A group motion group in Tunbridge Wells is demanding the “quick” sacking of South East Water’s chief government after weeks of outages which have left tens of 1000’s of consumers with out water.
Sky Information has seen a letter from Dry Wells Motion, which was fashioned by residents and companies within the Kent city, to Chris Prepare, South East Water‘s chairman, demanding solutions concerning the firm’s solvency, infrastructure spending and refusal to interact with stakeholders in the course of the greatest disaster in its historical past.
“You’ve comprehensively misplaced the belief of Tunbridge Wells prospects,” the letter, despatched on Monday morning, stated.
“Solely by offering us with solutions and by sacking your CEO [David Hinton] are you able to even start to revive public confidence.”
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The letter underlines the rising tide of public anger concerning the privately owned firm’s efficiency in latest months, which has led to docs’ clinics being cancelled, college closures and companies going through substantial monetary losses.
Dry Wells Motion’s committee’s letter, which follows its first public assembly, held final week, lambasts Mr Prepare for the absence of significant communication in the course of the disaster.
“We notice that the explanation given for not attending our public assembly was that you’re topic to regulatory investigation (as you will have been since 2023, nonetheless), and that you’ve knowledgeable the Council that it’s “too early” to present solutions,” the committee wrote.
“This refusal to undergo public scrutiny, together with the persistent evasion of the nationwide media by your chief government, demonstrates an appalling lack of accountability by your failing organisation.”
It added that South East Water would additionally not attend a Borough Council committee assembly scheduled for Monday night, additional deepening public distrust of the corporate.
Mr Hinton, who has confronted swingeing criticism over his efficiency and remuneration, was paid greater than £450,000 final yr.
Following an look in entrance of a parliamentary choose committee this month, a number of MPs known as on him tor resign, whereas Emma Reynolds, the surroundings secretary, has urged the water regulator to evaluate the corporate’s working licence.
South East Water, like most of the different privatised water utilities, has seen its steadiness sheet loaded with debt whereas shareholders have acquired a whole bunch of tens of millions of kilos in dividend funds.
In Dry Wells Motion’s letter, the group accused Mr Prepare and Mr Hinton of “seem[ing] to have presided over an unprecedented deterioration within the solvency of the corporate, with the end result that your shareholders final yr needed to inject £200m in new fairness to cut back borrowings”.
“During the last 10 monetary years, the board of SEW has voted to pay £249m in dividends to your shareholders, while the profitability of the corporate has collapsed and your debt has risen from £943m to £1.33bn.”
It was, the group stated, a “sorry story of economic mismanagement, poor management, and underinvestment in infrastructure”.
The disaster at South East Water comes forward of a shake-up of the water business’s regulation, with Ofwat as a consequence of be scrapped and changed by a brand new watchdog.
A white paper revealed by ministers this month pledged to overtake the business amid rising public and political anger exacerbated by the monetary travails of Thames Water, which is combating to keep away from momentary nationalisation.
Dry Wells Motion’s letter to South East Water demanded solutions to questions inside 5 working days about its monetary resilience, together with the way it intends to repay a £120m revolving credit score facility by June whereas sustaining the arrogance of its lenders.
“Is your organization nonetheless solvent or ought to it go into administration to cut back its debt? With the size of your curiosity prices, how do you imagine you’ll be able to generate enough revenue to put money into enhancing the availability to our city with out substantial additional will increase in buyer payments?,” the group stated.
It additionally accused the corporate of “woeful communication with prospects, which to this point is principally by way of quick textual content messages, usually with false guarantees, inaccurate info and no technique of engagement”.
The letter urged Mr Prepare to evaluate the extent of compensation as a consequence of be paid to companies affected by the outages, saying the proposed sums have been insufficient.
The letter was copied to different stakeholders, together with authorities ministers, Ofwat and NatWest Group, whose pension fund is a 25% shareholder in South East Water.
The financial institution itself is just not concerned within the administration of the stake.
South East Water has been contacted for remark.
