The charges, under section 207 Water Industry Act 1991, namely, providing false information to Ofwat, will relate to the leakage data in the June Returns for 2000, 2001 and 2002.

The SFO has also informed Severn Trent that no individual will be charged with any offences.

Tony Wray, chief executive of Severn Trent, said:

"The new board has co-operated fully with the SFO during the investigation.  We will now study carefully the details of the charges which relate to the responsibilities of a previous regime.  Until that process is completed and we have taken legal advice, we cannot comment further on our response to the charges.

"What I can say is that this new Board and management team has taken, and will continue to take, all actions we think appropriate to ensure the maintenance of both high ethical and professional standards and resilient and effective controls throughout our organisation.

The SFO informed Severn Trent on 31 October 2005 that, as a result of a referral by Ofwat, it was undertaking a criminal investigation into alleged reporting irregularities concerning leakage data supplied to Ofwat by Severn Trent Water between 2000 and 2003.

Ofwat had been conducting its own investigation following allegations of false reporting made by an employee of Severn Trent Water in May 2004.  On 7 March 2006 Ofwat published its interim report concerning the allegations of false reporting made against Severn Trent Water in 2004. 

Ofwat has communicated with Severn Trent regarding the fines that it intends to impose.  At this stage the process is ongoing and therefore Severn Trent cannot give a reliable estimate of the amount that might become payable.