Severn Trent Water 'strongly refutes' claims of overcharging customers

STW strongly refutes the claims calling them "highly speculative" with "no merit". 

The case is being led by Professor Carolyn Roberts, an environmental and water consultant who is represented by Leigh Day Solicitors. 

It claims STW is underreporting the number of times it caused pollution incidents by spilling or discharging sewage into waterways in breach of environmental rules.

If proven, STW will have broken competition laws by misleading the Environment Agency and the regulator Ofwat.

FIRM: Severn Trent Water

Prof Roberts alleges this underreporting has led to customers being "unfairly overcharged" for wastewater services.

And she alleges if sewage discharge reporting had been accurate it would have lowered customer bills. 

If successful the law firm says it could result in STW's eight million customers on average receiving £40 each.

Anyone who paid for a water bill to STW from April 2017 may be entitled to compensation, if the case is successful.

The claim against STW is estimated to be worth more than £330 million and is being brought on an opt-on basis meaning water bill payers are automatically part of it unless they schoose not to be.

But the legal process could take years - the Competition Appeal Tribunal will first need to decide whether the claims can go ahead, and that process can take around a year.

The case against Severn Trent Water has been issued in the Competition Appeal Tribunal, with five further claims against other water companies to be issued in the coming months.

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STW has strongly denied it has done anything wrong. In a statement a spokesperson said: "This is a highly speculative claim with no merit which we strongly refute.

"Should pollutions ever occur, they are always reported to the Environment Agency.

"Any claim to the contrary is wholly and completely wrong.

“Our regulators set strict targets and performance measures that deliver for our customers and the environment. 

"Severn Trent is recognised as a sector leader by both regulators across operational and environmental measures. 

"We consistently deliver for our customers, and recently received the highest 4* status for environmental performance from the Environment Agency for the fourth year running.”