Ofwat has awarded a contract to procure an Independent Monitor (IM) for South East Water with a total estimated value of £6 million (including VAT).
The water sector regulator has appointed an IM to monitor, assess and report South East Water's progress in delivering a turnaround in their operational performance and resilience.
Scope of the Monitor's role is intended to be consistent with undertakings accepted by Ofwat in its enforcement decisions concerning water supply resilience and customer care during supply interruption incidents, and compliance with a licence condition requiring the company to hold two Issuer Credit Ratings that are Investment Grade Ratings.
The IM will support Ofwat's monitoring of the company's delivery of remediation actions required under the undertakings, including the development and implementation of a Performance Improvement Plan.
Ofwat said the IM will provide independent assessment of progress, governance, risk management and delivery confidence, identify material risks to compliance and delivery, and report back to the regulator with its findings.
The IM will support proportionate, risk-based regulatory oversight, while maintaining clear accountability with the company for delivery of the required improvements.
Scope is expected to evolve during the contract term in response to the company's performance, risk profile and progress against the undertakings.
Ofwat specified at the tender stage that the monitoring approach must therefore be scalable, risk-based and proportionate.
The IM will be appointed by Ofwat, act independently of the company and provide advice and recommendations to Ofwat only.
The costs of the independent monitor will be met by South East Water and will not impact on customer bills.
The contract has been awarded to Grant Thornton UK Advisory & Tax LLP, one of four companies who tendered for the work. Standstill period ends on 9 October 2026 and earliest date the contract will be signed is 12 October 2026.
Current estimated start and end contract dates 12 October 2026 to 12 October 2028 with further possible extension options up to 12 October 2030.