South East Water in merger move

Two of the region's water companies are merging to create the second-largest water supply company in England and Wales.

Subject to final regulatory clearance, South East Water and Mid Kent Water are expected to merge this month.

The company will be called South East Water and will supply, on average, 565 million litres of water every day to 2.1 million customers across Kent, Sussex, Hampshire, Berkshire and Surrey.

The companies say customers will "benefit from a committed and renewed focus from the merged company to improve the customer's experience of dealing with South East Water."

A new, centralised customer service centre housing more than 150 staff is proposed at the head office in Snodland, to provide a one-stop- shop to all customer queries, whether it's about their water bill, leaks on pipes, or their drinking water supply.

The new customer service centre will create additional jobs in the organisation, and offer a number of opportunities for existing staff within both companies as well as local job seekers.

South East Water is also proposing to enlarge its state-of-the-art testing laboratory at Frimley Green, Surrey, as part of its ongoing drive to not only maintain but further improve drinking water quality.

The merger allows the company to optimise key functions in the business, with resulting benefits for customers. This includes delivering the one-off 4 million price cut to customer bills in 2008/09, as agreed with the Competition Commission which approved the merger earlier this year; and providing a further 3.1 million merger efficiency savings each year in the next funding period, which runs from 2010 '“ 2015.

The company says that during planning for the merger, it has carried out extensive consultation with the combined workforce of 660 staff, and Staff Council and Trade Union representatives.

This includes consulting on redundancy terms for up to 132 staff whose roles are duplicated and who are unable to either relocate or travel to Snodland. No redundancies will be made before 31 March 2008.

Paul Butler, managing director of South East Water, said: "I strongly believe the creation of an enlarged South East Water will enable us to deliver a cost effective, enhanced customer service.

"Furthermore, with the issue of water resources increasingly critical to supporting growth in this region, we will become a leading voice in the future of drinking water supply in the South East to help deliver a more sustainable and efficient water supply for the region.

"However, we also appreciate that for many employees the merger process has been an unsettling period, which is why we have carried out extensive consultation over the last few months. This includes consulting on redundancy terms for those staff affected, dealing with them sensitively and providing appropriate support."