Thames Water facing legal action over claims of pollution and customer overcharging  

Thames Water joins Severn Trent Water, United Utilities, Anglian Water, Yorkshire Water and Northumbrian Water in £800 million compensation claim

Thames Water is the last of six UK water companies to be accused in a £800 million legal claim of misleading regulators about the number of discharges of untreated sewage it made into rivers, lakes, coastal areas, and other waterways causing damage to the environment.

Professor Carolyn Roberts is taking legal action against Thames Water – the UK’s largest water company – on behalf of its 11 million household customers. 

She is claiming £159.1 million in compensation for Thames Water customers who she says have been overcharged as a result of the underreporting of sewage pollution.

Professor Roberts, an environment and water consultant, said:

‘In England and Wales there is growing anger about the state in which sewage discharges leave our rivers and beaches. 

‘The latest Environment Agency data shows that for 2023 Water Companies have doubled their sewage discharges. This is despite Ofwat’s and the Environment Agency parallel investigation into sewage treatment works. 

‘I hope the legal claims I am bringing on behalf of millions of customers, which now include Thames Water customers, play a part in bringing desperately needed change in the water industry.’

The claim will be heard alongside the claims against Anglian Water, Northumbrian Water, Severn Trent Water, United Utilities and Yorkshire Water who made their first appearance in court earlier this year.

The competition court will consider whether to grant permission for the claims to go to trial at a hearing on 23 September.  

UK water companies accused of underreporting sewage spills

The claims accuse water companies of breaking competition law by misleading the Environment Agency and Ofwat as to the number of pollution incidents – discharges or spills of untreated sewage – they made into rivers, lakes, coastal areas, and other waterways causing damage to the environment.

The number of pollution incidents a company reports to regulators is a key factor in determining the price they can charge consumers for their services. The legal claims argue that customers have been overcharged as a result of the companies’ underreporting.   

‘Water companies are required to accurately report pollution incidents as part of their legal duties and responsibilities, but it appears many such incidents go unreported,’ Professor Roberts said. 

‘If these companies had correctly reported the number of pollution incidents, Ofwat would have applied performance penalties, reducing how much these companies could charge their customers. Instead, customers have been, and continue to be, overcharged, and England’s waterways continue to be polluted.’

Consumer trust in water companies at an all-time low

This latest claim comes following the reporting that consumer trust in water companies is at an all-time low amid pollution failings. A survey of almost 5,000 households found just a third (33%) said they were satisfied with water companies’ efforts to protect the environment.

Anglian Water, Northumbrian Water, Severn Trent Water, Thames Water, United Utilities Water, and Yorkshire Water are all accused of failing to reveal the true scale of sewage discharges and spills made into UK waterways.

Professor Roberts is claiming a combined compensation payout of £800 million. She added: ‘It is imperative that the millions of bill payers impacted by the water companies’ sewage pollution and alleged overcharging are properly compensated.’

The claims against all six companies will be heard together.

Thames Water customers who could be owed compensation

If the claim is successful you could be owed compensation if you paid a water bill from Thames Water anytime from April 2020.

Thames Water supplies services to the Greater London area and parts of Southwest and Southeast England. The case against this company is being brought on behalf of more than 11 million household customers and is estimated to be worth at least £159.1 million if successful.   

Anyone with an interest in the claim against Thames Water or the claims against Anglian Water, Northumbrian Water, Severn Trent Water, United Utilities Water, and Yorkshire Water have the right to raise objections ahead of the September court hearing. 

To do this you must write to the Competition Appeal Tribunal outlining your reasons for objecting by 4pm on 11 July.

A Thames Water spokesperson said: ‘Thames Water is aware of the claims brought against it and other water and sewerage companies by Professor Roberts. Thames Water will defend the claim robustly.’