(qlmbusinessnews.com Wed, 9th Aug, 2023) London, UK —
Six major English water companies – Severn Trent Water, Thames Water, United Utilities, Anglian Water, Yorkshire Water, and Northumbrian Water – are facing potential legal action over allegations of under-reporting pollution discharges and subsequently overcharging customers. Environmental and water consultant Professor Carolyn Roberts plans to file cases with the Competition Appeal Tribunal, seeking over £800 million in compensation for around 20 million customers. She claims the companies concealed sewage discharge figures, leading to unjustified customer fees.
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Professor Roberts, represented by Leigh Day Solicitors, is initiating her first case, estimated at £330 million, against Severn Trent Water, which serves eight million people across the Midlands and parts of Wales. Similar action is planned against the other aforementioned water companies.
Growing public outcry over sewage pollution in UK rivers and seas has prompted Water UK, the industry's representative body, to issue a public apology for not promptly addressing spills. The government is also contemplating unlimited fines for polluting firms.
While Water UK dismissed Professor Roberts's claims as “highly speculative” and “entirely without merit,” Severn Trent Water described them as “completely wrong.” However, Professor Roberts contends that the water companies breached competition laws by deceiving the Environment Agency and regulator Ofwat.
Leigh Day anticipates this to be the first environmental collective action case of its kind. They suggest that individuals who have paid water bills to the involved companies since April 2020, or April 2017 for Severn Trent, might be eligible for compensation if the case succeeds. The law firm expects any potential compensations to be funded by the companies and their shareholders, not through increased customer bills.
Zoe Mernick-Levene, a partner at Leigh Day, noted that these claims hold significant importance. Besides seeking compensation for millions of customers paying inflated water bills, the case aims to send a message to water companies that unlawful pollution and misleading regulators will have consequences.
A Water UK spokesperson said: “This highly speculative claim is entirely without merit. The regulator has confirmed that over 99% of sewage works comply with their legal requirements.
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“If companies fail to deliver on their commitments, then customer bills are already adjusted accordingly.”
A spokesperson for Severn Trent said: “This is a highly speculative claim with no merit which we strongly refute.
“Should pollutions ever occur, they are always reported to the Environment Agency. Any claim to the contrary is wholly and completely wrong.”
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