Water firms risk £800m payout as lawsuits target ‘misleading’ pollution reporting
Six English water companies are to face legal action over allegations of underreporting pollution incidents and overcharging customers.
Severn Trent Water, Thames Water, United Utilities, Anglian Water, Yorkshire Water and Northumbrian Water could end up paying over £800m in compensation to more than 20m customers if the cases are successful.
Professor Carolyn Roberts, an environmental and water consultant represented by Leigh Day Solicitors, claims these water companies have broken competition laws by misleading the Environment Agency and the regulator Ofwat.
She alleges they have been under-reporting the number of sewage discharges, resulting in customers being “unfairly overcharged” for wastewater services, and that had sewage discharge reporting been accurate it would have lowered customer bills.
“The population of the UK has a right to expect that our rivers, lakes and seas will generally be clean, except under exceptional circumstances,” she said.
“It appears that because of the serial and serious under-reporting at the heart of these claims, water companies have been avoiding being penalised by Ofwat. I believe this has resulted in consumers being unfairly overcharged for sewage services.”
The first claim, brought on behalf of eight million people against Severn Trent Water, is estimated to be worth more than £330m.
Further claims will be brought against the other companies in what Leigh Day said is the first environmental collective action case of its kind.
Anyone who has paid a water bill to one or more of these companies from April 2020 – or April 2017 for Severn Trent Water customers – may be entitled to compensation if the claims are successful.
If successful, solicitors expect any compensation to be paid by the relevant water company and its shareholders, not by raising customer bills.
Zoe Mernick-Levene, partner at Leigh Day, said: “Customers put their trust in water companies, believing that they are correctly reporting these spillages and appropriately treating the sewage so it can safely be returned to the environment.
“Instead, our client believes they are misleading their regulators and customers are overpaying while England’s waterways are suffering as a result.”
Water UK said the accusations are “entirely without merit” and that 99 per cent of sewage works are legally compliant.
A spokesperson said: “This highly speculative claim is entirely without merit. The regulator has confirmed that over 99 per cent of sewage works comply with their legal requirements.
“If companies fail to deliver on their commitments, then customer bills are already adjusted accordingly.”
Press Association – Danny Halpin