Ofwat undertakings

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South East Water Limited has agreed to a £30.5 million customer redress package with Ofwat, replacing a proposed £22.5 million fine following investigations into supply interruptions and licence breaches. This package will fund £13 million for further resilience investment, £5 million to accelerate smart metering for businesses, £5 million for household water butts, £5 million for on-site storage and smart meters for high-usage businesses, £1 million for critical settings water supply, and £1.5 million for a community relief fund. The company stated this aligns with its record-breaking Price Review 24 Business Plan, focusing on transforming the business and improving water resource security.

Disclaimer*

South East Water Limited
14 July 2026
 

South East Water (Finance) Limited

Ofwat undertakings

Today, we announced a significant milestone regarding the conclusion of Ofwat's investigation into our supply interruption events, the separate investigation into SEW's compliance with licence condition G following the two supply events in winter 2025/26; and our breach of licence condition P26, which requires two 'investment grade' credit ratings.

Following close collaboration with the regulator, we have finalised a £30.5 million redress package. This legally binding commitment replaces the initially proposed £22.5 million financial fine.

What does this mean for South East Water?

This package places customer redress at its heart and 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.

This package is designed to align with our Price Review 24 (PR24) Business Plan, which is the largest investment programme in our company's history. Moving forward, our absolute focus is on transforming our business, improving network resilience, growing our drinking water storage capacity, and sustainably securing our water resources.

Further information on the package of measures is published here:

https://www.ofwat.gov.uk/regulated-companies/investigations/closed-cases/enforcement-cases/

Any queries should be directed by email to James Grant (james.grant@southeastwater.co.uk), Craig Stansfield (craig.stansfield@southeastwater.co.uk), and Aman Randhawa (aman.randhawa@southeastwater.co.uk). 

ENDS.

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