The Water Industry Commission for Scotland (WICS) has today published its annual assessment of Scottish Water's performance in 2025-26, the fifth year of the current regulatory period.
The report finds that Scottish Water continued to deliver high levels of day-to-day service for customers and maintained investment broadly in line with planned levels. Customer satisfaction remained high across all areas and overall service performance remained among the strongest levels achieved during the current regulatory period.
However, the assessment identifies growing concerns around the delivery of several longer-term commitments. Performance weakened in some areas during the year, while a greater number of investment outputs are now behind plan than in 2024-25. Risks to the delivery of environmental and climate commitments have also increased as the current regulatory period approaches its final year.
The report highlights that:
- Customer satisfaction remains high.
- Overall service performance remains among the strongest levels achieved in the current regulatory period.
- Capital expenditure remains broadly in line with planned levels despite lower revenues than originally anticipated.
- Leakage performance marginally missed Scottish Water's target range despite an increase in leaks fixed.
- Wastewater treatment works compliance declined compared with the previous year.
- The number of investment output areas behind plan increased from 22 to 32 during the year.
Over the first five years of the regulatory period, Scottish Water invested £3.636 billion in maintaining and improving water and wastewater services across Scotland, just £10 million below the level assumed when charges were set. However, while many areas are on target, the report notes a small deterioration in delivery performance over the last year.
WICS Chief Executive David Satti said: "Scottish Water continues to deliver some of the highest levels of service in its history, and customer satisfaction remains strong.
“While overall investment remains broadly in line with expectations, delivery has slowed in some areas, creating challenges for the year ahead. Maintaining momentum and ensuring that investment translates into improvements for customers will be important as Scottish Water works through these challenges.
“The final year of the current regulatory period provides an opportunity for management to build on the progress made and focus on areas where further progress is needed. We will continue to monitor performance closely, particularly in areas such as leakage and environmental performance, and engage with Scottish Water on how it is responding to the challenges it faces.
“Ultimately, this is about delivering for customers, both now and in the future."
The report also notes that Scottish Water remains behind its interim operational carbon reduction milestone and there is a risk it will not meet its commitments under its Improving Urban Waters Routemap.
WICS will continue to monitor performance closely throughout 2026-27, focusing on areas that are behind plan and challenging Scottish Water on the action it is taking to recover delivery. The Commission will publish its Final Determination for the 2027-33 regulatory period on 12 November 2026, setting out charge caps, investment expectations and performance requirements for the next six years, alongside strengthened arrangements for monitoring delivery and outcomes.
For media enquiries please contact: press@wics.scot