The chief executive of South East Water, David Hinton, has resigned following criticism from MPs for leaving numerous homes without water supply. The company announced Hinton’s decision to step down, allowing for a smooth transition over the summer. Hinton cited his departure as necessary to refocus on ensuring a reliable water supply for customers.
Hinton, who earned £457,534 in the previous financial year, including a substantial salary and bonuses, faced scrutiny for a 30% increase in his base pay coinciding with a significant rise in customer bills. His resignation, effective after a 12-month notice period, could prolong his receipt of a high salary. Additionally, he is set to receive a significant payout in July from a long-term reward program.
Environment Secretary Emma Reynolds welcomed Hinton’s resignation, emphasizing the need for improved leadership at South East Water to prioritize customers and address supply issues. The company’s performance has highlighted broader industry challenges post-privatization, including underinvestment and escalating customer costs.
South East Water, with ownership stakes from Australia, Canada, and NatWest pension fund, faced backlash for widespread water outages affecting Kent and East Sussex residents. Regulatory fines totaling £22 million are imminent for supply failures impacting a large number of people.
Political and public figures expressed support for Hinton’s resignation as a step towards reforming South East Water’s corporate culture and restoring trust with customers. Calls for public ownership of water services have emerged, urging the government to intervene and reassess the company’s operational license.
Amidst the leadership change, UNISON South East regional secretary Jo Galloway emphasized the need for a fresh start at South East Water, focusing on rebuilding trust with staff and customers to deliver reliable service.
