Utilities group Severn Trent is facing criminal charges from the Serious Fraud Office for misreporting information to the water regulator.
The company will be charged on three accounts concerning leakage data between 2000 and 2002. Chief executive Tony Wray said: 'We will now study carefully the details of the charges, which relate to the responsibilities of a previous regime.'
The charges have been brought after an investigation carried out by the SFO which began in October 2005. Water regulator Ofwat said in a statement: 'For a water company to face criminal charges like this is unprecedented. We cannot comment on the case until it is complete.'
The company serves 3.7 million household and business customers in England and Wales. Information given to Ofwat is crucial in determining how much water firms can charge households for water, waste services and the cost of repairing the network of pipes.
Severn Trent's charges follow other punishments handed out to water companies over the past few months. Southern Water was fined £20.3 million last week for misreporting data to Ofwat. Three Valleys Water is also being investigated by Ofwat for the potential supply of misinformation.