South East Water faces uncertainty over future without fresh financing
The firm is negotiating a new loan facility with lenders to remain operational beyond July 2027
South East Water has warned that it needs new financing to continue its operations after suffering a £55 million loss due to winter outages.
The company, which serves approximately 2.3 million customers in the south east of England, is negotiating a new loan facility with lenders to remain operational beyond July 2027.
The annual report highlights a need for additional loan facilities shortly after its current cash provisions expire.
The firm faces doubts about its ability to maintain operations without securing this financing.
Discussions are in the advanced stages with lenders to support major infrastructure investments and are expected to conclude over the summer.
South East Water's previous financial year proved difficult, with a summer drought and significant incidents leading to costs of £54.7 million.
Interruptions in Tunbridge Wells and areas across Kent and Sussex left more than 77,000 customers experiencing water supply challenges.
The company's shareholders are contributing to a £30.5 million redress package, agreed with Ofwat, aimed at enhancing the network in affected areas.