Severn Trent faces heavy fine

Updated 08.01 Tue Apr 08 2008
Keywords: water, severn trent, business, money

Water company Severn Trent Water is facing a record fine of £35.8 million.

The business will be punished for deliberately providing false data to industry regulator Ofwat and providing poor customer service.

The proposed penalty equates to 3 per cent of Severn Trent's turnover

Reports suggest Severn Trent will plead guilty to two charges of falsifying leakage data in 2002 and 2003.

Ofwat said the actions resulted in customers paying higher bills than they should and they insist shareholders must bear the entire cost of the fine.

Severn has said it will lower bills by £2.40 per household to ensure it had not profited from the episode.

The proposed penalty equates to 3 per cent of Severn Trent's turnover.

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