Yorkshire Water customers could receive compensation as company faces lawsuit

It is one of six water companies alleged to have under reported pollution incidents, which are taken into account by regulators Ofwat and the Environment Agency when they decide whether bills can be increased.

Professor Carolyn Roberts, an environmental and water consultant represented by the law firm Leigh Day, is bringing the claims at a competition tribunal on behalf of more than 20m households.

The first was filed against Severn Trent Water in August. Claims against Yorkshire Water, United Utilities, Anglian Water and Northumbrian Water were filed this month and the last, against Thames Water, is expected next year.

Lawyers claim they could secure compensation payments of over £800m if the claims are successful, with Yorkshire Water being forced to pay out up to £390m.

They also said anyone who has paid a water bill from Yorkshire Water from April 2020 may be entitled to compensation if the case is successful and they do not need to sign up for the claim.

Professor Roberts said the legal action “could be the start of desperately needed change in the water industry”.

“If these companies had correctly reported the number of pollution incidents, Ofwat would have applied performance penalties, reducing how much these companies could charge,” she said.

"Instead, customers have been, and continue to be, overcharged and England’s waterways continue to be polluted.”

A Yorkshire Water spokeswoman said: “We are aware of an alleged claim being pursued by Leigh Day solicitors. Given the nature of the proposed proceedings, it would be inappropriate for us to comment any further.”

It comes after Yorkshire Water told customers their water bills would increase by almost £150 a year by 2030 as additional funding was needed to upgrade the sewage network and reduce discharges by a third.

It said the money would be used to support a five-year investment programme worth £7.8bn.

Under the terms of its environmental permit, Yorkshire Water is only allowed to discharge when the sewage system is full following periods of heavy rain or snow.

The number of discharges from storm overflows recorded in Yorkshire dropped by 22 per cent, from 70,062 to 54,273, between 2021 and 2022, and the amount of time sewage was allowed to spill into waterways fell by 43 per cent, from 406,131 hours to 232,054 hours.

Chief executive Nicola Shaw said she was pleased with the reduction but last year’s drought had a significant impact as there was less pressure on the sewage system during spells of dry weather.