South East Water will spend £30.5 million to fund improvements after prolonged supply interruptions hit thousands of customers across Kent and Sussex. The measure follows conclusions from three investigations by the water regulator Ofwat into the company’s repeated failures. The redress package will be funded by the firm’s shareholders, not through customer bills, and includes targeted investments intended to reduce the likelihood of future outages.
A South East Water spokesperson apologized for the historic disruptions to Kent and Sussex customers. “We know this caused significant disruption and anxiety, and we accept the failures identified by Ofwat,” the company said. “It is not the standard of service our customers deserve. Our priority has been to ensure that the resolution of this investigation directly benefits those who suffered the most.”
Ofwat outlined specific components of the package: £5 million dedicated to providing free water butts for households, £5 million to bring forward smart metering for businesses and other non-household customers, and a further £5 million for on-site storage to help manage supply during peak demand. The regulator noted that this redress does not cover the independent monitor, which Ofwat will also fund.
The £30.5 million package follows a previous £22 million proposed fine for water supply failures between 2020 and 2023 that affected more than 286,000 people. A second Ofwat probe was opened earlier this year after further interruptions in Tunbridge Wells and across Kent and Sussex between November and January, which left up to 70,000 homes without water. During the disruption period, customers faced tap water shortages, with some unable to shower or flush toilets. Schools closed and some residents had to cancel work due to childcare issues, while others struggled with medical conditions, according to Ofwat.
The third investigation followed Moody’s May downgrade of South East Water’s credit rating, which meant the firm was in breach of its licence condition. An independent monitor will be appointed by Ofwat to review the company’s performance improvement plan, and the regulator will cover that monitor’s costs separately from the £30.5 million package. Helen Campbell, Ofwat’s executive director of delivery, said the regulator’s message to South East Water was clear: focus on what matters most—customers.
