Scottish Water statement on water charges

Scottish Water’s drive to improve efficiency has helped keep increased in charges between 2006-2010 at 0.5 per cent below inflation, a lower increase than those experienced in England and Wales. Average household bills are likely to be the third lowest in the UK in 2009-10. Looking forward, we share the regulators desire to keep further increases steady, and with no rise in real terms.

Helen Lennox, Head of Corporate Affairs at Scottish Water, said:

“Scottish Water is delivering value for money services, with customer service and water quality improving year on year. The Water Industry Commission (WIC) set charges for 2006-2010 to help pay for Scottish Water’s £2.45 billion investment programme that spans this four year period.

“We are keeping increases in customer charges 0.5% below the rate of inflation whilst delivering the biggest investment programme of its kind in the UK. Our draft business plan for 2010-2014 anticipates continued below inflation rises.”

The Water Industry Commission said in their annual report for 2007-2008 that

 “…the Commission so far sees no reason for movement away from the lower than inflation price increases for customers currently being enjoyed. Such an outcome would be good for customers in Scotland and for the competitiveness of Scottish business.”

Their annual report also praised Scottish Water’s work to become more efficient and drive down customer charges:

"In the period 2002-07, Scottish Water reduced its operating costs in real terms by £170 million per year. It improved the efficiency of its capital investment delivery during the first regulatory control period (2002-06) by 22% or £494 million. As a result, the average household now has a bill that is some £90 a year lower than it would otherwise have been."