Six UK water companies face lawsuits for allegedly underreporting pollution incidents and overcharging costumers as a result, informs Reuters.
A first claim has been issued against Severn Trent Water, with more to come against Thames Water, United Utilities, Anglian Water, Yorkshire Water and Northumbrian Water in the coming months, according to law firm Leigh Day, representing Professor Carolyn Roberts, environmental and water consultant bringing the claims on behalf of more than 20 million household customers.
The claim against Severn Trent water is estimated at more than £330 million ($420 million) and the six claims could lead to compensation payments of more than £800 million (more than $1 billion) in total.
The water companies are accused of underreporting the number of sewage spills or discharges into water bodies, in breach of environmental rules and breaking competition law. As part of their legal responsibilities, water companies are required to report the number of pollution incidents, which is a key factor to determine the price they can charge for their services; this is because performance penalties would have reduced how much customers were charged.
The cases are collective proceedings, which are similar to class action suits in the U.S.; customers of the water companies may be entitled to compensation if the claims are successful.
The legal action comes after much public criticism of companies discharging untreated wastewater into water bodies, primarily via spills from combined sewer overflows.
Water companies have said the claims are “highly speculative” and without merit. "The regulator has confirmed that over 99% of sewage works comply with their legal requirements. If companies fail to deliver on their commitments, then customer bills are already adjusted accordingly", said a Water UK spokesperson.
“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 onto our beaches”, said Professor Carolyn Roberts, and added “It appears that because of the serial and serious underreporting 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.”
Zoë Mernick-Levene, partner at law firm Leigh Day also commented: “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 sends a message to water companies that they cannot unlawfully pollute waterways and mislead their regulators without consequence.”
