River Action is suing Ofwat, accusing the water regulator of making customers foot the bill for years of industry neglect.
The environmental group claims Ofwat has unlawfully approved price rises that could be used to fix infrastructure failures that should have been addressed long ago.
Paying Twice for the Same Problem?
Under current rules, customers shouldn’t be charged for water companies simply meeting their legal obligations—like stopping raw sewage from pouring into rivers or maintaining treatment plants.
However, River Action argues Ofwat’s latest price review (PR24) could see households paying again for services they’ve already funded.
The group’s legal challenge focuses on United Utilities, which has been allocated funds for wastewater treatment works and pumping stations around Lake Windermere.
Emma Dearnaley, River Action’s head of legal, didn’t mince words:
“Ofwat has signed off on a broken system where customers are being charged again for services they have already funded. The cost of fixing the UK’s crumbling water infrastructure should fall on the companies and their investors, not on the British public.”
Ofwat Under Fire
Water companies are already under criminal investigation by the Environment Agency for breaking permit rules. Meanwhile, Ofwat is running its own probe into whether firms have breached their obligations.
Despite this, Ofwat insists it has done everything by the book.
A spokesperson said:
“We reject River Action’s claims. The PR24 process methodically scrutinised business plans to ensure that customers were getting fair value and investment was justified. We will monitor this closely and take action if required.”
River Action, however, believes Ofwat hasn’t done its homework. Documents seen by the group suggest United Utilities may be using future funding to cover past failures—something Ofwat has explicitly stated should not happen.
If River Action wins the case, it could set a major precedent for how water companies fund infrastructure fixes. For now, though, it looks like customers are left watching their bills rise while the debate rages on.
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