Water (Special Measures) Act 2025: Enforcement

Mims Davies Excerpts

Tuesday 20th January 2026 Westminster Hall

[Mims Davies (East Grinstead and Uckfield) (Con)]

It is a pleasure to serve under your chairmanship, Dr Allin-Khan. I congratulate the hon. Member for Harrogate and Knaresborough (Tom Gordon) on securing this welcome and—particularly in my constituency—timely debate on regulation, public trust and customers’ experience.

I am participating on behalf of my constituents in East Grinstead, Uckfield and the villages. Many people will know that Sussex and Kent were at the epicentre of the recent outages, despite the guidance we had on the Friday before the taps were turned off that it would be elsewhere. Today is another opportunity to welcome the new powers in the White Paper and talk about how we hold the regulator, Ofwat, to account. I put on the record my huge thanks to the Minister and her team in DEFRA for listening to me on behalf of my constituents and holding these companies to account.

What has happened over the weekend is clear. I will go through my list of experiences. Before the boundary changes, in August 2020, hundreds of homes were affected in my patch and in East Sussex. In November 2022, 30,000 people were affected, including in my part of the world, and in Kent. In December 2022, in Uckfield and in Crowborough in the constituency of my hon. Friend the Member for Sussex Weald (Ms Ghani), 16,000 households were affected. In June 2023, thousands of homes were affected again across the Mid Sussex district. In January 2024, Sussex and Kent homes were affected by the impact of Storm Henk. Then Sussex and Kent were again affected in November 2024, and again in January 2025.

Dr Allin-Khan, you will be interested in this. I met today with Karen McDowell, the head of Sussex integrated care board, to consider the impact on the Queen Victoria hospital in East Grinstead. I thank its leader Abigail and her team for their stoicism during the outage. In the midst of the sanitation issue, with a norovirus crisis and a flu crisis in our local NHS, when we did not have water across my area, people from Surrey, where they declared an emergency, were being sent to my local hospital for treatment. It is absolutely outrageous.

People are now turning to the point of compensation. If this is caused by a storm and an act of God, that is one thing. The Minister knows that this is about a bulk supply issue linked to South East Water. Ultimately, if there is any break in service and if licence conditions are broken, it is ultimately my constituents who cannot function.

Today’s written statement mentions the need for a

“joined-up regional water planning function and framework to improve local decision making and delivery.”

I recognise the need for a broader debate on the Water (Special Measures) Act 2025, building on the Environment Act 2021, to make sure that there is a proper answer.

My constituents are turning at the moment to what this means in terms of compensation. The break in service is absolutely front of mind. As I have spelled out, this is not the first time. Unless there is leadership and structural change, I truly believe it will not be the last.

Let me give the example of the Ashdown Park hotel. There are 50 staff members living on the site. It was closed for days, with no response from the Saturday of the outage through to the reopening. Birthdays, spa days, treats and celebrations were all destroyed, with frontline staff left trying to explain.

I urge my constituents and those watching today to sign up to the priority list. Many vulnerable people, particularly in our villages, were left waiting for water. I know that is an issue that both the shadow Minister and the Minister are particularly worried about.

There are also the needs of livestock. Horses need to drink 5 to 8 gallons of water every day. This situation has been tearing out people’s hearts and souls. They have been so worried. For me, these outages are a moment of crisis in the water sector. I have people cancelling their direct debits at the same time as larger bills are falling on their mats.

I am conscious that many people want to speak, so I will come to a conclusion. I am grateful for the opportunity to speak on something that matters to me deeply. I ask the Minister to work with me on behalf of my constituents to hold the leadership—the chair, the chief executive and the team—to account. I hope that this new vision, with this White Paper, turns into action, change and accountability.

Colleagues have spoken about the opportunity for shareholders to do what they can. NatWest Group holds a large stake in South East Water. In today’s Telegraph, it notes that it wants the company to be held to account for supply issues, and for those issues to be “fully resolved with urgency”. Other shareholders also say they want this addressed and they want resilience in the services. So do we, so do our constituents, and so should everyone.

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[Mike Martin (Tunbridge Wells) (LD)]

It is a pleasure to serve under your chairship, Dr Allin-Khan.

I would like to start by thanking the Minister for all her support. I do not think we realised that we would spend so much time on the same Zoom calls with a vast collection of characters from across Kent and the water sector. I also thank the Secretary of State, who came to Tunbridge Wells last Wednesday to announce an unprecedented review into South East Water’s licence.

It has been interesting to hear Members talk of their local water companies and how surreal it is that they are able to continue with such appalling performance while patting themselves on the back and rewarding themselves with eye-watering sums of money. I have news for everyone here—hold my beer—because South East Water is the worst in the entire country.

At the end of November, the water went out in Tunbridge Wells, and South East Water got off to a good start by setting up a bottled-water station in another town. When we pointed out that Tonbridge and Tunbridge Wells are different towns, bottled water stations were then set up in the right town, although we had to point out where they should be. That outage lasted about two weeks, with a week of no water and then a week of a boil notice.

South East Water handled the communications so poorly that, naturally, my constituents were quite fearful of the quality of water and whether they would be able to drink it. That space was then filled by bad actors and we had to ask the Cabinet Office to intervene to help us with the disinformation. South East Water’s crisis management and communications during that outage were absolutely appalling. The Minister will agree with me that through all of the Zoom meetings we had daily, the qualities on display among the representatives from South East Water were extremely poor. Yet when they were called to the Select Committee in January, they gave themselves an eight out of 10. [Laughter.] I did mention to Members that these are literally the worst people. They are gangster capitalists, as I will go on to explain.

While the CEO was at the EFRA Committee giving himself an eight of 10, the water was going off again in Tunbridge Wells. At the exact moment he was saying there was a plan and everything was going to be okay, I got a text from my mother-in-law, who lives at one of the highest points in Tunbridge Wells. We are all water experts in Tunbridge Wells now, and the water goes off first on the high ground, because South East Water cannot pump it uphill. I immediately rang South East Water and was asked where I had got that information, so I was informing the water company that there was a major outage in Tunbridge Wells.

I then picked up the phone to the borough council, which picked up the phone to Kent county council, which runs the resilience forum. That was the chain of the passage of information to get the local resilience forum stood up, rather than South East Water understanding, knowing what was going on, getting a grip of the situation and communicating effectively to local partners.

[Mims Davies]

The hon. Gentleman is making a speech that I feel I could make. I feel deep sorrow for him and for his constituents. Given the amount of outages, it is very surprising that the crisis communication does not get any better. Water companies should be experts in it, but are clearly not. My concern is that even when we give them information that we believe is true, when they offer information back it very often is not true. I have asked, “Has the water station that you’ve said has been set up in my patch actually opened?”, and got the answer, “Yes.” I then told people in good faith but it turned out it had not. That is a fundamental problem, is it not?

[Mike Martin]

I offer two examples—surreal is the only word for them. I was standing at a water station in Tunbridge Wells, speaking to South East Water, and I was told, “The water station is open.” I looked around, and it definitely was not open. The problem is that South East Water has a contractor that sets up the water stations that either is incompetent, is mendacious or lies—or all three—so the company does not have a grip of what is going on.

I have another utterly surreal example. I think the hon. Member for East Grinstead and Uckfield (Mims Davies) was in the meeting with the Minister when the Minister said, “There seems to be a problem in Cranbrook, according to my briefing. Dave Hinton, could you speak to that?” For Members who do not know, Cranbrook is in the borough of Tunbridge Wells but not in the constituency. Alongside me was the chief executive from the borough council, who said, “What’s the problem in Cranbrook?” He immediately thought he had a problem to deal with. Dave Hinton, the CEO of South East Water, said, “Oh no, there’s no problem in Cranbrook. I think it’s absolutely fine. Where did you get that information?” The Minister asked her official where the information was from, and in a moment worthy of the best episode of “Yes Minister” the official said dryly, “Minister, we got that information from South East Water.”

These people are utter gangsters. They gave evidence to the Select Committee, which is chaired by my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael), and immediately afterwards the chief water inspector for England and Wales—God, he warms your heart if you are in the middle of a water crisis, I can tell you—came and rubbished their evidence. South Easter Water said the crisis was unforeseeable; the chief water inspector said, “No, not only was it foreseeable but we told you what you needed to do in the weeks and months preceding the outage. Had you done that, the crisis wouldn’t have happened.” To my mind, that is negligence. In the first crisis in December, people had to receive lifesaving treatment because a dialysis centre got knocked out. South East Water is a hair’s breadth away from a corporate manslaughter charge. These people are gangsters.

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[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Emma Hardy)]

It is a pleasure to serve under your chairmanship, Dr Allin-Khan. I thank the hon. Member for Harrogate and Knaresborough (Tom Gordon) for securing this debate. I am particularly delighted he has done so today—great timing—since today we have published our new vision for water.

These are once-in-a-generation reforms to our water system, delivering tough oversight and real accountability, and putting an end to water company excuses. This Labour Government are doing away with water companies marking their own homework and are holding them firmly to account. From an MOT-style approach for water companies’ pipes and pumps to no-notice inspection powers, we are creating a system where customers get the service they deserve and bosses have nowhere to hide. We have already taken tough action on the worst performing water companies, while protecting customers by doubling compensation for those impacted by supply interruptions.

There are a few more treats included in today’s White Paper, among them a new chief engineer to bring technical expertise to the new regulator for the first time in 20 years; new performance improvement regimes, so that any water companies falling behind in finances, environmental standards, drinking water quality or operations will face tough consequences; and dedicated supervisory teams to replace the current one-size-fits-all approach and give the new single regulator a thorough understanding of how each company operates; no-notice inspections; mandatory water efficiency labelling; accelerated roll-out of smart meters; regional planning to bring together councils, water companies, farmers and developers to deliver joined-up plans to tackle river pollution, water resources and housing growth; and senior accountability to ensure water bosses are directly accountable for the service that customers receive.

[Mims Davies]

My constituents, particularly businesses, want clear understanding around compensation, but the area that interests me is the chief engineer role. The guidance that was given to her fellow Minister, the hon. Member for Coventry East (Mary Creagh) before the recent 16,500-property outage in East Grinstead and the villages was that it would affect Sussex Weald and Crowborough. How can this new chief engineer help us to get South East Water to be clear about what is already going on?

[Emma Hardy]

I have huge sympathy and support for the hon. Lady and her constituents in the situation that they have faced in the last few weeks and I understand the urgent need for compensation, not just for her residents, but many of the neighbouring constituencies. She mentioned that it is the first time that Ofwat has ever done an investigation into whether a company is still complying with its licence to operate. It is looking at the customer part of the operation licence to see whether or not the company is complying; that is the first time that has ever been done. The Consumer Council for Water is visiting the Tunbridge Wells area to hear direct testimony from people about how they have been treated and how the situation has impacted them. I share the love expressed in the Chamber for the Drinking Water Inspectorate, particularly for Marcus Rink and all the work he does, and the inspectorate is looking carefully into that matter as well.

One of the things that we promised in the Water (Special Measures) Act were powerful new customer panels to ensure that customers are at the heart of company governance. Some first accountability sessions will be held in spring 2026, requiring customers’ views to be taken into account in company decision making and allowing those customers to hold companies to account—one of the many things that was in that Act.

While we are on the situation that the hon. Member for East Grinstead and Uckfield (Mims Davies) faced, I will mention the hon. Member for Tunbridge Wells (Mike Martin), whom we spent rather a long time with over the last few weeks. It is outrageous; my heart sank when I saw Tunbridge Wells and its residents being impacted again after the awful situation that businesses faced in the run-up to Christmas. I am keen for them to receive compensation as quickly as possible. He is right to point out the concerns that we all had about the disinformation that was put out. The need for clear communication to everybody about what is happening is incredibly important.

There are many things from the water White Paper that I would like to highlight. I hope we get a chance in Parliament over the coming weeks to look at some of that in more detail. There is a section on debt at the bottom of page 26 of the White Paper that states:

“We will therefore consider how the regulator can work with companies and investors to ensure companies do not accumulate unmanageable levels of debt”.

There is a direct reference to debt in the White Paper. It is also worth pointing out what it says in the section called “Putting Customers First”. Page 31 mentions

“increasing public access to water for recreation and wellbeing”',

something that I know my hon. Friend the Member for Cannock Chase (Josh Newbury) is really interested in. That is because of the love that there is for the Tyne and how beautiful it is—we want to see people having access to it.

The White Paper mentions the powerful new customer panels as well, and also looks at regulators strengthening the “customer measure of experience”. That is one of the metrics used to judge water companies and we want to strengthen that metric of experience.

Another thing that comes up in debates on agricultural pollution is the effect that it has on the beautiful and stunning River Wye, and which I know is a huge source of concern for my hon. Friend the Member for Monmouthshire (Catherine Fookes). On page 35, we talk about how we will

“consult on reforms on how sewage sludge use in agriculture is regulated and whether this should be included in the Environmental Permitting Regime..”

One of the big focuses and challenges is what the difference would be, if these measures were all in place. One of the many key things is about prevention rather than cure—I know you will understand that analogy very well, Dr Allin-Khan. It is about getting companies to fix things before they break. Around the country, we have too many examples of things breaking before companies recognise that they should be fixed. The MOT work, the engineer and the resilience standards are all about understanding where the problems are and getting in there and fixing them first. Fundamentally, that is cheaper and better for customers, because it costs less to fix something before it breaks and creates a disaster somewhere.