South East Water To Face Independent Monitoring After Repeated Failures
Consultants have been appointed to oversee improvements at South East Water following three investigations into the company's performance.
Regulator Ofwat has selected Grant Thornton to monitor the firm's progress after identifying problems with its governance, operations and financial resilience.
South East Water was ordered in July to invest £30.5 million in improvements following supply failures affecting thousands of households across Sussex and Kent.
The independent monitoring contract will cost £6 million, with South East Water required to cover the expense rather than passing it on to customers.
Grant Thornton will initially report to Ofwat for two years, although the arrangement could be extended until October 2030 if necessary.
The appointment follows a series of investigations into the water supplier.
Supply interruptions between 2020 and 2023 affected more than 286,000 people, while further problems between November 2025 and January 2026 left up to 70,000 homes without water.
A third investigation was launched after the company's credit rating was downgraded in May, leaving it in breach of a licence condition.
The £30.5 million improvement package includes £5 million for free household water butts, £5 million to accelerate smart meter installations for business customers and £5 million towards additional on-site water storage.
Ofwat delivery director Helen Campbell said the regulator had been encouraged by the approach of South East Water's new chief executive, John Halsall, who took over in July.
She said:
"We have been encouraged by the change in tone of the company's new chief executive and their willingness to accept responsibility to put things right.
"This appointment is the next step forward towards a more secure and resilient future for South East Water."
South East Water said it would work closely with the independent monitor and demonstrate the progress being made.
The company has also faced ongoing water restrictions this year, with a hosepipe ban introduced in Kent in July before being extended to parts of Sussex and other areas. Further restrictions came into force on 9 October.
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