14 November 2007 OFWAT the UK’s economic water regulator looks set to fine Southern Water upto £20 Million.
The regulator claimes the company mis-represented information prior to October 2005 which resulted in poor services being delivered to customers.
By mis-representing information the company was able to benefit from price reviews and raise bills.
Southern Water claim that the fine will not be passed on to customers but will be picked up by shareholders. The company’s current management team is addressing the issues raised by the regulator and is in the process of returning money to customers that received the higher charges.
For further information the original OFWAT press release can be found Here