Southern Water’s CEO faced tough questions in Parliament over his bonus amid rising bills and service outages affecting customers
Hastings: Today, Lawrence Gosden, the Chief Executive of Southern Water, found himself in hot water during a parliamentary inquiry. He explained that the water industry has been trying to catch up on investments after years of flat bills.
Ofwat, the industry regulator, recently announced that Southern Water customers will face a whopping 53% increase in their bills by 2030. That’s the highest hike among all companies, and it means an extra £642 for the average customer.
This news comes on the heels of a major water outage that left many homes dry for two days last December. Talk about bad timing!
Gosden admitted that the outage was “completely unacceptable” and acknowledged that the company’s response wasn’t up to par. But when MPs grilled him about the price hike, he pointed to geography as the main issue.
He argued that the southeast of England is water-stressed, with less rainfall per person than Namibia. So, he said, they need to invest heavily in water resources to prepare for climate change.
Helena Dollimore, an MP from Hastings and Rye, didn’t hold back. She questioned why Gosden accepted a £160,000 bonus if he believed the company’s handling of outages was inadequate.
Gosden defended himself, saying he turned down a bonus in his first year because it didn’t feel right given the scrutiny the water sector was under. He claimed that most of his bonus was disqualified and that the £160,000 he received was tied to specific targets for improving water quality and safety.
