Excerpts from the latest edition of The UK Water Report.

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Message in a bottle

Unrelenting pressure after a series of serious supply outages have left South East Water without a chair and chief executive – but still with a need to transform.

By Karma Loveday

Exactly a week after South East Water’s (SEW) chair Chris Train quit, the company on 8 May announced chief executive David Hinton would also stand down. Hinton has worked at South East Water for over 25 years, and has been chief executive since 2020.

Hinton explained in the May edition of The UK Water Report that he had planned to lead the company through a comprehensive transformation programme, having accepted full accountability for recent supply outages and the resulting public and political ire. However, the resignation statement a week later said Hinton had “decided to step down as he feels his position has become an increasing distraction from SEW’s most important priority, which is to deliver a resilient water supply for its customers”.

Alongside the discontent of the customers affected, media interest and pre-election political pressure has been paramount in forcing change. The EFRA Committee declared “no confidence in the chief executive or board of SEW to address the company’s multiple and ongoing failures and protect residents from disruption” after holding two evidence sessions on the outages, in January and April.

The MPs for Tunbridge Wells, and for East Grinstead and Uckfield, were also unwavering in their desires to see change at the top.

Hinton will remain in post for now to allow for an orderly handover to a successor. The board said it “remains focused on accelerating targeted engineering works and making 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 transformation programme – built around lessons from two major events late in 2025 and early 2026, and the wider resilience challenge in Kent and Sussex – is intended to give staff, regulators, stakeholders and customers a clear sense of direction – and to demonstrate delivery against it. It features:

A focus on risk and operational excellence, with more resource in operations, IT support for trend analysis, and better escalation processes.
Greater transparency and governance, giving clearer visibility of risk and performance.
Strengthening communications and stakeholder engagement, including by recruiting a new public affairs director.

At the heart of the recent difficulties is what Hinton repeatedly described as a “period of vulnerability”: an extremely tight supply/demand balance in parts of Kent and Sussex, limited storage and incomplete interconnectivity, all playing out against rising demand and climate pressures. The company had a big focus on securing investment to end this vulnerability – but did not focus as much on “what we’ve got at the moment, to try to take us through the period until the investment does kick in”. He comments: “It’s not one or the other. You’ve got to really focus on both.”

"Media interest and pre-election political pressure has been paramount in forcing change."

Strategy over complexity

The opportunity for regulatory reset must not be frittered away by an insufficiently strategic approach to water reform.

By Sam Williams, co-founder and a director of Economic Insight

The prospect of having the opportunity to re-set the regulatory model for water, following the Independent Water Commission (IWC) Final Report and subsequent White Paper, should be one that excites all those involved in the industry. Irrespective of where responsibility for past missteps lies (undoubtedly multiple stakeholders played a role), there is a clear consensus and understanding that where we ended up was undesirable. And yet, with each passing month, I find myself increasingly concerned about the likelihood of that opportunity not being grasped.

My concern stems from what appears to be an absence of a sufficiently strategic approach, with multiple wheels being set in motion to develop and implement a raft of changes for PR29. There are two dimensions to this absence of strategy: a lack of a coherent vision to join everything up; and process.

We need to avoid the conflation of ‘doing things’ with progress; of change with improvement. Above all, someone needs to stand behind a vision and build a strategy and process for delivering it.

"Someone needs to stand behind a vision and build a strategy and process for delivering it."

On credit

S&P finds the regulatory environment has become less credit-supportive.

By Verity Mitchell

Rating agency S&P’s regulatory assessment of water companies in England and Wales is now strong/adequate. It sees a weakening of regulatory and financial stability and a risk of reduced regulatory independence. It considers that only a few companies will be able to create a sustainable competitive advantage.

Although S&P continues to view the tariff-setting process for water utilities in England and Wales as transparent and supportive, it considers that the regulatory environment has become less credit-supportive. This is because the regulators' focus has shifted from affordability and bill reduction to investment growth, which has weakened regulatory stability. Although companies can still access capital at affordable rates, S&P concludes that the risk-return balance is less reflective of the risks involved in AMP8. The Government's reform agenda for the regulated water sector adds uncertainty, especially amid increased public scrutiny and political pressure.

"Although companies can still access capital at affordable rates, S&P concludes that the risk-return balance is less reflective of the risks involved in AMP8."

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From smart communities to smart growth

Having amassed a large body of evidence on accelerating the uptake of integrated water management  in  new housing developments, the Enabling Water Smart Communities project hands the baton to a new Water Smart Growth Board.

By Karma Loveday

Making new housing developments ‘water smart’ is well within reach in terms of technical ability, cost and public appetite. The barriers that need to be addressed surround regulation, developing a suitably skilled workforce, and cracking the conundrum of who should adopt and look after water smart assets once they are built

These are among the findings from the Anglian Water-led Enabling Water Smart Communities (EWSC) project, which a few weeks ago presented its final results after four years of work at an event in London. An Ofwat Innovation Funded initiative, EWSC set out to address joint challenges faced by the water and housing sectors, by identifying enablers to accelerate the uptake of integrated and sustainable water management in all new housing developments. 

At its close, the project spawned a new Water Smart Growth Board to keep up momentum and formalise next steps. Co-chaired by government and house builder Thakeham chief executive Rob Boughton, the board brings together senior leaders from government, the housing sector, water industry, regulators, environmental bodies, academia and practitioners to drive water smart new homes: resilient, water‑efficient and supported by the right infrastructure and water management solutions that work for housing delivery, people and nature.

"Making new housing developments ‘water smart’ is well within reach in terms of technical ability, cost and public appetite."

Technical team

Those curating the technical programme for the IWA World Water Congress in Glasgow give us a peep behind the scenes at how the sessions are shaping up.

By Karma Loveday

As preparations intensify for the International Water Association (IWA) World Water Congress in Glasgow, the technical programme is taking shape behind the scenes. This will feature a mix of technical presentation sessions, workshops and posters, to satisfy the enquiring minds of the 10,000 or so global delegates due in the city in October 2026. The programme spans the six main themes of the Congress:

Water utility management
Wastewater and resource recovery
Drinking water and potable reuse
City-scale planning and operations
Communities, communication and partnership
Water resources and sustainable development.

At the heart of this work is the Programme Committee – a diverse group of internationally recognised water experts appointed by the IWA, bringing together specialists from a wide range of fields, including academia, consultancy and industry. The Programme Committee began its work around a year ago and is tasked with curating hundreds of high-quality submissions from prospective presenters into a coherent and impactful experience for delegates.

We spoke with three members, after an intensive Programme Committee meeting in March in Glasgow, at which the entries were evaluated, scored and selected, and detailed timings worked out: Professor Simon Parsons, Professor Blanca Antizar and Professor Tom Arnot.

Together, they sketch a picture of a technical programme set to be the envy of its predecessors.

First and foremost, the team is buzzing with the quality and quantity of submissions. The numbers significantly outstrip those seen at the previous Congress in Toronto. A limited number of slots to fill with these ample submissions means competition was fierce.

"A limited number of slots to fill with these ample submissions means competition was fierce."

Smart meters need smarter communications

Compelling CCW research warns that the benefits of smart meters won’t land with businesses without better communications.

By Karma Loveday

Inadequate communication is preventing some business customers from realising the full environmental and cost-saving benefits of smart water meters. That is the stark conclusion of new research from the Consumer Council for Water (CCW), published as the sector’s non-household smart metering rollout ramps up.

Water companies across England have committed to installing around 800,000 smart water meters for NHH customers by 2030. The programme is both a logistical challenge and a once‑in‑a‑generation opportunity to improve customer engagement, build trust and help businesses manage water more efficiently.

Yet CCW’s research suggests that while the rollout itself is broadly accepted by business customers, the communications around it are falling short. The result is a growing gap between expectation and reality – one that risks undermining confidence in smart metering and the wider sector.

"There is a growing gap between expectation and reality – one that risks undermining confidence in smart metering and the wider sector."

Making non-potable palatable

Policymakers plan to explore prospects for industrial use of non-potable water. We asked our Expert Forum for views what might help this go down well.

By Karma Loveday

There is growing policy interest in driving industrial, commercial and large public sector customers to use more non-potable water, as part of work to reduce potable demand given water scarcity. Both the UK Government’s White Paper and the Welsh Government’s Green Paper included commitments to look at ways to drive this. This month, we asked The Water Report Expert Forum for views on how best non-potable policy should be advanced in the UK.

There was an overwhelming level of support (almost 90%) for the policy objective itself. Many said non-potable water should be used by non-household (NHH) customers wherever feasible. However, while support was strong, it was not unconditional. Comments included:

“The policy isn’t sufficiently well‑defined to win support.”
“If it’s cheaper, you don’t need a policy. It’s generally not cheaper.”
“Will customers expect to see a reduction in cost for the acceptance of non-potable water? How will this be managed?”
A small but notable minority were explicitly sceptical, often referencing international experience. There was a reference to “expensive failures”.

The overall message, however, was clear. Conceptually, the Expert Forum agreed that using drinking quality water where it is unnecessary is unsustainable. The debate lies firmly in how, where and under what conditions non‑potable use should expand.

"The debate lies firmly in how, where and under what conditions non‑potable use should expand."

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Water Efficiency Cambridgeshire Fund launched

Business user engagement and financing options for water efficiency actions are among the issues that the new Cambridgeshire fund will throw light on.

By Karma Loveday

Businesses and organisations in the Cambridge Water Resource Zone have been applying for grants of between £500 and £100,000 for water saving projects over the past couple of weeks, after the £1.6m Water Efficiency Cambridgeshire Fund (weCB Fund) launched on 13 April.

The fund is provided by the Ministry of Housing, Communities and Local Government and administered by MOSL, and seeks to reconcile the area’s water scarcity with its growth ambitions.

The fund is open to businesses, charities and other organisations; water retailers and wholesalers; water efficiency specialists; and innovators and solution providers. Eligible projects include water audits, water-saving technologies, and programmes that improve how water is used and managed in non-household settings.

Aside from helping manage the tight supply/demand balance in Cambridgeshire, the weCB Fund is expected to provide valuable lessons on non-household user engagement on water management, and on financing options for water efficiency initiatives.

"The fund seeks to reconcile the area’s water scarcity with its growth ambitions."

This month's articles

Report

Political Intervention and Corporate Accountability

Report

Why Have There Been So Many Supply Outages in the SEW Area?

News Review

Wessex Slips Out of Moody's Baa1 Rating

Report

Watchdogs Highlight Tougher Regulation in Action

News Review

UU Raises Equity for Growth

Report

Now and Forever

Feature

Technical Team

Analysis

Looking for Signs of Spill Progress in 2025

Industry Comment

Predicting the Provision of Priority Help

Expert Forum

Making Non-Potable Palatable

Interview

Message in a Bottle

Report

Two Transitions

Industry Comment

Strategy Over Complexity

Report

On Credit

News Review

CKI Not Giving Up on Thames Purchase

Report

From Smart Communities to Smart Growth

Report

Structures to Realise SDG6 Ambition

Industry Comment

Look at the Alternatives

Report

Smart Meters Need Smarter Communications

Expert analysis of the UK water sector

Message in a bottle

Unrelenting pressure after a series of serious supply outages have left South East Water without a chair and chief executive – but still with a need to transform.

Strategy over complexity

The opportunity for regulatory reset must not be frittered away by an insufficiently strategic approach to water reform.

On credit

S&P finds the regulatory environment has become less credit-supportive.

From smart communities to smart growth

Having amassed a large body of evidence on accelerating the uptake of integrated water management  in  new housing developments, the Enabling Water Smart Communities project hands the baton to a new Water Smart Growth Board.

Technical team

Those curating the technical programme for the IWA World Water Congress in Glasgow give us a peep behind the scenes at how the sessions are shaping up.

Smart meters need smarter communications

Compelling CCW research warns that the benefits of smart meters won’t land with businesses without better communications.

Making non-potable palatable

Policymakers plan to explore prospects for industrial use of non-potable water. We asked our Expert Forum for views what might help this go down well.

Water Efficiency Cambridgeshire Fund launched

Business user engagement and financing options for water efficiency actions are among the issues that the new Cambridgeshire fund will throw light on.

CONTENTS

This month's articles

Message in a bottle

Unrelenting pressure after a series of serious supply outages have left South East Water without a chair and chief executive – but still with a need to transform.

Strategy over complexity

The opportunity for regulatory reset must not be frittered away by an insufficiently strategic approach to water reform.

On credit

S&P finds the regulatory environment has become less credit-supportive.

From smart communities to smart growth

Having amassed a large body of evidence on accelerating the uptake of integrated water management in new housing developments, the Enabling Water Smart Communities project hands the baton to a new Water Smart Growth Board.

Technical team

Those curating the technical programme for the IWA World Water Congress in Glasgow give us a peep behind the scenes at how the sessions are shaping up.

Smart meters need smarter communications

Compelling CCW research warns that the benefits of smart meters won’t land with businesses without better communications.

Making non-potable palatable

Policymakers plan to explore prospects for industrial use of non-potable water. We asked our Expert Forum for views what might help this go down well.

Water Efficiency Cambridgeshire Fund launched

Business user engagement and financing options for water efficiency actions are among the issues that the new Cambridgeshire fund will throw light on.

CONTENTS

This month's articles

Having amassed a large body of evidence on accelerating the uptake of integrated water management  in  new housing developments, the Enabling Water Smart Communities project hands the baton to a new Water Smart Growth Board.