South East Water's chief executive, David Hinton, has announced his resignation, deepening the leadership crisis at the utility company just a week after its chairman stepped down. The departures follow widespread criticism over significant water supply outages that affected thousands of customers across Kent and Sussex.
CEO to Oversee Transition
Mr Hinton, who has been on the board since 2013, will remain in his role to ensure an “orderly transition” throughout the summer while the search for a replacement begins. His resignation comes after chairman Chris Train left last week, following a scathing parliamentary report from the Environment, Food and Rural Affairs (Efra) Committee, which declared it had “no confidence” in the company’s leadership.
Parliamentary Scrutiny
Executives from South East Water were “grilled twice” by the Efra Committee regarding their handling of numerous supply interruptions that left residents without access to tap water, showers, or flushing toilets between November and January. The committee attributed the firm’s poor performance to leadership incompetence and a lack of accountability, and criticised an inadequate governance framework.
Board Changes
In a statement announcing Mr Train’s resignation, South East Water said it was “mutually agreed that new independent Board leadership is now required to oversee a critical period of positive, transformative change for the company, its customers and local communities.” Lisa Clement has been appointed as interim chair. The company apologised to customers affected by “operational failures” that eroded public trust and said it “notes” the Efra report, pledging to double investment in its water supply network over the next five years.
Committee’s Verdict
The Efra committee’s 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, led by the CEO David Hinton, to bring the company back into compliance and deliver the services their customers deserve. Leadership teams play a major role in how company culture develops; culture change at this scale requires South East Water’s leadership to change.” The report also called on shareholders – including Utilities Trust of Australia, NatWest Group Pension Fund, and Desjardins Group – to hold the company accountable.
