South East Water boss quits after weeks-long supply failures hit thousands
The chief executive of South East Water has resigned after weeks of supply failures left thousands of households in southeast England without running water. The utility said customer compensation will exceed 50 million pounds. Regulator Ofwat has launched a probe that could result in heavy fines and special administrative oversight.
The chief executive of South East Water resigned after a spring of supply failures that left more than 60,000 households in Kent and Sussex without running water for days at a time. Schools were temporarily closed and hospitals had to rely on bottled water deliveries.
The company said customer compensation will exceed 50 million pounds and that its capital-investment programme will be brought forward by two years. Senior management will also be reshuffled. Investors say the utility's joint owners, Macquarie and Utilities Trust, are weighing a possible debt restructuring.
Water regulator Ofwat has opened a detailed investigation into consumer protection and sector confidence. Potential sanctions include heavy fines, licence changes, and being placed under special administrative oversight. The environment ministry announced sector-wide emergency drills ahead of an expected dry summer.
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