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South East Water has been ordered to spend £30.5m to upgrade thousands of customers in Kent and Sussex after supply cuts.
Water regulator Ofwat said this follows the completion of three investigations into the company’s repeated failures.
The restructuring package is paid for by the company’s shareholders, not customer accounts.
A spokesman for the water company said it was “incredibly sorry” for the historic supply cuts to Kent and Sussex customers.
“We know this has caused significant disruption and concern, and we accept the failings identified by Ofwat,” he said.
“It’s not the level of service our customers deserve.
“Our priority is that the resolution of this investigation directly benefits those most affected.”
Ofwat says the reforms will help provide £5m to provide free water bots for households, £5m to bring in smart metering for businesses and other non-household customers, and a further £5m for on-site storage to manage supply during times of demand.
