Severn Trent Water is to be fined for charges relating to the misreporting of leakage data.

Severn Trent Water Ltd is to be charged by the Serious Fraud Office (SFO) for three offences relating to the provision of false leakage data to Ofwat, England and Wales’ water and sewage regulator.

In May 2004, an employee of Severn Trent Water alerted Ofwat to the false reporting. The industry regulator investigated the allegations and, in October 2005, referred the case to the SFO, which has now decided to bring charges against the water company.

The Chief Executive of Severn Trent Plc, Tony Wray, stated that he was determined to continue to drive improvements for the benefit of the company’s customers: “The new Board has co-operated fully with the SFO during the investigation. We will now study carefully the details of the charges which relate to the responsibilities of a previous regime.  Until that process is completed and we have taken legal advice, we cannot comment further on our response to the charges.

“What I can say is that this new Board and management team has taken, and will continue to take, all actions we think appropriate to ensure the maintenance of both high ethical and professional standards, and resilient and effective controls throughout our organisation.”

Following an interim report published by Ofwat in 2006, Severn Trent apologised to its customers, credited customers’ accounts and reduced future tariffs.

The charges relate to leakage data supplied between 2000 and 2002. No individual will be charged with any offences, and as yet no decision has been made as to the full fine amount that may be payable.

Earlier this month, Ofwat fined Southern Water for the misreporting of figures – click here to read the article ‘Southern Water accepts £20.3 million fine’.