Committee publication · Correspondence · 2 September 2025
Correspondence from Anglian Water regarding legal Fees, dated 7 August 2025
From: Environment, Food and Rural Affairs Committee
Inquiry: Reforming the water sector
Summary
Anglian Water responds to the Environment, Food and Rural Affairs Committee's inquiry into the water sector, providing detailed information on its dividend policy, regulatory legal costs, and compliance history. Over five years (April 2020–date), the company spent £655,703 on external legal fees across three regulators, faced 16 regulatory actions (15 guilty pleas, 1 contested), and employs 11 qualified solicitors with 2 dedicated to regulatory oversight.
Key findings
- Anglian Water spent £655,703 on external legal fees over 5 years: £99,844.95 (Ofwat), £522,299.09 (Environment Agency), £33,543.75 (Drinking Water Inspectorate)
- Company faced 16 regulatory actions: 1 Ofwat, 14 Environment Agency, 1 Drinking Water Inspectorate; pleaded guilty to 15, contested 1
- Dividend policy tied to business performance; AMP7 saw £73.9m in deductions due to ODI penalties; AMP8 requires 'new equity materially in excess' of assumed dividends to fund capital programme
- Legal team comprises 11 qualified solicitors, 2 legal executives, 8 unqualified staff; only 2 solicitors dedicated to regulatory matters overseen by Ofwat, Environment Agency, and Drinking Water Inspectorate
- Spent £27,815 on external legal costs defending challenge to pipe-laying powers; Professor Carolyn Roberts' Competition Appeals Tribunal claim against five water companies refused certification and costs ordered against claimant
Tone
ProceduralTopics
Key actors
Anglian Water Services Limited, Alistair Carmichael MP, Mark Thurston, Claire Russell, Ofwat, Environment Agency, Drinking Water Inspectorate, Professor Carolyn Roberts
Notable line
“An investable proposition with fair shareholder returns is crucial to supporting this investment and the resulting growth.”
Key Quotes
“… all figures given include fees spent on the services of both external law firms and barristers, cover both civil and criminal actions and are net of VAT.”
“In AMP8 we envisage a similar dividend policy being applied, with the requirement to make ongoing dividend payments crucial to supporting the investability of the company and the wider water sector.”
“Anglian Water has pleaded guilty to all but one of these offences. Therefore, 15 were "complied with" one contested and none have been "reframed"”
Source · parliament.uk record ↗