South East Water may lose operating licence after latest outages

South East Water could lose its operating licence after residents across Kent and Sussex were left without water for days.

- Helena Horton Environment reporter

The environment secretary, Emma Reynolds, called for the regulator Ofwat to review its operating licence. If it were to lose it, the company would fall into a special administration regime until a buyer was found.

If Ofwat decides the company has breached its licence but does not revoke it, penalties include a fine of 10% of annual turnover. In 2024 Ofwat decided Thames Water was in breach of its licence but decided not to force it into special measures and insisted on a turnaround plan.

This week 30,000 properties faced having low or no water, and 17,000 were thought to still be affected last night, with many of them in Tunbridge Wells. This is the second time in as many months that the Kent town has been without water, after the taps ran dry for 24,000 households for two weeks in the run-up to Christmas.

The company has blamed bad weather for leaks in its ageing pipe system. Water companies have a statutory duty to maintain a sufficient supply of water to their customers.