South East Water warns over survival as funds dry up
Summary
South East Water, which supplies water to 2.4 million customers in southeast England, says it may not survive without new loans after a tough year with big losses and fines. The company has enough money to last until mid-2027 but will need to secure more funding soon, which is not yet guaranteed.Key Facts
- South East Water serves areas including Kent, Sussex, Surrey, Hampshire, and Berkshire.
- The company reported losses of £33 million, up from £14 million the previous year.
- Revenue rose from £285 million to £352 million after a 7% price increase allowed by the regulator Ofwat.
- South East Water must pay a £30.5 million penalty related to water supply failures.
- The chief executive, David Hinton, resigned after customer outages and criticism; his total pay was £488,000 despite foregoing a bonus.
- The company has funds to operate until July 2027 but needs new loans after that to continue.
- New funding discussions with lenders are expected to finish by summer 2026 but are not legally committed.
- South East Water’s credit rating was downgraded to junk status, indicating a higher risk of failing to pay debts.
- Owners include NatWest Group Pension Fund (UK), Utilities Trust of Australia, and Desjardins (Canada), who invested £275 million in total in 2024-2025.
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