The chair of South East Water has resigned after a parliamentary report declared a lack of confidence in the company's leadership following severe water supply disruptions in Kent and Sussex.
Resignation and Immediate Replacement
Independent non-executive chair Chris Train stepped down from the board with immediate effect. Lisa Clement has been appointed as interim chair. The company stated that it was "mutually agreed that new independent Board leadership is now required to oversee a critical period of positive, transformative change."
MPs' Criticism and Report Findings
The Environment, Food and Rural Affairs (Efra) Committee highlighted incompetence and lack of accountability as drivers of poor performance. The report criticized the governance framework for failing to hold senior employees responsible. Thousands of customers lost access to tap water, showers, and toilets during outages between November and January.
MPs grilled the leadership twice over their response to the supply interruptions. The report stated: "South East Water presents as a company devoid of proper leadership, riddled with cultural problems that raise serious concerns about the ability of the executive team."
Failures and Accountability
The company faced criticism for poor infrastructure maintenance, failure to monitor risks, inadequate investment, and blaming external factors like climate change. Response efforts were described as disorganized and slow, with insufficient emergency supplies. CEO David Hinton admitted he "got it wrong" but the committee accused the leadership of obfuscating responsibility and "groupthink."
Committee chairman Alistair Carmichael said: "This is an exceptional failure of management and of corporate governance. Someone in this company needs to take a grip, be accountable for its failings and to put them right."
Liberal Democrat leader Sir Ed Davey added: "People across the South East have been badly let down by South East Water’s total failure of leadership. The CEO and board need to be shown the door now."
Company Response and Future Plans
South East Water apologized to customers for operational failures and loss of trust. It plans to double investment in its water supply network over five years. Interim chair Lisa Clement said: "The Company’s focus remains on delivering engineering and operational changes that will strengthen resilience and transform the Company for customers."
