Menu
01/07/2008
Severn Trent Fined £2m Over 'Water Leak Lies'
Severn Trent Water has today been fined £2 million at the Old Bailey, for lying about leakages in its water system.
The second largest water company in Britain - and the first to be prosecuted for making false statements about its leaks - pleaded guilty to two offences related to leakage data supplied to Ofwat in 2001 and 2002.
Severn Trent had reported an estimated yearly water loss of 340 million litres per day to meet targets.
However, the true figure was around 514 million litres. The firm pleaded guilty to two offences under the Water Industry Act, of making false returns to Ofwat.
A separate investigation in April this year found the company had deliberately provided false information and poor customer service, for which it faces a £35.8 million fine.
The company said it "deeply regretted" the mistakes made and offered their apologies to their customers, for the behaviour Ofwat deemed "unacceptable".
The board also said it would not be taking legal action against the former management, who are no longer within the organisation.
"We deeply regret the mistakes of the previous regime for which we have apologised to customers," Tony Wray, Chief Executive of Severn Trent Plc, said. "There were indefensible shortcomings in Severn Trent’s previous management and control systems during the 2000 to 2004 era.
"On behalf of our customers and staff we deplore the breach of the essential trust between Severn Trent and all our stakeholders."
Mr Wray also stressed that the company did not profit from the "failures" and that customers accounts and bills were altered "appropriately".
Severn Trent provides water for more than eight million customers from the Bristol Channel to the Humber, and from mid-Wales to the East Midlands.
(JM)
The second largest water company in Britain - and the first to be prosecuted for making false statements about its leaks - pleaded guilty to two offences related to leakage data supplied to Ofwat in 2001 and 2002.
Severn Trent had reported an estimated yearly water loss of 340 million litres per day to meet targets.
However, the true figure was around 514 million litres. The firm pleaded guilty to two offences under the Water Industry Act, of making false returns to Ofwat.
A separate investigation in April this year found the company had deliberately provided false information and poor customer service, for which it faces a £35.8 million fine.
The company said it "deeply regretted" the mistakes made and offered their apologies to their customers, for the behaviour Ofwat deemed "unacceptable".
The board also said it would not be taking legal action against the former management, who are no longer within the organisation.
"We deeply regret the mistakes of the previous regime for which we have apologised to customers," Tony Wray, Chief Executive of Severn Trent Plc, said. "There were indefensible shortcomings in Severn Trent’s previous management and control systems during the 2000 to 2004 era.
"On behalf of our customers and staff we deplore the breach of the essential trust between Severn Trent and all our stakeholders."
Mr Wray also stressed that the company did not profit from the "failures" and that customers accounts and bills were altered "appropriately".
Severn Trent provides water for more than eight million customers from the Bristol Channel to the Humber, and from mid-Wales to the East Midlands.
(JM)
Related UK National News Stories
Click here for the latest headlines.
07 March 2006
Customers to receive refund from Severn Trent Water
Customers of Severn Trent Water are to receive refunds after an investigation by Ofwat found the water company had overcharged customers. The regulator's investigation found that the water company, which has more than eight million customers, had provided regulatory data that was either "deliberately miscalculated" or "poorly supported".
Customers to receive refund from Severn Trent Water
Customers of Severn Trent Water are to receive refunds after an investigation by Ofwat found the water company had overcharged customers. The regulator's investigation found that the water company, which has more than eight million customers, had provided regulatory data that was either "deliberately miscalculated" or "poorly supported".
31 July 2007
Tap Water Restored To More Flood-Hit Homes
Mains water supplies have now been restored to more than 70,000 homes in the flood-hit Gloucester area. Severn Trent Water said that the programme of re-filling more than 1,200 miles of water pipes is continuing to make steady progress.
Tap Water Restored To More Flood-Hit Homes
Mains water supplies have now been restored to more than 70,000 homes in the flood-hit Gloucester area. Severn Trent Water said that the programme of re-filling more than 1,200 miles of water pipes is continuing to make steady progress.
10 October 2014
Severn Trent Water To Cut 500 Jobs
Severn Trent Water in Coventry have announced it is to cut 500 jobs. The company said that following the merger of its sewerage and water supply divisions it is reducing its management and support departments.
Severn Trent Water To Cut 500 Jobs
Severn Trent Water in Coventry have announced it is to cut 500 jobs. The company said that following the merger of its sewerage and water supply divisions it is reducing its management and support departments.
08 April 2008
Ofwat Proposes Huge Fine For Severn Trent
Birmingham water company, Severn Trent Water could be presented with a £35.8 million fine for misleading customers and offering poor service. Water industry regulator Ofwat is planning to fine the firm £34.7 million for fraud and £1.1 million for "substandard" service.
Ofwat Proposes Huge Fine For Severn Trent
Birmingham water company, Severn Trent Water could be presented with a £35.8 million fine for misleading customers and offering poor service. Water industry regulator Ofwat is planning to fine the firm £34.7 million for fraud and £1.1 million for "substandard" service.
14 May 2013
Possible Severn Trent Takeover News Drives Up Share Prices
A potential takeover bid has been made to Severn Trent, valuing the company at up to £5bn. The water company, which serves the water and sewerage needs of some 4.
Possible Severn Trent Takeover News Drives Up Share Prices
A potential takeover bid has been made to Severn Trent, valuing the company at up to £5bn. The water company, which serves the water and sewerage needs of some 4.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
