Severn Trent is facing a criminal prosecution and multimillion-pound fines after the Serious Fraud Office said it was bringing charges over allegations made by a former company employee.

Severn will be the first utility to be prosecuted by the SFO when it charges the company with three offences, relating to alleged misreporting of data on leaks to the water regulator between 2000 and 2002.

If the company, which serves 3.7 million properties in the Midlands, pleads not guilty, a date for trial will be set. No individual will be charged.

Ofwat, the water regulator, said: “For a water company to face criminal charges like this is unprecedented. We cannot comment on the case until it is complete.” The regulator reiterated that it is conducting a separate investigation into customer service failures at the company.

In April last year, Severn confessed to mis-stating customer relations data and Ofwat has indicated it will announce a multimillion-pound fine for the offence.

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