Image description: Aerial shot of bewl water reservoir in the South East of England during sunset. Image by Jack B / Unsplash

Dr Mike Martin, the Liberal Democrat MP representing Tunbridge Wells, has urged Ofwat to scrap the proposed £22 million penalty against South East Water and instead compel the company to reinvest the money directly into improving water infrastructure. 

The intervention follows Ofwat’s recent enforcement action against South East Water, which includes a significant financial penalty linked to performance failures. While the regulator maintains that fines are an important tool to hold companies to account, Mike Martin has questioned whether directing funds to the Treasury represents the best outcome for billpayers. 

In a letter to Ofwat, he argues financial penalties should be structured in a way that delivers tangible benefits to customers and the environment, emphasising the need for sustained investment in network resilience, leakage reduction and drought preparedness across the South East, a region that has faced repeated supply challenges in recent years, most notably during the 2025 Christmas period. He argued that allowing, or requiring, the company to ringfence the £22 million for capital improvements would accelerate upgrades to ageing infrastructure and help mitigate future service disruptions. 

South East Water has previously acknowledged shortcomings in its performance and has committed to a programme of operational improvements. The company has been under scrutiny following supply interruptions and concerns over resilience during periods of high demand and dry weather.