This site uses the UK Government AccessKeys system
|
|
What's new | Publications | Media centre | Price review | FAQs Update alerts | Consumer issues | Site map | Competition | Contact us |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||
Media centre
Ofwat today published its proposals to fine Tendring Hundred 0.3% of its turnover – a total of £42,000 – for failing to provide the regulator with reliable, accurate and complete information. In September 2006 (PN 26/06) Ofwat published details of the accounting error that led to the company misreporting information in its June return 2006. The error affected Tendring Hundred's revenue projections, which meant that its price limits for 2005-10 were incorrect, and led to its customers being overcharged. In April 2007 Tendring Hundred reduced bills by 7%, meaning customers had their overpayment refunded, plus interest. Ofwat Director of Regulatory Finance and Competition, Keith Mason said: "We take the matter of misreporting seriously. We can only regulate effectively and protect consumers if companies provide reliable, accurate and complete data. "There is no evidence of deliberate misreporting in this case. However, we are concerned that there were inadequate systems and controls in place at Tendring Hundred to identify such a substantial error. This meant that customers paid more than they should have." In considering the overall penalty, Ofwat took account of the company's co-operation with the investigation, as well as the impact that the costs of investigating and rectifying the error have had on a company of its size. Tendring Hundred will bear the cost of this fine and it cannot be passed on to its customers. Notes to Editors: 1. The Water Services Regulation Authority (Ofwat) is the economic regulator of water and sewerage companies in England and Wales. It exercises its powers in a way that it judges will allow companies to carry out their functions properly, and finance them. Its duties include protecting the interests of consumers, wherever appropriate by promoting effective competition. 2. Tendring Hundred Water, part of Veolia Environment, provides water supplies to 70,000 homes and businesses in north-east Essex. 3. Copies of Ofwat's proposals to impose a penalty on Tendring Hundred are available on the Ofwat website, www.ofwat.gov.uk or from the Ofwat Library by phoning 0121 625 1373. 4. Representations about or objections to the proposals to impose a penalty on Tendring Hundred should be made by 10 September 2008 to Ingrid Olsen, Head of Enforcement Policy, Ofwat, 7 Hill Street, Birmingham, B5 4UA or by email to Ingrid.olsen@ofwat.gsi.gov.uk 5. Penalties are paid into the Consolidated Fund and are not returned to customers. 6. The fine relates to turnover in the 2007/08 financial year, which was £14 million. Statutory restrictions mean that Ofwat can only impose a financial penalty for a 12 month period. 7. At the price review in 2004 Ofwat set price limits on the basis of incorrect information. The error in price limits led to the average household customer paying around £14 more than they should have over the period 2005-07. In 2007-08 Tendring Hundred reduced its price limits by 7% (before inflation) to refund the overpayment. 8. Media enquiries to Ofwat Press Office: Benedict Fisher – 0121 625 1442 Steph Beeby – 0121 625 1416 Email: pressofficeteam@ofwat.gsi.gov.uk  | ||||||
© Crown copyright |
Disclaimer & Privacy Statement |