Court grants overpayment class action cases the right to appeal

The Court of Appeal has granted permission for class action representatives to appeal the Competition Appeal Tribunal’s (CAT) March decision to dismiss their water overcharging lawsuits.

In granting permission, the Appeal Court recognised that the application “raises grounds which have a reasonable prospect of success” and that “the issue arising is important and there is a compelling reason for it to be considered.”

The cases concern alleged pollution under-reporting by Anglian Water, Northumbrian Water, Severn Trent, Thames Water, United Utilities and Yorkshire Water, which resulted in them being allowed to raise customer bills more than if they had reported the pollution incidents accurately. The challengers, headed by class action representative Professor Carolyn Roberts, argued this amounted to an abuse of a dominant position. They sought compensation for the household customers affected. The CAT disallowed the cases under the Water Industry Act.

The appeal will now proceed to a one day hearing, date to be confirmed.