South east water faces license revocation after leaving 30,000 homes without water for up to a week

South East Water is facing the potential loss of its operating license following a major water supply failure that left approximately 30,000 homes across Kent and Sussex without water for up to seven days. Environment Secretary Emma Reynolds has formally requested that Ofwat, the water industry regulator, conduct a comprehensive review of the company’s operating license in response to the crisis.

The water outages, which were severe enough to prompt authorities to declare a major incident, have exposed serious concerns about the utility company’s infrastructure reliability and crisis management capabilities. Residents in the affected areas struggled without basic water services for nearly a week, raising questions about the company’s preparedness and response protocols during emergency situations.

If Ofwat determines that South East Water should lose its operating license, the company would be placed into a special administration regime—a process designed to maintain essential water services while seeking a new buyer to take over operations. This drastic measure would mark one of the most significant regulatory actions taken against a UK water company in recent years.

The potential penalties facing South East Water extend beyond license revocation, with regulators considering fines of up to 10% of the company’s annual turnover. This case highlights ongoing concerns about water infrastructure resilience and corporate accountability in England’s privatized water sector, where companies are expected to maintain reliable service while investing in system upgrades and climate adaptation measures.