In a scathing rebuke, the UK’s Environment Secretary has condemned the leadership of South East Water (SEW), declaring that the company’s poorly performing executives should not be receiving bonuses. This comes in the wake of widespread water outages that left tens of thousands of customers across the South of England without a reliable supply, prompting a regulatory investigation by Ofwat.
David Hinton, SEW’s chief executive, was awarded a staggering £115,000 bonus on top of his £400,000 salary last year. This is set to more than double in the current year, despite the company’s dismal performance and the repeated and extended water supply disruptions experienced by its customers.
Speaking to the BBC, Environment Secretary Emma Reynolds minced no words, stating: “Poorly performing water bosses should not be receiving a bonus, and South East Water is the poorest performer.” The comments come as the government prepares to unveil a major overhaul of the troubled water industry, which has faced severe criticism in recent years over rising bills and poor environmental records.
The water outages, which affected up to 30,000 properties in the region, were the second time in six weeks that customers were left without a reliable supply. The crisis prompted a first-of-its-kind investigation by Ofwat, the industry regulator, which revealed that SEW was “flying blind” for weeks before the crisis unfolded.
The company has faced repeated criticism for its lack of clear communication during the disruptions, with the deadlines for restoring supplies being extended multiple times. This has led to growing calls from MPs and councillors across all political parties for Hinton to resign, with the Prime Minister and Environment Secretary also voicing their concerns about the crisis facing the water company’s customers.
The bonuses controversy comes as the water industry faces a major overhaul, with the government vowing to abolish the existing regulator, Ofwat, and replace it with a new watchdog. This move comes amid rising water bills and a growing focus on the industry’s environmental record, with six companies recently blocked from paying bonuses to executives over serious pollution incidents and other performance issues.
As the water industry braces for change, the case of South East Water serves as a cautionary tale, highlighting the need for greater accountability and transparency in a sector that plays a vital role in the lives of millions of Britons.