Photo by Sang Yun Cho / Pixabay

The environmental group River Action has announced they are taking legal action against Ofwat, the water regulator, accusing it of making customers pay twice for services that have not yet been delivered. 

Water companies are under investigation by Ofwat for breaches to their permits, an inquiry that is being run alongside a criminal investigation by the Environment Agency. River Action argues water companies could  use recent, significant bill hikes to cover past infrastructure failures that should have been addressed years ago, forcing customers, rather than investors, to foot the bill. Under the rules, the public should not pay for investment to make water companies compliant with their permits to operate. This includes adhering to limits on discharges of raw sewage into rivers and a requirement to make sure treatment works are functioning properly. However, with Ofwat’s approval of price rises, River Action believes there is nothing to stop customers from being charged twice to clean up an environmental disaster in the nation’s rivers, seas and lakes caused by chronic underinvestment in Britain’s water infrastructure.

River Action is taking legal action to compel Ofwat to reassess its PR24 determination for United Utilities in relation to Windermere and to encourage Ofwat to reassess other water company schemes wherever there are concerns that customers are unfairly covering the cost of past failures. However, River Action is not calling for PR24 to be overturned or for investment levels to be reduced, recognising the urgency and importance of increased investment in Windermere and elsewhere.