South East Water boss resigns in wake of major shortages
Chris Train stepped down following criticism from a cross-party group of MPs
Last updated 12 hours ago
The boss of South East Water has resigned following criticism over the company's handling of major outages, that left tens of thousands cut off in Kent and Sussex.
A cross-party group of MPs criticised Chris Train and said the leadership’s incompetence and lack of accountability have driven its poor performance.
The parliamentary Environment, Food and Rural Affairs (Efra) Committee added its inadequate governance framework has failed to hold senior employees responsible.
It comes after bosses were grilled twice by the MPs over their response to multiple supply interruptions across Kent and Sussex.
Thousands of customers were left unable to access tap water, shower or flush their toilets during the outages between November and January.
Company 'devoid of proper leadership'
In a report, published on Friday, the committee said: “South East Water presents as a company devoid of proper leadership, riddled with cultural problems that raise serious concerns about the ability of the executive team, led by the CEO David Hinton, to bring the company back into compliance and deliver the services their customers deserve.
“Leadership teams play a major role in how company culture develops; culture change at this scale requires South East Water’s leadership to change.”
The report also called on SEW’s shareholders – Utilities Trust of Australia, NatWest Group Pension Fund, and Desjardins Group and associated holding companies – to hold the company to account.
The firm was fiercely criticised over multiple failings that led to the outages as well as its response during the crisis.
These included poor maintenance of infrastructure, failing to monitor critical risks, failing to invest or build resilience and blaming external factors such as climate change and increased demand.
Committee chairman Alistair Carmichael said the group of MPs “feel obliged to highlight the gravity of this extraordinarily poor situation”.
“This is an exceptional failure of management and of corporate governance,” he said.
“One cannot overstate the dangers of so many communities losing water supply for extended periods, including schools, GP surgeries and care homes.
“Someone in this company needs to take a grip, be accountable for its failings and to put them right.”
South East Water focused on strengthening resilience
In a statement released by the board of South East Water late on Thursday night, the company confirmed it had "mutually agreed" to part with Chris Train.
It said discussions had taken place in "recent weeks" over a recovery and transformation plan and it "notes" the report handed down by the EFRA Committee.
"The executive team has the support of the Board to continue accelerating targeted engineering works and make operational changes to improve the resilience of the supply network, increase water capacity and quality in high priority areas as part of a comprehensive, Company-wide transformation plan", the statement said.
"The Company intends to announce further details about this soon. With support of its customers, South East Water plans to double investment into the water supply network serving Kent, Sussex, Surrey, Hampshire, and Berkshire over the next five years."
"The Board and executive team reiterate their unreserved apology to those customers impacted by recent operational failures, and the resulting loss of public trust in the Company and its services."
"The Board has initiated an external, independent search process for a permanent Independent Non-Executive Chair. Lisa Clement, currently Independent Non-Executive Director and Chair of the Audit and Risk Committee, is appointed Interim Independent Non-Executive Chair effective immediately until the search is completed."
Lisa Clement, Interim Independent Non-Executive Chair, said: “The Board thanks Chris for his service to South East Water. The Company’s focus remains on delivering engineering and operational changes that will strengthen the resilience of South East Water’s network and transform the Company for the benefit of customers and local communities.”