LONDON (Reuters) - Ofwat plans to fine the new owners of Southern Water 20 million pounds after the water company deliberately misreported information more than two years ago.
"The magnitude of this fine reflects the magnitude of the offence -- deliberately misleading the regulator," said Ofwat Chief Executive Regina Finn.
"Southern Water's shareholders will bear the entire cost of this fine," she added. "It will not be passed on to its customers." (Sure they wont, should we belive a company that illegaly hyped up it's prices to play fair on this judgment!!!!!)
A group of infrastructure funds led by JPMorgan Chase & Co last month agreed to buy Southern Water from Royal Bank of Scotland for about 1.3 billion pounds.
JPMorgan partnered with Australia's Challenger Infrastructure Fund and other funds to buy the company, which provides water to more than 2 million people in southern England.
"The company benefited directly from this misreporting at the last two price reviews, meaning Southern was able to increase its prices by more than it should have done," said Finn. "Customers received higher than necessary bills because of the company's deception."
Southern Water admitted the offence and said customers who had been affected had been reimbursed.
(Reporting by Pete Harrison; Editing by Rory Channing)
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