SEW chair resignation over water supply crisis

What happened: David Hinton, CEO of South East Water (SEW), resigned following severe water supply issues that left tens of thousands of customers without water over winter and during a recent heatwave. A report found that SEW failed to adequately communicate with customers during outages, with only 9% satisfied with their handling of the crisis. The company's chair, Chris Train, also resigned after the critical report.

Market impact: The water supply crisis has driven public outrage and regulatory scrutiny, impacting SEW's reputation and potentially its financial performance. As a private company, SEW's profit-driven model has been criticized, which could influence future regulatory decisions and investor sentiment.

What to watch next: The UK's upcoming summer months, which may bring increased water demand and scrutiny of SEW's water supply management. Additionally, Ofwat's (water regulator) response to the crisis and any potential regulatory changes will be crucial in determining SEW's future operations and valuation.