The chief executive of South East Water, David Hinton, has resigned following criticism from MPs for leaving numerous households without water supply. Hinton, who earned £457,534 in the last financial year, including a substantial salary increase to £400,000, has decided to step down amid mounting pressure. Despite his resignation, Hinton may still receive significant payouts and benefits as part of his departure agreement.
His departure comes after the company faced severe backlash for supply interruptions that affected thousands of customers in Kent and East Sussex. The company has been under scrutiny for its handling of water supply issues and was recently fined £22 million by the regulator Ofwat for supply failures impacting over 286,000 people.
Environment Secretary Emma Reynolds welcomed Hinton’s resignation, emphasizing the need for positive changes at South East Water to prioritize customer needs and prevent supply outages. The company’s performance has raised concerns about the wider water industry’s shortcomings post-privatization, with customers facing rising bills and inadequate investment.
The resignation of the CEO has been viewed as a crucial step in resetting South East Water’s corporate culture, as highlighted by Alistair Carmichael, head of the environment committee. Calls for public ownership of water services have been echoed by campaigners, urging a shift towards a model that prioritizes public interest over profits.
UNISON South East regional secretary Jo Galloway emphasized the need for a fresh start at South East Water to rebuild trust with staff and customers and deliver a reliable service. The company’s future direction remains uncertain as stakeholders assess the aftermath of Hinton’s resignation and the broader challenges facing the water sector.