South East Water has been bolstered by a significant £200 million financial infusion from its owners, aiming to strengthen the company’s financial stability.

The utility is managed by a group of international investors, including funds based in Australia and Canada, along with the NatWest Pension Scheme. It provides essential water services to 2.2 million residents across Kent, Sussex, Surrey, Hampshire, and Berkshire.

Last year, South East Water highlighted the necessity for new equity and was placed on a watchlist by the industry regulator, Ofwat, due to concerns regarding its financial viability.

A representative from South East Water stated that this latest financial support will reduce its gearing ratio—the proportion of debt compared to equity—to 65 percent, aligning closely with Ofwat’s recommended levels.

Ofwat regulates the capital expenditure of water companies and determines pricing structures for customers over five-year cycles. In its most recent assessment in December, it deemed South East Water’s business plan as satisfactory and authorized a £1.8 billion expenditure from 2025 to 2030, which would lead to an average annual increase of £55 in household bills.

Despite this approval, South East Water has contested Ofwat’s ruling with the Competition & Markets Authority, arguing that the settlement fails to adequately address its unique challenges, particularly regarding water security and the sector’s resilience to climate change.

According to South East Water’s spokesperson, this £200 million investment follows a previous £75 million equity boost reported in December 2024, highlighting the ongoing commitment of its shareholders to reinforce the financial health of the company.

“While this investment reassures our financial stability, we maintain that Ofwat’s final determination does not lay a solid groundwork for the long-term investment potential of the water industry,” the spokesperson added.