Friday 23 Nov 2007 @ 15:15
Scottish Government
Scottish Government
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Water charges
A consultation on the principles of water charging that will guide the work of the Water Industry Commission in determining water charge levels for 2010-14 has been launched. The consultation includes:
* The maintenance of existing principles that are critical to fair and affordable water services - including full recovery of costs through charges, geographical harmonisation of charges and stable charges
* Further movement towards more obviously cost-reflective charges - customers paying a fair charge for the demand they place on water services - in a manner least disruptive to customers
Infrastructure Minister Stewart Stevenson, said: "Scottish Water is making significant improvements to water services while delivering efficiency savings to all its customers. Average household charges are lower than England and Wales.
"The current framework of stable and affordable charges has been fundamental to these improvements. Charges have not risen in real terms. I want this to continue under a stable charging framework for 2010-2014. This will allow Scottish Water to fund essential investment in capacity, in public health and in the environment, while meeting operating costs.
"We will also move towards a system where those who place the least demand on water services should pay the least. This is a sensible and fair approach for all customers."
The consultation takes account of competition in the provision of retail services, such as billing, reading meters, handling complaints etc, to non-household customers being possible from 1 April 2008.
A result of this change is that the principles of charging that Ministers finally set for non-household customers will only apply to the wholesale charges set by Scottish Water. Retailers will be responsible for end charges for these customers.
The Principles of Charging for Water Services are one of the key Ministerial inputs to the wider water charging review (the Strategic Review of Charges) for 2010-14. This is commissioned by Scottish Ministers and undertaken by the Water Industry Commission for Scotland.
This charging review (which is the second since the creation of Scottish Water in 2002) will conclude in November 2009 with the Water Industry Commission setting limits on the water and sewerage charge levels that Scottish Water can apply during 2010-14. It will only do so following the decisions that Ministers make on the principles that they would wish to see the Commission apply during that period.
Improvements during the current regulatory 2006-2010 period include:
* The delivery of more than £1 billion of efficiency savings by 2006 with a further £500m savings targeted by 2010
* Over £2 billion of investment in the water industry, delivering substantial improvements to services provided to customers - better drinking water quality and cleaner environment
* Over 25,500 new housing connections made in 2006/07 - Scottish Water will provide new strategic capacity in every case where it is required
* A 38 per cent improvement in customer service performance in 2006-07
These results are reflected in charge levels:
* Average household charges are £15 lower in Scotland for 2007-08 than in England and Wales, and will rise by less than inflation. By 2010 Scottish Water's charges are expected to be the third lowest in the UK
* Non-household charges will reduce by over 6 per cent in real terms between 2006 and 2010
* Harmonised charges have ensured that customers pay the same rate for the same service wherever they are in the country
Related Information
* The maintenance of existing principles that are critical to fair and affordable water services - including full recovery of costs through charges, geographical harmonisation of charges and stable charges
* Further movement towards more obviously cost-reflective charges - customers paying a fair charge for the demand they place on water services - in a manner least disruptive to customers
Infrastructure Minister Stewart Stevenson, said: "Scottish Water is making significant improvements to water services while delivering efficiency savings to all its customers. Average household charges are lower than England and Wales.
"The current framework of stable and affordable charges has been fundamental to these improvements. Charges have not risen in real terms. I want this to continue under a stable charging framework for 2010-2014. This will allow Scottish Water to fund essential investment in capacity, in public health and in the environment, while meeting operating costs.
"We will also move towards a system where those who place the least demand on water services should pay the least. This is a sensible and fair approach for all customers."
The consultation takes account of competition in the provision of retail services, such as billing, reading meters, handling complaints etc, to non-household customers being possible from 1 April 2008.
A result of this change is that the principles of charging that Ministers finally set for non-household customers will only apply to the wholesale charges set by Scottish Water. Retailers will be responsible for end charges for these customers.
The Principles of Charging for Water Services are one of the key Ministerial inputs to the wider water charging review (the Strategic Review of Charges) for 2010-14. This is commissioned by Scottish Ministers and undertaken by the Water Industry Commission for Scotland.
This charging review (which is the second since the creation of Scottish Water in 2002) will conclude in November 2009 with the Water Industry Commission setting limits on the water and sewerage charge levels that Scottish Water can apply during 2010-14. It will only do so following the decisions that Ministers make on the principles that they would wish to see the Commission apply during that period.
Improvements during the current regulatory 2006-2010 period include:
* The delivery of more than £1 billion of efficiency savings by 2006 with a further £500m savings targeted by 2010
* Over £2 billion of investment in the water industry, delivering substantial improvements to services provided to customers - better drinking water quality and cleaner environment
* Over 25,500 new housing connections made in 2006/07 - Scottish Water will provide new strategic capacity in every case where it is required
* A 38 per cent improvement in customer service performance in 2006-07
These results are reflected in charge levels:
* Average household charges are £15 lower in Scotland for 2007-08 than in England and Wales, and will rise by less than inflation. By 2010 Scottish Water's charges are expected to be the third lowest in the UK
* Non-household charges will reduce by over 6 per cent in real terms between 2006 and 2010
* Harmonised charges have ensured that customers pay the same rate for the same service wherever they are in the country
Related Information
http://www.scotland.gov.uk/Consultations/Current
http://www.watercommissioner.co.uk/
