LONDON (ShareCast) - Severn Trent has had its record £35.8m fine for providing false information to the water regulator confirmed today, just a day after it was fined £2m by a criminal court for the same offences.

Ofwat originally proposed the fine in April and decided to ratify it after a period of consultation.

The fines followed a probe by the Serious Fraud Office into actions taking by the water company in 2001 and 2002. That probe resulted in Seven Trent pleading guilty to two offences under the Water Industry Act of marking false returns to Ofwat.

Speaking after yesterday's case Ofwat said "For a water company to be prosecuted like this is unprecedented. Severn Trent Water's behaviour in misleading both customers and regulator was unacceptable. Ofwat will protect consumers and companies must comply with their legal obligations or pay the price."

Reports today suggested Severn Trent may also be forced by Ofwat to return a further £40m to customers through lower bills.

The company said it "deeply regretted" its actions but would not take legal action against the staff responsible, who have all left the company.

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