John Halsall, a veteran of Thames Water, South West Water and Network Rail, has been appointed chief executive designate of South East Water — a company reeling from repeated supply failures and facing a £22m proposed fine.
Halsall will take over from David Hinton, pending regulatory approval, after the previous boss resigned following years of crisis. Tens of thousands of customers lost water or suffered low pressure in incidents last November, December, January and May.
“John Halsall named South East Water chief after supply failures and £22m fine”
“Responding to customers’ immediate concerns” and delivering short-term improvements are his first priorities, Halsall said. In the longer term, he promised to deliver the company’s largest ever investment programme — £2.1bn — to “improve reliability and resilience”.
“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,” he added.
Tunbridge Wells MP Mike Martin welcomed the appointment of an outsider. “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.”
The company has been heavily criticised for major infrastructure problems. Regulator Ofwat recently proposed fining the firm £22m over issues affecting 286,000 people in Kent and Sussex between 2020 and 2023.
Hinton, who earned £400,000 and was awarded a £115,000 bonus last year, will leave after a handover period. South East Water’s annual report shows it carries £1.3bn of debt. From April, the company raised its average bill by 7% to £324 a year.
Whether Halsall can reverse the company’s fortunes — and avoid further regulatory penalties — remains to be seen.