Good morning,
I am writing to share an important update regarding the conclusion of Ofwat’s investigation into our historical supply disruptions between 2020 and 2023.
Today, South East Water has finalised a £30.5 million redress package, which will be wholly funded by SEW’s shareholders, agreed in close collaboration with Ofwat. This legally binding commitment will replace an initially proposed £22 million fine, ensuring that all funds are invested directly into local network resilience and community redress.
Our sincere apologies
We are incredibly sorry that water supplies have been affected for some of our customers across Kent and Sussex, sometimes on multiple occasions. This is not the level of service we aim to provide, nor is it the service that our customers deserve. We understand how difficult these disruptions have been personally for families, local businesses, and the wider community.
We accept Ofwat’s findings regarding these past supply failures.
Direct redress for impacted communities
Creating direct redress for impacted customers is at the very heart of this outcome. The £30.5 million redress package is strictly focused on making visible, rapid improvements for the customers who suffered the most. Through the package, the company’s shareholders will fund:
- £13m to undertake further investment following an independent root and branch review of the company’s resilience.
- £5m to speed up the smart metering programme for businesses.
- £5m to help households to collect rainwater and reduce demand on the mains supply through the provision of free water butts.
- £5m to install on-site storage tanks and smart meters in high-usage businesses to help manage the network better at peak times.
- £1m to make sure critical settings don’t run out of water if there is a future outage.
- £1.5m to create a community relief fund to give back to communities that suffered the worst water supply failures.
Our Commitment Moving Forward
We are entirely focused on learning from these past challenges. This package directly aligns with our upcoming Price Review 24 (PR24) Business Plan, which represents our largest-ever investment programme. Moving forward, our absolute priority is investing heavily in transforming our business, creating sustainable water resources, improving network resilience, and increasing our drinking water storage capacity.
We recognise that rebuilding your trust requires visible action and long-term network reliability. We remain fully committed to delivering the resilient public water supply that you and your constituents expect and deserve.
If you have any questions please do not hesitate to reach out. Details of the individual schemes will be shared with you in due course.
Yours sincerely,
Lisa Clement,
Interim Chair,
South East Water