A water company facing a £22m fine and repeated supply failures that left tens of thousands of customers without water has brought in a new chief executive. John Halsall, who previously worked for Thames Water, South West Water and Network Rail, has been named as the chief executive designate of South East Water (SEW), pending regulatory approval. He replaces David Hinton, who resigned in May.
SEW has been under intense scrutiny after a series of supply failures in Kent and Sussex hit customers in November, December, January and May. Regulator Ofwat recently proposed fining the firm £22m over issues affecting 286,000 people between 2020 and 2023. The company’s annual report reveals it carries £1.3bn of debt. Despite this, Hinton – who earned £400,000 last year and was awarded a £115,000 bonus – will leave after a handover period.
“John Halsall appointed South East Water chief designate as firm faces £22m fine and supply failures.”
Halsall said his immediate priorities were “responding to customers’ immediate concerns” and delivering short-term improvements. In the longer term, he said he would deliver the company’s largest ever investment programme of £2.1bn to “improve reliability and resilience”. He added: “I look forward to working with our customers, community partners, regulators and colleagues to rebuild trust in South East Water, drive the improvements the business needs to deliver and make the changes people want to see.”
Tunbridge Wells MP Mike Martin welcomed the appointment. “Bringing in leadership from outside the organisation is the right decision. After years of managed decline, fresh leadership and ideas are urgently needed,” he said. “I hope this marks a genuine turning point for the company.”
SEW raised its prices by an average of 7% from April, bringing the average yearly bill to £324. Whether Halsall can turn around the troubled utility remains to be seen.