Southern Water Annual Report and Financial Statements 2022–23

Our purpose is to provide water for life

Our long-term priorities

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Understanding and supporting our customers and communities

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Ensuring a supply of high-quality water for the future

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Protecting and improving the environment

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Enabling and empowering our people

Our strategy

These priorities guide our short and long-term plans and provide a framework for us to deliver essential water services to 2.7 million customers and wastewater services to more than 4.7 million customers across Kent, Sussex, Hampshire and the Isle of Wight.

Key stakeholders

There are five key stakeholder groups for which we create long-term value. It is essential we understand what matters most to them:

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Customers and communities

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The environment

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Our people and partners

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Always improving, for the
benefit of our customers,
the environment and
our communities.

We are committed to making sure our customers have access to high-quality, affordable and efficient water and wastewater services while we protect and enhance our communities and the environment.

Our reports this year

Becoming a more responsible and sustainable business is our priority. That is why this year we have used our long-term priorities to frame how we are improving our performance over time. By integrating our commentary in this way, we can better demonstrate how our customers and the environment sit at the heart of everything we do.

You can also read our Annual Performance Report for more detail about our current delivery strategy and targets:

Our priorities can only be
achieved with the support of
our people and communities

Understanding and supporting  our customers  and communities. We have ambitious goals and can  only reach them by working together with our partners  in the community.
Ensuring a supply of  high-quality water for the future. We plan and innovate to meet our promises, prioritising current and future needs of consumers.
Protecting and improving the environment. Working in partnership we will deliver long-term environmental improvements.
Enabling and empowering  our people. We are building the skills  and capabilities that our employees need to help create a resilient  water future.

Our purpose, vision, values and strategy

Our purpose is the reason we exist. Our vision informs our long-term priorities and sets our ambition.

Our five-year delivery strategy and focused Turnaround Plan are guided by this long-term vision. Our core values then provide the foundation and ethical decision-making framework by which we operate.


To create a resilient water future for our customers in the South East.

Our purpose is to provide water for life to

enhance health and wellbeing

protect and improve the environment

sustain the economy

Long-term priorities

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Understanding and supporting our customers and communities

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Ensuring a supply of high-quality water for the future

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Protecting and improving the environment

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Enabling and empowering our people

Five-year delivery strategy

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Deliver great service.

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Use water wisely.

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Protect and improve the environment.

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Fit for the future.

Turnaround Plan

Aims to deliver a short, sharp ambitious improvement by 2025, particularly in terms of our environmental performance. It includes four clear outcomes that we’re promising to deliver, improving our service to customers and the environment.

Where we'll be by 2025

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3rd quartile performance against our peers

Improved water quality that shows our commitment to excellence.

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3 star performance awarded by the Environment Agency

Environmental Performance Assessment rating that clearly shows our commitment to healthy rivers and seas.

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Our commitment to improve our customer experience for all our consumers.

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Lost-time injury rate which highlights our commitment to health and safety excellence.

Underpinned by our values

Our vision, purpose and values, alongside our ethical decision making and modern compliance frameworks, help our leadership team, employees and partners make better decisions every day.

Succeeding together
Doing the right thing
Always improving
Working with care

Our operational highlights

We are making progress

Our performance is measured through the value we generate for our stakeholders.

Financial highlights


Chair's statement

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  • The continued transformation of Southern Water is delivering progress.
  • Our focused two-year Turnaround Plan prioritises areas for performance improvement.
  • The role of our investors in enabling the acceleration of our activities continues to be crucial
  • The way we have learnt from five major incidents will help us serve our customers and communities better in the future.
  • We have continued to listen to all our stakeholders during a period of intense public scrutiny.
  • Water scarcity as a result of population growth and climate change is a reality in the South East, so resilience and protecting the environment are central to our plans
  • We fully expect to receive a two-star rating for the Environment Agency’s annual Environmental Performance Assessment.

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Chief Executive's summary

Image of Lawrence Gosden - Chief Executive Officer


  • Against the backdrop of increased public scrutiny, we are making solid progress and have completed 98% of the actions in the undertakings agreed with Ofwat in 2019.
  • Our new two-year Turnaround Plan is focused on delivering performance improvements in water quality, environmental performance and customer satisfaction.
  • These plans will also deliver a new Health and Safety Transformation Programme.
  • A new fourth value, Working with Care, reinforces our cultural transformation.
  • Our refreshed leadership team better reflects our turnaround agenda.
  • We fully expect to receive a two-star rating for our Environmental Performance Assessment from the Environment Agency.

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Read More

our external enviornment

Our external environment

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Our business 

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Our approach to climate change

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corp gov report

Corporate governance report

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director renum report

Directors’ Remuneration Report

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