Firm says it wants additional money from traders | EUROtoday

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By Amy Walker & PA Media, BBC News, South East

GETTY IMAGES A person running a kitchen tapGETTY IMAGES

South East Water is already on the watchdog’s watch listing for financially at-risk firms

South East Water says it wants extra cash from traders to remain afloat forward of a ruling on its future spending plans by water regulator, Ofwat.

The water agency, which provides about 2.3 million prospects in Kent, Sussex, Surrey, Hampshire and Berkshire, stated it was in discussions with lenders and shareholders in a outcomes assertion printed on Wednesday.

It is already on watchdog Ofwat’s watch-list for financially-at-risk firms, alongside Thames Water.

“If it is not possible to raise the additional liquidity, the group and therefore company would not have sufficient liquidity for the going concern period,” the outcomes assertion stated.

It says that talks are at an “advanced” stage, whereas administrators “expect to raise sufficient additional liquidity”.

But a deal has not but been struck on the funding.

The assertion stated: “The risk that the funding will not be received constitutes a material uncertainty that may cast significant doubt on the ability of the group and company to continue as a going concern”.

On Thursday, Ofwat is about to ship a draft verdict on water firms’ proposed five-year spending plans and invoice will increase.

SOUTH EAST WATER South East Water employees delivering bottled water last JuneSOUTH EAST WATER

South East Water is below investigation following a water outage in June 2023

A ultimate choice might be made in December, following a negotiation interval between the regulator and water firms.

South East Water has put ahead plans that might see spending enhance to £1.9bn, together with by way of elevating buyer payments by 22%, to take care of and replace its infrastructure.

The agency’s pre-tax loss fell to £36m for the 12 months to 31 March, down from £74m the 12 months earlier than.

It can be below investigation by the watchdog after failing to ship water to 1000’s of shoppers in Kent and Sussex for greater than per week.

South East Water stated it had “entered into a constructive and transparent dialogue” with Ofwat because the investigation was launched.

“We’d like to apologise to customers who experienced supply interruptions,” the corporate stated.