Six water firms face law suits from overcharging

Millions of households across the country could be in line for compensation under class action lawsuits being filed against six water companies. Claims are being made against six water companies on behalf of 20 million customers for alleged under-reporting of pollution incidents. If successful, water companies face paying out as much as £800 million in compensation.

Professor Carolyn Roberts, an environmental and water consultant, said she is planning to bring a string of cases to the Competition Appeal Tribunal in a bid to secure more than £800 million compensation on behalf of 20 million customers. She claims the companies failed to disclose the number of sewage discharges, resulting in households being “unfairly overcharged”.

Professor Roberts, who is represented by Leigh Day Solicitors, is bringing her first claim estimated to be worth £330 million against Severn Trent Water, which serves eight million people across the Midlands and parts of Wales.

It follows claims from campaigners that the River Severn is the most polluted in the UK. They estimate waste was pumped into the waterway on 2,600 separate occasions in 2021.

Professor Roberts also plans to take action against Thames Water, United Utilities, Anglian Water, Yorkshire Water and Northumbrian Water.

There has been growing public anger over sewage being pumped into Britain’s rivers and seas, prompting industry body Water UK to issue an unprecedented public
But Professor Roberts claimed the water companies had broken competition laws by misleading the Environment Agency and regulator Ofwat.

Zoe Mernick-Levene, Partner at Leigh Day, said “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 send a message to water companies that they cannot unlawfully pollute waterways and mislead their regulators without consequence.”

Ben Lasserson, Partner in the Competition group at Mishcon de Reya, said “The current direction of travel in the litigation landscape is very much towards mass consumer claims, but the challenge for claimants is often trying to work out how these sorts of cases can best be progressed.  This claim is an attempt to frame important environmental and consumer protection considerations within competition law, and so it will be particularly interesting to see how the Competition Appeal Tribunal approaches it.  Whether or not this particular claim succeeds, it is clear that we will continue to see more mass consumer-focused cases going forward.”