Judge urges parties to find out-of-court resolution to water and drainage search charge dispute

A judge has urged water companies and personal search companies (PSCs), which supply information to end customers involved in the sale/purchase of land, to seek an out-of-court resolution in a dispute over whether water companies have been charging appropriately for information on water and drainage that is supplied to house movers and land buyers.

The PSCs argued they are being overcharged for drainage and water information held exclusively by water companies, and brought a case to the High Court. This was against the nine English water and wastewater firms, and the property search subsidiaries of Severn Trent and Wessex Water.

The claimants argued that the information in the relevant reports falls under the category of ‘environmental information’ which public authorities are obliged to provide free of charge or for no more than a reasonable charge under Environmental Information Regulations (EIR) 2004.

They further argued that water companies – which they say could have made the relevant information easily available through measures such as an open register – have proactively withheld the information and instead sought to maximise profit through over-charging, and that these charges amount to unjust enrichment.

The water companies’ case rests on arguments including that the information in question is not ‘environmental information’ but personal data, and that extracting it requires skill and judgement.

Stage 1 of the trial, which ran in November and December 2023, established whether the information in question is ‘environmental information’ which the nine English water and sewerage companies involved are obligated under the EIR to make available to the public, and whether any of the disclosure exceptions in the EIR apply. The judge found some of the information to be environmental information and a matter of public importance, and therefore some liabilities for the water companies. However he also considered much of this information to be publicly available and easily accessible.

He urged the parties to seek resolution outside of court, rather than progressing to Stage 2 to determine any financial liability or compensation, which could run to up to £250m.

A spokesperson for the claimants said: “We are pleased that the court agreed with some important aspects of the claim on environmental information and believe this to be a matter of public importance. As we now consider our legal options ahead of a Stage 2 trial, we note the court’s guidance to give meaningful consideration to whether this dispute is now capable of resolution and hope that the defendant water companies can do the same.”