River Action starts legal action over customers ‘paying twice’ for Windermere clean up

River Action has taken the first step in a legal challenge against Ofwat, arguing that customers could pay twice under its PR24 arrangements.

The action specifically concerns the PR24 final determination for United Utilities, relating to the funding allocated for wastewater treatment works and pumping stations in and around Lake Windermere. It follows investigations by campaign groups Save Windermere and Windrush Against Sewage Pollution.

River Action argued in a ‘letter before action’ (under the pre-action protocol for Judicial Review) that Ofwat unlawfully approved enhancement funding from customers without a mechanism to ensure the money will be used solely to improve sewerage services, rather than to bring services into compliance when that should have already happened under past schemes. “This means there is nothing to stop customers paying twice for services that have not yet been delivered,” River Action said – something Ofwat has committed not to allow.

The campaigner wants Ofwat to reassess its PR24 determination for United Utilities in relation to Windermere, and more widely for Ofwat to reassess other water company schemes wherever there are concerns that customers are “unfairly covering the cost of past failures”.

While the action is specific to United Utilities, River Action pointed out that it believes the issue extends far beyond. “Under PR24, Ofwat has likely permitted other firms to operate in a similar way — leaving bill-payers to pick up the tab for failings that should have been fixed with previous funding.”