Court challenge over 'unlawful' water bill rise
BBCAn environmental group has been given permission to take the water regulator to the High Court over how customers are billed.
River Action is challenging the way Ofwat sets the price that companies are able to charge.
Ofwat says its business plans are "carefully scrutinised".
It follows investigations by campaigners in Cumbria who claim they have exposed chronic sewage pollution and regulatory failings.
A spokesperson for River Action said: "This is about the British public not paying twice for water companies failing to invest in infrastructure."
The group claimed Ofwat's 2024 Price Review approved above-inflation bill increases, without guaranteeing the money would be spent on maintenance.
River Action said it believed that allowed water firms to charge customers twice - first, with bills that should cover infrastructure and second, through new hikes aimed at fixing the same problems.
Its legal case focused on United Utilities and its works in and around Windermere but the group said it believed it had national implications because it revealed failures in Ofwat's approach.
It argued it checked compliance with permit conditions and ignored information which was sent to them showing breaches.
River Action also questioned whether the regulator would have the ability to claw back funding if it had been misused.
'Fair value'
The High Court challenge followed an interim review into the water industry.
In a statement, Ofwat said it rejected River Action's claims.
"The process carefully scrutinised business plans to ensure customers were getting fair value and investment was justified," it said.
"We agree that customers should not pay twice for companies to regain compliance with environmental permits and have included appropriate safeguards to ensure this - which we will monitor closely, taking action if required."
United Utilities has previously challenged the findings of campaigners and said it had cut sewage spills per storm overflow by a quarter last year.
A date for the court hearing is still to be set.