The Environment Agency (EA) is bringing a fraud case against four former Southern Water employees, including former chief executive Matthew Wright, over allegations they manipulated wastewater testing results.
The regulator said the four had allegedly conspired to defraud the Environment Agency and water regulator Ofwat between 2012 and 2017 by creating artificial "no-flow" events at wastewater treatment works to influence compliance checks.
Environment Agency statement
An Environment Agency spokesperson said: "We can confirm that we are taking criminal proceedings against Southern Water Services Ltd and a number of former employees."
"We take our responsibility to protect the environment very seriously and will always pursue and prosecute those alleged to have committed serious offending against the environment."
Southern Water, which has more than 4 million customers, did not immediately respond to a request for comment. In a judgment published on Wednesday, the high court rejected Wright's argument that the EA lacked the power to prosecute him for conspiracy to defraud.
Financial impact and legal proceedings
According to the judgment, the EA alleges that by the company's own assessment the scheme allowed it to avoid penalties of about £45m, but the regulator's assessment put the figure higher.
Conspiracy to defraud carries a maximum sentence of 10 years' imprisonment. The case will now proceed at Medway magistrates court.
Government response
The environment secretary, Angela Eagle, said: "The public are rightly sick of environmental pollution and attempting to cover it up is outrageous. Anyone found guilty of this crime will face the full force of the law."
"This government will always back tough enforcement action to protect our rivers, lakes and seas. We have already committed to ending the practice of operator self-monitoring to ensure this cannot happen again in the future."
