South East Water has been ordered to pay a £30.5m redress package by the water regulator Ofwat following three investigations into repeated supply interruptions that affected hundreds of thousands of households across Kent and Sussex. The package will be funded entirely by shareholders and will not impact customer bills, according to Ofwat.
Investigation Findings and Redress Package
The regulator concluded three probes into South East Water's failures. The first investigation, which proposed a £22m fine for supply failures between 2020 and 2023, affected more than 286,000 people. A second probe was launched after supply interruptions in Tunbridge Wells and across Kent and Sussex between November and January, leaving up to 70,000 homes without water. Customers were unable to access tap water, shower, or flush toilets; schools closed, and some customers missed work due to childcare issues or struggled with medical conditions, Ofwat reported. The watchdog found the company failed to communicate “clearly and accurately” with customers and did not provide adequate bottled water supplies. A third investigation followed the downgrading of South East Water's credit rating by Moody's in May, which breached its licence condition.
The £30.5m redress includes:
- £5m to provide free water butts for households
- £5m to bring forward smart metering for businesses and other non-household customers
- £5m for on-site storage to manage supply during peak demand
- Additional funds for other enforcement measures
| Redress Component | Amount |
|---|---|
| Free water butts | £5m |
| Smart metering (businesses) | £5m |
| On-site storage | £5m |
| Other enforcement | £15.5m |
Impact on Customers and Communities
A spokesperson for South East Water said they were “incredibly sorry” for the historical supply disruptions affecting Kent and Sussex customers. “We know this caused significant disruption and anxiety, and we accept the failures identified by Ofwat. 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,” they said.
Helen Campbell, executive director of delivery at Ofwat, stated: “South East Water must now focus on what matters most, its customers. These failures have caused real disruption and hardship for residents and businesses across many years, and supply interruptions of this scale have happened far too often. This package is a first step towards accountability and improved performance, and we welcome the company's efforts to resolve these cases.”
Regulatory Oversight and Next Steps
Ofwat will appoint an independent monitor to review South East Water’s performance improvement plan. The company will also pay for the monitor, a cost not included in the £30.5m enforcement package, Ofwat confirmed. The regulator emphasised that the package is a “first step towards accountability” and that the company must improve its performance. The redress is designed to directly benefit affected customers and communities.
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