Ofwat is to fine Severn Trent Water £35.8 million for deliberately providing false information and offering poor customer service.
The water industry regulator is fining the company £34.7 million, or 2.9% of total turnover, with a further £1.1 million penalty for bad customer service. Severn Trent has also admitted misreporting water leakage levels in 2001 and 2002.
Ofwat chief executive, Regina Finn said, "Severn Trent Water's behaviour was unacceptable. The size of the fine reflects how seriously Ofwat takes the deliberate misreporting of information. This sends a clear message to the company and the rest of the water sector - Ofwat will protect consumers and companies must comply with their legal obligations or pay the price."
However, Tony Wray, chief executive of Severn Trent Water's parent company, Severn Trent plc, said a "previous regime" was responsible. He stated, "When my management team and I uncovered misreporting and poor service in our customer relations department we promptly alerted Ofwat. We took steps to implement proper controls and an ethical working culture with the highest standards to ensure there can be no repetition of this unacceptable behaviour."
Mr Wray added that those responsible for providing the false information were "absolutely no longer with Severn Trent."
