Six water companies including the North West’s supplier United Utilities may have been breaking competition law by underreporting the number of pollution incidents
In court action begun yesterday by Professor Carolyn Roberts, an environmental and water consultant since 1988,alleges that the six Sewerage Companies have breached UK competition law by abusing their positions as dominant companies within their area of appointment by misleading their regulators, the Water Services Regulation Authority (“Ofwat”) and the Environment Agency, through the under-reporting of the number of pollution incidents on their networks.
Pollution incidents are discharges (or spills) of untreated sewage into rivers, lakes, coastal areas and other waterways, which have adverse environmental impacts.
The prices water and sewerage companies charge for sewerage services are linked to performance objectives set by Ofwat, one of which concerns the number of pollution incidents on their networks.
It is Professor Roberts’ case that by under-reporting pollution incidents, the six Sewerage Companies charged higher prices for sewerage services than they would have been permitted to charge if they had reported pollution incidents accurately.
In what is the first action of its kProfessor Roberts says more than 20 million customers have been overcharged and estimates that customers are owed at least £800m if the claims are successful.
