South East Water has been ordered to pay £30.5 million following investigations by the water regulator Ofwat into repeated supply failures that impacted hundreds of thousands of homes in Kent and Sussex. The company stated that the penalty will be covered by its shareholders, not passed on to customers.
Ofwat confirmed that the fine follows the conclusion of three separate investigations into the water company's performance. A spokesperson for South East Water issued an apology for the historical disruptions, acknowledging the significant inconvenience and anxiety caused to customers. "We accept the failures identified by Ofwat," the spokesperson said, adding that the service provided did not meet the expected standard.
The redress package includes specific allocations designed to benefit those affected. Ofwat detailed that £5 million will be used to provide free water butts for households, and another £5 million will accelerate the implementation of smart metering for businesses and other non-household customers. An additional £5 million is designated for on-site storage solutions to help manage water supply during periods of high demand.