The flow-monitoring case, 2025–2026

analysisSouthern Water disclosed the investigation in its financial reports before any charge. Greensands Holdings' annual report for 2020–21 said that Southern Water was assisting the Environment Agency's separate investigation into sampling compliance and reporting issues, which it dated 2010 to 2017. In the supplementary prospectus of 30 July 2025 for its bond programme, Southern Water Services described the investigation as concerning legacy issues relating to wastewater sampling compliance for 2013 to 2017, said that the investigation stage had concluded and charges were expected, and that its board could not yet estimate reliably any resulting financial obligation; the prospectus does not describe the conduct under investigation. The Agency announced criminal proceedings against the company and former employees on 22 July 2026. ^{1 2 3}

analysisThe annual report for the year ended 31 March 2026 repeats that the company has continued to assist the Agency, that charges against it are in train and that court proceedings are not expected to conclude for several years. The company said it could not yet predict how it would plead or how the court would apply the sentencing criteria, and treated the matter as a contingent liability rather than making a provision. No plea by the company is recorded. A week after that report was authorised for issue, on 22 July 2026, the Agency announced the charges. ^{4 2}

analysisThe Environment Agency announced on 22 July 2026 that it had begun criminal proceedings against Southern Water Services Limited and former employees. Four former employees — Matthew Wright, whom the Agency describes as the company's former Chief Executive Officer, and three other former officers or senior operations managers — are charged with conspiracy to defraud. The Agency alleges that between 1 January 2012 and 31 December 2017 they conspired to defraud the Environment Agency and Ofwat by implementing artificial no-flow events at wastewater treatment works operated by Southern Water in order to manipulate the operator self-monitoring (OSM) compliance testing regime. Conspiracy to defraud is a common-law offence with a maximum sentence of 10 years' imprisonment. The company separately faces charges of breaching environmental permits linked to the same conduct, and three further individuals face charges linked to failure to comply with environmental permits. These are charges, not findings, and the Agency said it could not comment further on live proceedings. Mr Wright denies any wrongdoing and has cooperated with the Agency's investigation, his solicitor said, according to a press report of 11 September 2026. The company's last stated position is the one in its 2025–26 accounts, authorised before the charges were announced: it was assisting the investigation and could not yet predict how it would plead. The record contains no plea or later public statement by the company on the charges. On 11 September 2026 the defendants appeared at Bromley Magistrates' Court and the case was sent to Maidstone Crown Court, where they were due to appear on 9 October 2026; the record contains no later step. ^{1 2 3 4}

analysisAs summarised in the Divisional Court's judgment of 22 July 2026, the Agency alleges a deliberate plan by officers of Southern Water to contrive operational circumstances so that no flow passed through a site when it was believed it would or might fail the OSM test, including by arranging for wastewater to be removed by tankers. The court recorded that the allegations involve carefully planned and extensive fraud and dishonesty at a high level within the company, and the Agency's position that, by the company's own assessment, it avoided penalties of the order of £45 million, and more on the Agency's assessment. The court described the allegations only for the purpose of the judicial review and did not decide their merits. Mr Wright denies any wrongdoing, his solicitor said (as reported in September 2026), and the criminal case was sent to Maidstone Crown Court on 11 September 2026. ^{2 3}

analysisThe conspiracy charge began as a private prosecution by the Agency in the magistrates' court. According to the Divisional Court, the Agency applied to Medway Magistrates' Court for a summons charging Mr Wright, the company's Chief Executive Officer at the material times, and three former officers or senior operations managers. Mr Wright opposed it on the ground that the Agency had no power to bring such proceedings and that the summons was a nullity; his counsel did not suggest that a summons sought by the Crown Prosecution Service or the Serious Fraud Office would have been wrongly issued. District Judge Leake heard argument on 23 May 2025 and granted the application; the summons was issued on 24 September 2025 and served on 29 September 2025, with reasons dated 1 October 2025, and summonses were also issued against the company and another group of individuals. The judgment gives two other dates for these steps that conflict with the rest of its account and appear to be typing errors. Permission for judicial review was refused on 22 July 2026, and according to a press report Mr Wright appeared on the charge for the first time at Bromley Magistrates' Court on 11 September 2026, when the case was sent to Maidstone Crown Court. ^{1 2}

analysisIn R (Matthew Wright) v Medway Magistrates' Court ([2026] EWHC 1842 (Admin)), after a rolled-up hearing on 23 and 24 June 2026, the Divisional Court (Lord Justice Popplewell, with whom Mr Justice Hilliard agreed) held on 22 July 2026 that section 37(1) of the Environment Act 1995 allows the Agency to prosecute any offence where the prosecution is capable of being, and in its opinion is, conducive or incidental to its functions, so that it could prosecute Mr Wright and the three other former managers for conspiracy to defraud. It found the claim not arguable and refused permission to apply for judicial review. The anonymity order was set aside the same day, and the Environment Agency announced the prosecution. ^{1 3}

analysisThe same day the court set aside an anonymity order that Mr Justice Mansfield had granted on paper on 13 November 2025, on what he was told was an urgent application, together with a reporting restriction and a stay of the criminal proceedings. Mr Wright had argued that identification would end his career prospects; his counsel accepted that anonymity would not be available if permission were refused. The court held that a person who has been charged has no reasonable expectation of privacy outweighing open justice, found that Mr Wright had seriously breached his duty of candour by not telling the court that the hearing date relied on for urgency had been adjourned, and found that the Agency had breached its own duty by not notifying the court promptly. The Agency named the four accused former employees that day. ^{1 3}

analysisIn refusing anonymity the court noted that the company's earlier Operation Garden prosecution — guilty pleas to 51 offences concerning almost 7,000 discharges over six years — largely overlapped with Mr Wright's tenure in his senior position, and recorded his own evidence that Ofwat's 2019 report contained many of the allegations now charged but did not identify him as involved. The court stated that neither the Ofwat report nor the 2021 sentencing remarks identified him specifically as complicit; these were observations on anonymity, not findings on the charge. Mr Wright denies any wrongdoing, his solicitor said (as reported in September 2026), and the criminal case was sent to Maidstone Crown Court on 11 September 2026. ^{1 4 2}

analysisAccording to a press report, Mr Wright and the three other accused former employees appeared at Bromley Magistrates' Court on 11 September 2026 to face the charge for the first time, together with the three further individuals. District Judge Stephen Leake said he was satisfied that the charges were all related and sent the case to Maidstone Crown Court, where the defendants were due to appear on 9 October 2026; all were granted unconditional bail. Mr Wright denies any wrongdoing, his solicitor said, according to the same report. The report says the three further individuals were accused of "the same offence", whereas the Agency describes their charges as linked to failure to comply with environmental permits; it adds that Southern Water has separately been charged with dozens of permit offences. The record contains no later step. ^{1 2}

analysisThe dossier identifies the accused former chief executive with Matthew Reginald Wright, a director of Southern Water Services from 28 February 2011 to 31 December 2016. The Agency describes the accused as the company's former Chief Executive Officer and the Divisional Court says he held that post at the material times; a press report places his tenure between 2011 and 2016, after United Utilities and before Orsted, matching Companies House's records of directorships at United Utilities Water Limited (2007 to February 2011) and Orsted (UK) Limited (2017 to 2020). No record gives an identifier linking the accused to the Companies House officer record. ^{1 2 3 4 5}