Water companies accused of pollution underreporting in landmark case
Six water companies may have been breaking competition law by underreporting the number of pollution incidents according to a water specialist.
Professor Carolyn Roberts, an environmental and water consultant, is bringing the first environmental competition class action against Severn Trent, Yorkshire Water, United Utilities, Thames Water, Anglian Water and Northumbrian Water.
A Collective Proceedings Order (CPO) hearing starting today (Sep 23) will hear claims that all six have been breaking competition law by misleading the Environment Agency and Ofwat as to the number of pollution incidents, being discharges or spills of untreated sewage they made into rivers, lakes, coastal areas, and other waterways causing damage to the environment.
As the number of pollution incidents reported is a key factor in determining the price charged by firms, Professor Roberts says more than 20 million customers have been overcharged.
She estimates that customers are owed at least £800m if the claims are successful.
During the hearing, the Competition Appeal Tribunal will hear why the six claims are suitable to proceed as “opt-out” collective claims and will be asked to approve Professor Roberts as the Class Representative.
The CPO is the first stage of the case and if it is successful, the cases will proceed to trial, which Professor Roberts’ representatives from firm Leigh Day estimates will take at least two to three years.
Severn Trent has been contacted for comment, with no immediate response received.