Below Inflation Rises For Scottish Water Customers

27th January 2014

Scottish Water’s household charges will rise this April, 2014, by 1.6 per cent – 1 per cent below the level of inflation (RPI).

This is only the second rise since 2009 and signals a determination to build on customer service improvements in recent years, maintain investment in upgrades to water works and pipes and ensure services are ready for the future.

Water charges in Scotland are expected to remain well below the average household charges of private water companies in England and Wales.

2014/15 is the final year of SW’s five-year regulatory programme. Looking ahead, Scottish Water and the Water Industry Commission, working with the Customer Forum, are committed to maintaining low level increases in charges through its business planning for the next six years.

Douglas Millican, Chief Executive of Scottish Water, said:“This commitment of low level increases in charges for future years gives our customers reassurance that their water bills continue to deliver real value for money while we provide customer service improvements to water and waste water services in Scotland.”

Annual council tax bills being delivered through letter boxes will include combined water supply and waste water collection charges that come into effect from 1 April 2014. The average Scottish Water charge for households across Scotland in 2014/15 will be around £339 - less than a £1 a day.

It means, for example, customers living in a Band A property will pay £4.26p extra next year. Those in a Band D property will pay an additional £6.39p over the year.

Household charges had remained unchanged from April 2009 until April 2013, when they increased by less than inflation.

The below inflation rise for 2014/15 signals continued stability in water and waste water bills for Scotland, at the same time as Scottish Water is delivering one of the largest investment programmes per household in the UK.

It means that since 2009 charges have reduced by 10.2 per cent relative to the rate of inflation.

Mr Millican added: “Our customers are benefiting from Scottish Water’s continued strong financial performance and its focus on delivering further efficiencies. That is why we have been able to give our customers the security of knowing that their charges will continue to be stable while we continue delivering vital investment.

“Our customers are continuing to see value in the charges they pay combined with improved service. The quality of our drinking water is the best it has ever been, we are continuing to improve the natural environment across Scotland and customer service is continuing to improve.

“We believe these charges are a fair deal for our customers in these challenging economic conditions.

“These charges are helping to pay for the current £2.5 billion investment programme - which is delivering the investment that Scotland needs in its water infrastructure - while supporting thousands of construction jobs.”

Deputy First Minister Nicola Sturgeon said:"By keeping Scottish Water in the public sector household charges in Scotland will continue to be amongst the lowest in the Britain and by the end of 2014-15, Scottish Water will be providing one of the best value water and sewerage packages in Britain.

“Scottish Water froze water and sewerage charges for four years throughout the recession and by keeping increases for 2014-15 below the rate of inflation they have recognised the continued pressure on household finances.”

The level of increase in charges for Scottish Water’s 2.4 million household customers is based on the RPI (Retail Price Index) and is agreed with our economic regulator the Water Industry Commission for Scotland and the Customer Forum at an RPI rate of 2.57 per cent (of October 2013).

The table below sets out water and waste water charges for customer properties in each council tax band from 1 April, 2014.