Could you be entitled to compensation from your water company?

Six of the largest water companies in the country are facing legal action over claims they underreported pollution incidents and overcharged customers.

The companies involved – Seven Trent Water, Thames Water, United Utilities, Anglian Water, Yorkshire Water and Northumbrian Water – could be forced to pay more than £800 million in compensation to customers if the legal action is successful.

The legal action centres around whether the companies misled regulators when reporting spillage pollution to be able to continue to charge customers a premium for maintaining England’s waterways.

The claims are being brought on an opt-in basis, meaning anyone who has paid a water bill to any of these companies will automatically be compensated unless they actively choose not to be.

This could result in around 20 million households being eligible for compensation with each getting around £40 each.

Severn Trent Water is the first company to face legal challenge. If successful, the further five will quickly face action.

The Competition Appeal Tribunal will first need to decide whether the claims can go ahead. That process can take around a year.

The case is being brought by law firm Leigh Day.

Zoe Mernick-Levene, partner at Leigh Day, said: “These claims are hugely significant. Not only is compensation being sought for millions of customers who have and continue to pay higher water bills, but we hope that it will also send a message to water companies that they cannot lawfully pollute waterways and mislead regulators without consequence.”