South East Water warns of survival risk as funds run low
15 reported
South East Water has warned there is “material uncertainty” over its survival after a year of losses, fines, and leadership changes. The water supplier to 2.4 million customers said it has enough funds to last until July 2027 but will need new loans shortly after to continue as a going concern. The company’s annual report, published Friday, states that discussions with lenders are at an advanced stage and expected to conclude over summer 2026, though no legal commitment has been made. The utility has faced severe outages in Kent and Sussex between November and January, leading to the resignation of its chair, Chris Train, and the planned departure of chief executive David Hinton. Ofwat, the regulator, ordered a £30.5m redress package related to those outages, and the company also imposed a hosepipe ban in Kent last month. South East’s losses widened to £33m from £14m the previous year, despite revenues rising from £285m to £352m after a 7% bill increase was allowed. The company is owned by the NatWest Group Pension Fund, the Utilities Trust of Australia, and the Desjardins cooperative financial group, which injected £200m in May 2025 after a £75m injection in December 2024.
What’s reported
South East Water warned of “material uncertainty” over its survival in its annual report published Friday.
The company serves 2.4 million customers across Kent, Sussex, Surrey, Hampshire and Berkshire.
It has sufficient funds to last until July 2027 but will need new loans “shortly after” to continue as a going concern.
Discussions with lenders are at an advanced stage and expected to conclude over summer 2026 but are not legally committed.
The company experienced major supply failures in Kent and Sussex between November and January.
Chair Chris Train was forced to resign; chief executive David Hinton has promised to step down.
Ofwat ordered a £30.5m redress package related to those outages.
South East imposed a hosepipe ban in Kent last month, blaming high temperatures caused by global heating.
Losses widened to £33m from £14m the previous year; revenues rose from £285m to £352m after a 7% bill increase.
The company has £80m a year in finance costs and raised the possibility of borrowing from non-traditional lenders.
David Hinton received £488,000 in total pay, up from £458,000 the previous year, after forgoing his bonus.
Hinton will be replaced by John Halsall, who previously worked at South West Water, Network Rail and Thames Water.
Owners include the NatWest Group Pension Fund, the Utilities Trust of Australia, and the Desjardins cooperative financial group.
Owners put £200m into the company in May 2025, after £75m in December 2024.
Separately, United Utilities faced a shareholder rebellion over pay proposals for its chief executive, Louise Beardmore, with 24% voting against the new remuneration policy.
Key figures
Chris Train, former chair of South East Water (forced to resign)
David Hinton, chief executive of South East Water (promised to step down)
John Halsall, incoming chief executive of South East Water
Louise Beardmore, chief executive of United Utilities
Andy Burnham, incoming prime minister (mentioned in context of water industry challenges)
Sources: The Guardian
