In a move that is sure to impact households across Scotland, water bills are set to increase by an average of 8.7% from April. This rise will see the typical bill rise by £42 annually, taking the average cost to £532.
Despite the increase, Scottish Water has stated that its bills will remain among the lowest of any water company in the UK. The hike, which equates to around £3.50 extra per month, is in line with limits set by the independent economic regulator, the Water Industry Commission for Scotland (WICS).
In contrast, average water bills in England and Wales rose by a significant 26%, or £123 per year, last April. Scottish Water, a publicly-owned organisation, has stated that the additional revenue will enable it to maintain essential services for more than five million people and support investment to upgrade critical infrastructure, such as water pipes and treatment works.
Alex Plant, Scottish Water’s chief executive, acknowledged that any rise is unwelcome but emphasised that “every penny our customers pay goes into improving services for people in Scotland – from tackling ageing pipes, to responding to ever more extreme weather, to enabling new homes to be built.”
The company has faced increasing pressures on its water and wastewater system, including more extreme weather and growing demand. Recent challenges have included Scotland’s driest start to the year in six decades and an increase in repairs as older infrastructure reaches the end of its operational life.
Despite these challenges, Scottish Water has made significant strides in improving its performance. Since 2021, drinking water compliance in Scotland has improved to 99.93%, while serious environmental pollution incidents and internal sewer flooding incidents have been reduced by 25% and one-third, respectively.
The company’s board has also stated that during and after the pandemic, it had deliberately kept bill increases below inflation to support households. This had, however, reduced Scottish Water’s investment programme by an estimated £400-£500 million.
With more than half of households in Scotland (53%) receiving help with their water charges, the company has one of the most comprehensive support schemes in the UK. Most households pay water charges through their council tax bill, based on the council tax band of their home.
Overall, the economic value generated by Scottish Water is estimated to be £4.5 billion per year. As the company continues to navigate the challenges of an aging infrastructure and extreme weather, the 8.7% increase in water bills aims to ensure the delivery of essential services and necessary investments for the future.