Water firm faces leak data trial

Severn Trent share price

The Serious Fraud Office (SFO) is to charge Severn Trent Water on three counts of providing false information to the water regulator, Ofwat.

The SFO began the investigation on 31 October 2005 into leakage data supplied between 2000 and 2003.

The regulator bases the amount water companies are allowed to charge to customers on various figures including leakage data.

No individual at Severn Trent Water will be charged.

A date has not yet been fixed for the first court hearing in the criminal proceedings, according to the SFO.

"For a water company to face criminal charges like this is unprecedented," Ofwat said in a statement.

"We will now study carefully the details of the charges which relate to the responsibilities of a previous regime," said chief executive Tony Wray, who took over at Severn Trent in March 2005.

Refunds

Ofwat began its investigation following allegations of false reporting made by an employee of the utility in May 2004.

After an initial report from Ofwat, Severn Trent Water apologised to customers, credited their accounts and reduced future tariffs.

The company acknowledged that the regulator "may expect further amends to be made to customers".

Severn Trent's investigation in 2006 also uncovered mis-stated customer relations figures, for which the company says that Ofwat plans to impose a fine.