Serious leaks

The UK Serious Fraud Office has informed Severn Trent Water that it is to be charged with offences concerning the provision of false information to the industry regulatory body, Ofwat.

Three charges are to be brought against the company under section 207 of the UK Water Industry Act 1991. They relate to leakage data in the June Returns provided to Ofwat for 2000, 2001 and 2002.

The SFO informed Severn Trent on October 31 2005 that, as a result of a referral by Ofwat, it was undertaking a criminal investigation into alleged reporting irregularities concerning leakage data supplied to Ofwat by Severn Trent Water between 2000 and 2003.

Ofwat had been conducting its own investigation following allegations of false reporting made by an employee of Severn Trent Water in May 2004. On March 7 2006, Ofwat published its interim report concerning the allegations of false reporting made against Severn Trent Water in 2004. In responding to the report Severn Trent apologised to customers and has credited customers' accounts and reduced future tariffs.