures
The package follows three separate investigations into the company’s performance, with customers set to benefit through lower bills and investment.
By The Guardian
South East Water has agreed to provide a £30.5 million package for customers after Ofwat concluded three investigations into the company’s performance.
The water regulator found the company had failed to meet its obligations in several areas, including maintaining reliable water supplies and managing its network effectively.
Rather than issuing a traditional financial penalty, Ofwat has agreed an enforcement package that will see the money returned to customers through bill reductions and investment aimed at improving services.
The investigations examined how South East Water managed water resources during periods of high demand, its performance in reducing leakage and supply interruptions, and whether it had met regulatory requirements designed to protect customers.
Ofwat said the company had breached its licence obligations and failed to deliver the level of resilience expected of a major water supplier.
The regulator said the £30.5 million package would directly benefit customers while ensuring the company takes action to improve its performance.
South East Water supplies drinking water to around 2.3 million people across parts of Kent, Sussex, Surrey, Hampshire and Berkshire.
The company has faced criticism in recent years following supply interruptions during periods of hot weather and drought, with thousands of customers experiencing reduced water pressure or temporary loss of supply.
David Black, chief executive of Ofwat, said water companies must ensure customers receive reliable services and that firms failing to meet their obligations would be held to account.
South East Water said it accepted the findings and had already invested significantly in improving its network, increasing water resilience and reducing the risk of future supply problems.
The company said it remained committed to delivering a more reliable service for customers while continuing to invest in long-term infrastructure.
The enforcement package is one of the largest agreed by Ofwat in recent years and follows increased regulatory scrutiny of water companies across England and Wales over issues including supply resilience, pollution, leakage and customer service.