Severn Trent Water charged over false leak data

London - Severn Trent Water Ltd is to be charged with providing false information to industry regulatory body, Ofwat. The company is facing three charges relating to leakage data in its June returns for 2000, 2001 and 2002, the Serious Fraud Office announced 22 Nov .

The charges follow a criminal investigation, which SFO launched in September 2005 supported by the West Midlands Police. This investigation was carried out in response to an earlier Ofwat probe into suspected reporting irregularities at Severn Trent. Ofwat has indicated that it will fine the water company over the misreporting.

The charges relate to "the responsibilities of a previous regime," said Tony Wray, chief executive of Severn Trent Plc. "This new board and management team has taken, and will continue to take, all actions we think appropriate to ensure the maintenance of both high ethical and professional standards and resilient and effective controls throughout our organisation."

According to Severn Trent, the Ofwat investigation followed allegations of false reporting by an employee of Severn Trent Water in May 2004.  In April 2006, the company said it uncovered misstated customer relations data in submissions to Ofwat.