London, Jan 13, 2026, 19:47 GMT
- Ofwat flagged “concern” following a new supply failure at South East Water that cut reliable water access for roughly 25,000 homes across Kent and Sussex.
- South East Water is deploying tankers and bottled-water stations while gradually restoring pressure throughout Wednesday.
- London-listed water utilities fell, lagging behind a broader market that closed flat.
Shares in London-listed water utilities dropped Tuesday as regulators and politicians ramped up scrutiny on South East Water following a fresh outage that left around 25,000 homes in Kent and Sussex without steady water supply. Severn Trent slid 2.6%, United Utilities lost 1.9%, and Pennon closed down 1.7%.
Ofwat, the regulator for water services, said it was “concerned” and plans to review the evidence before deciding if South East Water has met its legal duties on customer care. The latest outages, attributed to Storm Goretti and burst pipes, left some households facing a fourth day without water. https://news.sky.com/story/regulator-concerned-as-25-000-homes-still-without-water-after-major-incident-declared-13493717
The outage hits as South East Water faces increased scrutiny following a separate failure in Tunbridge Wells just before Christmas, with a new parliamentary hearing now in the works. EFRA committee chair Alistair Carmichael said MPs remain “deeply sceptical” of the company’s explanation. An Ofwat spokesperson confirmed the regulator already has an active probe into the firm’s supply resilience and hasn’t ruled out enforcement measures. https://www.independent.co.uk/news/business/alistair-carmichael-kent-south-east-water-west-sussex-mps-b2899658.html https://www.ft.com/content/5d358a39-0a32-4b14-85d5-e162d9ec9ec7
South East Water updated customers Tuesday, saying water supplies in East Grinstead should return gradually “throughout the course of today and tomorrow,” with full restoration expected by Wednesday evening. The company also named bottled-water stations available in East Grinstead, Tunbridge Wells, and Maidstone that remain open until late.
Incident manager Matthew Dean reported that the company’s storage tanks were “running very low” after cold weather caused leaks and bursts across Kent and Sussex. South East Water is now deploying 26 tankers to pump water directly into its network and is delivering bottled water to households on its Priority Services Register — a list for customers needing extra support during outages. https://www.itv.com/news/meridian/2026-01-13/around-25000-homes-remain-affected-by-water-supply-issues-in-kent-and-sussex
South East Water pointed to Storm Goretti, which battered Britain last week, as the cause for its struggles to treat raw water at its main Sussex treatment plant. Freeze-thaw cycles also triggered burst mains. The company said it expects full water supplies in some areas to be restored by Wednesday afternoon.
The disruption triggered a “major incident” declaration, a UK emergency status that mobilizes agencies for a joint response, as councils and resilience teams rushed to manage bottled-water supplies and close schools. Water minister Emma Hardy called the situation “entirely unacceptable,” according to ITV. https://www.itv.com/news/meridian/2026-01-10/customers-without-water-following-storm-goretti
Restoring the network won’t happen overnight. South East Water warned that refilling the system has to be done slowly and with caution to prevent further bursts, which would only push back the timeline for resuming supply.
UK stocks finished mostly flat, the FTSE 100 slipping just 0.03% to 10,137.35. Water shares underperformed, bucking their usual defensive dividend appeal.
South East Water isn’t publicly traded, yet its service hiccups and stricter regulation often ripple through investor sentiment across Britain’s regulated utilities. Severn Trent, United Utilities, and Pennon cover other areas, working under a framework that can clamp down fast if service standards drop.
South East Water reported making thousands of bottled-water deliveries over the weekend. It urged customers to check its outage map and alerts for the latest updates as repairs progress and water pressure returns across the network.
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