Consumer Scotland has responded to the publication of the Water Industry Commission for Scotland’s (WICS) draft determination, which limits the annual increase in water bills to 2% (2.3% if certain costs materialise), plus CPI inflation, for every year from 2027-28 to 2032-33.
This is lower than the annual 3.3% a year plus CPI inflation increase proposed by Scottish Water in its final business plan.
Consumer Scotland Chief Executive Sam Ghibaldan said:
“We welcome the Water Industry Commission’s draft determination to reduce the proposed annual increase in water charges.
“While we recognise that more investment is needed to protect water services from the consequences of climate change and ageing assets, the increase in charges must be kept as low as practical to limit the impact on consumers.
“People’s views must be central to shaping major decisions about public services. That is why we delivered an innovative multi-year research study to test consumers’ views on Scottish Water’s plans as they have developed, to inform the draft determination.
“While consumers in our research broadly supported the direction of Scottish Water's Business Plan, they highlighted the importance of striking the right balance between charge increases and maintaining and improving the water services that they expect.”
"Consumers were also clear that they expect WICS to hold Scottish Water to account.
“We are encouraged that the regulator's draft determination challenges Scottish Water to go further in delivering value for money, proposing measures that will limit charge increases compared to Scottish Water’s Final Business Plan, while delivering improved outcomes for customers.
"However, affordability will remain a concern for low-income consumers. Consumer Scotland’s projections of water poverty indicate that, even with efforts to moderate charges, above inflation increases in water bills are likely to result in more low-income households struggling to pay.
"It is important that key bodies - including the Scottish Government, Scottish Water and Local Authorities - explore meaningful steps to strengthen affordability support and improve uptake of existing assistance measures for consumers over the coming regulatory period.
"Consumer Scotland will provide a full and detailed response to WICS’ draft proposals, drawing on the extensive evidence gathered from consumers throughout the Strategic Review of Charges (SRC) process."
Background
WICS publishes 2027-33 Draft Determination | WICS
Consumer Scotland is the statutory body for consumers in Scotland which was established by the Consumer Scotland Act 2020.