9 April 2008
A massive fine has been handed out to Severn Trent after the firm was found guilty of incorrectly reporting water leakages.
Following an inquiry at the City of London magistrates' court, the company will have to pay out £36 million in another settlement with Ofwat.
The firm had allegedly lied about criteria it had reached that enabled it to charge customers over the odds between 2000 and 2004.
Head of Ofwat Regina Finn stated that the size of the punishment should enable the outfit to see the volume of its errors.
"This sends a clear message to the company and the rest of the water sector ... any further attempts to deliberately mislead Ofwat could lead to even bigger fines in the future," she commented.
Fines handed out by the courts are to follow the payments that Severn Trent already faces.
Last week, a group of MPs were set to start a campaign to place water meters in every house.
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