Scottish Water charges will continue to be among the lowest in Great Britain in the next six years.
Since 2009, Scottish Water’s charges have reduced by 10 per cent relative to the rate of inflation. By the end of its new six-year regulatory period, which commences in April, Scottish Water charges will have fallen further in real terms – below the level of CPI inflation.
An increase in household charges from April 1 (for the year 2015/16) will be limited to 1.6 per cent – around £6 a year for the average household. It means the average Scottish Water household charge in 2015/16 will be £346.
As a result the average household charge in Scotland is expected to be £40 lower than the average household bill in England and Wales.
The new charges are within price limits set by the Water Industry Commission for Scotland based on a new six-year agreement between Scottish Water and the Customer Forum, which represented the interests of customers.
The agreement, which commences in April, provides stability in charges for customers.
Customer charges will help pay for a £3.5 billion investment by Scottish Water in the next six years which will further improve drinking water quality, protect the environment and support the economy and jobs in the construction sector.
Douglas Millican, Chief Executive, said: “Our customers have told us that they value certainty in their charges over the medium term. Today’s announcement signals stability in water charges for the coming years and provides certainty for customers.
“It follows a major customer consultation exercise and extensive discussion with customers and stakeholders, including the Customer Forum for water, to agree a 2015-21 business plan which is focused on meeting customer priorities.”