Source · Select Committees · Environment, Food and Rural Affairs Committee
8th Report – Failures at South East Water
Environment, Food and Rural Affairs Committee
HC 1861
Published 1 May 2026
Government response
3rd Special Report - Failures at South East Water: Government Response · published 10 Jul 2026
Recommendations & Conclusions
1
Conclusion
Accepted
Select committees do not often focus directly on the leadership, behaviour and performance of individual...
Conclusion
Select committees do not often focus directly on the leadership, behaviour and performance of individual private companies. The water sector, however, is a highly regulated monopoly provider of services essential to public health. Residents have no choice over their water …
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Government Response Summary
The government acknowledges South East Water's failures and commits to significant reforms of the water sector, including measures from the Water (Special Measures) Act like banning unfair bonuses and ringfencing investment. It also plans to introduce a Clean Water Bill for a single, powerful regulator with greater supervisory capacity and no-notice inspections, and highlights £104 billion in investment for supply infrastructure.
Department for Environment Food and Rural Affairs
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4
Conclusion
Accepted
As regulators told South East Water repeatedly and jointly for over four years, the company...
Conclusion
As regulators told South East Water repeatedly and jointly for over four years, the company needed to invest in new infrastructure to be properly resilient to potential shocks. In particular, single points of failure, supply shortfalls and regional connectivity should …
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Government Response Summary
The government states it is working to strengthen the resilience of supply infrastructure, highlighting the water sector’s PR24 investment programme which commits over £104 billion in investment between 2025 and 2030.
Department for Environment Food and Rural Affairs
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14
Conclusion
Accepted
Continued leadership failure is grounds for leadership change.
Conclusion
Continued leadership failure is grounds for leadership change. Time and again, since 2020, South East Water’s leadership has failed in its fundamental task of supplying water to its customers. That is around six years of poor performance, sometimes with multiple …
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Government Response Summary
The government acknowledges South East Water's leadership failures and notes the resignations of the Chair and Chief Executive, indicating that leadership change has occurred. It commits to working with the company and regulators through regular performance meetings during the transition to new leadership.
Department for Environment Food and Rural Affairs
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