Albion Water had sued for loss of earnings as a result of unfair prices charged by Welsh Water to access its water networks so it could supply the paper mill, in a matter dating back to 1999. It sought restitutionary damages of £3.5 million, plus interest, and punitive damages of £10 million to set an example to the rest of the industry.
The CAT dismissed the punitive damages claim but awarded Albion £1.6 million for loss of earnings in relation to supply of water to Shotton Paper Mill and £160,000 for loss arising from the lost opportunity to supply water to a nearby steelworks.
Jerry Bryan, executive chairman of Albion Water, said the case sent a clear message to the industry that anti-competitive pricing was unacceptable. “I hope Ofwat will now realise the evidence is clear that it was misled by an abusive monopolist ,” he said.
Ofwat originally sided with Welsh Water when Albion reported its grievances to the regulator. The CAT later criticised Ofwat over the way it had handled the case.
Welsh Water said it would review the Tribunal’s findings before determining its next step.