South East Water: Disruption of Supply

(Urgent Question): Will the Secretary of State for the Environment make a statement following the disruption of water supplies throughout the area served by South East Water during the spring recess?

I thank the right hon. Gentleman for asking this question. I will update the House on the water supply disruption in Kent, and I want to begin by expressing my sympathy for those affected by the disruption. Being without water is distressing at any time, but particularly during a period of hot weather, alongside school revision and examinations. This is now the third major outage affecting South East Water customers in recent months, and it is simply not acceptable.

South East Water reported that thousands of customers were impacted by supply disruptions over the course of the incident, and I am pleased that normal water supply has now been restored. I met the interim chair and senior operational staff twice during the course of the incident, including on Sunday, and the Department for Environment, Food and Rural Affairs team met them daily to hold them to account for the incident and to request that they set out by the end of this week how they will compensate customers.

Water supply disruption causes significant cost to businesses and impacts the most vulnerable in society. I have heard of a 100-year-old lady without water, and a care home in Cranbrook using wet wipes to keep their residents clean. This is simply unacceptable, and the company must take urgent action.

I thank the Minister for her obvious and genuine concern, and for the measures that she has sought to take. I join her in thanking the very many organisations that have sought to help us through this problem, and I include in that the employees on the ground at South East Water.

Mr Speaker, you know that thousands of people in Herne Bay in my constituency and thousands more in Whitstable, in the constituency represented by the hon. Member for Canterbury (Rosie Duffield), were left without water during the four hottest days of the year so far. That is totally inexcusable and totally unacceptable. Not only were households disrupted, but at the very time when they should have been having a glorious start to their season, guest houses, hotels, restaurants and pubs were shut, care homes had frightful problems, and a doctor’s surgery lost consultations, because they did not have water.

There is no quick fix. The Broad Oak reservoir should have been built 50 years ago. It will take 10 years if we start tomorrow, but we have to try to make sure that in the coming months, because there will be more hot weather, this does not happen for a fifth time across Kent.

Finally, I do believe that the water companies face a very real problem in the regulations as they stand. They are required by law to connect every new house to a supply, but they are not consultees in planning applications—we have to correct that. They have to be given a voice because they cannot spirit water out of thin air.

I share the right hon. Gentleman’s outrage at the situation. He is quite right to say that one of the answers is the reservoir, which will take a long time to build, but this is not just about the reservoir. It is also about desalination plants, and the need for more urgent action to tackle leakage; too much water is lost through leakage. Across Government, we are looking at building standards for new homes and at how we can make homes more water-efficient, because this is a big problem. I hope that I can offer the right hon. Gentleman some reassurance by telling him that the National Infrastructure and Service Transformation Authority has been doing some mapping to identify areas of the country that have more acute water shortage problems and what we need to resolve them.

I asked the company, “What are the actions you can take now?” There is no excuse for poor communication; that is something it can fix overnight. It can also improve its relationship with the local resilience forum. That does not cost any money. It can look at its bulk supply deal with Southern Water—that is another action it can take. It can accelerate its work on leakage reduction—that is another action it can take. Fundamentally, though, the right hon. Gentleman is quite right: the answer is building reservoirs and having greater water storage across our country. Quite frankly, I think it is that we have a situation where we complain about the drought all through the summer and complain about the rain all through the winter, yet have no way of storing that water. I am urgently trying to change that.

I remind everybody that this urgent question is about South East Water, not other water companies. I am sure that all questions will be linked to that subject.

Like many of my constituents, I have lost all faith in South East Water after its repeated failures to deliver adequate standards for customers in my constituency and across Kent. The latest incident left around 4,000 of my constituents having to cope for days with no water entirely, an intermittent supply or low water pressure. South East Water’s failure to invest in infrastructure means that I have no confidence that it will be able to provide a basic standard of service. Moreover, it kept in place the hosepipe ban until February, and there was no preparedness for the coming hot weather, so there is a lack of understanding by the senior leadership within that organisation. What practical measures can the Government take to ensure that we will not suffer in the coming summer months?

I share my hon. Friend’s outrage at the situation. He has been a fantastic champion for his constituents in raising this matter with me a number of times. On the immediate action that South East Water can take, we have said to the company that it needs to be prepared for future hot weather during the summer. What is its resilience plan, what actions will it take and where can it identify immediate actions to take? The longer-term solution is greater water storage. Fundamentally, this company is a water-only company. It has one job—that is all—and that job is to supply water, and it is, quite frankly, astonishing that it is failing to do that at the moment.

My hon. Friend will be aware that South East Water is under investigation by Ofwat and the Drinking Water Inspectorate as to whether, because of its recent credit downgrade, its licence conditions have been broken—so serious actions are being taken against the company. I will, of course, update the House as soon as I hear more about the actions it will be taking in the immediate short term. I should also say that the CEO has offered his resignation and the chair has already resigned. There is an interim chair, and the CEO is currently there while the organisation looks to replace him.

I call the shadow Minister.

Thank you, Mr Speaker, for granting this urgent question from my right hon. Friend the Member for Herne Bay and Sandwich (Sir Roger Gale). I thank the Minister for her approach and engagement on this vital issue.

It is deeply regrettable that we are here yet again with unacceptable outages from South East Water following the events back in December and January. The shortage of water supply in Kent in these hot conditions has had a terrible impact on local communities: homes have been without water supply; schools and businesses have been impacted; farmers and horse owners, again, feared not having enough water for their livestock; and local residents have lost confidence in their water supply and are switching to bottled water. That is simply outrageous.

These repeated failures from South East Water are simply not good enough. We have heard repeated accounts about poor communication and logistics from South East Water, including difficulties in accessibility to collect bottled water, compromising vulnerable residents. Can the Minister please provide guidance on what is being done to ensure that, moving forward, people can reliably access adequate supply, particularly vulnerable households? What is being done to ensure that vital healthcare delivery can continue uninterrupted? In these hot conditions, what measures can be put in place so that farmers and horse owners have enough water for their livestock? What meetings has the Minister had with South East Water, Ofwat, the Drinking Water Inspectorate, local resilience fora and affected councils since this latest disruption?

Access to water for livestock was raised with me after the last outage—I think by the hon. Member and the hon. Member for East Grinstead and Uckfield (Mims Davies). This time, South East Water did make deliveries of alternative water to farms across the region during the incident—or that is what I have been informed, but if there is intelligence otherwise, I am keen to learn about that and to understand. South East Water has said that it continues to monitor farms in at-risk areas.

The issue of vulnerable customers continues to be a challenge. I have been talking to the Cabinet Office about whether there are ways to share more accurate information and data. The water companies say that it is challenging to keep a priority register up to date because people sometimes fall in and out of being classified as “vulnerable”. For example, a lady who is pregnant is classified as being vulnerable and needing water, but after she has had the baby, she is no longer classified as vulnerable in the same way. We need to ensure that we can maintain accurate records of who is vulnerable and in need of additional water, so I am having conversations with the Cabinet Office about whether there are ways of sharing data, while bearing in mind the sensitivities and complications of sharing information. I ask all colleagues to encourage their constituents to self-identify through the priority services register if they are classified as “vulnerable”, so that they can access water as they expect.

I am grateful to my hon. Friend for the way that she has approached this incident, particularly for pointing out that South East Water has one job. Unfortunately, the company is accountable to its shareholders more than to the people who it is supposed to serve. Notwithstanding the reforms to the water industry that the Government have already put in place, may I make a suggestion for the future? Rather than simply fining these companies when they fail so catastrophically, we should take stocks in the company to the value of the amount of the fine to be held by a locally convened water board, so that residents have some form of control and accountability for the decisions that are made. Otherwise, we are relying on extractive capitalism and that will destroy our water supply.

My hon. Friend makes a powerful point. As the White Paper set out:

“Where a water company might want to transition to a new ownership model, such as a not-for-profit, the regulator will develop a transparent process to assess whether a water company’s requested move to a new model should go ahead”.

We are looking at developing a transparent process, if that is something that the water company might want to consider.

My hon. Friend is absolutely right about increasing the customer voice. On day one when this Government came to power we announced new consumer boards for water companies. The Consumer Council for Water has covered the entire country, gathering together different people for customer panels. It has already held a customer panel in the South East Water area, so that customers can hold water company bosses to account—it works very much like a Select Committee hearing. I will share the report from that panel with the House. It is interesting that the No. 1 issue that came up for the water company to tackle was the lack of adequate communication. That does not require millions or billions of pounds spent on a reservoir—it just requires competence.

I call the Liberal Democrat spokesperson.

Leaving thousands of South East Water customers without access to drinking water has become a pattern of neglect, enabled by a water system that fails to hold water companies accountable for their actions. Whether it is environmental disruption or consistent water disruption, this situation is simply unacceptable, but the Government’s timid reforms do not rise to the scale of the challenge. We do not need more tinkering—we need a total structural overhaul. Given the repeated failures in water supply and sewage pollution in the South East Water area and across the country, will the Minister back Liberal Democrat proposals for a mutually owned public benefit model for water companies, focusing investment on the environment, customers and infrastructure, rather than on lining the pockets of the bosses of water companies such as South East Water?

South East Water is a water only company, not a sewage company, so we can criticise it for many things, but sewage pollution is not one of them. When the Government came to power we introduced customer panels on day one, and since then we have secured £104 billion of private investment, passed the Water (Special Measures) Act 2025 and given the Environment Agency more powers to monitor water companies and uncover wrongdoing. In fact, the EA has done more than 10,000 inspections of water companies and uncovered 81 examples that have gone on to criminal investigations. I gently point out to the hon. Lady that under the coalition Government funding for the EA was cut by more than a half.

We have also introduced criminal liability for water companies, introduced automatic penalties, reduced the burden of proof, introduced cost recovery, banned the sale and supply of wet wipes, looked at reforming our bathing waters, established the water delivery taskforce and have abolished Ofwat. Yes, there is more work to do on top of that, but I stand proud on the record of the actions that we have already taken following years of inaction.

I thank the right hon. Member for Herne Bay and Sandwich (Sir Roger Gale) for securing the urgent question. The disruption caused by this incident has been extremely distressing for my constituents on the Sussex-Kent border who are served by South East Water. Many residents and businesses were impacted, and it is right that the chief executive and the chairman of South East Water have resigned. I urge the Government to look at the terms of the company’s licence and whether they have been breached.

We are here in the Chamber again discussing another major water outage—as the Minister knows, there have been two major outages in my patch—and we see the same mistakes and failures repeated time and again by the water companies. The Environment, Food and Rural Affairs Committee looked at the issue and found that the water companies need to have clear plans of action in place, including for providing water stations in the right places, such as those that people can get to without a car, and they need to think about the impact on businesses and maybe deliver water to them to keep them open. All of those things are forgotten every time, so will the Minister instruct all water companies in the country to have detailed emergency response plans in place for every constituency in the country and ask that they work with local MPs on them? We are the people who can get the contact details for the local headteachers and vicars, as I had to last Christmas eve, who can set up water stations, but the water companies need to do the planning before disaster strikes and people lose water. I urge the Minister to look at such measures.

South East Water has broken its licence conditions, and it is currently in breach of its licence. It has been downgraded by Moody’s credit rating agency because of its performance—I think it is the first time that a credit rating agency has downgraded a water company over performance rather than insolvency. Its licence is also being investigated by Ofwat under the consumer duty because of the supply outages in December and January.

My hon. Friend asked about emergency response plans. Water companies should absolutely have emergency response plans, but clearly the plans that South East Water has are inadequate. That is why we want to work with the local resilience forum, the water company and officials from the Department for Environment, Food and Rural Affairs to ensure that those plans are improved before we have another short spell of hot weather.

The hon. Member for Hastings and Rye (Helena Dollimore) asked a good question that the Minister touched on, but I want to press her further. Parts of Mereworth, Platt and Offham in my area were left not only without water, but without the support necessary for those who were most vulnerable, until two fantastic councillors, Matt Boughton and Sarah Hudson, both from East Peckham, really went in there and got into the fight with the water company to ensure that the water station was set up. What planning can the Minister help with to ensure that infrastructure is put in place? The water companies have got away with it for far too long. Let us not beat around the bush: South East Water has been the worst run company that I have ever come across and it is quite right that the leadership has gone. By the way, I have come across quite a lot of companies, so that bar is set quite high. The Minister has extraordinary discretionary authority to corral and coerce companies to act, so will she look at bringing forward a task group within regional areas to ensure that emergency water plans are in place? Otherwise this situation will happen again,

I thank the right hon. Gentleman for his thoughtful question. The water companies have a statutory duty to provide wholesome water. In the event that they cannot do that, they must include provisions of alternative water supplies, as set out in the Security and Emergency Measures (Water and Sewerage Undertakers and Water Supply Licensees) Direction 2022, so they have that statutory duty to plan and prepare.

The right hon. Gentleman’s suggestion is a helpful one, and I would want South East Water to work with the LRF on this issue. In this case, it was just a water supply issue, but often when we have incidents that take out water supply—such as flooding, potentially—there is more than one issue, so it is important that companies work really closely with local resilience forums. I can commit to contacting the company and the local resilience forum to ensure they have those plans in place, and also recommend that they speak to the local Members of Parliament about those plans, to ensure that they are felt to be satisfactory.