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Fair criticisms but a bit of context/perspective, in no particular order.
South East Water have not paid dividends to shareholders for a number of years.
That being said, most shareholders represent all of our pension funds and will expect a certain return on investment, as would us as current and future pensioners.
The company will be suffering, like some other water companies, through lack of past investment and past shareholders who did not do enough. The current management and shareholders will be paying the price for past strategy.
No one back then would have comprehended or planned for the climate change (and speed of it) that we are now experiencing. Even now some people don’t believe it, so what chance management and shareholders 20/30 years ago.
The regulator needs to take a lot of the flack for not allowing investment in the last price review. And will customers want to pay more to fund it and deal with the ensuing road disruption for years?
They are water supply only, don’t conflate with Southern Water who are responsible for the sewerage issues.
Planned reservoirs have in the past not got past planning. The general population want these built but the people living nearby do not.The current TUB implemented today will be based on the long term forecast which is both further warmer weather and lower rainfall, in addition to the current weather. It will be attempting to avoid more people losing supply over the coming months and will absolutely be a last resort as they are not cheap to implement.
Covid has shifted demand trends from historical assumptions. A significant amount of people are now remaining in the south east as opposed to travelling into London (Thames Water) previously.
Leaks being fixed are often pending road closures, it is not a quick process with the highways authorities and there is a heck of a lot of pipe out there.The majority of leaks last summer were estimated as customer side which the water companies are not responsible for, but will still help with.
The current supply issues I believe are party due to a huge power outage cause by a storm the other night.
It’s worth noting that water companies don’t get to keep the extra revenue generated from higher demand. It is all returned to customers 2 years later in their prices via a regulatory mechanism. 68% of most costs (and 100% of others) of those extreme weather events however are absorbed by the companies.
All that being said, something needs to change as there appears to currently be no headroom in the network to deal with any excessive spells of demand.
Some companies in the South West have I believe never lifted their TUB’s from last summer, so it’s not a unique SE issue.5 -
Been swimming in the sea last couple of evenings here on west coast of Scotland. Glorious!7
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Weegie Addick said:Been swimming in the sea last couple of evenings here on west coast of Scotland. Glorious!17
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A few years ago I had air con installed in my house and while the work was being done I overheard a passer by question why it was needed because in his opinion we only have one or two hot days a year in this country. I suspect he had a dad who used to say something similar about having air con in cars and his grandad before him about not needing air con in offices and shops. This country has always been warm in summer, with a few wet exceptions, and it’s getting hotter. We have yet to collectively fully adjust to it as a nation but we’re getting there. Charlton Life in ten years time will see posters reminiscing about growing up in their parents house and suffering with the heat and the young CL posters not believing them…as they turn up the chill factor on their seat in the covered end another notch…
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letthegoodtimesroll said:A few years ago I had air con installed in my house and while the work was being done I overheard a passer by question why it was needed because in his opinion we only have one or two hot days a year in this country. I suspect he had a dad who used to say something similar about having air con in cars and his grandad before him about not needing air con in offices and shops. This country has always been warm in summer, with a few wet exceptions, and it’s getting hotter. We have yet to collectively fully adjust to it as a nation but we’re getting there. Charlton Life in ten years time will see posters reminiscing about growing up in their parents house and suffering with the heat and the young CL posters not believing them…as they turn up the chill factor on their seat in the covered end another notch…
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I am aware that South East Water is a supply company only, however they should be in a position to satisfy the demand of their customers, especially when the water sources whether they be ground water or in reservoirs, are at good levels having had an exceptionally wet spring.
The current problems have mainly affected a small area of East Sussex and Kent, so why does there need to be a hosepipe ban in areas where they can treat and supply enough water to meet demand? SE Water have said that there is plenty of water, just that they cannot treat and pump water in a few areas. How will it make it easier to pump water to those areas if I stop using my hosepipe to water new plants in my garden, which will die if not watered?
Climate Change has been know about for many years now, the can has been kicked down the road too many times and we are now paying the price.0 -
ME14addick said:I am aware that South East Water is a supply company only, however they should be in a position to satisfy the demand of their customers, especially when the water sources whether they be ground water or in reservoirs, are at good levels having had an exceptionally wet spring.
The current problems have mainly affected a small area of East Sussex and Kent, so why does there need to be a hosepipe ban in areas where they can treat and supply enough water to meet demand? SE Water have said that there is plenty of water, just that they cannot treat and pump water in a few areas. How will it make it easier to pump water to those areas if I stop using my hosepipe to water new plants in my garden, which will die if not watered?
Climate Change has been know about for many years now, the can has been kicked down the road too many times and we are now paying the price.0 -
cooler here (N Lincs) today, heavy rain is on the way, AND it is much needed2
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We have light rain falling in Maidstone.0
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Spent all of yesterday by Newcastle Quayside painting and it was brutal.. today was much nicer/better conditions. Off to Gozo on Monday for a week, luckily the heats not dropping off there and we'll have a pool to cool off in.0
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shine166 said:Spent all of yesterday by Newcastle Quayside painting and it was brutal.. today was much nicer/better conditions. Off to Gozo on Monday for a week, luckily the heats not dropping off there and we'll have a pool to cool off in.
Enjoy1 -
Today has been horrible. Overcast with some sun but very humid and around 24 degrees. I’m very glad I invested in an air con unit for the bedroom. Takes the sting out of these hot humid nights. Downpours expected tomorrow.0
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Our rain today lasted 5 minutes, hoping that we get the predicted heavy rain tomorrow.0
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blackpool72 said:shine166 said:Spent all of yesterday by Newcastle Quayside painting and it was brutal.. today was much nicer/better conditions. Off to Gozo on Monday for a week, luckily the heats not dropping off there and we'll have a pool to cool off in.
Enjoy1 -
Big thunderstorm and heavy rain here in East Sussex, hopefully the water butt will be nice and full.1
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LargeAddick said:Big thunderstorm and heavy rain here in East Sussex, hopefully the water butt will be nice and full.3
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Off_it said:shine166 said:Spent all of yesterday by Newcastle Quayside painting and it was brutal.. today was much nicer/better conditions. Off to Gozo on Monday for a week, luckily the heats not dropping off there and we'll have a pool to cool off in.0
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Thunder, lightning and heavy rain here in Orpington for about 20 minutes in the early hours.0
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meldrew66 said:Thunder, lightning and heavy rain here in Orpington for about 20 minutes in the early hours.
Just took the dog for a walk and it's still really muggy out.
The storm hasn't made any difference.0 - Sponsored links:
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ME14addick said:I am aware that South East Water is a supply company only, however they should be in a position to satisfy the demand of their customers, especially when the water sources whether they be ground water or in reservoirs, are at good levels having had an exceptionally wet spring.
The current problems have mainly affected a small area of East Sussex and Kent, so why does there need to be a hosepipe ban in areas where they can treat and supply enough water to meet demand? SE Water have said that there is plenty of water, just that they cannot treat and pump water in a few areas. How will it make it easier to pump water to those areas if I stop using my hosepipe to water new plants in my garden, which will die if not watered?
Climate Change has been know about for many years now, the can has been kicked down the road too many times and we are now paying the price.
The impact of the ban takes time, but will generally reduce demand by 10% in high demand times.
If we get to August and lots of areas lose supply people will ask why a ban was not imposed earlier.
As I said, it’s not a decision taken lightly. The media and communication costs associated with an implementation are significant. And it obviously reduces revenue, now I did explain that is retuned to customers in 2 years anyway, so no long term p&l benefit, but it will impact cash in the short term, just when the cost base will be taking a hammering, so again not something water companies ever want to implement.
I don’t disagree with the last point in your post, but current management and shareholders were not responsible for those past decisions.1 -
The_Organiser said:ME14addick said:I am aware that South East Water is a supply company only, however they should be in a position to satisfy the demand of their customers, especially when the water sources whether they be ground water or in reservoirs, are at good levels having had an exceptionally wet spring.
The current problems have mainly affected a small area of East Sussex and Kent, so why does there need to be a hosepipe ban in areas where they can treat and supply enough water to meet demand? SE Water have said that there is plenty of water, just that they cannot treat and pump water in a few areas. How will it make it easier to pump water to those areas if I stop using my hosepipe to water new plants in my garden, which will die if not watered?
Climate Change has been know about for many years now, the can has been kicked down the road too many times and we are now paying the price.
The impact of the ban takes time, but will generally reduce demand by 10% in high demand times.
If we get to August and lots of areas lose supply people will ask why a ban was not imposed earlier.
As I said, it’s not a decision taken lightly. The media and communication costs associated with an implementation are significant. And it obviously reduces revenue, now I did explain that is retuned to customers in 2 years anyway, so no long term p&l benefit, but it will impact cash in the short term, just when the cost base will be taking a hammering, so again not something water companies ever want to implement.
I don’t disagree with the last point in your post, but current management and shareholders were not responsible for those past decisions.
Then next they could maybe limit us to one shower a week.
After which, maybe only two cups of water a day?0 -
The_Organiser said:ME14addick said:I am aware that South East Water is a supply company only, however they should be in a position to satisfy the demand of their customers, especially when the water sources whether they be ground water or in reservoirs, are at good levels having had an exceptionally wet spring.
The current problems have mainly affected a small area of East Sussex and Kent, so why does there need to be a hosepipe ban in areas where they can treat and supply enough water to meet demand? SE Water have said that there is plenty of water, just that they cannot treat and pump water in a few areas. How will it make it easier to pump water to those areas if I stop using my hosepipe to water new plants in my garden, which will die if not watered?
Climate Change has been know about for many years now, the can has been kicked down the road too many times and we are now paying the price.
The impact of the ban takes time, but will generally reduce demand by 10% in high demand times.
If we get to August and lots of areas lose supply people will ask why a ban was not imposed earlier.
As I said, it’s not a decision taken lightly. The media and communication costs associated with an implementation are significant. And it obviously reduces revenue, now I did explain that is retuned to customers in 2 years anyway, so no long term p&l benefit, but it will impact cash in the short term, just when the cost base will be taking a hammering, so again not something water companies ever want to implement.
I don’t disagree with the last point in your post, but current management and shareholders were not responsible for those past decisions.
SE Water changed their story over a period of 2 days and I believe pressure was brought on them to introduce a hosepipe ban by the MP for the Wealden area. I believe that SE Water felt they needed to be shown to be doing something, so imposed a hosepipe ban across the whole region, which is a sledge hammer to crack a nut. We have had an exceptionally wet spring and although May and early June have been dry, supplies are good and we should not be in this position now.
The article to which I have posted a link states that SE Water is owned by Australian & Canadian private equity funds.
https://www.theguardian.com/environment/2023/jun/16/south-east-water-imposes-hosepipe-ban-after-kent-and-sussex-water-shortages
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My god it's humid. Did some weeding this morning as the ground softened a bit after last night's rain, and I'm now sweating like a bastard. Might have to change my tshirt1
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ME14addick said:The_Organiser said:ME14addick said:I am aware that South East Water is a supply company only, however they should be in a position to satisfy the demand of their customers, especially when the water sources whether they be ground water or in reservoirs, are at good levels having had an exceptionally wet spring.
The current problems have mainly affected a small area of East Sussex and Kent, so why does there need to be a hosepipe ban in areas where they can treat and supply enough water to meet demand? SE Water have said that there is plenty of water, just that they cannot treat and pump water in a few areas. How will it make it easier to pump water to those areas if I stop using my hosepipe to water new plants in my garden, which will die if not watered?
Climate Change has been know about for many years now, the can has been kicked down the road too many times and we are now paying the price.
The impact of the ban takes time, but will generally reduce demand by 10% in high demand times.
If we get to August and lots of areas lose supply people will ask why a ban was not imposed earlier.
As I said, it’s not a decision taken lightly. The media and communication costs associated with an implementation are significant. And it obviously reduces revenue, now I did explain that is retuned to customers in 2 years anyway, so no long term p&l benefit, but it will impact cash in the short term, just when the cost base will be taking a hammering, so again not something water companies ever want to implement.
I don’t disagree with the last point in your post, but current management and shareholders were not responsible for those past decisions.
SE Water changed their story over a period of 2 days and I believe pressure was brought on them to introduce a hosepipe ban by the MP for the Wealden area. I believe that SE Water felt they needed to be shown to be doing something, so imposed a hosepipe ban across the whole region, which is a sledge hammer to crack a nut. We have had an exceptionally wet spring and although May and early June have been dry, supplies are good and we should not be in this position now.
The article to which I have posted a link states that SE Water is owned by Australian & Canadian private equity funds.
https://www.theguardian.com/environment/2023/jun/16/south-east-water-imposes-hosepipe-ban-after-kent-and-sussex-water-shortages
However a TUB would never be implemented just for a short term issue like that, as it’s not even enforceable for 2 weeks and it will cost north of £0.5m.
The TUB would have been implemented, with the current issues in mind of course, but also due to the most recent long term forecasts.
Thry would never implement a TUB just to appease an MP.
The shareholder comment in that report is also very misleading.
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Off_it said:The_Organiser said:ME14addick said:I am aware that South East Water is a supply company only, however they should be in a position to satisfy the demand of their customers, especially when the water sources whether they be ground water or in reservoirs, are at good levels having had an exceptionally wet spring.
The current problems have mainly affected a small area of East Sussex and Kent, so why does there need to be a hosepipe ban in areas where they can treat and supply enough water to meet demand? SE Water have said that there is plenty of water, just that they cannot treat and pump water in a few areas. How will it make it easier to pump water to those areas if I stop using my hosepipe to water new plants in my garden, which will die if not watered?
Climate Change has been know about for many years now, the can has been kicked down the road too many times and we are now paying the price.
The impact of the ban takes time, but will generally reduce demand by 10% in high demand times.
If we get to August and lots of areas lose supply people will ask why a ban was not imposed earlier.
As I said, it’s not a decision taken lightly. The media and communication costs associated with an implementation are significant. And it obviously reduces revenue, now I did explain that is retuned to customers in 2 years anyway, so no long term p&l benefit, but it will impact cash in the short term, just when the cost base will be taking a hammering, so again not something water companies ever want to implement.
I don’t disagree with the last point in your post, but current management and shareholders were not responsible for those past decisions.
Then next they could maybe limit us to one shower a week.
After which, maybe only two cups of water a day?
Look, I don’t know what the answer is for the water companies, but the speed of climate change is impacting everything and water supply is in that category. Add in Covid as a game changer in demand for some areas and you have a perfect storm.Investment is needed but you need the regulator to agree to fund it (through prices) for the next price review and customers willing to pay more and of course these schemes are never quick, so I think there will be some difficult years ahead.
Innovation was only funded via the regulator in the last AMP (5 year cycle) and that will hopefully generate some long term solutions in the industry.0 -
The_Organiser said:ME14addick said:The_Organiser said:ME14addick said:I am aware that South East Water is a supply company only, however they should be in a position to satisfy the demand of their customers, especially when the water sources whether they be ground water or in reservoirs, are at good levels having had an exceptionally wet spring.
The current problems have mainly affected a small area of East Sussex and Kent, so why does there need to be a hosepipe ban in areas where they can treat and supply enough water to meet demand? SE Water have said that there is plenty of water, just that they cannot treat and pump water in a few areas. How will it make it easier to pump water to those areas if I stop using my hosepipe to water new plants in my garden, which will die if not watered?
Climate Change has been know about for many years now, the can has been kicked down the road too many times and we are now paying the price.
The impact of the ban takes time, but will generally reduce demand by 10% in high demand times.
If we get to August and lots of areas lose supply people will ask why a ban was not imposed earlier.
As I said, it’s not a decision taken lightly. The media and communication costs associated with an implementation are significant. And it obviously reduces revenue, now I did explain that is retuned to customers in 2 years anyway, so no long term p&l benefit, but it will impact cash in the short term, just when the cost base will be taking a hammering, so again not something water companies ever want to implement.
I don’t disagree with the last point in your post, but current management and shareholders were not responsible for those past decisions.
SE Water changed their story over a period of 2 days and I believe pressure was brought on them to introduce a hosepipe ban by the MP for the Wealden area. I believe that SE Water felt they needed to be shown to be doing something, so imposed a hosepipe ban across the whole region, which is a sledge hammer to crack a nut. We have had an exceptionally wet spring and although May and early June have been dry, supplies are good and we should not be in this position now.
The article to which I have posted a link states that SE Water is owned by Australian & Canadian private equity funds.
https://www.theguardian.com/environment/2023/jun/16/south-east-water-imposes-hosepipe-ban-after-kent-and-sussex-water-shortages
However a TUB would never be implemented just for a short term issue like that, as it’s not even enforceable for 2 weeks and it will cost north of £0.5m.
The TUB would have been implemented, with the current issues in mind of course, but also due to the most recent long term forecasts.
The shareholder comment in that report is also very misleading.
SE Water is failing in it's duty to supply the water its customers demand and we have no choice of supplier. Anecdotally they have actually increased usage as everyone knows that the fines cannot be implemented until 26th June, so people are washing their cars, filling water butts and watering their gardens before the ban comes into force. The PR around all of this is appalling.1 -
ME14addick said:The_Organiser said:ME14addick said:I am aware that South East Water is a supply company only, however they should be in a position to satisfy the demand of their customers, especially when the water sources whether they be ground water or in reservoirs, are at good levels having had an exceptionally wet spring.
The current problems have mainly affected a small area of East Sussex and Kent, so why does there need to be a hosepipe ban in areas where they can treat and supply enough water to meet demand? SE Water have said that there is plenty of water, just that they cannot treat and pump water in a few areas. How will it make it easier to pump water to those areas if I stop using my hosepipe to water new plants in my garden, which will die if not watered?
Climate Change has been know about for many years now, the can has been kicked down the road too many times and we are now paying the price.
The impact of the ban takes time, but will generally reduce demand by 10% in high demand times.
If we get to August and lots of areas lose supply people will ask why a ban was not imposed earlier.
As I said, it’s not a decision taken lightly. The media and communication costs associated with an implementation are significant. And it obviously reduces revenue, now I did explain that is retuned to customers in 2 years anyway, so no long term p&l benefit, but it will impact cash in the short term, just when the cost base will be taking a hammering, so again not something water companies ever want to implement.
I don’t disagree with the last point in your post, but current management and shareholders were not responsible for those past decisions.
SE Water changed their story over a period of 2 days and I believe pressure was brought on them to introduce a hosepipe ban by the MP for the Wealden area. I believe that SE Water felt they needed to be shown to be doing something, so imposed a hosepipe ban across the whole region, which is a sledge hammer to crack a nut. We have had an exceptionally wet spring and although May and early June have been dry, supplies are good and we should not be in this position now.
The article to which I have posted a link states that SE Water is owned by Australian & Canadian private equity funds.
https://www.theguardian.com/environment/2023/jun/16/south-east-water-imposes-hosepipe-ban-after-kent-and-sussex-water-shortages
My own local company (for sewarage anyway, I pay someone else for the supply, because that makes sense...) is Wessex Water:
"Wessex Water, which supplies more than 1 million customers in Bristol Somerset, Wiltshire and Dorset is fully owned by YTL Corporation Berhad, a Malaysian infrastructure conglomerate..."
https://amp.theguardian.com/environment/2022/nov/30/more-than-70-per-cent-english-water-industry-foreign-ownership
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Anyway, it's a lot cooler and cloudier down here today, so I'm off for a paddle before the predicted rain comes in.1