Six major British water companies are facing legal action over allegations they under-reported sewage discharges, resulting in overcharging customers by up
to £1.5 billion ($2 billion), lawyers claimed in a landmark lawsuit presented to a London tribunal on Monday.
The companies, including Thames Water, Britain’s largest water provider, are accused of providing misleading information to the industry regulator, Ofwat, regarding the number of pollution incidents. This, in turn, allowed them to set higher charges for their customers.
The defendants—Thames Water, Anglian Water, Northumbrian Water, Severn Trent, United Utilities, and Yorkshire Water—argue that the case should be dismissed. They claim the lawsuit is not supported by English law regulating the water industry.
The lawsuit, a first of its kind under environmental competition law in the UK, comes amid rising public outrage over the levels of sewage being released into the country's rivers and seas. This has led the government to promise stronger regulatory oversight.
Carolyn Roberts, an environmental and water consultant, initiated the case, accusing the companies of "significantly and/or systemically under-reporting" pollution incidents to Ofwat. According to Roberts' legal representative, Julian Gregory, Thames Water alone may have failed to report over 6,000 sewage discharges.
The case against Thames Water, which is currently struggling with significant debt and is seeking funds to stabilize its finances, is valued at up to £200 million.
Gregory urged the tribunal to allow the six cases to move forward to trial, marking an important early step in the proceedings. However, the water companies maintain that the claims are legally unfounded and should be rejected.
In a statement, the industry group Water UK dismissed the lawsuit, calling it "highly speculative" and "without merit," and highlighting that over 99% of sewage treatment works comply with legal standards, according to the regulator.
The hearing is set to conclude on Thursday, with a decision on whether the case can proceed expected at a later date. Photo by © Nevit Dilmen, Wikimedia commons.