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| Severn Trent faces a £35.8m fine | Severn Trent faces a £35.8m fine |
| (10 minutes later) | |
| Ofwat is proposing to fine Severn Trent Water £35.8m for providing false information deliberately and offering the company's customers a poor service. | Ofwat is proposing to fine Severn Trent Water £35.8m for providing false information deliberately and offering the company's customers a poor service. |
| The water industry regulator is fining the firm £34.7m - or 2.9% of total turnover - for the fraud, with a £1.1m penalty for bad customer service. | |
| Severn Trent admitted misreporting its water leakage levels in 2001 and 2002, after a Serious Fraud Office probe. | Severn Trent admitted misreporting its water leakage levels in 2001 and 2002, after a Serious Fraud Office probe. |
| It says it will cut bills by £2.40 per home to ensure it has not profited. | It says it will cut bills by £2.40 per home to ensure it has not profited. |
| 'Unacceptable' | 'Unacceptable' |
| "Seven Trent Water's behaviour was unacceptable," said Ofwat chief executive Regina Finn. | "Seven Trent Water's behaviour was unacceptable," said Ofwat chief executive Regina Finn. |
| We fully acknowledge and accept that the company is responsible for its failures Tony Wray, chief executive Severn Trent Check Severn Trent's shares | We fully acknowledge and accept that the company is responsible for its failures Tony Wray, chief executive Severn Trent Check Severn Trent's shares |
| "The size of the fine reflects how seriously Ofwat takes the deliberate misreporting of information. | "The size of the fine reflects how seriously Ofwat takes the deliberate misreporting of information. |
| "This sends a clear message to the company and the rest of the water sector - Ofwat will protect consumers and companies must comply with their legal obligations or pay the price." | "This sends a clear message to the company and the rest of the water sector - Ofwat will protect consumers and companies must comply with their legal obligations or pay the price." |
| Tony Wray, chief executive of Birmingham-based Severn Trent Water's parent company Severn Trent PLC, said "a previous regime" at the firm was responsible. | Tony Wray, chief executive of Birmingham-based Severn Trent Water's parent company Severn Trent PLC, said "a previous regime" at the firm was responsible. |
| 'Promptly alerted' | 'Promptly alerted' |
| "When my new management team and I uncovered misreporting and poor service in our customer relations department we promptly alerted Ofwat," added Mr Wray. | "When my new management team and I uncovered misreporting and poor service in our customer relations department we promptly alerted Ofwat," added Mr Wray. |
| SEVERN TRENT WATER 8 million customersBased in BirminghamServes customers across the Midlands | SEVERN TRENT WATER 8 million customersBased in BirminghamServes customers across the Midlands |
| "And [we] took steps to implement proper controls and an ethical working culture with the highest standards to ensure there can be no repetition of this unacceptable behaviour. | "And [we] took steps to implement proper controls and an ethical working culture with the highest standards to ensure there can be no repetition of this unacceptable behaviour. |
| "We fully acknowledge and accept that the company is responsible for its failures." | "We fully acknowledge and accept that the company is responsible for its failures." |
| Severn Trent Water serves more than eight million customers from the Bristol Channel to the Humber, and from mid-Wales to the East Midlands. | Severn Trent Water serves more than eight million customers from the Bristol Channel to the Humber, and from mid-Wales to the East Midlands. |
| Shares in Severn Trent PLC were down 1p to 1443p in Tuesday trading. | Shares in Severn Trent PLC were down 1p to 1443p in Tuesday trading. |