August 9th 2023.
Six English water companies are facing legal action that could result in them paying out over £800 million in compensation to more than 20 million customers.
Professor Carolyn Roberts, an environmental and water consultant, claims that these companies have violated competition laws by underreporting the number of sewage discharges and overcharging customers for wastewater services.
The first claim against Severn Trent Water alone is estimated to be worth more than £330 million.
It appears that the water companies have been avoiding penalties from the regulator Ofwat by underreporting the number of sewage discharges. This has resulted in customers paying more than they should. Any compensation paid as a result of a successful case would be paid by the water company and its shareholders, not by raising customer bills.
Professor Roberts said: "Like many others across the country, I have viewed with horror the escalating number of stories in the media regarding the volume of sewage discharged into our waterways and on to our beaches. The population of the UK has a right to expect that our rivers, lakes and seas will generally be clean, except under exceptional circumstances."
Leigh Day Solicitors is bringing Severn Trent Water to the Competition Appeal Tribunal and will be bringing five further claims against the other water companies in the coming months. Anyone who has paid a water bill to one or more of these companies since April 2020 (or April 2017 for Severn Trent Water customers) may be entitled to compensation if the claims are successful. The solicitors are seeking money for customers on an opt-out basis, meaning people only have to come forward to claim their compensation if the case is successful.
A Water UK spokesperson said that the accusations are ‘entirely without merit’ and that 99% of sewage works are legally compliant. They also said that if companies fail to deliver on their commitments, customer bills are already adjusted accordingly.
Zoe Mernick-Levene, partner at Leigh Day, said: ‘These claims are hugely significant. Not only is compensation being sought for millions of customers who have and continue to pay higher water bills, but we hope that it will also send a message to water companies that they cannot unlawfully pollute waterways and mislead their regulators without consequence.’
This case brings an important issue to light - that customers should not be overpaying for services while our waterways become polluted. We must ensure that water companies are held accountable for their actions and that customers are not faced with unfair bills. If successful, this case could mean a major victory for consumer rights.
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