Committee publication · Correspondence · 1 May 2026

Correspondence to Louis Babineau, Chair of Fédération des caisses Desjardins du Québec regarding the EFRA Committee Report and the South East Water leadership accountability

From: Environment, Food and Rural Affairs Committee

Inquiry: Reforming the water sector

Summary

The EFRA Committee writes to Louis Babineau, Chair of Fédération des caisses Desjardins du Québec and significant shareholder in South East Water, seeking his response to the committee's critical report on failures at the water company. The letter demands clarification on required leadership changes, assessment of current leadership's viability, capability to restore confidence, and shareholder actions to address identified governance and accountability weaknesses.

Key findings

  • EFRA Committee report is highly critical of South East Water's performance, governance and leadership
  • Committee raises serious concerns about the company's ability to provide reliable, resilient and accountable service to customers
  • Committee calls for urgent leadership change at South East Water
  • Problems identified are characterised as symptoms of deeper weaknesses in leadership, planning and accountability, not operational inconvenience

Tone

Critical

Topics

water-utilitiescorporate-governanceregulatory-accountabilityleadership

Key actors

Louis Babineau, Fédération des caisses Desjardins du Québec, South East Water, Alistair Carmichael MP, Environment, Food and Rural Affairs Committee

Notable line

… the problems at South East Water should not be treated as matters of operational inconvenience, but as symptoms of deeper weaknesses in leadership, planning and accountability.

Key Quotes

The Committee's report is highly critical of South East Water's performance, governance and leadership.
Alistair Carmichael MP, Chair of EFRA Committee · opening statement on the committee's findings
It raises serious concerns about the company's ability to provide a reliable, resilient and accountable service to its customers, and calls for urgent leadership change.
Alistair Carmichael MP, Chair of EFRA Committee · describing the scale of concerns identified
… the problems at South East Water should not be treated as matters of operational inconvenience, but as symptoms of deeper weaknesses in leadership, planning and accountability.
Alistair Carmichael MP, Chair of EFRA Committee · clarifying the nature of systemic failures at the company
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Source · parliament.uk record ↗