Today marks the start of a four day hearing at the Competition Appeal Tribunal in a case brought by Professor Carolyn Roberts against six water companies for allegedly misleading regulators about the number of discharges of untreated sewage made into rivers, lakes, coastal areas, and other waterways causing damage to the environment.

All six Collective Proceedings Orders (CPO) applications are being heard together by the Competition Appeal Tribunal. The Tribunal has listed two hearings for the case, each of one week - week 2 will commence 13 January 2025.

Professor Carolyn Roberts is the Proposed Class Representative (PCR) in each action for millions of customers - she has brought separate but very similar collective proceedings against the companies.

If successful, the combined claims could lead to compensation payments worth £840.8 million in total as follows:

• Severn Trent Water Ltd and Severn Trent PLC- £322.5 million
• United Utilities Water Ltd and United Utilities Group PLC - £141 million
• Yorkshire Water Services Ltd and Kelda Holdings Ltd- £150.7 million
• Northumbrian Water Ltd and Northumbrian Water Group Ltd- £35.2 million
• Anglian Water Services Ltd and Anglian Water Group Ltd - £32.3 million
• Thames Water Utilities Ltd and Kemble Water Holdings Ltd - £159.1 million

In March this year the Tribunal took the view that Ofwat should be a party to the proceedings and should have intervener status. The same should likewise apply to the Environment Agency (EA) if it decided to seek that status. The Ruling issued in March by the CAT on the future conduct of the proceedings stated:

“Ofwat has a clear interest in ensuring that the Tribunal is properly informed as to the shape and nature and meaning of the regulatory regime which it is the regulator over. It is to that extent that we encourage and welcome Ofwat’s (and possibly the EA’s) participation in these proceedings.“

As the PCR, Professor Roberts contends that the water companies have committed, and continue to commit, abuses of a dominant position, in breach of section 18 of the Competition Act 1998, in providing misleading information to the relevant regulatory bodies, the Environment Agency and the Ofwat. The PCR alleges that the effect of this conduct has been to cause Ofwat to allow the companies to charge customers higher prices for sewerage services than they would otherwise have been permitted to charge.

The number of pollution incidents a company reports to the Environment Agency and Ofwat is a key factor in determining the price the company can charge its customers for the provision of sewerage services. The claims argue that customers have been overcharged as a result of the companies’ under-reporting.

The legal actions claim that the water companies have each abused their dominant market position and overcharged consumers as a result.

The hearing, which starts at 10.30am, is being livestreamed - the livestream hearing can be viewed by any person. There is no need to make a request to the Tribunal to observe the proceedings.

 The current functions of the Tribunal include:

• Appeals on the merits in respect of decisions made under the Competition Act 1998 by the Competition and Markets Authority and the regulators in the telecommunications, electricity, gas, water, railways, air traffic services, payment systems, healthcare services and financial services sectors.
• Claims for damages and other monetary claims (including collective claims), applications for injunctions and applications for the approval of collective settlements under the Competition Act 1998 (as amended by the Consumer Rights Act 2015).