The first class-action lawsuit is being brought against water corporations that are accused of misusing their position as privatised monopolies and failing to disclose the full scope of raw sewage discharges.
Claims of under-reporting pollution incidents and overcharging customers will result in legal action against six English water corporations, which could result in hundreds of millions of pounds being paid out to consumers.
Anyone who has paid water bills to one of the six companies from April 2020 may be entitled to compensation.
Leigh Day Solicitors' client Professor Carolyn Roberts, an environmental and water specialist, asserts that these water corporations have violated competition laws by deceiving the Environmental Agency and the watchdog Ofwat.
She claims that through under-reporting sewage discharges, customers have been “unfairly overcharged” for wastewater services. Had the amount of sewage discharges been accurately reported, she claims, customer costs would have been lower.
Water UK said the accusations are “entirely without merit” and that 99 per cent of sewage works are legally compliant.
Which water companies are involved?
Severn Trent Water, Thames Water, United Utilities, Anglian Water, Yorkshire Water, and Northumbrian Water are all involved.
How much could people receive?
If the claims are successful, anybody who has paid a water bill to one or more of these businesses since April 2020 — or April 2017 for Severn Trent Water customers — may be eligible for compensation.
If the cases are successful, Severn Trent Water, Thames Water, United Utilities, Anglian Water, Yorkshire Water, and Northumbrian Water may have to pay more than £800 million in damages to more than 20 million customers.
The first lawsuit, filed against Severn Trent Water on behalf of eight million individuals, is thought to be worth more than £330 million.
How do you make a claim?
Leigh Day is pursuing compensation on an opt-out basis, which means clients are only required to submit claims if the lawsuit is successful.
It will file five further lawsuits against the other water suppliers over the next few months, in addition to putting Severn Trent Water before the Competition Appeal Tribunal.
If they win, the lawyers anticipate that the relevant water firm and its shareholders will pay any compensation — but not by increasing customers’ bills.
If the lawsuit is successful, customers can submit a claim against their water supplier through their individual websites or via the Director General of Water Services (Ofwat).
What have the water companies said in response?
A Water UK spokesperson said: “This highly speculative claim is entirely without merit. The regulator has confirmed that over 99 per cent of sewage works comply with their legal requirements.
“If companies fail to deliver on their commitments, then customer bills are already adjusted accordingly.”
However, 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.
“Customers put their trust in water companies, believing that they are correctly reporting these spillages and appropriately treating the sewage so it can safely be returned to the environment.
“Instead, our client believes they are misleading their regulators and customers are overpaying while England’s waterways are suffering as a result.”
