Legal action is being initiated against the six largest water companies in the UK, alleging that they systematically underreported pollution incidents while overcharging customers. The legal proceedings have commenced with Severn Trent, and claims against the remaining five firms are expected to follow in the coming months.
A prominent law firm has stated that this legal action could potentially result in average compensation of £40 per customer. However, it’s important to note that the process could extend over several years, and the outcome is uncertain.
Water UK, a trade association representing the water industry, dismissed the allegations, stating that they lack merit.
The lawsuits are being brought forth by Professor Carolyn Roberts, an environmental and water consultant, represented by Leigh Day Solicitors. This collective action is reportedly the first of its kind in the environmental domain.
This legal approach, known as an opt-out basis, implies that all water bill payers are automatically part of the lawsuit unless they explicitly choose not to be.
The Competition Appeal Tribunal is tasked with determining whether the claims can proceed, a process that typically takes around a year.
Professor Roberts voiced her concerns over the significant instances of raw sewage being discharged into rivers and seas, which led her to initiate these legal proceedings. She alleged that water companies’ underreporting of pollution incidents had enabled them to avoid penalties imposed by the regulator Ofwat, ultimately resulting in customers being overcharged for sewage services.
In response, Water UK expressed skepticism regarding the claims, asserting that over 99% of sewage works adhere to legal requirements. A spokesperson for Water UK emphasized that if companies fail to meet their obligations, customer bills are already adjusted accordingly.
Severn Trent also pushed back against the claims, labeling them as “highly speculative with no merit” and reaffirming its commitment to reporting any pollution incidents to the Environment Agency.
This legal action, if successful against multiple companies, could potentially make compensation available to around 20 million customers. The case adds to the ongoing scrutiny faced by water firms over the release of untreated sewage into water bodies, which drew attention in 2022 due to instances of raw sewage discharges occurring at an average rate of 825 times per day.
The proceedings will likely spark a significant legal and public discourse on the responsibilities of water companies towards environmental conservation and transparent billing practices.
