Ofwat lines up independent monitor for troubled South East Water

Britain's water regulator is lining up advisers to oversee the performance of troubled South East Water, days after the company sought to curb non-essential use by thousands of business customers.

Sky News has learnt that Ofwat is expected to appoint Grant Thornton, the accountancy firm, to act as an independent monitor at South East Water, which serves about 2.2 million customers in Kent and Sussex.

A Whitehall source with knowledge of the proposed appointment said it was likely to be announced in the coming weeks.

Ofwat had signalled in July that a monitor would be appointed to scrutinise South East Water's performance and turnaround plan, following the imposition of a £30.5m redress package which left hundreds of thousands of customers without reliable water supplies between 2020 and 2023.

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Supply disruptions have continued to plague customers in recent months, exacerbated by Britain's exceptionally hot and dry summer.

The cost of the independent monitor, which will be borne by South East's shareholders rather than its customers, is expected to reach £6m, according to a public tender document.

"South East Water must now focus on what matters most - its customers," Helen Campbell, an executive director at Ofwat, said in July.

"These failures have caused real disruption and hardship for residents and businesses across many years, and supply interruptions of this scale have happened far too often.

"This package is the first step towards full accountability and to improving overall performance, and we welcome the company's engagement to bring these cases to a conclusion.

"But the work doesn't stop today - South East Water needs to make meaningful, lasting changes to ensure customers can rely on the service they receive."

A South East Water spokesperson said: "We will work closely with the appointed independent monitor and look forward to proactively evidencing the work we are doing, collaboratively."

Public filings show that a similar process is underway at Thames Water, which has already had an independent monitor - LEK Consulting - in place since 2024.

A new contract, which is projected to cost £15.6m including VAT, is expected to be awarded later this autumn.

News of Grant Thornton's selection for the role at South East Water comes weeks after the company called off plans to raise hundreds of millions of pounds from investors amid the ongoing regulatory and political uncertainty engulfing the industry.

Sky News reported last month that the utility had postponed a bond issue to raise about £200m after attracting insufficient demand from prospective backers.

The company recently parachuted in a new leadership team, including John Halsall, an experienced and respected water industry figure, to rebuild its credibility and improve its operating performance as it grapples with debts of about £1.7bn.

The previous chairman and chief executive of South East Water were axed earlier this year after facing incredulity and anger from MPs over their handling of the crisis at the company.

The disclosure of South East Water's proposed debt raise comes amid continued uncertainty about the privatised industry's future, and the shape of a future regulator.

Andy Burnham has pledged to push for "greater public control" over water companies but has yet to provide further details of his intentions.

The government has signalled plans to adopt the recommendations of a review conducted last year by Sir Jon Cunliffe, which called for the establishment of a powerful new water regulator.

Angela Eagle, the new environment secretary, recently met with bosses at companies including South East Water and Thames Water to discuss their performance.

Ofwat declined to comment on Grant Thornton's prospective role.

(c) Sky News 2026: Ofwat lines up independent monitor for troubled South East Water