South East Water Ltd. has been hit with a £22 million ($29 million) fine after repeated supply outages left nearly 300,000 customers without water between 2020 and 2023. The penalty, proposed by Ofwat, followed a two-year investigation that found the utility failed to maintain key assets and plan for high-demand periods.

Environment Secretary Emma Reynolds called the supply disruptions 'wholly unacceptable,' as the company faced intense regulatory pressure after leaving customers across Kent and Sussex without reliable service. Some areas endured days of boil-water notices or complete outages. The investigation, published Thursday, does not cover more recent failures including a 2025 treatment works shutdown and a 2026 burst main.

South East Water attempted to block the penalty through legal action, arguing that publication could trigger a credit rating downgrade and hamper investment efforts. The High Court rejected their bid for an injunction, with the judge finding 'SEW's case is far from compelling.' Ofwat is separately investigating potential license breaches over customer care during recent outages, while the Drinking Water Inspectorate also probes the failures.