South East Water accused of 'killing' Hampshire fen

Councillor Paul Harvey says the water company has created a crisis of its own making by failing to invest in alternative infrastructure while continuing to pump water from Greywell Fen, one of the largest remaining alkaline fens in southern England and a Site of Special Scientific Interest (SSSI).

The Environment Agency (EA) has now refused to renew South East Water's abstraction licence at Greywell, and the company has lodged a formal appeal with the Planning Inspectorate. South East Water's own communication has warned that if that appeal fails, there will be a "severe and immediate water shortage for thousands of local residents and businesses". The council puts the number of customers at risk at 70,000.

Natural England, in its formal response to the Basingstoke and Deane Local Plan consultation in January 2026, stated that South East Water's abstraction is causing "significant environmental impacts" that are "harming and further deteriorating" Greywell Fen. The EA classifies the site's current condition as "Unfavourable Declining" and describes it as internationally recognised, listed under Annex I of the EU Habitats Directive.

View of river whitewater in Greywell (Image: Google Street View)

The council's fury is sharpened by what it says was South East Water's own admission of the problem. The company's Water Resources Management Plan, published in October 2024, set out a pathway to cease abstraction at Greywell by 2025 — a target the company then missed.

"Let that sink in: you set your own deadline to stop damaging a protected Site of Special Scientific Interest, then missed it," Cllr Harvey's letter states. "And now you are appealing the regulator's decision to enforce what your own plan committed you to do."

The council says the solution has long been known: a strategic transfer pipeline from Surrey Hills Service Reservoir to Basingstoke. But the route has not even been confirmed, let alone the pipeline built. South East Water told Basingstoke and Deane Borough Council in January 2026 that the project is "expected to be delivered in the early 2030s" but is "currently subject to a review to identify the most suitable pipeline route".

The delay comes down to money. South East Water told the council that Ofwat had "disallowed funding" for the scheme and that the company is "currently underfunded to deliver it," while a funding dispute grinds through the Competition and Markets Authority. In the meantime, Basingstoke has no alternative water source.

"This is not bad luck," the letter says. "It is the predictable consequence of a water industry model in which infrastructure investment is perpetually deferred, fought over by regulators and companies, and ultimately sacrificed on the altar of financial returns."

(Image: Newsquest)

The crisis extends beyond water supply. South East Water has already told the council there is "insufficient water supply capacity" to support government-mandated housing growth targets in the borough. Commercial development faces the same constraint, with the letter warning the situation is "important to the future prosperity of the area."

Cllr Harvey also flags broader sewage infrastructure failures, including Basingstoke Sewage Treatment Works operating under a Maximum Daily Volume permit rather than a standard permit, and Southern Water's Whitchurch works having exceeded permitted discharge limits.

In a letter sent to South East Water chief executive David Hinton on June 12, Cllr Harvey and cabinet member for strategic planning Cllr Andy Konieczko set out four demands: a legally binding timeline to build the Surrey Hills–Basingstoke pipeline; a transparent public account of how the company will fund it; a funded and independently monitored remediation plan for Greywell Fen; and a "full and unreserved public apology and admission of liability" to customers.

"The people of Basingstoke did not create this crisis," the letter concludes. "They pay their water bills, and they deserve better."

Oliver Martin, strategy and regulation director at South East Water said the company was "disappointed" by the Environment Agency’s decision to refuse its application to extend the Greywell abstraction licence until March 2031.

He said the company’s "primary and overriding priority is the safety, health, and well-being of our customers as we deliver the public water supply" and warned that immediately stopping abstraction "would have an immediate and severe impact on the local communities which are reliant on this source".

Mr Martin said the decision could affect "up to 9,563 customers in the Greywell and Swaines Hill area, and potentially a further 61,363 customers in the wider Basingstoke area".

"For this reason we have recommended, and the Board has approved, the lodging of a formal appeal against this decision," he added.

"The appeal will consider whether there are grounds for South East Water to have its licence extended. It is likely to focus on two main issues: the extent of any impacts on the environment from continuing to abstract; and whether there are legitimate reasons justifying abstraction whilst South East Water continues to develop alternative water supply strategies.

"This appeal enables us to continue abstracting water from Greywell until the independent appeal process is determined. This ensures that taps keep running while we work on long-term solutions.

"We would like to remind customers to use water wisely, especially in the summer months as the temperatures rise and the demand for water increases."