By Water companies could owe millions for ‘overcharging’
Water customers in England and Wales could be entitled to a massive £163m fee for sewage spills.
Corporate wrongdoing researchers claim millions could be owed to customers after ‘overcharging’ from the water companies.
The Water firms receive payment from customers to treat sewage, but according to researchers from Fideres, they have been discharging it into rivers and onto beaches.
Cleethorpes beach was unable to obtain Blue Flag status in April, due to the increased sewage levels across the Humber Mouth, occurring from storm overflows across the borough.
SurfersAgainstSewage regularly update their interactive map, highlighting areas in the water that have built up significant sewage. The effect is not just felt in bathing quality, but local businesses that somewhat rely on tourism have cited decreased visitation, with one business owner claiming over £4000 in loss of earnings, directly attributed to the water quality.
Due to underinvestment, researchers said this is leading to an “excessively low quality service”.
A water industry body said firms were putting in place a £56bn programme to tackle spills.
According to reports, companies were discharging sewage in to rivers and the sea 400,000 times in 2020.
The water industry in England and Wales is currently under criminal investigation by regulators Ofwat and the Environment Agency over sewage discharges, and it has opened six enforcement cases against companies.
Researchers said water firms had still “abused” their position by not investing enough, with investment in wastewater and sewage networks falling over time.
Chris Pike, one of the researchers, said that the firms “face no competitive pressure”, which has led to underinvestment.
According to research by the Financial Times, water firms had “slashed” investment in critical infrastructure by up to a fifth since they were privatised 30 years ago.
Over the same period, the firms borrowed £53bn, but much of that has been used to pay £72bn in dividends to shareholders, not for new investment, said the BBC.
A deduction from water bills should go towards cleaning waste water but due to the spills, “there is a reasonable case to be made under competition law that users may have been overcharged by approximately £163m over the last six years”, the researchers said.
They called for an investigation of water firms either by the Competition and Markets Authority (CMA), or by Ofwat.
However, industry body Water UK said the research was a “distraction” from the “vital work” of the “transformation to our rivers we all want to see” over the next decade.
“Water and sewerage companies are currently putting in place the largest ever infrastructure programme the industry has ever seen to improve overflows, and tackle spills, at a cost of £56bn,” a spokesperson said.
