What South East Water asked for
The company said Friday it has requested a drought order that would let it curb non-essential water use by businesses and other non-household users in Sussex. Think car washes and non-domestic swimming pools as the kind of activities that typically get hit. The order would require signoff from Environment Secretary Angela Eagle before anything changes on the ground.
Why the company is moving now
A hot, rain-starved year has sapped rivers and reservoirs, interrupted supplies, and pushed companies to impose hosepipe bans on millions. The extreme weather also fueled wildfires and damaged crops, while stressing an already leak prone system as demand rose and dried out soil battered aging pipes. South East Water says Ardingly Reservoir is down to 22.8% of capacity, and it is tightening the existing hosepipe ban in Sussex by stripping out almost all exemptions except those needed for health and safety.
What regulators have already allowed
Last week, the Environment Agency approved a Drought Permit letting South East Water temporarily cut the amount of extra water it releases from Ardingly into the River Ouse and lower the minimum flow that must remain after water is taken for customers. On Friday, the agency said the permit on its own would not guarantee supplies, and that extra measures would be required; one option under consideration is a ban on non-essential use. Southern Water made a similar application in August, and that decision is still pending.
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What this means for your portfolio
The government said last month there is about a one in four chance that roughly half the country could still be in drought next spring. England has not seen a non-essential use ban in 20 years - the last was by Sutton and East Surrey Water in 2006 - so if restrictions land, expect knock on effects for local services and certain businesses where water use is curbed.
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