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CAT urged to certify opt-out collective claim alleging abuse of dominance via underreported sewage spills and overcharging by water companies in England and Wales; Water Industry Act bar contested

Published on: 25 September 2024

Published by a Law360 reporter
Legal News
Article summary

Carolyn Roberts, a self-employed environmental and water consultant, has asked the Competition Appeal Tribunal (CAT) to certify a case alleging that water and sewage operators have abused their market dominance within their regions.

The companies are:

  • Severn Trent Water
  • Thames Water
  • United Utilities
  • Anglian Water
  • Yorkshire Water
  • Northumbrian Water

Her barrister, Julian Gregory of Monckton Chambers, argued the firms have ‘significantly’ and ‘systematically’ understated sewage discharges into waterways when reporting to both the Environment Agency and the Water Services Regulation Authority, known as Ofwat.

Gregory said Ofwat runs a ‘carrot and stick’ regime that caps what companies may bill customers according to whether specified environmental performance commitments are achieved.

‘The claims maintain the defendants misled Ofwat and the Environment Agency by underreporting sewage spills,’ Gregory said.

‘If so, they were allowed to levy higher prices for household customers than they could have done had they reported accurately.’

Roberts contends the regional monopolies have evaded performance penalties by not declaring the true number of pollution incidents.

She says such penalties would have lowered costs for customers.

Roberts said in August...

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