Environment Agency to prosecute Southern Water and former staff

Administrative Court confirms that EA can proceed with charges of conspiracy to defraud by water utility and its former employees, including CEO Matthew Wright. 

The Environment Agency has commenced legal proceedings against Southern Water and four former members of its senior staff: Matthew Wright, Philip Barker, Clive Massey and Mark Gregory. They face a charge of conspiracy to defraud. 

In addition, three men – Mark Butler, Terry Stephens and David James – will face charges linked to failure to comply with environmental permits. 

There had been some question over whether the Environment Agency had powers to prosecute these men, but today a judgment of the Administrative Court confirms that the agency can proceed. Previously, the High Court had granted anonymity to the defendants, which the agency challenged. The case will now proceed before Medway Magistrates Court. 

It is alleged that between January 1, 2012, and December 31, 2017, the accused individuals conspired to defraud the Environment Agency and Ofwat through the implementation of artificial no-flow events at wastewater treatment works operated by Southern Water, so as to manipulate the operator self-monitoring (OSM) compliance testing regime.  

The OSM scheme was introduced in 2009 and requires water companies to take samples at their wastewater treatment works and report results to the Environment Agency. To ensure independence and accuracy, strict rules govern how samples must be taken. It is a criminal offence if there is evidence that flows or data are deliberately manipulated to dodge compliance checks.  

Conspiracy to defraud is a common law offence and carries a maximum sentence of 10 years’ imprisonment.  

Separately, Southern Water will face charges of breaching environmental permits linked to the same conduct. 

These charges follow a complex inquiry by the Environment Agency, based on evidence secured over many years of investigation. 

A spokesperson for the Environment Agency says: ‘We can confirm that we are taking criminal proceedings against Southern Water Services Limited and a number of former employees. We take our responsibility to protect the environment very seriously and will always pursue and prosecute those alleged to have committed serious offending against the environment. We welcome this important judgment.’ 

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