South East Water (SEW) has announced the immediate appointment of John Halsall as its new chief executive, stepping into the role vacated by David Hinton. The change in leadership comes at a challenging time for the utility provider, which has been under intense scrutiny for persistent water supply disruptions affecting thousands of households across Kent and Sussex.
Mr. Halsall brings a wealth of experience from previous senior roles within the utilities sector, having worked at Thames Water and South West Water, as well as Network Rail. His immediate stated priorities include addressing customers' pressing concerns and delivering short-term improvements to the company's services. Looking further ahead, Mr. Halsall intends to oversee SEW's most substantial investment programme to date, valued at £2.1 billion, aimed at bolstering the network's reliability and resilience.
The appointment is subject to regulatory approval, as confirmed by SEW. The company has faced a barrage of criticism following multiple incidents between November and May, where tens of thousands of customers experienced either a complete loss of water supply or significantly reduced pressure. These issues have prompted strong reactions from both the public and regulatory bodies.
Adding to SEW's woes, the water regulator Ofwat recently proposed a substantial fine of £22 million. This penalty relates to service failures that impacted an estimated 286,000 individuals in Kent and Sussex between 2020 and 2023. These regulatory actions underscore the significant challenges Mr. Halsall inherits as he takes the helm of the heavily indebted company, which reported £1.3 billion in debt in its annual report.
Mr. Hinton, the outgoing chief executive, will depart following a handover period. Last year, Mr. Hinton received a salary of £400,000, supplemented by a £115,000 bonus. Meanwhile, SEW implemented an average price increase of 7% from April, pushing the typical annual water bill for its customers to £324.
In a statement, Mr. Halsall expressed his commitment to rebuilding trust with customers, community partners, and regulators. He emphasised his eagerness to drive the necessary improvements within the business and implement the changes the public expects to see from South East Water.
Source: South East Water