South East Water's CEO David Hinton is facing an uncertain future with just four and a half weeks left on his job, which could leave him eligible for a £400,000 bonus despite struggling to provide adequate customer service. The company has been plagued by outages that have left thousands of households without running water, prompting the energy secretary Emma Reynolds to call for a review of the operating licence.
The latest move from regulator Ofwat comes in response to public complaints about the company's performance. In an unprecedented investigation, Ofwat is examining whether South East Water met its obligation to provide "high standards of customer service and support". The development has sent shockwaves among shareholders, who are worried about the impact on customers. NatWest Group's pension fund, which owns 25% of the company, expressed concern over the issues and vowed to influence the board to resolve them.
Despite receiving significant investment from shareholders in recent months – £200m in May and £75m in December – South East Water still faces a financial strain. The company's balance sheet was described as "over-extended" in its last annual report, highlighting the need for a more balanced regulatory settlement. However, South East Water recently asked the Competition and Markets Authority (CMA) for an 18% bill increase, which was reduced to just 4%.
Hinton's handling of the crisis has been widely criticized. When questioned by MPs earlier this month, he claimed that his reluctance to give interviews was due to concerns about being asked distracting questions about pay or shareholder dividends. Critics argue that Hinton needs more carrots to stay in post, particularly given the additional £50,000 "cash allowance" for work on the CMA appeal.
As South East Water's woes continue, regulator Ofwat is also conducting an engineering-related investigation into whether the company failed to develop and maintain an efficient water supply system. The outcome of this inquiry could result in significant penalties, prompting shareholders to push for a new boss as soon as possible.
The latest move from regulator Ofwat comes in response to public complaints about the company's performance. In an unprecedented investigation, Ofwat is examining whether South East Water met its obligation to provide "high standards of customer service and support". The development has sent shockwaves among shareholders, who are worried about the impact on customers. NatWest Group's pension fund, which owns 25% of the company, expressed concern over the issues and vowed to influence the board to resolve them.
Despite receiving significant investment from shareholders in recent months – £200m in May and £75m in December – South East Water still faces a financial strain. The company's balance sheet was described as "over-extended" in its last annual report, highlighting the need for a more balanced regulatory settlement. However, South East Water recently asked the Competition and Markets Authority (CMA) for an 18% bill increase, which was reduced to just 4%.
Hinton's handling of the crisis has been widely criticized. When questioned by MPs earlier this month, he claimed that his reluctance to give interviews was due to concerns about being asked distracting questions about pay or shareholder dividends. Critics argue that Hinton needs more carrots to stay in post, particularly given the additional £50,000 "cash allowance" for work on the CMA appeal.
As South East Water's woes continue, regulator Ofwat is also conducting an engineering-related investigation into whether the company failed to develop and maintain an efficient water supply system. The outcome of this inquiry could result in significant penalties, prompting shareholders to push for a new boss as soon as possible.
this is soooo not cool 
! someone's gotta take responsibility 
and it's time for change 
. David Hinton's excuse about not wanting to give interviews about pay or dividends? 
please, stop it 
. He's been struggling with customer service 
that's just not right 
, and fast 
. NatWest Group's pension fund is on the ball 
, it's time for some real change 
. South East Water can't keep struggling with outages 
no way 
.
like that's not enough motivation to get the job done right? I mean, come on, thousands of households without running water? That's not just unacceptable, it's downright inhumane. And now Ofwat is breathing down his neck over it, and shareholders are getting worried. It's time for some real accountability here. Hinton needs to step up his game or get out – period! 
. and what's up with the 18% bill increase being reduced to 4%? seems like just an excuse to keep pushing rates on customers 
.
.
. I think he needs some serious pressure from the board and shareholders to sort out their customer service issues 
. If he's really worried about being asked about pay or dividends, maybe that's a sign that he needs more accountability 
.
, but it's also about time someone held South East Water accountable for their actions 
. I mean, they're getting all these billions from shareholders but still can't even provide decent customer service? It's like they think we don't notice when our tap's off for days 
!
. And £400k bonus for struggling customers? It's just wild 
. If they can't even keep the water supply system working, how are we supposed to trust them with our money 
. This whole thing is a bit of a mess, if you ask me 
. And now the regulator's coming after them with an engineering investigation? Yeah, good luck with that 
.
. I need some solid sources on this before I start forming an opinion... where's the evidence? 
I'm all for shareholders getting their cash but come on, can't they see how bad this is for customers?!
. But here's the thing: if he does get paid out £400k despite all this, it's like, what a slap in the face to the customers who are suffering from these outages