Consumer Scotland has responded to the publication of Scottish Water’s Final Business Plan, which proposes an annual increase in bills of up to 3.3% plus CPI inflation from 2027-28 to 2032-33.
This is a reduction from the previous proposal of up to 4% a year plus CPI inflation in Scottish Water’s initial draft business plan.
Consumer Scotland Head of Water Gail Walker said:
“We welcome Scottish Water’s decision to limit the proposed annual increase in charges to 3.3% plus inflation instead of the 4% plus inflation originally set out in its draft plan.
“We recognise increases are required to fund essential investment in ageing infrastructure, climate resilience and regulatory compliance.
“However, the increased charges will still have a significant effect on bills and we remain concerned water poverty in Scotland will rise significantly over the next few years unless there is an increase to the existing Water Charges Reduction Scheme discount to help low income families.
“In the longer-term, Consumer Scotland recommends a new scheme of affordability support that more effectively targets water poverty should be introduced by the start of the 2033 regulatory period.
“Therefore, we are pleased the Scottish Government has committed to review water charging and associated affordability measures over the course of the 2027-2033 period.”
Background
Following the publication of Scottish Water’s final business plan, Consumer Scotland will test its proposals with consumers. The results of our research will be made available to the Water Industry Commission for Scotland ahead of its Draft Determination which will be published in June.
The Scottish Government is currently consulting on and will finalise the Principles of Charging which will culminate in an agreed system of discounts and reductions.
Consumer Scotland analysis reveals around one in ten Scottish households are currently in water poverty, and around one in 20 are in severe water poverty.
Water poverty is defined as households facing charges for water and sewerage that exceed 3% of their disposable income while severe water poverty is defined as water and sewerage charges that exceed 5% of disposable income.
Consumer Scotland is the levy-funded advocacy body for the water industry in Scotland.