Scotland’s consumer body has backed proposals from the water regulator to reduce potential annual increases in water bills set out in Scottish Water’s Business Plan.
The Water Industry Commission for Scotland (WICS) has recommended capping the amount charged to customers to 2% plus CPI inflation for every year from 2027-2028 to 2032-2033.
The regulator has said this could rise to 2.3% plus CPI from 2030 if additional, “uncertain” costs arise.
This is lower than the annual 3.3% a year plus CPI inflation initially proposed by Scottish Water in its business plan.
In a response to a WICS consultation on its draft determination on charges, Consumer Scotland said the lower limits will provide important protections for consumers.
But Consumer Scotland wants any increases above these limits to be subject to “robust evidence, transparency and independent challenge” to protect consumers from paying more than is necessary.
Consumer Scotland has also welcomed an additional £50 million of funding to address sewer flooding - an issue consistently raised by consumers in our research.
Consumer Scotland has made a number of further recommendations including:
- stronger reporting by Scottish Water so customers can clearly see what benefits are being delivered in return for the charges they pay
- the “real world” experience of consumers to be central to performance monitoring by Scottish Water and WICS, with greater emphasis on service quality and reliability, at local level where possible
- improved support for consumers in vulnerable circumstances
- the development of a shared focus across the sector on affordability
- ensuring investment decisions deliver value and fairness for consumers both now and in the future
Chief Executive of Consumer Scotland Sam Ghibaldan said:
"Our research demonstrated that consumers recognise the need for investment in Scotland's water and wastewater services, but they want clear evidence that any increase in charges is necessary, affordable and delivers tangible benefits.
"Therefore, we welcome WICS' proposal to limit charge increases and the strong scrutiny that has been applied throughout the Strategic Review of Charges process.
“This helps protect consumers from paying more than is necessary and provides greater confidence that investment plans have been independently challenged.
“Affordability of charges for low income consumers remains a concern and we welcome the Scottish Government’s commitment to review water charging and affordability measures over the course of the upcoming regulatory period.
“Alongside that review it is important the sector takes steps to promote the uptake of existing support for consumers.”
Consumer Scotland will continue to work with WICS, Scottish Water, the Scottish Government and other key bodies in the water sector to ensure consumer interests remain at the heart of decision-making.
Background
Consumer Scotland response to the Water Industry Commission for Scotland’s draft determination
The future level of water charges for the six-year period from 2027-2028 to 2032-2033 is determined by the Strategic Review of Charges (SRC)
The review aims to ensure customers pay no more than necessary to fund existing services, invest in future infrastructure and deliver the overall policy objectives set by Scottish Ministers.
A Memorandum of Understanding was signed by the Water Industry Commission for Scotland, Scottish Water and Consumer Scotland in November 2024.
The memorandum was established to ensure Scottish Water’s business plan was shaped by customer views and that WICS’ final determination of charges commands consumer support.
Consumer Scotland research to inform the SRC found consumers were generally willing to accept above-inflation increases in bills where there was a clear and credible link to investment and improvements.
Consumers recognised the need for investment to address ageing assets, climate resilience and service quality, but consistently emphasised the importance of transparency, accountability and value for money.
However, concerns remained about the cumulative impact of rising household and business bills.
Consumer Scotland is the statutory body for consumers in Scotland, which was established by the Consumer Scotland Act 2020.