Class action to seek £500m compensation for ‘overcharged’ business customers

A new opt-out class action claim, seeking compensation for non-household rather than household customers, has been launched against water companies for alleged overcharging.

Last week, law firm RPC publicised that it was again working with Professor Carolyn Roberts – who is the class representative in the domestic class action claim – and had issued letters before action to six water companies: Severn Trent, Anglian, Northumbrian, Yorkshire, Thames and United Utilities. The claim will allege business customers have been overcharged, and competition law infringed, because the water companies have under-reported sewage spills.

Damages of up to £510m are sought on behalf of around one million non-household customers including from the public sector, businesses and charities.

A decision is awaited from the Competition Appeal Tribunal on the household claim, following a September 2024 Collective Proceedings Order hearing. A statement from RPC said: “Given the very high degree of overlap between the two sets of proceedings, Professor Roberts will ask the CAT to case manage and hear the non-household claims alongside the household claims.”

Both claims are backed by litigation funder, Bench Walk Advisors.